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Alignment/HMA Strategy

 
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Ronnie Rae

Alignment/HMA Strategy

I have been using this strategy for the past several weeks and it has worked really well for me. I have trading alot of gold lately using this strategy and the wobbling technique and have been quite successful.

Alignment/HMA Strategy
Currency Pairs
o Focus on USD pairs or Gold, however if good setup on another currency pair and spread is reasonable take the trade
Indicators
o 50SMA for confirmation of trend
o HMA 8 and 20 for confirmation of trend
o MACD (24, 52, 18) for confirmation of trend strength
o STO (14,3,3) for confirmation of overbought or oversold
o Apiary Pivots for confirmation of support and resistance
o Based on a 1H, 5MIN, and 1MIN chart
Time Frames
o Before entry check 1H, 5MIN, 1MIN to determine trend, draw S&R, and Pivot Points
o Enter trade at 5 min
o Monitor/Close trade at 5min/1min
Entry Rules
o Entry Positions
 Buy if price is above 50 SMA/pointing up, both HMAs are up trending, STO is below 50 line pointing up, and near pivot points if possible
 Sell if price is below 50 SMA/pointing down, both HMAs are down trending, STO is above 50 line pointing down and near pivot points if possible
o Do not add to the position unless price is moving in same direction significantly
o Monitor news events before entry
o Do not enter a trade I cannot monitor
o Trade mostly during the day, morning is ideal
Stop Loss Rules
o Risk no more than 1% per trade
o Adjusts stops after each candle – get to breakeven as soon as possible
o Focus on losing no more than 10 pips or less per trade
o If stopped out on 3 losing trades in a row, I will not trade that idea again
o If have 5 losing trades in a day, I will quit for the day
Exit/Take Profit Rules
o Close if reversal occurs on a 5 min chart
o Price reaches target
o Price reaches short term support/resistance level

Fri, 05/10/2019 - 9:02am
 
Gahawisita

Ronnie Rae,
It is obvious that you have put a lot of thought into your strategy. The alignment strategy has worked well for me, too, and it is interesting how you combine the use of two different HMA periods, rather than using the standard SMA(60). It is also interesting that you use the middle time frame for placing your trades (M5), rather than the shortest (M1). Your risk management is really strict and probably explains a lot of your success. Do you have any favorite currency pairs, or do you stick with gold? Go, Fight, Trade!

 
GreyFox

Thanks for that Ronnie Rae,
I have had mixed results with HMA but just trying to be patient with it. I think you have a great combo there and will try to utilize some of those strategies. Have a good weekend all!

 
Ronnie Rae

Gahawisita so far I am sticking with Gold, it just fits with my trading style