HAMA PAD - A Simple Trading Approach
edited July 28, 2007
last edited April 5, 2009

I have started this thread as a result of the many requests I received, from my postings on different threads here, for information on the HAMA PAD. So, here is the beginning of our HAMA adventure..

Let me first start this by giving you a little background on why this method or approach in my trading plan. It is based on Heiken Ashi (HA) modified using moving average (MA), hence, the coined word HAMA. With it, we add the HAMA Bars, to see the real time Price actions in a given Area of the chart to eventually indicate to us the Direction of the current market trend, thus the coined word PAD. I tend to use coined words, initialed letters, etc., coz I used to deal with the government and you know all those 3 or 4 lettered agency names, i.e. SEC, DOJ, FBI, etc.. If you are not familiar with HA (see image #1) please refer to link #1 and #2.

When I started to get into trading, I have found it very hard to comprehend all those terminologies and indicators, and I still do. I thought that Fibonacci was some kind of an Italian cocktail, dance, or pasta. Then, of course, the Japanese entries into the trading indicators, the Japanese Candlesticks (yeah, just tell me when it’s doji time), the most commonly used, the Ichimoku [(it was like trading in cloud 9 and I thought Tenkan Sen was a Japanese food), the Renko, and the Kagi. My favorite of them all is the Heiken Ashi. When I first heard of it, I thought it was a new German-Japanese beer joint venture, Heineken and Asahi beers in one ice-cold bottle. Make it a case, I like them cervezas. I hope I got some smiles from you guys. Kidding aside, all these indicators are good. I just tend to favor the HAMA.

HA, as it is, already serves as a good tool for reducing the so-called market noise. Read more on it in link #3 below. But when raff1410 brought up the HA with the MA modification, it gives it a new look at market direction and market noise reduction. Lo and behold, the HAMA (see image #2) was born, I mean coined. Then, FX Sniper threw in the EMA channel (see image #3). WOW! Now, I saw the light at the end of the tunnel. There is the Price action, tradeable Area and Direction are easily identified (see image #4).

OK, so it may sound like I am very excited about this, YES, I am. Because, this I can easily understand. I am able to trade without any other confirming indicator/s. But, typical of us all, I am sure many of you, including me, will be tempted to add one or more confirming indicators. I use this basic HAMA PAD setup whether I will be doing trend trade, counter trend, breakout, or scalp.

From this HAMA PAD simple trading approach, evolves the H2 Trading System and others. We now have the HAMA Traders Lounge and Trading Room. I am also planning to start a real time learning - sharing - collaborating - community center for HAMA PAD Users Group and other members of the TSD forum who are using the Heiken Ashi.

I feel that this approach will work best for beginners and experienced traders alike. The 10 to 20 pips plus a day per pair goal can become comfortably attainable with minimal risk and good money management.

I would appreciate your comments, ideas, and enhancements on this. Good ones, preferred of course. Let’s make this a profitable adventure.



Enjoy!

fxcruiser

shoo



Update 8/26/06
HAMA PAD Basic Trading Guidelines posted here: http://www.forex-tsd.com/45164-post22.html

Some sample FX Trading Results:
082906 - US Morning Session: http://www.forex-tsd.com/45827-post109.html
083106 - http://www.forex-tsd.com/46433-post150.html
091506 - http://www.forex-tsd.com/49398-post167.html
092206 - http://www.forex-tsd.com/50499-post193.html
100606 - http://www.forex-tsd.com/53775-post255.html
103106 - http://www.forex-tsd.com/59503-post614.html
More trade results from different users can be found within this thread.

Some sample Futures Trading Results:
092206 - http://www.forex-tsd.com/50506-post194.html
Links:
1. Heikin-Ashi: A Better Candlestick
2. Heikin-Ashi Technique
3. Trading Without Noise

Attached Files

How to trade Heikin.doc (24.5 KB, 6782 views)

__________________
HAMA PAD v1 Original (here since 8/25/06)
Z3 FREEDOM System - Trading the Market Flow and Beyond!

Hi, your system seems interesting from the pics you've attached. Please post the system's rules in step by step manner and the HAMA PAD indicators for forum members so we can contribute to the development. Also please let us know if you're trading live with this system or forward testing on demo. Any additional related info on the HAMA PAD system would be fantastic. Thanks for your efforts!!

raff1410 is the author of this HA mod right?, the VQ indicator made by him could be interesting to act like a filter.
I have attached and if you only take the trades according with positive or negative volatility, you could stay out from false signals or sideway market.
Adding some ema cross could help to get into the trade a little early before prices goes out ema channel. I´m testing two ema cross, one for 15/30m and another for h1.
Don´t like to have many indicators, but I like to filter fake signals.

Dou you have some link to read about EMA channel?

__________________

Hi,
Finally a good thread on a Heikin Ashi. Have always been a big time fan of the Ha charts. The HA-mod does look little bit better. However, the question remains is how do you filter out the sideways movement?
Looking forward for the indicators and system rules.
HA does lose a lot in sideways market, but then what trend trading system doesnt??

Waiting for more.

Since this is Heikin ashi MA modified thread, I would just like to post this link I came across. The indicators are in VT. I am interested in knowing what are the "envelopes" and the "Strength indicator" mentioned on the video. Any ideas??
http://www.tradecurrency.ca/

Well, he is selling his system and I am sure the indicators are available here for free. So just little bit more fuel for this thread.
FxCruiser, sorry, not trying to hijack your thread. Feel free to request the moderator to delete this if you want. But it is interesting and could potentially help your system
Cheers

__________________
http://www.qvvo.com/link/b2b0876e
WHEN YOU ARE LOOKING FOR THE BEST

Way to go man

I am 100% here

That's fine. No hijacking at all. I am familiar with Erol. In fact, I bought one of his very first systems in my early FX day (pre MT, was using Oanda). Hmmm, maybe I should just buy his Turning Point Indicators package and not worry about developing this HAMA PAD. What do you think?

With all the talented members and MT4 coders we have here, I am sure those or similar indicators can be done. In the meantime, take a look at the image attached. This does not work nor look exactly like the FX Turning Point coz the HAMA PAD is not trading using the actual HA. These HAMA "Turning Point" is not quite ready yet, though.

radicalmoses, I truly appreciate your interest in HA. especially your participation and contribution in this thread. I look forward to more of your input.

Enjoy!

fxcruiser

__________________
HAMA PAD v1 Original (here since 8/25/06)
Z3 FREEDOM System - Trading the Market Flow and Beyond!

Hi FXC , what are the arrow on the picture ?

Attached Images

006.gif (15.0 KB, 30554 views)

Cafedacruz1, I am sorry. That particular snag shot of HAMA was prematurely released, as a result of the earlier posting by radicalmoses showing the FX Turning Point Indicators. Well, anyhow, those are the buy and sell signals and still in the early development stage.

I will be posting a snag shot with the set of rules right on the chart. Then, I will follow it with PDF instructions, hopefully, with illustrations.

Thank you for your interest and participation in this thread.

BTW, how come your chart does not have the HAMA and the HAMA bars on? I will PM you shortly.

fxcruiser

__________________
HAMA PAD v1 Original (here since 8/25/06)
Z3 FREEDOM System - Trading the Market Flow and Beyond!