Trading with Heiken Ashi and Heiken Ashi smoothed – Hybrid
I have been recently experimenting with a new system I “developed” and have backtested and has been working very well.
What will we be using? Heiken Ashi default indicator and also Heiken Ashi smoothed indicator.
1) Trade only in the direction of HA Smooth (Blue – long, Red – short)
2) Entry is when HA default closes 1 bar below or above the HA smooth.
3) Exit is when HA default closes 1 bar in the opposite colour.
4) SL – 100 pips emergency stop – can be adjusted for different time frames.
From what I have seen, this strategy is a pip maker on 15M, 30M, 1H and 4H timeframes.
Please feel free to test and comment.
Played around with this today as I always liked Heiken Ashi
Using TMS-Osc Histogram, 5 EMA (shifted 2, typical price), 5 LMA (0 shift, linear weighted), and the Synergy MTF indicator for confirmation.
1) Smoothed > Regular (for long), Smoothed < Regular (short)
2) 5 EMA > 5 LMA (for long), 5 EMA < 5LMA (for short)
3) TMS-Osc Histogram = green (for long), TMS-Osc Histogram = red (for short)
4) Synergy MTF has to show uptrends/downtrends down to 15min
1) Stop loss or trailing stop gets hit (depends on time frame)
2) TMS-Osc Histogram turns red/green
3) MAs cross in opposite direction
4) Synergy MTF turns the other way for all timeframes leading up to the one you’re trading.
Did some visual backtesting only so far, but results look promising. Using those indicators for confirmation helps in dodging quite a few fake breakouts.
Jumping into a trend a bit late isn’t horrible too, as the indicators provide for a decent warning once things go “south”.
This thing seems to be working better for 1hr+ time frames though as you end up with too many unnecessary losing/BE trades if you go lower.
I can upload indicators/template if anyone’s interested. It would obviously rock if someone created an EA for this setup…not sure how viable this is though. If possible, it would be cool to be able to change entry/exit requirements by excluding some indicators for the decision process whenever the situation calls for it.
EDIT: Also, stay away from ranging markets with a tight range…you’ll get burned badly
If any EA coders come cross this thread – please do shoot me an email or private message as I am seriously searching for someone to code this into an EA – to kill the emotional torture of this system even though it is highly lucrative! Thanks!