The Hubris System | Forex indicator download- MT4/MT5 resources
I mentioned in other posts about daily heiken ashi trading that I was considering trading shorter time frames. This system is the result of what I've been doing. It is quite different from other systems, but I still use Heiken Ashi because I believe they can describe market movements more clearly. This is still a work in progress as I haven't done extensive forward testing yet, but let's just say it looks good. If you want to trade, please start with small amounts until we get clear numbers such as fulfillment rates.
There are a lot of posts about trading the EURUSD 1 minute chart and they all more or less say the same thing, trade in the 1 hour/15 minute direction and get a lot of small wins instead of trying to hit a home run. This is just my opinion and I believe it is a simplification of what is available but not an oversimplification. It's nice, simple, but effective.
The basic system is to wait for the trend on the 15-minute chart to develop in the same direction as the hourly chart. Once you have the trend, you can go into the 1 minute chart and buy/sell in the same direction for a 10 pip gain. The system consists of 2 moving averages and heiken ashi candles, nothing more. It's some kind of crossover system, but it filters out the crossovers you make instead of trying to trade every crossover.
Setup... 15 minute EURUSD chart with 100 SMA close, 10 SMA close and Heiken ashi candles. I've also added candle times and cross alerts (all provided below) so you don't have to sit back and watch.
Next I added the exact same content to the 1 minute chart, but I also added a tick value indicator that I modified and an EA that automatically sets stop loss and take profit.
I view both charts side by side (go to "Window" and "Vertical Tile" in Metatrader) so that you can see what is happening on both charts at the same time. What I see is an up and down trend with Heiken Ashi candles. In a nice smooth downtrend (perfect world) you would see 10 red - 5 green - 10 red - 5 green with price zigzagging on the chart. Of course, this doesn't always happen in real life, but do look for a smooth trend on the 15-minute chart. For a downtrend, you want to see the 10 moving average below the 100 moving average, and the gap between the two widening. See Figure 1 below.
When the price closes below the 10 EMA on the 15-minute chart, it is a signal to start watching for bears on the 1-minute chart. On the 1-minute chart, I again watch the price action, waiting for a smooth rise and fall. When I see green heiken ashi candles moving up on a smooth retracement (I like to see at least 4 or 5), then I want to sell a continuation of the downtrend. The signal to enter a trade is given when price closes below the 10 SMA on the 1-minute chart. Once the candle closes, enter the market. The EA is responsible for stopping losses and taking profits. Then I watch the trade unfold. The action may take a few minutes to unfold, but there's a good chance you'll hit your take profit within 4 or 5 minutes. If the trade doesn't go the way expected and a green ha candle forms, I will exit the trade once the top of that candle breaks upward. This means that it is uncommon for your full stop to be hit and you will usually be out by 4 to 6 pips. See the image below for an example.
I recommend limiting the number of trades you make per day. It's better to collect 1 to 2 a day, or up to 5, but wait for the best signal instead of sitting there all day collecting every signal. I find that the first 1 or 2 trades after the 15 minute signal are usually the best.
Optional: Since we are using Heiken Ashi candles, you may experience some fairly long runs even on the 1 minute chart, so you may want to trail your stop loss rather than take profit at +10 pips. I would use the same approach as above, when the green ha candle forms, then watch like a hawk to see if the top is taken out, and if that happens, close immediately. Or just trail your stop a few candles behind the current candle.
I describe all of this as a downtrend, and obviously with an uptrend you just have to reverse the trend.
I've tried my best to describe the system in words, the diagram below may help describe things better. I may have missed some ideas when I started writing this post, but I'll add them to the first post and if they come back to me I'll post them to the thread. I believe I have a pretty thorough understanding of the basic system.
And of course any other questions. In addition, I would like to express my sincere thanks to the people who code or otherwise provide indicators and EAs, no matter who you are.
EA and tick value indicators will be introduced in the next article.
There are a lot of posts about trading the EURUSD 1 minute chart and they all more or less say the same thing, trade in the 1 hour/15 minute direction and get a lot of small wins instead of trying to hit a home run. This is just my opinion and I believe it is a simplification of what is available but not an oversimplification. It's nice, simple, but effective.
The basic system is to wait for the trend on the 15-minute chart to develop in the same direction as the hourly chart. Once you have the trend, you can go into the 1 minute chart and buy/sell in the same direction for a 10 pip gain. The system consists of 2 moving averages and heiken ashi candles, nothing more. It's some kind of crossover system, but it filters out the crossovers you make instead of trying to trade every crossover.
Setup... 15 minute EURUSD chart with 100 SMA close, 10 SMA close and Heiken ashi candles. I've also added candle times and cross alerts (all provided below) so you don't have to sit back and watch.
Next I added the exact same content to the 1 minute chart, but I also added a tick value indicator that I modified and an EA that automatically sets stop loss and take profit.
I view both charts side by side (go to "Window" and "Vertical Tile" in Metatrader) so that you can see what is happening on both charts at the same time. What I see is an up and down trend with Heiken Ashi candles. In a nice smooth downtrend (perfect world) you would see 10 red - 5 green - 10 red - 5 green with price zigzagging on the chart. Of course, this doesn't always happen in real life, but do look for a smooth trend on the 15-minute chart. For a downtrend, you want to see the 10 moving average below the 100 moving average, and the gap between the two widening. See Figure 1 below.
When the price closes below the 10 EMA on the 15-minute chart, it is a signal to start watching for bears on the 1-minute chart. On the 1-minute chart, I again watch the price action, waiting for a smooth rise and fall. When I see green heiken ashi candles moving up on a smooth retracement (I like to see at least 4 or 5), then I want to sell a continuation of the downtrend. The signal to enter a trade is given when price closes below the 10 SMA on the 1-minute chart. Once the candle closes, enter the market. The EA is responsible for stopping losses and taking profits. Then I watch the trade unfold. The action may take a few minutes to unfold, but there's a good chance you'll hit your take profit within 4 or 5 minutes. If the trade doesn't go the way expected and a green ha candle forms, I will exit the trade once the top of that candle breaks upward. This means that it is uncommon for your full stop to be hit and you will usually be out by 4 to 6 pips. See the image below for an example.
I recommend limiting the number of trades you make per day. It's better to collect 1 to 2 a day, or up to 5, but wait for the best signal instead of sitting there all day collecting every signal. I find that the first 1 or 2 trades after the 15 minute signal are usually the best.
Optional: Since we are using Heiken Ashi candles, you may experience some fairly long runs even on the 1 minute chart, so you may want to trail your stop loss rather than take profit at +10 pips. I would use the same approach as above, when the green ha candle forms, then watch like a hawk to see if the top is taken out, and if that happens, close immediately. Or just trail your stop a few candles behind the current candle.
I describe all of this as a downtrend, and obviously with an uptrend you just have to reverse the trend.
I've tried my best to describe the system in words, the diagram below may help describe things better. I may have missed some ideas when I started writing this post, but I'll add them to the first post and if they come back to me I'll post them to the thread. I believe I have a pretty thorough understanding of the basic system.
And of course any other questions. In addition, I would like to express my sincere thanks to the people who code or otherwise provide indicators and EAs, no matter who you are.
EA and tick value indicators will be introduced in the next article.
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