Swing trading with heiken ashi and stochs

Hugh,

When using this system, are you entering on the first 1H/4H HA doji that signals a possible turn in agreement w/ the Daily/Weekly turn, or do you wait for the 1st HA candle with no wick before entering your trade?

thanks

It doesn't have to be a doji and it doesn't necessarily have to have no wick. I like to see a smooth pullback to s/r and then a smooth stoch cross and a smooth ha turn but if it looks like a convincing turn and the price closed below s/r in the direction of the trend then that can be enough. It depends on what it looks like which I know isn't very helpful but with some practice (trial and error) you will be able to spot a great signal from a good signal from a borderline one.

Here's the audusd entry that led to a 500 pip trade.

It was just going sideways, finding resistance below the 1.02 level, then popped up a bit and closed back below the 1.02 level so I took it. It's not a very pretty signal but I sold at resistance in the direction of the trend. That's often more important than how the signal looks to be honest.

The second signal on the chart is a similar type of entry.

I've been stopped our for a loss on similar looking trades over the last few weeks. It won't always go your way which is why I think it is better to hold on to your winners for as long as possible.

In actual fact, take a look at the signal before my first entry. That would have been nice too, a reasonable pullback on the ha but very smooth stochastics.

Hi Hugh,

Thanks for the awesome post and inputs. I am pretty new to forex (and forexfactory) and right now trying to educate myself on a demo account.
The method is extremely "simple" and straightforward, however I have questions regarding support/resistance settings on different timeframes.

Let's take the following example from one of your early post: http://www.forexfactory.com/attachme...9&d=1328310045

On extended trending periods (up or down), after several pullbacks, each trade becomes more and more risky as the trend could flatten and/or reverse. What period should I consider to draw my resistance and support lines for the H1, H4 and let say M30 TFs? Should I consider the position of the candles compared to the 100sma to help me?

I will follow that thread and share my experiences with you guys,

Cheers,

I've been working hard recently with my private trading and made a lot of money in the process. I'm working 18 hour days at the moment which doesn't worry me at all but I'm considering switching timeframes which will give me a bit more time to do other things.

If I were to offer a private mentoring service how many people would be interested? I would want to switch the demo account over to a live account and show some similar results first because it's a bit lame to trade a demo and then offer to teach people! The only reason I am on demo at the moment is that my time is so limited and to be honest I don't need the money. The only reason I would want to help other people trade this system is because I believe it is a very good way for losing traders to become profitable traders.

The hardest part of trading this or any other trend following system is keeping your head straight when things aren't going so well. The system is here for free but how many novice traders will be able to get the system "out of the box" and trade it the way I do? That is the only reason that I would offer any kind of service to teach people not only the system but also how to trade it consistently over time.

I'm not looking to make loads of money from offering this sort of service but of course I want something back for my time. I've thought about a one off payment that would cover you until you feel confident to trade on your own but then of course different people take different lengths of time to learn so it wouldn't be fair to charge a trader who has been trading for a few years already and just needs to work with me for a few months to get the hang of holding on to trades the same amount as a new trader who doesn't know a thing about trading.

Anyway, if there is enough interest then I will start a service. There are already plenty of people out there who will offer to teach you how to trade and I'm not inclined to compete despite the fact that most of them probably can't even trade themselves. One thing is for sure if I do run a service it will be based on live trading backed up with results rather than the £/$ 2k+ courses which show you hindsight trades all day and not one single live trade.

If you are interested then please either post here, pm me or email me at [email protected]

Maybe just offering some kind of trade copying would be easier? Let me know what you think.

Hello, sorry I didn't answer this earlier but as you are a new member it doesn't show up until your post is moderated.

The system I trade now uses that same entry signal but I am using two timeframes. I use the weekly to wait for a signal and then go to the 4 hour chart and watch for a trend in the direction of the weekly signal. Take one or two entries, get them to break even and then just hold them until the 100 sma is broken against the trend.

The s/r levels that I mark on the 4 hour chart are the 100 levels. I find that these more often than not are good levels to watch for bounces in the direction of the trend.

On lower timeframes you may want to include the 50 levels and maybe even the 25 levels.

If you are going to trade lower timeframes then make sure to use a higher timeframe as your guide. So for 30 min or hourly timeframes use the 4 hour or daily to get a signal and then go to your lower timeframe and trade the trend.

I'm going to have an early night and update the thread in the morning with the pairs for this week. It's a bank holiday UK and US tomorrow so probably not a lot happening anyway. I've noticed audusd, eurusd and gbpusd will still be valid, I just need to see the new weekly candles to decide on any others.

"Usurious rates of return are deceitful sirens that sing but to lure the unwary upon the rocks of loss and remorse."

I just read this in one of my favourite books and had to post it. Slow and steady wins the race...

Noted, I'll look into it. Any idea what is the best way to copy trades? From what I can see a lot of the social trading networks pay some of the spread per trade. That's not so great if you only take 10 or 20 trades a month. By far better is a percentage payment by results.

There are some pairs that look good to trade this week that haven't turned round on the weekly fully yet but that look reasonable on the 4 hour chart. If they give a very clear signal on the 4 hour chart then I will consider taking it.

Pairs to trade this week are eurusd, eurgbp, eurcad, usdcad, gbpusd, gbpchf, audusd, cadchf. I am also watching oil but I will go in with small trades as I am not sure of the tick value and the weekly is only just turned round.

Eurgbp is interesting as it is trading above and just pulling back to that long term trendline it just broke. All of the others just need a good signal and I am in.

http://www.mt4i.com/appstore/category.aspx?id=6

Does anyone have any experience of this? I could just charge a flat monthly fee for the service. It's controlled by ea so both parties need a constant connection. There may be better options but I'll keep looking.

Know what you mean on the social trading networks. Never sits right with me that someone can earn money from you regardless of performance. Same things with the big hedge funds!!!

There are a few good trade copiers out there for MT4 but not sure if any of them allow to take a set % of results. Would most likely need to rely on the 'honesty' () of the client in handing over the % profit. Don't quote me though as haven't looked into them in detail so there might be a way.

Another way would be to have a skype room where people could actually learn from the room as well rather than just copying trades. Where's the learning in that?!

I would prefer to take a percentage of results because that way it is completely performance related but I have a feeling it will be easier to just charge a reasonable flat fee per month.

The problem with a Skype room is that not everyone is around at 6am UK time (although I always seem to be able to get up in the mornings ) especially US traders so that would take away that element. A US trader who wants to trade the 6am and 10am UK candles (which by the way are probably the two most important "decision points" of the day) needs to be up in the middle of the night to watch them.

I am open to all suggestions and I don't mind paying a reasonable fee if there is any good software out there which can facilitate things.

Ok, so after giving it some thought I'm thinking I'm just going to offer both training and trade copying, whichever you prefer. Also I can copy my trades for the 6am and 10am UK time candles that happen in the middle of the night US time.

I'm going away for a couple of weeks after next weekend so I will probably do some thinking then, get things finalised and launch when I get back.

I'm winding the demo account down now as I'm going away for a few weeks. I will be around here and there but probably not trading much. I sold out the second audusd this morning just to keep things clean, I just want to hold these current trades open now and see where they finish.

When I get back I will be trading a small live account. I'll probably just put in 3k and start from there as that's the same size as the demo I started with. An interesting day today, up and down. The first audusd trade is trailing nicely now.

I'll update tomorrow morning.

I would be very interested in some sort of trading education service. That would be really great.

Thanks Seany, I'll let you know when I get up and running.