Momentum Trading Strategy: A Multi-Indicator Approach

Related: bars alligator trading advisor - another powerful indicator for MetaTrader 4 traders.

I aim to create an alert system based on five trading rules I use daily. Here's an overview of the rules and the initial script.

Also recommended: spread indicator for pair trading - similar indicator with strong performance on MetaTrader 4.

This strategy is designed for short-term momentum trading. With dedication and discipline, it can lead to a high success rate. The key is to follow the rules and avoid emotional decisions.

Please note that I'm not seeking profit targets or a fully automated EA. I'm aware these rules might be considered lagging, but my goal is to capture a portion of the trend without excessive greed.


## Indicators:

- 3 LWMA
- 13 LWMA
- Laguerre Filter (Gamma 0.85) for momentum/trend determination
- ADX (+DI and -DI)
- CCI


## Alert Rules (Buy):

- 3 LWMA crosses above 13 LWMA, and in the previous period, 3 LWMA was below 13 LWMA.
- Candlestick opens above the Laguerre Filter (Gamma 0.85).
- +DI crosses above -DI.
- +DI crosses above the 20 level.
- CCI crosses above the 100 level.


## Alert Rules (Sell):

- 3 LWMA crosses below 13 LWMA, and in the previous period, 3 LWMA was above 13 LWMA.
- Candlestick opens below the Laguerre Filter (Gamma 0.85).
- -DI crosses above +DI.
- -DI crosses above the 20 level.
- CCI crosses below the -100 level.

Not all rules will align simultaneously. When they do, I'd like a visual marker below the entry candlestick and a pop-up alert with currency, time-frame, entry level, and time-stamp.

The provided chart example may not show precise signals, but it illustrates my trading approach. Signal 3 is inaccurate, and signal 5 is delayed by 1-2 candlesticks.


## Challenges:

1. The current implementation doesn't function as expected, with results differing from visual indicator analysis.
2. The alert works for buy signals but not for sell signals.

I use a 5-minute chart and want to ensure only one alert per signal, not for every new candlestick. However, in a trending market, I'd like an alert each time the rules align, especially if the LWMAs cross with the trend, as then I prioritize the LWMA indicator.

I seek a skilled programmer to refine this alert system, making trading more efficient and effective.

You may also like: the little whore trading strategy - excellent alternative for indicator users on MetaTrader 4.

#property copyright "robotfx"
    extern bool usearrow = true;
    extern bool usealert = true;
    extern bool useemail = true;
    extern bool lmwa_on = true;
    extern int lmwa_shortlength = 3;
    extern int lmwa_longlength = 13;
    extern int lmwa_price = 0;
    extern bool lf_on = true;
    extern double lf_gamma = 0.85;

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.