HAT (Heikin Ashi, T3 and Donchian) system

[pmurraymc]

Hi,

I came across this system while researching T3 MA's on the net, this was found in a Forex forum, it uses Heikin Ashi, T3 MA's and Donchian channels, thought I would have a go at adapting it for stocks/futures.

Have released an efs for the system at

http://share.esignal.com/groupcontents.jsp?folder=efs&groupid=860

Usual disclaimers (info only etc.)

Here is a picture of the efs output.

[demarcog]

Thanks for the beautiful work

Paul,

As usual, beautiful job, I really appreciate you making this available.

How is your back testing going?

All I've been doing lately is developing strategies and also taking anything I find here and elsewhere and trying to turn them into rudimentary strategies. It's a laborious and frustrating process, as so few are worthwhile.

Came upon yet another mound of indicators, the William Blau studies, so generously provided by Alexis.

Do you think it's beneficial to investigate every new enhanced indicator?

I see you've spent alot of time investigating, T3, Corrected Moving averages, etc. have you actually had a chance to test whether the signals generated by these updated version of a moving average are more accurate at predicting direction?

I've been thinking about standardizing the interface for individual strategies/indicators, such that my main strategy program which manages the graphics, money management, and trade placement, can simply do a efsexternal call to a buy/sell indicator/system.

The indicator/system should return a -1, 0, or +1 indicating short, neutral, long, etc. Unfortunately so few current indicators are easily adaptable.

Ideally I could quickly test a new indicator and also, see if there is some value in combining different types of indicators. Perhaps having a few dozen indicators runng independently and when x percent are saying buy....etc...?

Anyway thanks again, I see you have been busy, I have run across a few promising system/indicators, let me know if you are interested. One interesting is the MAPS system in the Stocks And commodities which needed modification but basically looks for a countertrend pullback at or near a moving average to establish a position. Very simple and basic but I'm realizing the simplier the system the more money it seems to make (relatively speaking).

Glen..

[pmurraymc]

Hi demarcog,

thanks for the kind words, the reason I was researching T3 averages is that they work so well, the originator of this system used it for Forex, and put forward a good argument that it was better to have a little lag in the MA's rather than none at all, otherwise you would never take a trade as the trends found by the MA would not last long enough, in fact with no lag you are never sure of the trend.

As with all MA systems you do get false signals, so it does not make a very good 'always in the market' system, but the Donchian Channel finds good s/r at default value of 20, and HA bars will keep you in a trade.

Have some upgrades in mind for the system, also works well with the T3 macd on my fileshare (thanks to Alex on that one), to try and steal a bar or two on a move, and spot divergence.

Having a frustrating day today, my multi monitor setup has gone haywire, having to backup and re-install XP, while working from laptop.

Have also thought about a similar system for testing indicators, a bit like TRO used to do with his swiss army knife type efs.

Never investigated MAPS system but if you passed me some useful settings - I will have a play.

Cheers.

Paul.

[pmurraymc]

Have added some more files for HAT syatem.

1. Upgraded efs with coloured T3 MA's
2. Heikin Ashi open close as lines for price panel.

pictured :-

[pmurraymc]

Sorry - files at my fileshare

http://share.esignal.com/groupcontents.jsp?folder=efs&groupid=860

Paul.

[zeller4]

Nice Study!

Paul,

Excellent work, I initially had it on a white background and then changed to the light grey - looks Great!

Have you worked it in with any entry/exit timing strategies yet?

Kirk

[pmurraymc]

Hi zeller4,

glad you like it.

As for testing, have a copy running on 3 min YM, and take trades from it, entering bar close, using bar extreme as stop etc.

Mainly just can't speak highly enough of T3 moving averages and liked the system as it keeps trade in trend thanks to Heikin Ashi, as well as provides basic S/R and breakout triggers with donchian channel.

Have coded a price panel version using Heikin Ashi colours instead of drawing bars.

Will post it on fileshare later, here is pic:-

[pmurraymc]

Hi,

have now placed HAT system price panel on fileshare.

http://share.esignal.com/groupcontents.jsp?folder=efs&groupid=860

Usual disclaimers, education purposes only.

Paul.

[zeller4]

HAT

Paul,

Looks Good, I'll be trying it out over the next few days.

Thanks again,

Kirk

[pmurraymc]

Hi,

just been playing around with Heikin Ashi bars in the price panel, if you play around with candle options (make them thin, no outline and up/down colour same as wick colour) and then make the HA bars prety thick.

You get:-

[hamidkassam]

Hi Paul,

Thank you for sharing your work. That last chart looks pretty good. Do you have an updated efs for that?

Also, is there any description of or link available that explains the Heikin Ashi and T3 indicators and their use?

Thanks again,
Hamid.

[pmurraymc]

Hi Hamid,

have posted update on fileshare.

http://share.esignal.com/groupcontents.jsp?folder=efs&groupid=860

Search on internet for Heiken Ashi, T3 moving averages and donchian channels there is plenty of information on all three indicators.

Paul.

[hamidkassam]

Hi Paul,

Thank you for the update.

I will look up the references on the studies.


Regards,
Hamid.

[hamidkassam]

Hi Paul,

Regarding Heiken-Ashi, you may find the following link interesting.

http://www.ensignsoftware.com/tips/tradingtips57.htm

Although the minor redundancy in the mathematical formula does not affect the drawing of the H-A bars, I thought the article draws attention to an important point on being careful of how the bars are interpretated.

Chances are that you are probably aware of this, but perhaps this will be useful for others.

Regards,
Hamid.

[pmurraymc]

Hello Hamid,

thanks for your post.

I was aware of this article - I recieve the Ensign tips newsletter/email, and the points raised about what the Heikin Ashi bar actually plots and how that relates to what really happens is important for users to know. (I have relaesed a study for the Heikin Ashi bars only, in the price window on the fileshare).

By the same measure - the T3 moving averages can suffer from whipsaw and the Donchian Channels produce false breakout signals - that is why I recommend potential users of this study do some research on the individual components of the system.

Have you found the efs useful? If so, could you post a screenshot of any potential trades highlighted by the system.

I am keeping alert for any other systems/combinations that may be useful, and will post any that consist of studies in the public domain.

Paul.