Trade Mgnt Heiken Ashi

[felix2828]

Hi,

currently testing different approaches but need for closing position.
Thank you in advance
Using Heiken Ashi Candles and Bollinger Bands as main system components.
Main idea is to trade from upper deviation to lower and from lower to upper.

Would like to keep things very simple by 2 handles for condition block for "if trades" for open trades.
" And" "or"

This would be possible example:

https://fxdreema.com/shared/lnmISqkAb

What if found from testing when trade is open there are mainly 3 different outcomes possible:

price consolidates at middle band and it would be best to close position
price arrives at other Bollinger Bands, loss of momentum and then reverses so it would be best to close
price arrives at other Bollinger Bands but momentum continues shown by HA candles and then if Heiken Ashi switches color near band it would be best to close.

Simply, if momentum continues it should run,
if momentum stops or market starts consolidating it should stop.

Has somebody good results from ADX and DI crossing?

What i've found to just close it by opposite Heiken Ashi color would often cut trade way to early, in the "neutral Zone" between Bands and where Moving Average is.

Because there is only option in fxdreema to using Heiken Ashi but color and candle wick/type but not as heiken ashi dojis- loss of momentum/consolidation,

found that is would be best to have conjungtion with momentum as well to keep it simple.

I've testet common momentum indicator like RSI, Stochastic as well but found that that in ranging condition works good as extra confluence but if momentum keeps on going it market would continue way long at bands if heiken ashi color hasnt changed even if stochastic is oversold/overbought and or main line has crossed back below 80/20 Level.

Also testet approach to fixed Risk reward but due that every trade situation and outcome is different, found that simple 2:1/ 3:1 doesnt work, because sometimes market stops at middle band and sometimes want to continue even further.

Also found that every form of trailing stop would cut profit to early as well, because market is allowed to have wiggle room when expending and is even allowed for shorter retracements, because it is how markets tends to move.

[l'andorrà]

IMHO the only reliable infor provided by the ADX is the mail line. Both DI+ and DI- lines are COMPLETELY unreliable. Just forget them, they will never provide any good info.

[felix2828]

@l-andorrà

Yes, you're right.

Found in backtesting that Di crossing was super lagging. Unfortunately, because liked the simplicity of the indicator.

[felix2828]

@l-andorrà

Can you please check if logic of the trade mgnt would be correct this way like explained to manage by heiken ashi for middle and other bollinger band?

thank you

https://fxdreema.com/shared/qupyA5xkc

[l'andorrà]

You can remove all those AND blocks. They are redundant. I don't understand the logic for those 'OR' blocks though. What are those supposed to do?

[felix2828]

@l-andorrà

Hi,

the idea is to check for 2 possible outcomes.
Whether price stops at the middle band and then heiken ashi changes, which would close the trade or if momentum continues through for opposite bollinger bands.

With the or block i wanted to make sure it should look for middle bollinger bands as first target for both.

Found from the backtesting that heiken ashi sometimes changes color even before middle band was touched.

[l'andorrà]

But do you need both outcomes to be possible at the same time or just activate one of them at a time?

[felix2828]

@l-andorrà

Nevermind, have changed strategy for heiken ashi.

Using simple Heiken Ashi and ADX system instead.
Still would like to use Heiken Ashi as Exit indication but found from backtesting that there a smaller continuation opposite candles for heiken ashi, therefore would like to confirm that trend is still active as second condition until heiken and the condition changes.
Found that Parabolic Sar would help pretty good with that.

Havent found success for bollinger bands, because in most cases it is just easier to follow the trend and not trade against it.

Please have a look a my latest post sir.

Thank you.

[l'andorrà]

What am I supposed to read in you previous post exactly?

[felix2828]

@l-andorrà

Hi,

have changed system away from Bollinger bands entirely,

have closed this thread, please only have a look a look at newer ones for Heiken Ashi and ADX