Heikin Ashi Candlesticks Trading Strategy (Backtest And Performance Analysis)

A reader recently asked if we use Heikin Ashi Candlestick in our trading. So what exactly is Heikin Ashi? In this article, we will reconsider the price representation called Heikin-Ashi, and try to get something good out of the charting technique to use it for algorithmic trading. Can we make a Heikin Ashi trading strategy?

Yes, we show you a profitable Heikin Ashi trading strategy. Moreover, we test some additional filters to improve Heikin Ashi so we can use it as a stand-alone Heikin Ashi trading strategy.

The Heikin-Ashi method was imported into the West from Japan in the second half of the 90s and is a representation of prices aimed at highlighting the presence of trends or phases of consolidation. Thus, in short, Heikin Ashi is another version of Japanese candlesticks. Let’s dig a bit further into the charting method.