Heikin-Ashi Trend (2 green candles + EMA)¶
What it does: Buys after two green Heikin-Ashi candles above a trend average; exits on the first red one. Heikin-Ashi candles are smoothed candles that make trends easier to see. This buys after two green (rising) Heikin-Ashi candles in a row while the price is above its 50-candle average, and sells on the first red one or at the stop-loss.
Style: Trend · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work in clear trends.
Where it struggles: It whipsaws in sideways markets, where the candle colour flips often, and each flip costs trading fees. Heikin-Ashi candles are smoothed averages, not the prices you actually trade at.
Markets it was written for: BTC, ETH, majors. Timeframes: 4h (1h-1d).
Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.
Long¶
Buys after two green Heikin-Ashi candles above a trend average; exits on the first red one.
Labels: Trend Following, Long, Spot, Beginner, Medium
- Direction: Buy (long) · Market: spot
- Trigger: On candle close · Main timeframe: Auto (4h)
Entry
- IF HA close > HA open for 2 candles in a row (4h) and Price > EMA(50) (4h)
Exit: Indicator-Based Exit
- IF HA close < HA open (4h)
- Loss controls: Stop-loss % 6%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Trend average | 50 | Yes | It only trades on the trend side of this average (buys above it; the short version shorts below it). Shorter allows trades sooner after a trend change (more trades); longer is stricter (fewer trades). |
| Consecutive HA candles | 2 | Yes | How many green Heikin-Ashi candles in a row it needs before buying. More candles means later but steadier entries and fewer trades; fewer means earlier entries and more whipsaws. |
How it works (as shown in the app)
- Heikin-Ashi candles are smoothed candles that make trends easier to see. This buys after two green (rising) Heikin-Ashi candles in a row while the price is above its 50-candle average, and sells on the first red one or at the stop-loss.
- Orders fill at real market prices; the smoothed candles are only used for the signal.
- It tends to work in clear trends.
- It whipsaws in sideways markets, where the candle colour flips often, and each flip costs trading fees. Heikin-Ashi candles are smoothed averages, not the prices you actually trade at.
- Built for 4-hour candles (1 hour to 1 day also work). It only makes sense on closed candles.
- After a stop-out, it re-enters on the next qualifying green candle: a candle close that again shows the required green Heikin-Ashi candles in a row with the price above the trend average.
Short (perp)¶
Shorts after two red Heikin-Ashi candles below a trend average; closes on the first green one.
Labels: Trend Following, Short, Futures, Medium, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle close · Main timeframe: Auto (4h)
Entry
- IF HA close < HA open for 2 candles in a row (4h) and Price < EMA(50) (4h)
Exit: Indicator-Based Exit
- IF HA close > HA open (4h)
- Loss controls: Stop-loss % 6%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Trend average | 50 | Yes | It only trades on the trend side of this average (buys above it; the short version shorts below it). Shorter allows trades sooner after a trend change (more trades); longer is stricter (fewer trades). |
| Consecutive HA candles | 2 | Yes | How many red Heikin-Ashi candles in a row it needs before shorting. More candles means later but steadier entries and fewer trades; fewer means earlier entries and more whipsaws. |
How it works (as shown in the app)
- Heikin-Ashi candles are smoothed candles that make trends easier to see. This shorts after two red (falling) Heikin-Ashi candles in a row while the price is below its 50-candle average, and buys back on the first green one or at the stop-loss.
- Orders fill at real market prices; the smoothed candles are only used for the signal.
- It tends to work in clear downtrends.
- It whipsaws in sideways markets, where the candle colour flips often, and each flip costs trading fees. Heikin-Ashi candles are smoothed averages, not the prices you actually trade at.
- Built for 4-hour candles (1 hour to 1 day also work). It only makes sense on closed candles.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
- For now this version runs in backtests only; paper and live futures trading are coming later.
- After a stop-out, it re-enters on the next qualifying red candle: a candle close that again shows the required red Heikin-Ashi candles in a row with the price below the trend average.
Warnings¶
- "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
- Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
- Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
- "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.
Good to know¶
- After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
- Changing a setting before adding it also changes the saved name, so you can tell copies apart.
- Past results don't predict future ones. Try it in a backtest and on paper before using real money.
- Indicators used: EMA, HA.