Swing Trading with Heiken Ashi and Stochastics - updated

Audjpy out for a loss finally, it took it's time! So, nothing followed through this week, a few losses, a few break evens. Dropped 1.5% which is no big deal. I'll be looking at the weekly charts on Sunday night and I'll update if I see anything. If not I will be looking around for any sensible looking trades during the week. Have a good weekend all and I will see you soon.

Hello Hugh Briss,

Great book I read this weekend and also done some visual back-testing.
Will be writing my review of the book soon and post when complete.

Enjoy the rest of the weekend and NY will be opening in few hours but there is holidays, so most liekly a quiet Monday.

Kind regards,

EMMANUEL

Thanks, yes probably a quiet day tomorrow.

No fresh turns on the weekly. There are some tradeable trends going on, just got to wait for a good pull back. Not expecting much to happen Monday with holidays. I'll update when anything happens.

I took a few trades today but didn't have time to post them up. Nothing special happened anyway, waiting for the next good trend to ride. I'm away on holiday soon so there won't be much going on for a week or so but I'll try and post a bit.

HB,

Do you know of an alert that can sound off when an HA without upper/lower tail occurs with a stochastic cross?

Thanks,

Bry

I don't I'm afraid. There are plenty of stochastic cross alerts around though.

A quick update of what I'm doing. Sorry no charts. Short usdjpy, usdcad and audcad. Had some nice pushes after the bad USD news today but pulling back a little now. They all need a bit of time to show their hand.

I'm looking at a different way of determining the overall trend and it seems to be working out quite nicely. If I think it merits an update of the system then I will update it.

I'm actually going on holiday on Saturday for a week but I will try and check in from time to time and when I get back I will get the new site running. You can register for free at the site now at http://edwardmunroe.com but there won't be much to see until I get back from holiday.

[quote=Hugh Briss;7500733]A quick update of what I'm doing. Sorry no charts. Short usdjpy, usdcad and audcad. Had some nice pushes after the bad USD news today but pulling back a little now.

HB - how did you choose to go short before the USD news release?

Bry

Just luck ;-)

No, I was short usdjpy overnight and it was making progress down so I put that to break even when I took the usdcad trade. The usdcad trade looked right in terms of 100 sma and stochs so I took it. The news thing just happened to go my way but the risk was controlled either way. Bad usd news meant some helpful movement in the direction of 2 trades. Good usd news, I might have lost on one trade and broken even on the other. It was worth the risk.

Another quiet week with some break evens and some losses. Nothing seems to be following through at the moment but the plan is working perfectly, keeping the losses small and keep taking the trades. Once the big trends come and I catch one the picture will look more rosy. In a way I'm glad I started with a small drawdown because it shows the reality of trading. Of course a trade explorer that goes straight into profit makes the trader behind it look good but in most cases that is not the way that life or trading works. I'll probably end this week where I started down around 1.5% but in the scheme of things that is nothing. This lull could continue for another few weeks or next week I could catch a trade that just goes one way and doesn't come back. There is no way of knowing in which order your winners and losers will come so you've just got to stick at it and keep taking the trades. When the winners come make the most of them. That's trading.

I'm on holiday from tomorrow but I will keep one eye on the trading and look in from time to time but until I get back have a good weekend and a good week next week.

Hi Ed.

I completely agree with you that its better in a way if the draw down happens in the beginning as it shows the reality.

Waiting for the big trend too.

Regards

Thanks taw. Just got to keep trading, the winners will take care of themselves.

HB,

Is there any other reason you know longer trade the Daily/H1, or is it just because it required more chart time versus the Weekly/H4?

Bry

Hello Bry,

I did very well on daily/h1 for a long time but it's very time consuming and adds up to a lot more stress. The weekly/h4 is a little bit more relaxed and I suppose you could argue that the higher the timeframe the more reliable the signals.

Usdjpy out at break even after the weekend but got audcad short and nzdusd short. Both gone into profit but let's see if they follow through. A bit of negative aud news helped. There are some interesting weekly charts and I have attached them. These aren't necessarily going to follow through but worth keeping an eye on.

A quick check in. A few small winners on nzdusd and audnzd. Nzdusd stopped out for a 50 pip gain yesterday after it failed to break 0.84. I closed audnzd this morning for another 50 pips after bad aud news last night. I would have held those trades open for longer if they had stayed the right side of the s/r levels (0.84 for nzdusd and 1.10 for audnzd) but no point holding through that kind of pullback.

I've got gbpchf open at the moment. There is a lot of news out today that could affect all pairs so probably a good day to watch until all the news is out of the way and then see if anything looks nice. A lot of the news could affect gbp and chf so that gbpchf trade could go either way. It's worth the risk to hold it open because gbp has been finding some good news recently and chf (although it's eur news coming out chf will be affected by it) has been weakening with relatively poor news releases.

I'll try and post the outcome tonight if I get a chance.

Quite a choppy day on a lot of pairs. Stopped out of gbpchf by a few pips before it flew up the page but as it happened it fell back by the end of the day. I wasn't sitting and watching it anyway. Nzd pairs could be setting up soon but I'm going to wait for nfp tomorrow before I look at anything. Had a few good trades pulling me back to -1.6% which is absolutely fine, that's a tiny drawdown, one good trade will still get me well into profit, just got to be patient and find it. I'll try and check in tomorrow after nfp to see what is going on. I may just wait until Monday and get a feel for the direction then.

Some euro pairs looking tempting this morning but going to leave any trading until after nfp.

I got caught out on Nzdusd. With Vantagefx (my preferred broker) they don't stop you out of trades when they widen the spread on the weekend. With Oanda they clearly do. That gave me a needless loss on that trade. Ok, so I've learnt a lesson there. I will reassess the situation on Sunday evening and if it still looks ok I will reopen the trade then.

Most nzd pairs are looking a little weak and the usd is looking quite strong. I'll update on Sunday night with the weekly analysis and about that other trade.

Before I went on holiday I also mentioned an update to the system, the first for a few years. I have been looking into it while I've been away and I think it is a good idea so I will post the details when I get a chance. Until then have a good weekend and I'll see you soon.