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Yet another Heiken Ashi system

  • #61
  • Edited 10:58am Jan 11, 2013 7:14am | Edited 10:58am
Quoting spyderman
The trades I took were definitely profitable. As mentioned, and as is always the case, exits will be important. I'm wondering about perhaps keeping the atr s/l fixed (non-trailing) and then maybe using the D1 indicators and exit when they change against the trade. Might give up too much before closing but would keep you in on some of the longer trends. I'm big on stacking positions, and that would also allow you to add orders when the H4 pulls back then gives another trade signal in the right direction.

Just some ideas. I'm going to backtest...
What you mentioned here is exactly the way I'm doing now. Everytime when I enter a trade either randomly or non-randomly, on the D1 chart (my main viewing frame) I will be using the D1's current ATR value as my emergency stop loss.

The next thing I would do is to let the trade to run itself. If I see one of the HA on the D1 chart has changed its color after closing then I would close the trade myself if SL is not triggered.

My logic is simple: If the trend is well established the price should always move in my favor, even though if I am down at the first place due to retracement or deep correction. As long as my SL is not hit, price will once again move back in the direction of trend. This way I would have plenty of chances to add new positions and stay in the trend longer.

I am glad that you are using this method too. In the long run, our winners will always be more than our losers.
  • #62
  • Jan 11, 2013 8:10am Jan 11, 2013 8:10am
So far I have had 8/9 wins with 5 more still running at a nett of 50 pipsTotal of the closed trades are 630 pips. This was for 2 days.While the big gains were due to the yen pairs, further testing would yield better view on this method.But overall, i love the long tf and almost click and forget feature of this method. It does not take long to scan through 30 pairs at all.Anyway, we just need to scan throught at most once every 4 hours.
  • #63
  • Jan 11, 2013 8:25am Jan 11, 2013 8:25am
Quoting amikaking
I use the currency strength meter as shared by dansmol (thanks a lot buddy) and make a new template that shows us each major currency strengths and their weaknesses across H4-D1-W1 timeframes. You can tweak the indicator by using H1-H4-D1-W1 or any MTF combination you like to fit your trading style.

From the screenshot we can see that NZD is currently strongest currency while JPY is the weakest across all three timeframes (to make it clear I ignore the right side) so the best trade to take would be LONG NZD/JPY.

Attachment ...
Amikaking,
Put in the inputs,Show line chart to FALSE.
Like that you have no more "spaghetti"
in the right side of the chart.

Regards
Dan
  • #64
  • Jan 11, 2013 9:20am Jan 11, 2013 9:20am
Hi Amikaking,

I want to congratulate you for sharing your system.

You said you like to use W/D/4 TF's. However and according to the rules all TF have to match in order to one open a trade. This include 200ema rule.
I found a problem when i want to fulfill this rule on weekly TF, because in many cases this rule means a lots of weeks without trading. Therefore, i ask you if there is another filter other than 200ema, specially on weekly TF in order to bypass this issue.

Thanks in advance.
  • #65
  • Jan 11, 2013 10:09am Jan 11, 2013 10:09am
Quoting onlyghost
Hi Amikaking,

I want to congratulate you for sharing your system.

You said you like to use W/D/4 TF's. However and according to the rules all TF have to match in order to one open a trade. This include 200ema rule.
I found a problem when i want to fulfill this rule on weekly TF, because in many cases this rule means a lots of weeks without trading. Therefore, i ask you if there is another filter other than 200ema, specially on weekly TF in order to bypass this issue.

Thanks in advance.
If you find H4-D1-W1 combination hard to trade, you can switch down to a lower H1-H4-D1 option. Use the H4's ATR value as your stop loss, and ride the trend until any HA or HAS changes its color upon closed. You can also search for other signals from other pairs. But please do not violate my rule. If you find no signals, you should just wait.

There are many ways we can define trend. We can just zoom out the chart and see with our naked eyes and define trend. Most professional traders often include 200 EMA to their charts. Why? Because it is easy to interpret trend on a longer term basis and price would often respect this line as many traders are using them to trade as well.
  • #66
  • Jan 11, 2013 10:13am Jan 11, 2013 10:13am
Quoting amikaking
If you find H4-D1-W1 combination hard to trade, you can switch down to a lower H1-H4-D1 option. Use the H4's ATR value as your stop loss, and ride the trend until any HA or HAS changes its color upon closed. You can also search for other signals from other pairs. But please do not violate my rule. If you find no signals, you should just wait.

There are many ways we can define trend. We can just zoom out the chart and see with our naked eyes and define trend. Most professional traders often include 200 EMA to their charts. Why? Because it is easy...
Okidoki Amikaking.

Thanks for your answer.
  • #67
  • Edited 10:49am Jan 11, 2013 10:19am | Edited 10:49am
Quoting 45drive45
So far I have had 8/9 wins with 5 more still running at a nett of 50 pipsTotal of the closed trades are 630 pips. This was for 2 days.While the big gains were due to the yen pairs, further testing would yield better view on this method.But overall, i love the long tf and almost click and forget feature of this method. It does not take long to scan through 30 pairs at all.Anyway, we just need to scan throught at most once every 4 hours.
Looks like everyone who tested this system have great success with it. You are right that most of the gains were due to Yen's weakness, but I believe for a strong and long lasting trend to be established, one currency must be the weakest so that we would see a significant trend.

I hope you enjoy trading the longer TF like me because the daily chart is a good place to absorb market noises on those lower timeframes and trading this way makes our lives easier since we don't have to monitor them frequently and there are lesser false signals to deal with. One thing you should keep in mind is that there is no trading system that is always profitable. Sometimes losers cannot be prevented, therefore you should always keep a emergency stop loss. The good side is that the winners are more often to overwhelm the losers, and this should depends on how good your money management as well. Good luck mate.

Quoting dansmol
Amikaking,
Put in the inputs,Show line chart to FALSE.
Like that you have no more "spaghetti"
in the right side of the chart.

Regards
Dan
I really appreciate your help for sharing such a great indicator and giving us information. I hope you enjoy my system.
Thank you so much buddy.
  • #68
  • Edited 10:56am Jan 11, 2013 10:29am | Edited 10:56am
Just for your info when using the system, losses are part of the game as we are using lagging indicators so we could often enter the market late.

Here is my live trade that have been running for more than 10 hours and from my observation the biggest floating drawdown had went as high as -$21 before the price came back into my favor. I actually enter the trade randomly and I am risking $50 on these two trades.

Attached Image (click to enlarge)
Click to Enlarge Name: loss.png Size: 50 KB


From the screenshot you can see how much I have profited from selling USD/SEK but I am still down on buying NZD/JPY because the pair is currently retracing. As long as your stop loss is not hit, you should allow them to run itself without interruption unless one of the HA has changed its color after closing.
  • #69
  • Jan 11, 2013 3:53pm Jan 11, 2013 3:53pm
Quoting amikaking
Just for your info when using the system, losses are part of the game as we are using lagging indicators so we could often enter the market late.

Here is my live trade that have been running for more than 10 hours and from my observation the biggest floating drawdown had went as high as -$21 before the price came back into my favor. I actually enter the trade randomly and I am risking $50 on these two trades.

Attachment

From the screenshot you can see how much I have profited from selling USD/SEK but I am still down on buying...
Hi Amikaking

Thank you for your system. Willl test it next week. Obviously any trending system with JPY pairs these weeks will win no matter the entry price, that's why I want to ask if someone has some results for another pairs like EUR/USD for this week.

Thanks again.

A lot of pips to all.
  • #70
  • Edited Jan 12, 2013 1:09am Jan 11, 2013 7:56pm | Edited Jan 12, 2013 1:09am
Further testing and demo is required because the system DO NOT identify any pullbacks (buy the dips, sell the rallies) and hence we would always be put in a losing position first before price resumes in the direction of trend. I created this system for sake of simplicity because I always believe that price will come back the "normal" at some stage over the long run.

The key lies on how good your money management is, how good you can cope with losers, not just only depend on the accuracy of the system itself because what we want to see is the result over the long run. Only time can tell.
  • #71
  • Edited Jan 12, 2013 12:32am Jan 11, 2013 9:04pm | Edited Jan 12, 2013 12:32am
@spyderman
After reading your system "As Easy As PI", I decide whether if I could also come up with a new tweak to my system using a 22-period SMMA and a 7-period SMMA, LOL...

From the screenshot you can see the 7 SMMA (green) is above the 22 SMMA (orange) and they are all above the 200 EMA (red), and when they are all aligned together across the longer TFs it definitely makes sense for me to believe that the uptrend in NZD/JPY is really going to last for very long.

Attached Image (click to enlarge)
Click to Enlarge Name: SMMA.jpg Size: 166 KB


And here is USD/SEK which is undergoing a long term downtrend. This time I changed the 7 SMMA color to white so we can see it clearly.

Attached Image (click to enlarge)
Click to Enlarge Name: USDSEK2.jpg Size: 169 KB


@ dansmol
I wonder whether if you have an indicator that can display inverted SMMA and EMA so I can view NZD/JPY in the way of JPY/NZD? Because I prefer to view charts more in a "downtrend" fashion.

Thank you.
  • #72
  • Jan 12, 2013 1:52am Jan 12, 2013 1:52am
Quoting amikaking
@spyderman
After reading your system "As Easy As PI", I decide whether if I could also come up with a new tweak to my system using a 22-period SMMA and a 7-period SMMA, LOL...

From the screenshot you can see the 7 SMMA (green) is above the 22 SMMA (orange) and they are all above the 200 EMA (red), and when they are all aligned together across the longer TFs it definitely makes sense for me to believe that the uptrend in NZD/JPY is really going to last for very...
I have been following Spyderman's thread since he started right from the beginning. He is using EMA 7 and EMA 22 instead of SMA 7 and SMA 22. Just in case you are not aware.
  • #73
  • Edited 3:18am Jan 12, 2013 2:34am | Edited 3:18am
Quoting Caillou
Hi Amikaking

Thank you for your system. Willl test it next week. Obviously any trending system with JPY pairs these weeks will win no matter the entry price, that's why I want to ask if someone has some results for another pairs like EUR/USD for this week.

Thanks again.

A lot of pips to all.
I have been monitoring EURUSD for the past 3 days. If you are using MTF methods to analyze this pair for entry, I am afraid it is a bit tricky. The price is below EMA 200 for W1 T/F and so using H4/D1/W1 criteria is definitely out. Entry is only possible for Thurs and Fri using M15/H1/H4.

I remember EURUSD was trending up aggressively after Mario Draghi's speech on Thursday. I was trying to enter a long position based on H1/H4/D1 criteria but it turns out to be tricky because either HA smoothed or HA SW was repainting for D1, I can't remember the details because at that time I was busy screening other currency pairs as well. But I did enter a position on Thursday night eventually but not sure whether it is based on M15/H1/H4 or H1/H4/D1 criteria. HA is a lagging indicator and so it will take a longer time for D1 and W1 to catch up with its lower timeframe signal.

Besides the Yen pairs, you should reasonably do well for AUDUSD, AUDCAD and NZDUSD for Thursday or Friday depending on the timeframe you choose to trade. But of course, trading the Yen pairs generate the most profits. If you are using shorter timeframe for your screening criteria, just bear in mind that if that pairs has hit the S3 or the R3, it is not a good idea to enter unless either higher time frame supported it or (in the case that higher timeframe does not support it) there is a valid reason that the trend will continue in the following day. EURAUD is one such example.
  • #74
  • Edited 4:19am Jan 12, 2013 4:04am | Edited 4:19am
I am afraid I'm going to discontinue this thread. The reason now only I have notice why most our trades turned out to be so successful is because of our "confidence" that are leading us to believe the strategy and then hold onto a our trades longer. In a well established trend, even a random entry could earn us pretty much profits if we just jump into the direction of trend. But there is no such lucky scenario in the market to have these wonderful moment every time.

The only thing I would agree is that the MTF analysis is by far the best way to identify a long term trend and to find entry but using Heiken Ashi is actually not wise because we enter the market too late and exit late as well. I found even using a naked chart with just a 200EMA across 3 TFs could help me to identify a long term trend just like what I did if I'm using the Heiken Ashi. If I manage to enter in the direction of trend upon each pullback, then it is more easier rather than waiting the HA to react.

If I say I am going to ride the trend and exit until the HA changes color, I will find most of my profits would have gone because the market has just retraced and that is why the HA changes color. Rather than doing so, we are just wasting our time and effort since we could have easily revert back and use the basic price action strategy. Further serious visual backtest I found that this strategy is time wasting.

I apologize that I have wasting so much time of your precious time here for reading and testing this system. Only till now I realize my strategy was a flaw and the success are coincidence so it is not really good. I am asking the moderator to remove the thread and hopefully everyone would do well without using this system.
  • #75
  • Jan 12, 2013 5:08am Jan 12, 2013 5:08am
Quoting patguay
I have been monitoring EURUSD for the past 3 days. If you are using MTF methods to analyze this pair for entry, I am afraid it is a bit tricky. The price is below EMA 200 for W1 T/F and so using H4/D1/W1 criteria is definitely out. Entry is only possible for Thurs and Fri using M15/H1/H4.

I remember EURUSD was trending up aggressively after Mario Draghi's speech on Thursday. I was trying to enter a long position based on H1/H4/D1 criteria but it turns out to be tricky because either HA smoothed or HA SW was repainting for D1, I can't remember...
Thanks for your answer.......
  • #76
  • Edited 5:56am Jan 12, 2013 5:09am | Edited 5:56am
Quoting amikaking
I am afraid I'm going to discontinue this thread. The reason now only I have notice why most our trades turned out to be so successful is because of our "confidence" that are leading us to believe the strategy and then hold onto a our trades longer. In a well established trend, even a random entry could earn us pretty much profits if we just jump into the direction of trend. But there is no such lucky scenario in the market to have these wonderful moment every time.

The only thing I would agree is that the MTF analysis is by far the best way...
Hi amikaking, please do not say that you have wasted our time, at least not for me. I have been evaluating MTF analysis using exactly the same method about a year ago. At that time, I was subscribing to 4 X Projects and they also recommend similar trading methods. I fail to get consistent results because I was too impatient and only focus on EURUSD and GPBUSD. I have tried other trading strategies in the FF such as symphonie trading, genesis, GMMA, .......etc.. Your thread help me to see the whole picture and I am in a position to piece everything I learn for the past 1 year together.

The beauty of this trading strategy is that it helps to further fine tune the entry and confirm the trend in short term basis. It also complements what is missing in other trading strategies as discussed in the FF forum. In short, it has helped a lot in my understanding of various trading strategies I learned in the FF forum. For long term basis, HA /HA smoothed is excellent for basket trading (5-14 pairs of currencies) as employed in the Still Basketting thread.

Anyway, I usually don't hold the trade for more than 1 day. Most trends last only at most for a few days and this H1/H4/D1 trading strategy helps to identify those pairs with short term trends which works very well for my trading personality and complements my other trading strategies. I will only hold the trade beyond a few days and add on to the existing position if we happen to have currency pairs that trends beyond a few months as in the case of current JPY. USDJPY and EURJPY are good currency pairs for such a strategy. AUD and NZD used to trend for months and so this strategy is good to screen for such currency pairs when China economy rebounces and regains her ferocious appetite for commodities.

Based on the trading result I obtained for the past few days , I figure out that your proposed trading strategy can be further optimized to get better results. Despite the fact that you are closing this thread, I am going to continue collecting data for the next 45 days. If you are interested in the results I am getting, I can PM you.

I am glad I read your threads. Otherwise, I won't be able to apply MTF analysis with confidence in my screening for potential currency pairs. What matter most is during different market conditions, we need to use relevant indicators for trading and know when not to use it when the market conditions has changed from trending to sideway. A lot of traders are still confuse with this. So keep up with your good work. Look forward to your new thread.
  • #77
  • Jan 12, 2013 5:31am Jan 12, 2013 5:31am
Hi,

I`m using Heiken Ashi together with Oscilator Trix in my strategy. Its working very well during working hours (Europe Time).
Unfortunately there is a problem with trading at night, when trend is usualy horizontal.

Thanks for Your advice .
  • #78
  • Jan 12, 2013 11:16am Jan 12, 2013 11:16am
Hello AmikaKing. Read thru your nice thread last evening. I am trading another strategy with some success, and will stick with it. For years I bounced from one strategy to another without taking the time to learn to really trade any one strategy. Hence, I am going to stick with what is working for me.

I have spent a lot of time in the past using mtf strategies, so I took the time last evening to put together a multi-time-frame indicator that integrates the signals of your strategy into a single indicator. You will find it attached. I hope that it helps you refine your entry signals.

A word or two about the attached indi. You must have "Heiken_Ashi_Smoothed" in your indicators directory, and it must be spelled exactly as I have typed it in quotes in this sentence. The HAS file that is posted on the thread has "Heiken" spelled "Heikin". This will cause the indi I have attached to hang and not work.

In the parameters pull-down, you select your three desired timeframes. The defaults are set to 240, 1440, and 10080 (H4, D1, and W1). You can then enable or diasble signals from each timeframe independently. And you can enable and disable each of the three individual signals (HAS_Smoothed, HA-SW, and 200EMA) independently for each timeframe. All default to "true" -- your recommended entry conditions. The resulting histogram gives a great visualization of the effect of each signal. It is easy to see, for example, how a 200EMA filter on the weekly timeframe can keep you out of trades for months at a time. Turn the various signals on and off and you will see the effect.

Audio and email alert provisions are provided.

A final note: The indi was compiled using MT4 Build 445. If you try to run it on and older MT4 build, it will probably crash you platform. I have posted several indicators to FF and always experience complaints that the indi crashed platforms. Best practice is to keep your MT4 build updated.

Hope this is of value to your forum.

EasyRyder
Attached File(s)
File Type: ex4 RENKOmtfHAsignals.v1.0.ex4   11 KB | 722 downloads
  • #79
  • Jan 12, 2013 11:23am Jan 12, 2013 11:23am
AmikaKing, I should have given the indi a more meaningful name. I am trading a RENKO strategy, and wrote the indi last night to see how your signals worked on RENKO. I then decoided that it might help your forum, and attached it to my message above without changiong the name. Attached you will find the same ind with a more meaningful name.

Regards,
EasyRyder
Attached File(s)
File Type: ex4 mtfHAsignals.v1.0.ex4   11 KB | 1,012 downloads
  • #80
  • Jan 12, 2013 11:48am Jan 12, 2013 11:48am
Quoting patguay
I am not sure if we are on the same page. Just to clarify my point, W1 trend is up for the last 8 candles but for D1 trend, it is down for the past 6-7 trading days. Can't we short the currency pair for this 6-7 trading days using 15 mins and 1 hrs? There are some traders who only specialize in trading certain pairs say EURUSD due to the low spread. D1 trend can be treated as a long term trend if you are trading based on 5 mins, 15 mins and 1 hr candles. W1 is pretty redundant to this group of traders since they are trading short term trend.
I PM'ed you with question thanks
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