Heiken Ashi Smoothed Reverse EA
This Expert advisor places trades based on the Heiken Ashi Smoothed indicator. It adopts a rather unconventional strategy opening reverse trade(s) after a series of candles preceding a color change. The strategy is designed to be used on daily bars. The normal length of time in a trade could be anywhere between 6 days and 1 month.
For visualization you can use my free Heiken Ashi Smoothed indicator and drag it to the charts where the EA is running:
The strategy of the Advisor can be explained in the following steps (please also see separate screenshot for visualization):
- Look for trade on a certain candle after a Heiken Ashi Smoothed color change.
- Exit on the corresponding candle after the next color change.
- Possibility to activate slippage and spread filter.
- Moving average filter.
- Possibility to select between adding a fixed lot or let the system set the lot size according to risk percentage.
- Possibility to trade in a normal (non-reverse) way by disabling the Reverse behavior.
- Time frame to operate on: Default is D1. This value should not be changed in order for the strategy to work properly.
- Reverse system: Should be left to True in order for the strategy to work properly.
- Maximum orders on signal: Default is 1. For each increment a new order will be placed if the color is the same on the next candle. Will lead to higher profit but also higher drawdown.
- HEIKEN ASHI SMOOTHED SETTINGS
- MA method: Default it Smoothed Moving Average.
- MA period: Default is 4.
- MA method 2: Default is Linear Weighted Moving Average.
- MA period 2: Default is 8.
- Candle shift to look for color change: Default is 3.
- Maximum allowed slippage in points: Please note that not all brokers/account types support slippage control.
- Maximum allowed spread in points (0 = not used): Can be set to avoid taking trades with high spread directly after midnight market opening for those who have variable spreads.
- Enable MA (Moving average) trend filter: With this option enabled trades will only be placed when price is above/below the MA. When using reverse logic a buy order will only be placed if price is below the MA period. The same for the exit. Exit for the buy order will only be done if price is above MA. Vice versa for sell orders. With MA enabled a second order in the same direction could be opened if there will be another signal with price still below MA. This even if you have setMaximum orders on signal to just 1. Using it this way and with a MA period close to the price has been proven to be quite effective.
- MA time frame.
- MA period.
- MA method.
- MA price type.
- Risk in percentage(>0 = auto lot): If set to 0 the Manual lots value below will be used. Sets the risk for the trade based on Account Free Margin. It will implement true risk only if combined with stop loss.
- Point value for risk percentage: Default is 1. Is normally not changed. Only in some rare cases where the broker has unconventional tick values for CFD:s. A setting of 0.1 could then be used.
- Manual lots: Will be used if Risk above is set to 0.
- Stop loss: Stop loss should normally not be used with this strategy. Position(s) will be closed automatically at opening of the trigger candle after the next color change.
- Take profit: Take profit level. Normally not used with this strategy.
- Break-even: Break even level.
- Break-even trigger: Price has to reach this level before the stop loss will be moved to break even.
- Trailing stop: Will trail the stop loss constantly with the distance you have set. There is no trailing step level in this system. Instead the trailing stop will be adjusted each 3rd second.
- Magic number: Order magic number.
- Order comment: Order comment.