15# LWMA with Exit Willy Alerts Trend Forex Strategy

Submit by Maximo Trader

Overview of the Strategy

Indicators Used:

1. LWMA Algo Alpha: A Linear Weighted Moving Average that helps identify the trend direction.

2. Exit Will Alert: A versatile exit indicator that signals potential exit points based on price action.

3. ATR (Average True Range): Used within the Exit Will Alert for calculating volatility.

Exit-will alert It has the following main options: HMA, LSMA, Dema, TMA, Jma.

Here’s a quick summary of how each indicator might work with LWMA in your strategy:

• HMA with LWMA: A strong combination. The HMA provides quick trend detection while reducing lag. Good for capturing fast market moves.

• TMA with LWMA: More suitable for trending markets where smoother signals are needed. May lag behind price changes, which could lead to missed opportunities.

• DEMA with LWMA: Another strong option. DEMA's responsiveness helps to improve trade timing and can provide a good balance between speed and smoothness.

• LSMA with LWMA: Provides a different approach by fitting a regression line. It can be useful for identifying longer-term trends but may lag significantly.

• JMA with LWMA: Highly adaptable and effective in various market conditions. The ability to fine-tune the JMA's parameters makes it a versatile choice, but it requires careful setup.

Conclusion: Best Option

For your strategy with LWMA and Exit Will Alert, I recommend the following pairings:

1. HMA: Best for responsiveness and capturing fast trends.

2. DEMA: Good balance between speed and smoothness, effective in volatile conditions.

3. JMA: Offers flexibility and can be adjusted based on market conditions.

Final Recommendation: Start by testing HMA with LWMA for quick entries and exits. If you find that it’s too reactive, consider DEMA as a solid alternative. If you need more advanced filtering, experiment with JMA for adaptability.

Setup Strategy

Time frame 15 min or higher.

Currency pairs: volatile, Indices, Stocks.

Indicators Used:

1. LWMA Algo Alpha: A Linear Weighted Moving Average that helps identify the trend direction.

2. Exit Will Alert: An indicator designed to provide alerts for potential exits based on price action. (This indicator is typically set without specific parameters but can be adjusted to suit your trading style.)

Chosen Option: HMA (Hull Moving Average)

After evaluating the options, HMA (Hull Moving Average) is selected as the best option to pair with the LWMA Algo Alpha. The HMA provides quick trend detection and responsiveness, making it ideal for timely entries and exits.

Strategy Parameters:

• LWMA Algo Alpha Period: 50 (this can be adjusted based on your trading timeframe or the asset's volatility).

• Exit Will Alerts >HMA Period: default period.

Rules for Long Trades:

First of all I want to underline one important thing the color of the LSMA green and red is relative, what matters is that the price is above or below the price band.

1. Trend Filter (LWMA Algo Alpha):

   • Buy when the price is above the LWMA Algo Alpha line.

2. Entry Condition:

   • Enter a long position when the price breaks above the Exit Will Alert signal.

3. Exit Timing (Exit Will Alert):

   • Close the long position when the price falls below the Exit Will Alert signal.

Rules for Short Trades:

1. Trend Filter (LWMA Algo Alpha):

   • Sell when the price is below the LWMA Algo Alpha line.

2. Entry Condition:

   • Enter a short position when the price breaks below the Exit Will Alert signal.

3. Exit Timing (Exit Will Alert):

   • Close the short position when the price rises above the Exit Will Alert signal.

Stop loss on the previous swing High/Low.

Profit target ratio stop loss 1:1.1.

Technical Considerations:

1. Responsiveness:

   • The LWMA Algo Alpha provides a reliable trend indication, while the HMA offers quick responses to price changes, reducing lag.

2. Volatility Management:

   • The Exit Will Alert helps manage exits based on price action, allowing you to react dynamically to market movements without needing complex parameters.

Note: When to use this strategy: only when volatility rises in 4H and daily time frames. Very important. Yes, this is the condition for generating high probability signals.

Practical Example:

Assuming you are trading on an hourly chart:

Long Scenario:

• The price moves above the LWMA Algo Alpha line.

• The Exit Will Alert signal is broken upward: this indicates entry for a long trade.

• Hold the long position until the price falls below the Exit Will Alert signal or reaches the profit target.

Short Scenario:

• The price moves below the LWMA Algo Alpha line.

• The Exit Will Alert signal is broken downward: this indicates entry for a short trade.

• Hold the short position until the price rises above the Exit Will Alert signal or reaches the profit target.

Tips for Optimization:

1. Backtesting and Optimization: Always backtest the strategy across various assets and timeframes to identify the most effective parameters.

2. Risk Management: Consider implementing a fixed stop-loss level in addition to the Exit Will Alert to further protect against sudden market movements.

3. Additional Confirmations: To avoid false signals, consider integrating other indicators such as RSI or MACD to confirm momentum before entering a trade.

Conclusion:

This strategy effectively combines the LWMA Algo Alpha and HMA for trend detection with the Exit Will Alert for precise exit management. With careful backtesting and risk management, this approach can adapt to various market conditions, providing a robust trading framework.