Heiken-Ashi System | Foreign exchange indicator download- MT4/MT5 resources
greeting,
I, like many others, have been searching for the perfect trading system, and I believe I have found it. I am writing to ask you to check this system out and provide any constructive feedback you may have.
When I say "perfect" trading system, I don't mean it is loss-free, I mean it is "perfect" for my trading style and my 3 requirements.
Here is the list of requirements I set for the system, then the system itself, and then I will attach the only indicators I use:
Require:
1. Must be a "set it and forget it" system as I am in the air 3-4 days a week and cannot monitor the intraday market.
2. All major trends must be captured.
3. Volatile markets must be handled in an acceptable manner.
Indicator: Heiken-Ashi smoothing set to 2-3-6-2.
Trading system:
Entry: 0000 GMT (7:00 PM ET).
Enter in the direction of the previous Heiken-Ashi candle (blue = long, red = short)
Stop loss: 50 pips
Take profit: 55 points
Money management:
Starting from 0.10/pip (1000 units of Oanda ) or per micro lot of $3,000.00.
Each loss is doubled, up to 5 losses
Backtest:
I have backtested this system from June to October 2006 and will continue to backtest November and December. I will publish the results in a spreadsheet in my next post.
Summary: In a 5-month backtest, the system produced the equivalent of 3414 points. I say "equal" because when I "double" my losses, I have to enter twice the actual number of points so that the spreadsheet will correctly equal the dollar amount of the win.
Attention: Many people say that doubling after a loss is dangerous and risky. To mitigate some risk, I start with very small batches. Obviously, this has the detrimental effect of not being able to grow your account quickly when you get a bunch of winners. But this downside seems to be offset by the fact that you never actually have a losing trade because all losses are offset by a doubling of profits.
Any feedback you could provide would be greatly appreciated, or if anyone has been able to test this system a few years ago using backtesting software, please let me know.
Thanks.
mike
I, like many others, have been searching for the perfect trading system, and I believe I have found it. I am writing to ask you to check this system out and provide any constructive feedback you may have.
When I say "perfect" trading system, I don't mean it is loss-free, I mean it is "perfect" for my trading style and my 3 requirements.
Here is the list of requirements I set for the system, then the system itself, and then I will attach the only indicators I use:
Require:
1. Must be a "set it and forget it" system as I am in the air 3-4 days a week and cannot monitor the intraday market.
2. All major trends must be captured.
3. Volatile markets must be handled in an acceptable manner.
Indicator: Heiken-Ashi smoothing set to 2-3-6-2.
Trading system:
Entry: 0000 GMT (7:00 PM ET).
Enter in the direction of the previous Heiken-Ashi candle (blue = long, red = short)
Stop loss: 50 pips
Take profit: 55 points
Money management:
Starting from 0.10/pip (1000 units of Oanda ) or per micro lot of $3,000.00.
Each loss is doubled, up to 5 losses
Backtest:
I have backtested this system from June to October 2006 and will continue to backtest November and December. I will publish the results in a spreadsheet in my next post.
Summary: In a 5-month backtest, the system produced the equivalent of 3414 points. I say "equal" because when I "double" my losses, I have to enter twice the actual number of points so that the spreadsheet will correctly equal the dollar amount of the win.
Attention: Many people say that doubling after a loss is dangerous and risky. To mitigate some risk, I start with very small batches. Obviously, this has the detrimental effect of not being able to grow your account quickly when you get a bunch of winners. But this downside seems to be offset by the fact that you never actually have a losing trade because all losses are offset by a doubling of profits.
Any feedback you could provide would be greatly appreciated, or if anyone has been able to test this system a few years ago using backtesting software, please let me know.
Thanks.
mike
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