Heiken Ashi EA Review – A Detailed Analysis

The Heiken Ashi EA is an expert advisor available on the mql5.com marketplace that trades using the Heiken Ashi candlestick indicator. This fully automated trading robot aims to identify trends and profit from price movements using the unique smoothing capabilities of the Heiken Ashi technique.

Heiken Ashi EA

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Overview of the Heiken Ashi EA

The Heiken Ashi EA comes in versions for both MetaTrader 4 and MetaTrader 5 trading platforms. It was created by Eleni Anna Branou of Juvenille Emperor Limited. The EA trades the classic or smoothed variations of the Heiken Ashi candles using an innovative approach not found in other trading robots.

Key features:

  • Fully automated trading using Heiken Ashi candle signals
  • Options for trading classic or smoothed Heiken Ashi candles
  • Unique entry and exit logic to capitalize on trends
  • No dangerous strategies like martingale, grid, or averaging used
  • Includes multiple filters such as moving averages and MACD
  • Flexible settings for customization and optimization

How the Heiken Ashi EA Works

The Heiken Ashi EA enters trades based on color changes in the selected Heiken Ashi candles (classic or smoothed). After the first candle close of a different color, a position is opened. Subsequent trades in the same direction are added for as long as the Heiken Ashi color stays the same.

There are also options to limit the distance between same-direction orders and to set hard and virtual stop losses/take profits. This allows fine-tuning of the EA’s trading strategy.

Additionally, the EA incorporates filters like moving averages and MACD to help confirm trading signals and avoid false signals. These provide further robustness to the automated trading system.

Benefits

  • Capitalizes on trending price action shown in Heiken Ashi candles
  • Customizable to suit different trading styles and risk tolerances
  • Works well across various currency pairs and timeframes
  • Can be further optimized through backtesting for enhanced performance

Performance and Backtesting Results

Extensive backtesting on over 10 years of historical data shows that the Heiken Ashi EA is capable of generating consistent profits over the long run. Results can vary across different currency pairs, timeframes, and broker conditions but the overall equity growth and drawdowns are stable.

The developer provides set files optimized for ECN/raw spread accounts that can serve as good starting points. Traders are able to further fine-tune inputs and settings through backtesting to match their preferences. Caution is still urged when using any EA and risks should be properly managed.

Using the Heiken Ashi EA

The Heiken Ashi EA is easy to set up and use. The following steps are involved:

  1. Download and install the EA file into the Experts folder
  2. Add the Heiken Ashi Smoothed indicator file into the Indicators folder
  3. Attach the EA to a chart in MetaTrader 4 or 5 platform
  4. Input parameters like trade size, SL/TP values, filters etc.
  5. Allow automated trading by enabling the EA
  6. Monitor trades and equity curve

The developer recommends using their set files to reduce optimization requirements and provide good out-of-the-box performance. However, traders can still backtest with their own adjustments to match their risk tolerance.

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Pros and Cons

Pros

  • Effective implementation of Heiken Ashi trading technique
  • Innovative entry logic to capitalize on trends
  • Smoothed Heiken Ashi further eliminates false signals
  • Customizable parameters and filters
  • Suitable for various trading styles
  • Good long-term profit potential

Cons

  • Requires monitoring like any automated trading system
  • More short-term price noise with classic Heiken Ashi
  • Needs occasional re-optimization for maximum performance
  • Risk management still essential to limit drawdowns

Conclusion

The Heiken Ashi EA provides traders with an expert advisor that harnesses the power of the useful Heiken Ashi candles to identify and profit from trends in the forex markets. It uses an innovative approach to trading the signals from these candles and gives users the flexibility to further customize it through parameter adjustments. For traders seeking to automate a rules-based Heiken Ashi trading strategy, this EA is worth testing out through proper backtesting. As with any EA, risk management is still vital but the in-built features of this automated trading robot helps mitigate risks as well.

Author: Dominic Walsh
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I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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