This system has proved to be very beneficial on its own and in no way needs to be incorporated with any other to turn over profits.
Incorporating this system into your own could lead to losses. This is an 1-in-1 method which is simple to follow and the only thing you need to take care of is your money management
Most trending systems require two lines of moving averages to cross, however! This system does not. This system allows you to catch on to the trend before it actually happens giving you a head start in the market.
The Tools Needed:
Heiken Ashi Smoothed (you can download it from hereHeiken Ashi Smoothed - MQL4 Code Base) SMA 10
EMA 60 with Level of 120
5 Minute Chart
** Originally i proposed to put several EMAs on however the 60 EMA works even better with the level of 120 on its own **
If your confused just ask me but its on the ‘Levels’ Tab of the MA
The MA’s work as blocks for consolidation and block out most false signals. …
When to Buy:
You want to buy when the 10SMA is below ALL the other SMA’s and starts to signal a blue trend. See icon below. Close the position and take profit when the first red signal shows at the top of the trend as shown below.
When to Sell: You want to sell when the 10SMA is above ALL the other SMA’s and starts to signal a red trend. Close the position and take profit when the first blue signal shows at the bottom of the trend.
DO NOT BUY OR SELL IF THE 10SMA IS ANYWHERE WITHIN THE OTHER SMA’S
-Only buy or sell on an upswing or downswing
I have tried to explain this the best I can and I hope you can understand it. If not ask the questions and I will add the answers to this post.
See below for examples of trades done using this system.
Looks interesting. I set it up on my Thinkorswim charts and it looks good. Have you used in in actual trades? Do you have a typical target and stop loss? Where did you find it or did you design it yourself.
I designed this entirely myself. I have used it in quite a few trades and it does seem profitable so far however i do want to test it more when the markets open again before i delve into real money.
I got the idea of the system initially from the moving averages not the HA and i thought it would be good if there was some kind of way i could profit from markets before the lines cross and get a headstart and thats when i came accross the HA tool and integrated both together.
Do test it though and let me know what you think. I want to try and backtest it over a few months if possible.
Going off eToro stats my typical target is 10% of my investment at one time (not my whole bank) same for loss. so basically trading on EVENS>
Well the main purpose of my MA’s is to prevent too many false signals however a few will of course still happen over time. I always try and pick the right times to trade my selected markets and i find that usually helps me to avoid getting stuck in markets which are full of consolidation.
I dont have them on MT4 from what i can see but judging from your pic it looks like it does the same thing. As long as the level is set to 120 then it should be good to go.
The 10SMA has to be above or below the other lines to make the trade, you need to make sure obviously that the colour whether it be blue or red is closed out below or above the lines. PA doesnt really matter as that will follow anyway.
I have been trading this for a few days and even though that is not along time i did want to put it on here to see what everyone else’s views on it were and let them test out also. Yesterday i made 4 trades and 3 of them resulted £10-12 profit from a £100 investment (just over 10%) and the loss was a loss of £5 as it was a short trade and the line turned blue giving me a signal to get out.
My method of calculating profit and loss may be confusing for some, i dont mean risk £100 to gain £100 i mean if i invest £100 i will walk away with at least £10 profit but also will not lose no more than £10 of that £100 if you understand?
