I have been playing around with Heikin-Ashi charts and AutoTrading with some strategies.
Are the results correct when backtesting or are they miscalculated due to using heikin-ashi charts?
Heikin-Ashi AutoTrading?
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Re: Heikin-Ashi AutoTrading?
In my point of view this charttype is only usefull for manually trading.
Re: Heikin-Ashi AutoTrading?
Here is a suggestion. Develop and test your strategy on regular bars. When you are satisfied with the back-tested results, autotrade the strategy using Heikin-Ashi bars. I have found from live testing the same strategy side-by-side on regular bars and Heikin-Ashi bars that the latter gives better real time results. I have no explanation why this is so. It may just be the type of strategy I developed. Perhaps other traders can try this out and share their experiences. Thanks.
- Andrew MultiCharts
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Re: Heikin-Ashi AutoTrading?
I cannot agree this is a good advice. A strategy should be developed concerning all peculiarities of the non-standard chart type + it should be tested in real-time with a demo account before going live.Here is a suggestion. Develop and test your strategy on regular bars. When you are satisfied with the back-tested results, autotrade the strategy using Heikin-Ashi bars. I have found from live testing the same strategy side-by-side on regular bars and Heikin-Ashi bars that the latter gives better real time results. I have no explanation why this is so.