Short Term Momentum Strategy Using 2 Time Frames

HTF HOUR TRIGGER CHART & LTF MIN ENTRY HEIKEN ASHI

CONCEPT

Two time frames will be used for the strategy.  The HTF chart (High Time Frame = HTF) will be used to determine direction.  We will use a Moving Average (MA) on the HTF time frame and Heiken Ashi (HA) to dictate directional bias for the session.  Once the HTF chart has met the specifications to trigger a directional bias, we will then move to a LTF min chart (Lower Time Frame = LTF) to trigger the entry rules.  The LTF chart will only trade in the direction of the bias.  The LTF chart will use Heiken Ashi and RSI to trigger the entry rules.  For the exit, RSI and Heiken Ashi will be used as well, however, they will be based on a new RSI variable from the entry signal.  Heiken Ashi will be able to use multiple time frame variables for the exit trigger. 

To filter out trades, we will also use a timing window to find trades.  This window will begin at a specified time to Start and Stop.  While inside the timing window the strategy will look to enter in the bias direction.  Once the timing window has ended there will be no new entries until the next session begins.

Money Management

Every entry will have a “disaster” stop (Fixed Pips, Fixed Dollar, Fixed Percent of account) OR technical event to trigger a stop.  However, the primary money management will be an averaging or scaling process.  There will be a minimum number of pips required between entries to trigger a second entry (or third, fourth, fifth, etc) and the second entry, or following entries, use follow the same entry criteria already noted above.

Profit Target

Profit targets will be indicator and minimum pip criteria based.  So the minimum pip target and and indicator based exit signal must both occur for a valid exit (Take Profit = TP).  TP can be a fixed amount or variable if indicator based with a minimum criteria.  Also, there will be a hybrid option of taking a maximum pip target or technical variable pip target minimum, whichever is hit first.

The EA will also include ability to trade fixed lot size or auto lot sized based on balance of account.

The EA will also require on screen profit and loss and and average price indicator / marker.

Custom Indicator

The EA will also have a custom indicator that will mark the entries where all of the criteria is being met to trigger an entry or exit.  This will be designed as a vertical market that paints the area of the criteria being met.