# Heikin-Ashi Trend, Daily

A built-in strategy on Central Command, tested on BloFin history. **Thin edge in testing.** 1D candles, long and short, category Trend Following.

## Rules

**Entry.** Heikin-Ashi candles are built from the daily candles: close = (open + high + low + close) / 4, open = the average of the previous Heikin-Ashi open and close. On a closed daily candle, go long when the last 1 Heikin-Ashi candle is green and the one before it was red. Shorts mirror it.

**Managing the trade.** Close a long after 2 red Heikin-Ashi candles in a row; close a short after 2 green.

**Stop and target.** Stop 3 x ATR(14) on the daily chart from the entry, never moved. No fixed target.

## Exact rules

```text

The Heikin-Ashi open is the 3-period EMA of (open + high + low + close) / 4 one candle back, which is the same recursion.

[EXACT RULES]
timeframe: 1D
long entry: ALL(ohlc4 > EMA(3, ohlc4)[1], 1)
long entry: ohlc4[1] < EMA(3, ohlc4)[2]
short entry: ALL(ohlc4 < EMA(3, ohlc4)[1], 1)
short entry: ohlc4[1] > EMA(3, ohlc4)[2]
long exit: ALL(ohlc4 < EMA(3, ohlc4)[1], 2)
short exit: ALL(ohlc4 > EMA(3, ohlc4)[1], 2)
stop: 3 ATR(14)
take profit: none

```

## How it tested

Settings were chosen on 2023-10-01 to 2025-08-01, then judged once on 2025-08-01 to 2026-10-19, which was not looked at while choosing. Figures are after fees, on BTC, ETH, SOL, XRP, DOGE, BNB.

| | Trades | Return | Profit factor | Worst drop | Win rate |
|---|---|---|---|---|---|
| Chosen on | 242 | +30.5% | 1.56 | 8.4% | 35.5% |
| Judged on | 144 | +1.7% | 1.07 | 6.8% | 41.7% |
| Whole period | 386 | +32.7% | 1.38 | 8.7% | 37.8% |

Holding Bitcoin over the same judged period returned -29.0%.

A backtest is not a result. Past results, paper or live, do not guarantee future returns.

Run these rules as your own [agent](/agents/new), on paper first, or see the rest of the [strategy library](/strategies/library).