4hr Heiken Ashi Strategy with Pivot Point
First of all a big thank you to the folks from the TMS thread this strategy was derived from, I no longer trade TMS for a few reasons, firstly I'm not very good at it! I have a bad mentality about this, and secondly I don't have time right now, so my postings on this thread will most likely be sporadic, infrequent and brief, so I'll try to keep the first post concise and to the point (it would be handy if FF allowed long-term editing of posts, but hey, that's it)
4 hour chart.
I use the 4 hour chart because you usually forget about news announcements, it's the smoothest chart before going into the daily chart and won't really give you the profits that a 4 hour chart would, the daily chart is "slower" to 6 times, 6 is 6 times 4, which is 24 hours. This is the easiest chart to read and has the potential to be profitable enough.
Zupingjian <br> I use Heiken Ashi candles because it makes the chart easier to read, when the color changes, it indicates a trend reversal, and the long shadow does indicate a potential reversal. That's all I read, forget candlesticks, my basis is, look at the Heiken Ashi chart and look at the candlestick chart, it's easier to read.
pivot point.
I use pivot points to represent support and resistance, again for simplicity. I once drew my support and resistance levels, but were they in the right places? Who knows? How often do you look at a chart and think, oh, I missed a trade because I should have put a support or resistance line somewhere. Using pivot points eliminates this dilemma. I use monthly and weekly pivot tables because they work best with a 4 hour time frame. I modified the pivot indicator so that it only shows the current point along the chart, this again reduces thinking, what happened on that pivot last week or last month, etc., what happened before has already happened and we don't want to think about it or look at it to influence our trading decisions, forget about it, only the current pivot is of interest and if they converge with previous support and resistance.
TDI.
I use the TDI indicator to find divergence and it has become my favorite indicator after trading TMS, you can use your favorite oscillator for this purpose.
Position size.
I use this indicator on my chart because it shows exactly how many lots I should put in to risk a certain amount, and when I started this post the risk per trade was 40. Again, for the sake of simplicity, I don't need to do any calculations on the position size, it's on my chart.
Tuesday and Wednesday.
I usually trade on Tuesday and Wednesday, generally I think the market will do whatever it takes on Monday, usually Tuesday the market will dictate the direction of the week, so that's a good time to take trades, and then Wednesday I think is the second best opportunity, don't ignore the opportunities that can come up at any time.
rule.
The goal is to trade from one pivot to another, looking for trades that earn at least a 3:1 R/R, entering when the candle changes color.
I've linked to myfbook.com to show my progress, http://www.myfxbook.com/portfolio/4hr-ha-pivot/1644262, not really showing much at the moment other than I've been breaking even for over two months and now starting to make a profit, so for forex that's not bad as I don't think I'm developing a strategy and we know how hard it is not to lose money, but hopefully in the next two to three months we'll see some real progress.
The purpose of this program is to make trading as easy as possible and to take as much thought out of it.
I have been trading for a long, long time so I know what I am doing, will this prove to be my ultimate system that will finally show me some consistent and substantial profits while spending very little time trading? I believe, you have to do this, and I think it works for some other traders as well. This is a demo account on myfxbook and no I am not currently trading live but will be again soon. So let's see if this leads us to where we want...
Some of this goes against the nature of some other trading strategies, but we are not trading other strategies, we are trading this strategy and there is reasoning behind it and the indicator.
4 hour chart.
I use the 4 hour chart because you usually forget about news announcements, it's the smoothest chart before going into the daily chart and won't really give you the profits that a 4 hour chart would, the daily chart is "slower" to 6 times, 6 is 6 times 4, which is 24 hours. This is the easiest chart to read and has the potential to be profitable enough.
Zupingjian <br> I use Heiken Ashi candles because it makes the chart easier to read, when the color changes, it indicates a trend reversal, and the long shadow does indicate a potential reversal. That's all I read, forget candlesticks, my basis is, look at the Heiken Ashi chart and look at the candlestick chart, it's easier to read.
pivot point.
I use pivot points to represent support and resistance, again for simplicity. I once drew my support and resistance levels, but were they in the right places? Who knows? How often do you look at a chart and think, oh, I missed a trade because I should have put a support or resistance line somewhere. Using pivot points eliminates this dilemma. I use monthly and weekly pivot tables because they work best with a 4 hour time frame. I modified the pivot indicator so that it only shows the current point along the chart, this again reduces thinking, what happened on that pivot last week or last month, etc., what happened before has already happened and we don't want to think about it or look at it to influence our trading decisions, forget about it, only the current pivot is of interest and if they converge with previous support and resistance.
TDI.
I use the TDI indicator to find divergence and it has become my favorite indicator after trading TMS, you can use your favorite oscillator for this purpose.
Position size.
I use this indicator on my chart because it shows exactly how many lots I should put in to risk a certain amount, and when I started this post the risk per trade was 40. Again, for the sake of simplicity, I don't need to do any calculations on the position size, it's on my chart.
Tuesday and Wednesday.
I usually trade on Tuesday and Wednesday, generally I think the market will do whatever it takes on Monday, usually Tuesday the market will dictate the direction of the week, so that's a good time to take trades, and then Wednesday I think is the second best opportunity, don't ignore the opportunities that can come up at any time.
rule.
The goal is to trade from one pivot to another, looking for trades that earn at least a 3:1 R/R, entering when the candle changes color.
I've linked to myfbook.com to show my progress, http://www.myfxbook.com/portfolio/4hr-ha-pivot/1644262, not really showing much at the moment other than I've been breaking even for over two months and now starting to make a profit, so for forex that's not bad as I don't think I'm developing a strategy and we know how hard it is not to lose money, but hopefully in the next two to three months we'll see some real progress.
The purpose of this program is to make trading as easy as possible and to take as much thought out of it.
I have been trading for a long, long time so I know what I am doing, will this prove to be my ultimate system that will finally show me some consistent and substantial profits while spending very little time trading? I believe, you have to do this, and I think it works for some other traders as well. This is a demo account on myfxbook and no I am not currently trading live but will be again soon. So let's see if this leads us to where we want...
Some of this goes against the nature of some other trading strategies, but we are not trading other strategies, we are trading this strategy and there is reasoning behind it and the indicator.
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