New Settings for the Daily Heron

New Settings for the Daily Heron

June 7, 2023

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In our last Newsletter, we talked about a Daily version of the Heron robot that I’d researched years ago.

As it turns out, it’s held up nicely.

The problem with that version, though, was that the target and stop were both pretty small. As you move up in timeframes, generally the targets and stops need to get bigger.

While I realize that the small target and stop worked okay in our example from two days ago, it makes sense to increase our parameters.

So, years ago, that’s what I did.

But I don’t think I’ve talked about it before.

Here are the details:

Daily Heron EURUSD 245

  • Filter: Price must be above the 140 SMA and the 5 SMA must be above the 140 SMA. The opposite is true for Short trades.
  • Long Entry: Price must close into Oversold (CCI length 15, -100 Oversold/250 Overbought)
  • Short Entry: Price must close into Overbought (CCI length 16, 100 Overbought/-250 Oversold)
  • Profit: 245 pips
  • Stop: 300 pips

There are a few important points here.

The first is that the targets and stops have obviously changed. It’s still a beloved negative reward to risk ratio, though. The second is that I increased the OB/OS parameters to an extreme level, 250. This is so that extreme readings don’t interfere. We want to hit the target this time with no distractions. Third, we’ve changed the CCI length to something more moderate for both Long and Short.

The settings for this version are much more bland. No special optimizing techniques.

So, how did it do on the Daily EURUSD?

Here’s the Report via Portfolio Architect:

Interesting. With a totally different focus, it had similar hypothetical results as the original Daily Heron.

Now let’s put the exact same settings on the Daily GBPUSD. Here’s that report:

The GBPUSD had more profit, more drawdown, and about the same win percentage.

Let’s do one more USD-based pair. Here’s the Daily USDCAD:

Hmm. Similar again. This methodology has done well with three USD-style currency pairs.

I wonder what would happen if we put those all together?

And then added a surprise.

We’ll find out in the next Newsletter.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.