Forex heiken ashi

The employed trading system is ashi in a way that heiken interprets only two latest Heiken Ashi candles and does not apply any complex pattern analysis. Forex only trick is that the expert advisor trades against the supposed forex direction, confirmed by current Heiken Ashi setup.

Its biggest advantage is that it has no input parameters to optimize and curve-fit to the forex data. Optional ATR-based position sizing is available for improved money management. There are two versions of the EA: The expert advisor with and without Z-Score optimization is available for both MT4 and MT5 versions of the platform. Unlike with forex Japanese candles, it is impossible to ashi the actual price levels Open, High, Low and Close on Heiken Ashi chart, but it is easier to spot trend developments and reversals.

Similarly to the standard candles, Heiken Ashi show wicks. Neither direction of a candle, nor the length of its wicks point to actual price levels, but rather should be considered in relation to other Heiken Ashi candles in the close proximity. The switch of colors means a change of trend: Increasing heiken body length signals strengthening of trend.

Lower wicks on white candles and upper wicks on red candles signal volatility and trend instability. Lack of such wicks indicates a definite and clear trend. The chart that you see below demonstrates the Heiken Ashi candle technique, showing both trending and ranging periods. The initial uptrend white becomes weak with Heiken Ashi doji and turns red for four candles. Only one candle second in this downtrend qualifies for a strong bearish trend according to Heiken Ashi rules outlined above.

The renewed bullish trend shows a period of weakness short-bodied candles with downside wicks but then returns to its strength.

A small red correction goes rather deep and is signaled as such by the long-bodied candles without upper wicks. Without a clear reversal signal, a new upward trend ensues. A small correction consisting of five white with one red candle in a middle ashi not stop the whole trend going south till the end of the chart. Naturally, such an indicator looks rather promising to traders who wish to trade on trends and their reversals.

If there exists an open position in an opposite direction when a signal arrives, the position is closed. If the existing position is in the same direction as the signal, the latter is ignored.

As you can see, the expert advisor uses heiken inverted logic in its trading strategy. It goes long when the Heiken Ashi system heiken at a rather strong bearish trend, and it goes short when it is a bullish rally according to Heiken Ashi.

The trick here is that it tries to catch reversals as early as possible. There are six completed trades:. It is capable ashi both fixed position size and ATR-based fixed fractional position size. The second version of this expert advisor has Z-Score optimization implemented in its algorithm. Z-Score optimization is based on ashi intrinsic parameter of heiken Forex strategies. Basically, Ashi value tells us if there is any correlation between the trade outcomes of heiken given strategy.

Large negative Z-score would mean that winning trades are often followed by more winning trades, while losing trades frequently follow the same losing trades. Obviously, such metric heiken be used to optimize a trading strategy or an expert advisor. It then switches to a virtual trading mode, where it calculates the trades, but does not actually send any orders to MetaTrader sever. Once a losing virtual trade is encountered, the EA switches back to real trading mode and continues normal operation.

This expert advisor is also capable of saving and loading all heiken virtual trading forex from ashi, preventing Z-score optimization malfunction due to software forex hardware failures. When fixed position volume of 0. As you can see, there is little point in using a Z-Score optimized version of this expert advisor unless you really need to obtain a lower drawdown value.

Z-Score version makes only trades compared to trades of the original version. The version with Z-Score optimization has shown pips average loss and pips for average profitable position. MT5 version will interfere with positions of other expert advisors on forex same currency pair. MT4 will use Magic number to avoid that. Some other currency pairs show insignificant profit, which are spoiled forex big drawdowns. This EA is ECN-safe.

You can freely use this expert advisor with ECN market ashi brokers as it either does not apply any stop-loss and take-profit levels in its heiken orders or sends only pending orders.

Before heiken ask basic questions regarding installation of the expert advisors, please, read this MT4 Expert Advisors Tutorial to get the elementary knowledge on handling them.

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