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Swing trading with heiken ashi and stochs

  • #1,361
  • May 23, 2012 6:04pm May 23, 2012 6:04pm
Quoting Ozefex
First live trade for a few years. Saw a chance to short EURUSD and quickly move to BE +2 so I don't care if it retraces. It's worth a try & will cover my $1.40 commission on a 0.2 lot with 1:400 leverage.

(Using account with low spread + commission of $3.50 per 100K AUD. Dropped my lot size from 1.0 in demo account to 0.20 to safely account for leverage. Using high leverage to limit maximimum amount held in broker's account, therefore minimising risk if broker goes south... Not applicable for US traders with 1:50 leverage limit.)

Edit: Didn't...
I have to say I love the colour scheme! Where's the sell signal there though?!
  • #1,362
  • May 23, 2012 10:06pm May 23, 2012 10:06pm
Early in the morning here. Gbpusd still running. The 8 ema is very effective, once the downwards bias ceases I'll be out but all the time it's meandering down slowly I'm still in the trade and locking more and more profit by the hour.
Attached Image (click to enlarge)
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  • #1,363
  • May 23, 2012 10:07pm May 23, 2012 10:07pm
There is obvious support to break today as well, maybe another nice push down?
  • #1,364
  • May 23, 2012 10:59pm May 23, 2012 10:59pm
Quoting Hugh Briss
... Where's the sell signal there though?!
It was there - (dare I say) just not on that time frame.... (I meant to post on the 15 min HA & Stochs thread)
Still learning - No guarantees...
  • #1,365
  • May 23, 2012 11:33pm May 23, 2012 11:33pm
Quoting Ozefex
It was there - (dare I say) just not on that time frame.... (I meant to post on the 15 min HA & Stochs thread)
Fair enough. There's a 15 min ha and stochs thread?!
  • #1,366
  • May 24, 2012 12:11am May 24, 2012 12:11am
Quoting Hugh Briss
Fair enough. There's a 15 min ha and stochs thread?!
been searching for it myself thanks Hugh for this amazing thread, have been having pretty decent results through the D1-H1 combo

May the force be with you
Raza
  • #1,367
  • May 24, 2012 12:17am May 24, 2012 12:17am
Quoting shr5
been searching for it myself thanks Hugh for this amazing thread, have been having pretty decent results through the D1-H1 combo

May the force be with you
Good to hear you're making pips.
  • #1,368
  • May 24, 2012 3:05am May 24, 2012 3:05am
Gbpusd went up just enough to hit my stop and then fell off a cliff without me. Oh well, banked 170 pips but it could've been a lot more.
  • #1,369
  • May 24, 2012 5:48am May 24, 2012 5:48am
Quoting Hugh Briss
Well it's complicated. When I started the thread I was closing on the next heiken ashi change against the trend. Since then I have tried a lot of different exit methods but the ones I like the best are to either trail the stop behind the 100 sma (using the ea all over the thread) or if you just want to trade the immediate move I find the 8 ema about right.
Hugh,

I assume you mean the 8ema on the higher time frame as the trail (for the immediate move)?
  • #1,370
  • May 24, 2012 5:58am May 24, 2012 5:58am
Quoting Raggs
Hugh,

I assume you mean the 8ema on the higher time frame as the trail (for the immediate move)?
Sometimes I use it on the lower timeframe to catch the immediate move on the hourly. I used it on the gbpusd trade because with gbpusd volatility I know it can reverse quickly and I didn't want to give too much back. A lot depends on your tolerance to risk and your attitutude to giving money back once you've made it. Looking at gbpusd today I was complaining because I got stopped out for 170 pips but in actual fact I would have been stopped out not far from that anyway just an hour or so later.
  • #1,371
  • May 24, 2012 6:23am May 24, 2012 6:23am
Hugh, I was looking at this last night and thought I'd prefer a trail on a smaller ma but with a buffer of 30 - 40 pips (maybe more). While a 100 sma may be good for a long term trend, it can take a while to catch up.

Have not used it yet but will give it a go once I can get a good entry.
Still learning - No guarantees...
  • #1,372
  • May 24, 2012 6:52am May 24, 2012 6:52am
Quoting Ozefex
Hugh, I was looking at this last night and thought I'd prefer a trail on a smaller ma but with a buffer of 30 - 40 pips (maybe more). While a 100 sma may be good for a long term trend, it can take a while to catch up.

Have not used it yet but will give it a go once I can get a good entry.
I have been playing around with 4hour tf....trailing 60 pips above the previous 4hourly close has been working just fine (that's for sell positions while for buys it would be 60 pips below the previous 4hrly close)...yes its the close and not the previous 4 hourly candle's high/low....

Hope that helps out some how....
Raza
  • #1,373
  • May 24, 2012 8:30am May 24, 2012 8:30am
Quoting Ozefex
Hugh, I was looking at this last night and thought I'd prefer a trail on a smaller ma but with a buffer of 30 - 40 pips (maybe more). While a 100 sma may be good for a long term trend, it can take a while to catch up.

Have not used it yet but will give it a go once I can get a good entry.
Try the old wave ma's. 34 ema high, 34 ema low. In a downtrend trail behind the high, in an uptrend trail behind the low. There's no end of ma's you can use. I usually use a 5 or 10 pip buffer. The ea includes the spread too.
  • #1,374
  • May 24, 2012 9:57am May 24, 2012 9:57am
Hugh et al,

Just thought I would throw this in to the mix and see what everyone thought.
The system remains the same but I wondered if there was a way to get a slightly better entry so I looked into putting a short term RSI over the stochastics.
When the RSI crosses the Stochastics because it is a shorter setting it gives a 'heads up' usually one or two bars before the actual cross of the stochs. Obviously in a fast moving market that may not happen.
What I then did was look at taking the entry on the close of the bar rather than then having to wait for the stochs to cross and the Heikin Ashi to change colour.
Take a look at the charts - USDCAD and feedback would be most welcome.
Hugh - hope you don't mind - love the system! Just want to nail my entries a little better.
The lower time frame chart shows similar entry points for 'building' the position - I have taken the same principle and entered on the close of the bar which could (no guarantees) get you a few extra pips. Not all these entries would be taken due to where and when you trade but it shows if you can get in on the early part of a trend / swing then chances of making more pips are enhanced (nothing new there then).
Over to you for comments.
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  • #1,375
  • May 24, 2012 11:44am May 24, 2012 11:44am
Quoting Hugh Briss
Try the old wave ma's. 34 ema high, 34 ema low. In a downtrend trail behind the high, in an uptrend trail behind the low. There's no end of ma's you can use. I usually use a 5 or 10 pip buffer. The ea includes the spread too.
That sounds about right. I fogot the fact that I'm still using a work laptop (so I can catch a few trades during the day) but can't run MT4 or an EA all the time. That was one of the reasons I was looking at a VPS. I'll continue with the manual system for now (adjusting behind the bars as shr5 mentioned would also be okay). Thanks for the suggestion(s).
Still learning - No guarantees...
  • #1,376
  • May 24, 2012 11:51am May 24, 2012 11:51am
Quoting Raggs
Hugh et al,

Just thought I would throw this in to the mix and see what everyone thought.
The system remains the same but I wondered if there was a way to get a slightly better entry so I looked into putting a short term RSI over the stochastics.
When the RSI crosses the Stochastics because it is a shorter setting it gives a 'heads up' usually one or two bars before the actual cross of the stochs. Obviously in a fast moving market that may not happen.
What I then did was look at taking the entry on the close of the bar rather than then having to...
Any enhancements that work for you are good. I've been using breakouts of strong s/r for entries as well recently. As long as you are never risking too much but always maximising your return then it's a winner.
  • #1,377
  • May 26, 2012 2:46am May 26, 2012 2:46am
I'm on holiday next week and probably will be around a little less afterwards. I want to spend some time concentrating on my own trading.

In the last few months I have made some real breakthroughs in terms of my trading methods and philosophy. I have gone from being mildly profitable to wildly profitable in a short space of time and I need some time to adjust emotionally.

I'd like to thank everyone that has contributed to this thread and given their ideas and suggestions. I truly believe we have created something good here. The original system works fine on it's own provided you are trading a trending market. The last version using the daily and hourly has the advantage of allowing you to anticipate the possibility of a good tradeable trend.

I want everyone reading this to understand the "secret" behind trading successfully. I know there are many different ways to trade forex and make money and some people will no doubt disagree with this and say their way is better but the absolutely best way to make money is to add on aggressively when you are proved right. If you have anticipated a trend, perhaps traded the first bounce from the 100 sma and it is moving in your direction then get the first trade to break even and open another trade using the same risk as the first trade. That way you are 1 x risk and 2 x profit in a market that's already trending your way. Keep adding on until the trend turns and then close all your trades at once.

Let's assume the markets are a 50/50 proposition. The spread is a house edge for the broker and the trend moves the odds back our way. At any one point in time you have a 50/50 chance of the price moving one way or the other. (I believe the odds are more in your favour if you are trading with the trend and use support and resistance but that's just a bonus). If you are assuming the same risk on each add on then every time you add on you are multiplying your profit potential and keeping your risk as the same 1 or 2% of your account. Think of it this way, there is a horse race with two horses, both have an equal chance of winning but a bookmaker is offering odds of 3 or 4 to 1 on one of the horses, would you take the bet?

That's the secret to making big money quickly. Cut your losses short, let your winners run and add on. You will experience a fair % of losing trades but your winners will be exponentially bigger.

Good luck to everyone and thanks again.
  • #1,378
  • May 26, 2012 3:38am May 26, 2012 3:38am
Quoting Hugh Briss
I'm on holiday next week and probably will be around a little less afterwards. I want to spend some time concentrating on my own trading.

.... Good luck to everyone and thanks again.
Hugh, Thanks very much for starting this thread and for the work you have put in to it. I understand that you need a break to concentrate on your own trading. Sometimes sharing your thoughts can help you formulate and comfirm your ideas, however you can also get sidetracked by other people's responses and opinions.

My trading, and my approach to trading, has significantly improved over the last few months while following your thread. I still have to go back and re-read everything from the start and make better use of the daily / hourly strategy, but I'm confident that it will be a worthwhile and profitable exercise.

Thanks & regards,
Ozefex
Still learning - No guarantees...
  • #1,379
  • May 26, 2012 4:14am May 26, 2012 4:14am
Quoting Ozefex
Hugh, Thanks very much for starting this thread and for the work you have put in to it. I understand that you need a break to concentrate on your own trading. Sometimes sharing your thoughts can help you formulate and comfirm your ideas, however you can also get sidetracked by other people's responses and opinions.

My trading, and my approach to trading, has significantly improved over the last few months while following your thread. I still have to go back and re-read everything from the start and make better use of the daily / hourly strategy,...
No worries mate . I'm glad that a lot of people seem to be getting something from this approach. I hope the thread doesn't die although I do know that often once the OP goes the rest follow. I'll be around and will probably pop my head in but I need a break from trading altogether for a week or two and then I need to focus on what I am doing all the more and prove that my recent spell of success is not just down to luck. Speak soon, Ted.
  • #1,380
  • May 26, 2012 8:47am May 26, 2012 8:47am
Quoting Hugh Briss
... but the absolutely best way to make money is to add on aggressively when you are proved right. ...

Good luck to everyone and thanks again.
You got it, Hugh/Ted, well done.

Have a great holiday and a great trading career.



J.
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