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Swing trading with heiken ashi and stochs

  • #1,121
  • May 12, 2012 4:38am May 12, 2012 4:38am
Quoting smartearn
please can u tell us the setting of your daily stochastics on the hourly chart or you post the template for us .

thanks
Smartearn, Hugh posted the multi-timeframe stochastic (MTF Stoch) in post #931, page 63 - http://www.forexfactory.com/showthre...98#post5617398. Hugh also used it in later posts (eg. #942, 951, ...).

You can set this to 1440 minutes (which equals 1 day) and use it on any chart timeframe (ie. it doesn't change).

I experimented with this for a while, but I am currently using a revised version of my template from posts 892 & 897 (page 60) - see those posts for explanations and the zip file attached to this post for my current version. (I can't remember if you actually have to set your broker's time zone in the PL4 clock indicator. I thought you did but I can't find the setting at the moment, so perhaps not.)

You are welcome to experiment with my template and indicators, but remember that I'm still using HB's strategy. I always check higher timeframes to establish the trend and generally trade with the daily trend.

Regards,
Ozefex
Attached File(s)
File Type: zip HA_Swing_T1.zip   152 KB | 688 downloads
Still learning - No guarantees...
  • #1,122
  • May 13, 2012 7:22am May 13, 2012 7:22am
Hi everybody,

Hugh Briss, I have some new questions for you. I hope it doesn't bother you too much:

1/ In your post #1064, you analyzed a trading period and you said: "The last day there was NFP day so not traded." Does NFP day mean Natural Family Planning day and why it is a no trading day? It seems correspond to a Friday, does all Friday are NFP day?

2/ I use to trade the following pairs: EUR/USD USD/JPY GBP/USD USD/CHF USD/CAD AUD/USD NZD/USD GBP/USD USD/JPY GBP/JPY EUR/JPY EUR/GBP EUR/CHF NZD/JPY GBP/JPY AUD/USD EUR/CAD EUR/AUD (because these are the most volatile pairs, according to this website: http://www.forex100.net/forex/paire-devise.html). I know it is too much, because:
- it is to complicate to follow a lot of trades at the same time
- and some pairs are highly correlated (as shown in this table: http://www.tribuforex.fr/Apprendre-c...tion-forex.php). So, for example, if I open one trade on EUR/USD and an other one on USD/CHF, if one is lossing, the other one is losing too. So I want to select the best pairs to trade.

I would like to trade may be only about 5-10 pairs. I'm looking for pairs with high volatility and low correlation between them. Please, I would like to know on which pairs do you trade usually? I saw you trade on the following pairs: USD/CHF GBP/JPY EUR/NZD AUD/USD CHF/JPY USD/JPY, do you like to trade on other ones?

3/ About Money Management (MM) to use for hourly trading, I set the following settings:
- Initial capital: 1000€ (for example)
- Initial stop: 50 pips (may be it was good for H4 trading, but for H1 trading I'm not sure, isn't 50 pips too much?)
- Stop size in the capital: 1% (This is the maximum loss on one trade, I wonder if this 1% isn't too much?)

These settings give:
- Maximum loss on one trade: 10€ (1% of the capital)
- €/pip: 0,2 (because 10€ for 50 pips)
- Lot size: 0,02 (because 0,2€/pip)

Please, because you are more experienced than me, I would like to know what do you think about my MM? Do you think 1% of capital for the maximum loss per trade is serious? Don't you think it is too much (too risky)?

Thank you again for all your knowledge you bring us.
  • #1,123
  • May 13, 2012 8:06am May 13, 2012 8:06am
Quoting vinze87
Hi everybody,

Hugh Briss, I have some new questions for you. I hope it doesn't bother you too much:

1/ In your post #1064, you analyzed a trading period and you said: "The last day there was NFP day so not traded." Does NFP day mean Natural Family Planning day and why it is a no trading day? It seems correspond to a Friday, does all Friday are NFP day?

........

Vinze87, I can answer your first question & Hugh can answer the rest. Don't forget you can search for terms using the Google powered search link at the top of the FF page.

NFP = (US) Non-Farm Payroll. Listed in the FF Calendar as "Non-Farm Employment Change" and defined as:

Source Bureau of Labor Statistics (latest release)

Measures Change in the number of employed people during the previous month, excluding the farming industry;

Usual Effect Actual > Forecast = Good for currency;

Frequency Released monthly, usually on the first Friday after the month ends;

Next Release Jul 1, 2012

FF Notes This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts;

Why Traders
Care Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

Also Called Non-Farm Payrolls, NFP, Employment Change;
Still learning - No guarantees...
  • #1,124
  • May 13, 2012 8:28am May 13, 2012 8:28am
Quoting Ozefex
Vinze87, I can answer your first question & Hugh can answer the rest. Don't forget you can search for terms using the Google powered search link at the top of the FF page.

NFP = (US) Non-Farm Payroll. Listed in the FF Calendar as "Non-Farm Employment Change"
Thank you Ozefex, I'll use the Google powered search link next times. I didn't think about it.

I don't understand one thing. The Hugh Briss' strategy (find trend on H4 and trade on H1) we are using could be beneficial especially when there is volatility. And when there is an economic news (NFP change for example), there is volatility, that the forecasts are better or worse than the actual figures.

So why don't trade during NFP day? More there is volatility on H1, better it is for us, isn't it?
  • #1,125
  • May 13, 2012 9:29am May 13, 2012 9:29am
Quoting vinze87
Hi everybody,

Hugh Briss, I have some new questions for you. I hope it doesn't bother you too much:

1/ In your post #1064, you analyzed a trading period and you said: "The last day there was NFP day so not traded." Does NFP day mean Natural Family Planning day and why it is a no trading day? It seems correspond to a Friday, does all Friday are NFP day?

2/ I use to trade the following pairs: EUR/USD USD/JPY GBP/USD USD/CHF USD/CAD AUD/USD NZD/USD...
Hi, as posted above NFP is non farm payroll, first Friday of every month. Best to avoid it as you don't know what effect it will have on price and it is usually volatile enough to mess up a 30 pip stop.

I trade all available pairs but I won't trade more than one correlated pair at a time as it is just doubling your risk.

3% per trade would be fine if you are getting to break even after 20 pips and holding the trade for longer.

I recommend using the daily chart and then 1 hour.

Ask as many questions as you need to.
  • #1,126
  • May 13, 2012 10:25am May 13, 2012 10:25am
Quoting Hugh Briss
Hi, as posted above NFP is non farm payroll, first ...

3% per trade would be fine if you are getting to break even after 20 pips and holding the trade for longer.

...
Thank you Hugh Briss, everything is clear. There's just one thing I'm not sure to understand when sometimes you are using the following words: "If you are getting to break even after 20 pips."

Does it mean: "If you are closing a trade after 20 pips losing."

Anyway, it seems good for H1 trading to use:
- Stop: 20 pips
- Stop size in the capital: 3%

It gives the following lot size: 0,15. It seems reasonable.
  • #1,127
  • May 13, 2012 10:32am May 13, 2012 10:32am
Quoting vinze87
Thank you Hugh Briss, everything is clear. There's just one thing I'm not sure to understand when sometimes you are using the following words: "If you are getting to break even after 20 pips."

Does it mean: "If you are closing a trade after 20 pips losing."

Anyway, it seems good for H1 trading to use:
- Stop: 20 pips
- Stop size in the capital: 3%

It gives the following lot size: 0,15. It seems reasonable.
Getting to break even after 20 pips means after your trade goes into profit by 20 pips then move your stop loss to the price you entered the trade so that if the price goes back to that level, against your trade, then your stop loss will be hit at the same price you entered and so you lose nothing. Break even = no win,no loss.

I would use 30 pips on 1 hour but move to break even (see above) when the trade is in profit by 20 pips.
  • #1,128
  • May 13, 2012 11:58am May 13, 2012 11:58am
Ok, initial stop at 30 pips and when 20 pips profit, put stop at enter price.

And about the same subject, I would like to know if you still used your ea to close trade automatically? Or if you use trailing stop (set at 20 pips)? Or if you closed all your trade manually?

Thank you
  • #1,129
  • May 13, 2012 1:28pm May 13, 2012 1:28pm
Hello Hugh,
When you open trades do you just open at market or are you placing pending orders.
cheers
mark
  • #1,130
  • May 13, 2012 1:34pm May 13, 2012 1:34pm
Quoting vinze87
Ok, initial stop at 30 pips and when 20 pips profit, put stop at enter price.

And about the same subject, I would like to know if you still used your ea to close trade automatically? Or if you use trailing stop (set at 20 pips)? Or if you closed all your trade manually?

Thank you
I am taking my trades on the hourly and getting to break even then I am holding them and trailing the stop behind the 100 sma. You can trail behind the daily 8 ema but it amounts to the same thing.
  • #1,131
  • May 13, 2012 1:35pm May 13, 2012 1:35pm
Quoting markpounder
Hello Hugh,
When you open trades do you just open at market or are you placing pending orders.
cheers
mark
I always open at market.
  • #1,132
  • May 13, 2012 5:13pm May 13, 2012 5:13pm
@Vinze87 - You have obviously done a lot of research. I have not seen the web sites you quoted before. Unfortunately my French is not as good as your English (by a significant margin) so I can't read the detail on the Forex100.net site. It does look like an informative site. Forex-tribe.com also looks good (and has an English version!).

I know some people trade news announcements, but for now I am looking for more predictable / high probability results as expected from strategies such as presented by Hugh Briss in this thread.

Regards,
Ozefex
Still learning - No guarantees...
  • #1,133
  • May 14, 2012 8:03am May 14, 2012 8:03am
I was up way too late last night, so I was not up and looking at screens this morning- But I see some (what I believe) Wild movement and opportunity.
In the EUR Pairs particularly EUR/JPY,EUR/GBP, EUR/USD.
Wish I had been in front of the screen 2 hours ago..

One of my weakness as a trader is I have hard time jumping on a trade after a large move has started - I believe this stems from a year of cobra trading focusing on the M5 - I need to bust out of that......

So I am selling EUR/USD 1.2844 SL-40 1.2889 TP +30-12818

Anyone exploit and cash in on any of the EUR action?

Also for Ozefx or HB - When we use the Dual time frame method H1 + D1 how much weight do give to the SMA 100 on the day chart if any ( some readings are coming back to me)?

Love this thread..... You guys Rock.

Lets crush some pips !!!
  • #1,134
  • May 14, 2012 8:43am May 14, 2012 8:43am
Quoting drzeepfx
I was up way too late last night, so I was not up and looking at screens this morning- But I see some (what I believe) Wild movement and opportunity.
In the EUR Pairs particularly EUR/JPY,EUR/GBP, EUR/USD.
Wish I had been in front of the screen 2 hours ago..

One of my weakness as a trader is I have hard time jumping on a trade after a large move has started - I believe this stems from a year of cobra trading focusing on the M5 - I need to bust out of that......

So I am selling EUR/USD 1.2844 SL-40 1.2889 TP +30-12818

Anyone exploit and cash...
Good luck with your trade, have to answer better later but why use a take profit instead of let the trade run?
  • #1,135
  • May 14, 2012 9:32am May 14, 2012 9:32am
Quoting Hugh Briss
Good luck with your trade, have to answer better later but why use a take profit instead of let the trade run?
I have to the office days and dont really have access to the MT platform....
You guys have an EA I know - but I have not had a chance to play with it.... Too many things interfearing with my screen time right now... Some day I pray tradeing will be my full time and only occupation..

I really have made a challange to myself to get up to speed on this...
Hopefully I can contribute as mush as I take soon

Thank you
Drzeep ...
  • #1,136
  • May 14, 2012 10:53am May 14, 2012 10:53am
Quoting drzeepfx
I was up way too late last night, so I was not up and looking at screens this morning- But I see some (what I believe) Wild movement and opportunity.
In the EUR Pairs particularly EUR/JPY,EUR/GBP, EUR/USD.
Wish I had been in front of the screen 2 hours ago..

One of my weakness as a trader is I have hard time jumping on a trade after a large move has started - I believe this stems from a year of cobra trading focusing on the M5 - I need to bust out of that......

So I am selling EUR/USD 1.2844 SL-40 1.2889 TP +30-12818

Anyone exploit and cash...
This is my eur position at the moment, trailing stop just about to kick in on my first entry. This is why I haven't been posting much really, not much to say! Waiting for the euro to do it's thing but we're getting there.

At the moment I am in two minds about the importance of the 100 sma on the higher timeframe. Countertrend moves on the daily can lead to good strong tradeable trends on the hourly chart and so it would seem we should just ignore it and take a stoch cross and ha change on the daily as the cue to start watching for a trend on the hourly but something tells me only trading the impulse moves on the daily that line up with a good trend would give a better probability. I will have to keep trading this way and let you know.
Attached Image (click to enlarge)
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  • #1,137
  • May 14, 2012 2:55pm May 14, 2012 2:55pm
Hi Hugh, Have you noticed how highly "synchronized" the Forex pairs appear to be at this time? I trade 11 pairs:

(EURUSD,AUDUSD,NZDUSD,GBPUSD,USDCAD,EURGBP,GBPJPY,GBPAUD,EURCAD, AUDCAD and AUDJPY) as well as the USDX.

Every one of them at the moment is in overbought/oversold(80/20) territory as judged by my Stochastic, DSS Bressert, 8,5,5 on a Daily basis. None are in transit between the extremes. Also many are poised for a countertrend reversal rather than a trending reversal. However,the GBP pairs are looking for the next reversal to be a trending move. We can hope!!
Do not dwell in the past, do not dream of the future, concentrate the mind.
  • #1,138
  • May 14, 2012 5:15pm May 14, 2012 5:15pm
Quoting Hugh Briss
...

At the moment I am in two minds about the importance of the 100 sma on the higher timeframe. Countertrend moves on the daily can lead to good strong tradeable trends on the hourly chart and so it would seem we should just ignore it and take a stoch cross and ha change on the daily as the cue to start watching for a trend on the hourly but something tells me only trading the impulse moves on the daily that line up with a good trend would give a better probability. I will have to keep trading this way and let you know.
@ Drzeep: It occured to me after your question about the 100 sma on the D1 & H1 charts that I wasn't using using one! My excuse is that I've been busy the last couple of weeks and hadn't really converted to Hugh's recent D1 & H1 strategy - I am still centred around the H4 but looking at higher timeframes for trends and lower timeframes for timing. I'm essentially following the method but not fully. I've been constantly tweeking my templates but have stayed with the triple pipware stochastics (showing fixed D1, H4 & H1 stochastics on all charts) plus a standard stochastic that changes with the current tf.

I have now added the 100 sma on H1 & H4, the 200 sma on D1 and the 40 sma on W1 as I had used these previously (see below for explanation). I hadn't been using the 8 sma so have taken this off.

@ Hugh: Following on from your comment about the importance of the 100 sma on the higher timeframes - my current opinion is that the 200 sma is more relevant on the daily (and I understand it is traditionally used by the major stock & fx traders). Often you can zoom out and see many points where the D1 200 sma acts as support or resistance.

Dividing 200 by 5 to effectvely put the D1 200 sma on the weekly (as a 40 sma) generally reinforces this.

In my view, this gives a better appreciation of the long term trend. You can then decide what is going to give you a good trade on the H4 or H1 - depending on your timeframe for the trade and if you want to go with the long term trend or trade a counter trend.

My personal preference is use the long term sma's price action to indicate the overall trend, then trade in the direction of the D1, H4 & H1 stochastics. The stochastics set to 8,3,3 correspond very well with the Heiken Ashi candles on all timeframes (you could probably just use the stochastics or the HA's, but both give visual confirmation).

If the D1 stoch is just starting to turn and you can line up the H4 & H1 stoch's, you can normally get a very good trade. This can start a trend lasting several days or weeks and give multiple trades on the lower timeframes.

And equally important to the above is support & resistance - the round number levels @ 50 & 100 pip intervals are gold! Other established s/r levels on short & long term timeframes are also important.

Hope this makes some sense & and is not too contradictory to your method.

Regards,
Ozefex
Still learning - No guarantees...
  • #1,139
  • May 14, 2012 6:05pm May 14, 2012 6:05pm
Quoting Hugh Briss
Good luck with your trade, have to answer better later but why use a take profit instead of let the trade run?

SL kicked in Took my 30 PIPs - minus swap -- thinking about jumping back in and letting it ride out the night - still looks like plenty of momentum to the short side.
  • #1,140
  • May 14, 2012 6:12pm May 14, 2012 6:12pm
This looks like great logic - I admire the work you have put into it and appreciate the time and effort you have put in.

How has this set of indicators tested as a group?
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