Revisiting the Daily Heron

Revisiting the Daily Heron

June 5, 2023

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I love trading robots that use indicators.

So, not surprisingly, I’ve always loved the Heron.

Then why did I stop trading it?

Two reasons.

One, the executions on the 15-minute versions of the Heron started to get worse than they had been.

Two, the specific currency pairs I had chosen to trade the Heron had gone into a lull (see Reason #1).

That’s why I haven’t traded the Heron live in a while.

But there’s one way to get interested in a robot again.

And that’s to see a bunch of winning trades in your trading account.

Recently, I’ve started trading the Hornet in my live accounts and it’s gone much better than expected. And if the Hornet is doing well, the Heron is almost certainly doing well also.

Furthermore, a long time ago, I tried to overcome the short-term execution problems I was seeing on the 15M charts by bumping the Heron up to Daily charts.

The testing on that looked good back then, but I had already moved on to other robots that traded differently. Plus, I was still sad my precious Heron had been sabotaged by wide spreads.

This week, though, we’re bringing it back.

Was I wrong to ditch the Daily Heron? Let’s take a look.

When I was doing that Heron testing several years ago, I remember that the EURUSD looked pretty good on the Daily chart. That’s where we’ll start.

Keep in mind, this research hasn’t been changed in a long time. It’s been performing the best kind of testing: watch-it-trade-for-a-long-time testing.

Here are the details:

Daily Heron EURUSD

  • 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 30, -100 Oversold)
  • Short Entry: Price must close into Overbought (CCI length 13, 100 Overbought)
  • Profit: 77 pips
  • Stop: 128 pips

This should be immune to any spread problems. How has it done?

Here’s the Report from 2003-2023 (trading 1 lot each time):

Here’s the Curve:

Not bad. It’s done well since I tested it and made it through the crazy 2020-2023 period.

It’s earned further attention.

In our next Newsletter, we’ll look at another Heron version.

Talk to you soon.

 

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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.