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Swing trading with heiken ashi and stochs

  • #2,181
  • Aug 8, 2012 8:27am Aug 8, 2012 8:27am
Quoting Raa
I am not greedy, 300 for me is enough

I did not find properly exit point, so I set auto tp just 300 points.
It's not about being greedy or otherwise, it's about your winners being big enough to pay for your losers. Finding trend trades on weekly charts will incur lots of losses and so your winners need to be as large as possible. Try backtesting your idea and see what I mean.
  • #2,182
  • Aug 8, 2012 8:29am Aug 8, 2012 8:29am
Quoting jaxx80
Hello Hugh Briss,

Do you take trades which are in the desired direction but the price is in the opposite side of the 100 SMA?

If you see a bullish reversal sign on the daily chart, then you see a bullish reversal sign on the hourly chart, but the price is below the 100 SMA (on the daily or on the hourly chart), will you take the trade?

And if you take it what will you do when the price crosses the 100 SMA? according to the system you have to close all trades, but in this case the crossing will be in the good direction?

Thanks
In the original method I would sometimes take a trade even if the price had breached the 100 sma, for instance if there was a turn at some obvious support/resistance. With the new method I never trade against the 100 sma. Just wait for a daily signal and then go to the hourly chart and wait for an hourly signal in the same direction.
  • #2,183
  • Edited 10:22am Aug 8, 2012 8:38am | Edited 10:22am
Quoting Hugh Briss
It's not about being greedy or otherwise, it's about your winners being big enough to pay for your losers. Finding trend trades on weekly charts will incur lots of losses and so your winners need to be as large as possible. Try backtesting your idea and see what I mean.
Don't worry, i pyramid my positions.. 300 pips is for me 1000~

I just need strategy... 50-60% accurate
  • #2,184
  • Aug 8, 2012 10:27am Aug 8, 2012 10:27am
Quoting Hugh Briss
In the original method I would sometimes take a trade even if the price had breached the 100 sma, for instance if there was a turn at some obvious support/resistance. With the new method I never trade against the 100 sma. Just wait for a daily signal and then go to the hourly chart and wait for an hourly signal in the same direction.

May be I did not explain myself well.
If the 100 sma is heading up (uptrend), but the price currently is below the 100 sma, will you take a long position if you see a signal?

for instance the NZD/USD 1h - two hours ago (disregard the daily chart, it is only for the example)
  • #2,185
  • Aug 8, 2012 3:22pm Aug 8, 2012 3:22pm
Quoting jaxx80
May be I did not explain myself well.
If the 100 sma is heading up (uptrend), but the price currently is below the 100 sma, will you take a long position if you see a signal?

for instance the NZD/USD 1h - two hours ago (disregard the daily chart, it is only for the example)
Ok then the answer is no. Never trade the wrong side of the 100 sma.
  • #2,186
  • Aug 8, 2012 3:30pm Aug 8, 2012 3:30pm
Quoting Hugh Briss
Ok then the answer is no. Never trade the wrong side of the 100 sma.
Thanks
one more question about the maximum stop loss of 50 pips for all positions:

if I have 1 position which is already 120 pips in profit, does this mean that I can open new positions with total stop loss of 170 pips?
  • #2,187
  • Aug 8, 2012 4:09pm Aug 8, 2012 4:09pm
Quoting jaxx80
Thanks
one more question about the maximum stop loss of 50 pips for all positions:

if I have 1 position which is already 120 pips in profit, does this mean that I can open new positions with total stop loss of 170 pips?
Technically yes but you really want to take one trade at a time, get each trade in turn to break even and then start looking for another trade. The only time you would want to overlap your trades is when you get a very clear pullback and turn very near a previous entry in which case you can add another trade but you wouldn't want to move the first trade to break even straight away to keep it away from any spikes. This means you would have two trades not at break even at the same time but as long as the combined risk doesn't exceed 50 pips then that's fine.
  • #2,188
  • Aug 8, 2012 5:13pm Aug 8, 2012 5:13pm
Quoting Hugh Briss
Technically yes but you really want to take one trade at a time, get each trade in turn to break even and then start looking for another trade. The only time you would want to overlap your trades is when you get a very clear pullback and turn very near a previous entry in which case you can add another trade but you wouldn't want to move the first trade to break even straight away to keep it away from any spikes. This means you would have two trades not at break even at the same time but as long as the combined risk doesn't exceed 50 pips then that's...
You move the trade to breakeven when it reaches 50 pips in profit? and then you put a trailing stop 50 pips?
  • #2,189
  • Aug 9, 2012 1:07am Aug 9, 2012 1:07am
Quoting jaxx80
You move the trade to breakeven when it reaches 50 pips in profit? and then you put a trailing stop 50 pips?
I don't move to break even so much anymore, I just let the ea trail behind the 100 sma by 20 pips but set it to close if the price closes the other side of the ma.
  • #2,190
  • Aug 9, 2012 3:18am Aug 9, 2012 3:18am
Quoting Hugh Briss
In the original method I would sometimes take a trade even if the price had breached the 100 sma, for instance if there was a turn at some obvious support/resistance. With the new method I never trade against the 100 sma. Just wait for a daily signal and then go to the hourly chart and wait for an hourly signal in the same direction.
Hugh,

I am still not 100% sure about the daily signal on the latest system, would you clarify a little? Daily signal is:

1) 100 SMA trending on D1,
2) D1 stoch crossing in direction of the trend,
3) Reverse candle closed in the direction of the trend,

Now what I am not sure is:

4) Do we need D1 smooth pullback to have a valid signal?
5) if after the reverse candle we have quite a few D1 candles in direction of the trend is the D1 signal is still valid?

Thank you!

Julius
  • #2,191
  • Aug 9, 2012 6:25am Aug 9, 2012 6:25am
Quoting juliuy
Hugh,

I am still not 100% sure about the daily signal on the latest system, would you clarify a little? Daily signal is:

1) 100 SMA trending on D1,
2) D1 stoch crossing in direction of the trend,
3) Reverse candle closed in the direction of the trend,

Now what I am not sure is:

4) Do we need D1 smooth pullback to have a valid signal?
5) if after the reverse candle we have quite a few D1 candles in direction of the trend is the D1 signal is still valid?

Thank you!

Julius
The pullback and signal can be less perfect on the daily because you are waiting for a clear signal on the hourly.

If a trend is already in place on the daily/hourly and it pulls back to near the 100 sma then you can get in and ride the rest of the trend.
  • #2,192
  • Edited 7:07am Aug 9, 2012 6:51am | Edited 7:07am
Shorted NZDUSD @ 0.81320 S/L: 0.81900
  • #2,193
  • Aug 9, 2012 8:08am Aug 9, 2012 8:08am
Quoting Igorman
Shorted NZDUSD @ 0.81320 S/L: 0.81900
What TF?
  • #2,194
  • Edited 8:43am Aug 9, 2012 8:17am | Edited 8:43am
Quoting 1kato
What TF?
1H|D1
  • #2,195
  • Aug 9, 2012 8:33am Aug 9, 2012 8:33am
Quoting Hugh Briss
The pullback and signal can be less perfect on the daily because you are waiting for a clear signal on the hourly.

If a trend is already in place on the daily/hourly and it pulls back to near the 100 sma then you can get in and ride the rest of the trend.
Hello, Hugh.

Apologies if it's already answered, but I couldn't find the answer. Anyways, the question is:
Do you take only one H1 signal per D1 signal, or you can consider taking another, if the D1 signal is still "valid". If so, how is the D1 signal invalidated?

Best regards,
Barbossa
  • #2,196
  • Aug 9, 2012 8:50am Aug 9, 2012 8:50am
Quoting Barbossa
Hello, Hugh.

Apologies if it's already answered, but I couldn't find the answer. Anyways, the question is:
Do you take only one H1 signal per D1 signal, or you can consider taking another, if the D1 signal is still "valid". If so, how is the D1 signal invalidated?

Best regards,
Barbossa
No, you keep taking hourly signals until the 100 sma is breached. You don't really need to look at the daily after it has given a signal. It is all about following the 100 sma on the hourly.
  • #2,197
  • Aug 9, 2012 8:54am Aug 9, 2012 8:54am
Quoting Igorman
1H|D1
Newbie questions - Wouldn't that be trading a pullback? If so, what would your TP be? Previous resistence level perhaps? Do you normally trade pullbacks using this system?
  • #2,198
  • Aug 9, 2012 9:03am Aug 9, 2012 9:03am
Quoting 1kato
Newbie questions - Wouldn't that be trading a pullback? If so, what would your TP be? Previous resistence level perhaps? Do you normally trade pullbacks using this system?
Sorry. I think Hugh just answered my question...... Daily gave sell signal with doji and HA color change. Went down to H1 and will keep taking sell signals as long as your below 100SMA. Please let me know if my thought process is wrong. Thanks.
  • #2,199
  • Aug 9, 2012 9:13am Aug 9, 2012 9:13am
Quoting Hugh Briss
No, you keep taking hourly signals until the 100 sma is breached. You don't really need to look at the daily after it has given a signal. It is all about following the 100 sma on the hourly.
You mean H1 SMA(100) is breached, right? Ok, thanks.

Best regards,
Barbossa
  • #2,200
  • Aug 9, 2012 11:12am Aug 9, 2012 11:12am
Quoting 1kato
Sorry. I think Hugh just answered my question...... Daily gave sell signal with doji and HA color change. Went down to H1 and will keep taking sell signals as long as your below 100SMA. Please let me know if my thought process is wrong. Thanks.
Hey 1kato! First I wait for a daily signal (exactly what you said). Then I switch to H1 and wait for 100 sma to be breached, usually after the breach there is small pullback (see pic blue rectangle). And then I just keep the trade until the price closes above 100 sma or change in fundamentals (Next FOMC meeting is August 22). Hope it helps
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