Description
How Shinobi Works
Shinobi is a fully systematic, rules-based trend-following strategy built on Heikin Ashi price action. Instead of chasing breakouts, it waits for short-term exhaustion/reversal points inside an already-established trend, confirmed by several independent filters before any order is placed. All logic runs automatically — there is no manual intervention or discretionary override while the bot is active.
Main Features
- Heikin Ashi candle-pattern entry trigger combined with a trend, momentum, and volume filter stack
- Configurable market-structure filter (multiple selectable modes)
- Fixed, pre-defined risk-to-reward ratio on every trade — no averaging, no martingale, no grid recovery
- Hard stop-loss on every position from the moment of entry
- Risk-based position sizing (percentage of account equity per trade, scaled to stop-loss distance)
- Optional session/time-window filter to restrict trading to specific hours
- Only one position open at a time (no pyramiding)
Recommended Settings
- Recommended instrument: index CFDs (developed and tested primarily on the Dow Jones / US30)
- Recommended timeframe: 1-minute chart
- Recommended account type: any size, since position sizing is equity-based, but a broker/account offering low spread and fast execution on the chosen instrument is strongly recommended given the intraday, short-timeframe nature of the strategy
- Default risk-to-reward and filter thresholds are tuned for the above conditions; users changing instrument or timeframe should re-test on a demo account before going live
Trading Conditions & Risks
Shinobi is a trend-reversal system and, like any trend-based strategy, can underperform in prolonged sideways or highly erratic market conditions. Performance is sensitive to spread and slippage given the short timeframe used, so results may vary between brokers and execution conditions. Backtested performance does not guarantee future results, and users should always test on a demo account first and size positions according to their own risk tolerance before trading live.
Summary
Key features include a fixed risk-to-reward ratio on every trade, hard stop-loss orders from entry, risk-based position sizing scaled to stop-loss distance, and an optional session/time-window filter to limit trading hours. The bot allows only one open position at a time, avoiding pyramiding or averaging strategies.
Shinobi is primarily designed for intraday scalping on 1-minute charts, with index CFDs such as the Dow Jones / US30 as the recommended instruments. It requires brokers offering low spreads and fast execution due to its short timeframe approach. Default settings are optimized for these conditions, and users are advised to test any changes on demo accounts before live trading.
Backtested over 18 months, Shinobi showed an annualized return exceeding 600%, with a profit factor of 1.60 and a recommended risk per trade of 30%. It uses market orders and supports fixed percentage risk management with stop-loss and take-profit tools.
