Swing Index System - Heiken Ashi Pivot Breakout Strategy

2020年10月8日

For Educational Purposes. Results can differ on different markets and can fail at any time. Profit is not guaranteed.

This only works in a few markets and in certain situations. Changing the settings can give better or worse results for other markets. This is a breakout strategy that uses the heiken ashi bars to find the support and resistance levels or the swing pivots to try to objectively find a breakout. When the price breaks out of a swing pivot, breakout can be confirmed and a strategy can be made. The trade exits as soon as in profit when the heiken ashi bar changes color, when the price swings start to slow down, or when the price breaks below a swing pivot. There might be many strategies and possible ideas that can be made just from knowing where the swing pivots are alone. For this one, I decided to try to emulate Wilder's Adam Theory approach by entering only a specific criteria when it makes new highs or lows that I experimented with. The Swing Index System seems to be similar to what he describes in his book (or perhaps it is the same thing).

Some say that price is the ultimate indicator, but not many really know what that really means. This is yet another approach to try to interpret what that means. This strategy only contains a piece of the complete breakout and trend strategy approach of the Adam Theory and won't be profitable in every market under every situation. This does not include price patterns that the Swing Index System is said to be able to find such as chart patterns, wedges, tops/bottoms, etc. This only includes the small breakout portion requirement in the book. I included specific entry and exit criteria to make the strategy work well that involves nothing but the price action of the swing points only due to the lack of the other missing pieces. It does not contain the missing pieces. Despite this, it can still help find where breakouts might be in an objective matter using the Swing Index System as a standalone trading system and it doesn't involve lookbacks or anything but price alone.

2020年10月8日

版本注释

removed the exit on ha bar change and exit on slowing down of swings, kept the late exit on swing pivot break
replaced them with an atr long term trend trailing stop for better exits

2020年10月8日

版本注释

changed naming and chart
the incomplete breakout strategy wasn't as good as the trend following alternative

2020年10月8日

版本注释

re-name couldn't be changed

2020年10月8日

版本注释

added back breakout mode
enters on pivot breakout, exits on pivot breakout despite the longer exit, this strategy is just mostly currently prove of concept but can give good entries when combined with other indicators or strategies

2020年10月9日

版本注释

improved the strategy, looks like it's working well for ranging markets on my testing

2020年10月11日

版本注释

updated to a more range-like breakout mode, a trend type strategy still needs work

2020年10月15日

版本注释

More changes, removed the pivot range part and replaced it with a minimal elliot wave finder.
It seems that re-ordering the pivots in a way that matches pattern breakouts wasn't working no matter which ones I tried.
Wilder's book mentions the phrase elliot wave very briefly so I included a requirement for wave 3 to be more than wave 5 and to enter on the breakout of wave c, the stop is the usual wide pivot exit above/below the swing pivot line. So far doing it the elliot wave gives better results, and depending on which time frame or market it's looked at, results can vary. It's hard to say how the author intended for this to be done but maybe I'll just leave it like this for educational purpose.