Hey fellow traders!
Today, I want to share some insights into creating a reliable alert system for short-term momentum trading. I've developed a set of five rules that I stick to for my daily trades, and I believe they could help you too. Let’s dive in!
This system is designed for short-term momentum trading. If you're willing to put in the time and stay disciplined, you could see winning trades up to 90% of the time. But remember, sticking to the rules is key—don’t let emotions take the wheel! And just a heads up, I won’t be discussing profit targets or how to build a fully functional EA; if I had that figured out, I’d be lounging on a beach somewhere!
So, here’s what I’m working with...
Indicators:
- 3 LWMA
- 13 LWMA
- Laguerre Filter - gamma 0.85 (to gauge momentum/trend)
- ADX (with +DI and -DI)
- CCI
Alert Rules (BUY):
- 3 LWMA crosses above 13 LWMA, and 1a) 3 LWMA was below 13 LWMA one period prior.
- 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.
- 3 LWMA was above 13 LWMA one period prior.
- 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.
Of course, not all the rules will trigger simultaneously. Once they do align, here’s what I’d like to see:
- A visual marker (like an arrow or star) below the entry candlestick on the chart.
- A pop-up alert displaying the currency pair, time-frame, entry level, and timestamp.
- An email alert to keep you informed.
Now, if you look at the image above, keep in mind that the signals aren’t spot on—I just wanted to give you a visual representation of my trading approach. For instance, the third signal is incorrect since the +DI hasn’t crossed above the 20 threshold, and the fifth signal can appear one to two candlesticks later than indicated. I’m sure I could have chosen a better chart for clarity!
That said, I have a couple of issues I need help with:
- I trade on a 5-minute chart and need to ensure it only gives one alert, rather than one for every new candlestick that opens.
- In a trending market, the LWMAs can cross multiple times. I want an alert each time all rules line up, but if the LWMAs cross with the trend (like in signal five), I only want the LWMAs to trigger the alert, ignoring the other indicators.
Is there a skilled programmer out there who can help me fine-tune this alert system? You would make my life a whole lot easier and my broker much happier!
Thanks a ton for any assistance or coding advice you can share. I truly appreciate it!
Cheers,
Chris C Berg - chrisberg.forex@yahoo.com
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