This only works in a few markets and in certain situations. Changing the settings can give better or worse results for other markets. This is a breakout strategy that uses the heiken ashi bars to find the levels or the swing to try to objectively find a breakout. When the price breaks out of a swing , breakout can be confirmed and a strategy can be made. The trade exits as soon as in profit when the heiken ashi bar changes color, when the price swings start to slow down, or when the price breaks below a swing . There might be many strategies and possible ideas that can be made just from knowing where the swing are alone. For this one, I decided to try to emulate Wilder's Adam Theory approach by entering only a specific criteria when it makes new highs or lows that I experimented with. The System seems to be similar to what he describes in his book (or perhaps it is the same thing).
Some say that price is the ultimate indicator, but not many really know what that really means. This is yet another approach to try to interpret what that means. This strategy only contains a piece of the complete breakout and trend strategy approach of the Adam Theory and won't be profitable in every market under every situation. This does not include price patterns that the System is said to be able to find such as chart patterns, , tops/bottoms, etc. This only includes the small breakout portion requirement in the book. I included specific entry and exit criteria to make the strategy work well that involves nothing but the price action of the swing points only due to the lack of the other missing pieces. It does not contain the missing pieces. Despite this, it can still help find where breakouts might be in an objective matter using the System as a standalone trading system and it doesn't involve lookbacks or anything but price alone.
replaced them with an atr long term trend trailing stop for better exits
the incomplete breakout strategy wasn't as good as the trend following alternative
enters on pivot breakout, exits on pivot breakout despite the longer exit, this strategy is just mostly currently prove of concept but can give good entries when combined with other indicators or strategies
It seems that re-ordering the pivots in a way that matches pattern breakouts wasn't working no matter which ones I tried.
Wilder's book mentions the phrase elliot wave very briefly so I included a requirement for wave 3 to be more than wave 5 and to enter on the breakout of wave c, the stop is the usual wide pivot exit above/below the swing pivot line. So far doing it the elliot wave gives better results, and depending on which time frame or market it's looked at, results can vary. It's hard to say how the author intended for this to be done but maybe I'll just leave it like this for educational purpose.