The priority with this system is for trending pairs with good volume (USD majors) rather than volatile pairs (JPY or CHF). However, I do consider both in the overall picture.
First, I try to see if there are any setups on the USD majors (1 Hr chart). If I see any, then I take that trade and wrap it up for the day.
The only time I trade volatile pairs like GBP/JPY or EUR/JPY is when I don’t see any potential setups on the trending USD pairs.
BTW I almost never trade CAD or CHF pairs (except on the rare Friday). This approach has worked so far on demo.
If I ever decide to go live, this is the only strategy I would trade in the 1 Hr TF. Keep a target of say 15-25 pips a day and you’ll do fine … Your balance will rise slowly but consistently.
[I]I like conservative systems that give me 15-25 pips a day rather than speculative, mechanical ones that go 100-200 pips either way. In the end, it’s not about pips but about ROI and money management.[/I]
You know, I usually like to pick holes in a system, method or technique (a temperament thing, I guess) till I’m able to satisfactorily get most fundamental and technical answers. What I like about this system is that it’s not a blind mechanical system. It is based on sound principles and the choice of indicators makes it a winner.
I like the 1 Hr TF as well. That’s because you can get trades of 15-25 pips each across multiple pairs. This can get you a total of 40+ pips (when you have the right setup) and also helps you de-risk your position size by spreading the risk across pairs. Besides, it’s my understanding that Heiken Ashi works best up on the shorter time frames up to the 1 Hr TF.
I find heikin ashi charts to be very helpful for price action. I don’t use many indicators as I prefer cleaner charts but find heikin ashi to be a good complementary tool for analysis with price and volume.
I have been playing around with GBPUSD, AUDUSD, EURUSD and GBPCHF.
