ALMA/EMA/SRSI Strategy + Indicator

This trading strategy uses a combination of the Arnaud Legoux Moving Average (ALMA), Exponential Moving Averages (EMA), and Stochastic RSI indicators to determine entry and exit points. The strategy triggers a long entry when the fast EMA crosses above the slow EMA and the current price is above ALMA. Conversely, a short entry is initiated when the fast EMA crosses below the slow EMA and the current price is below ALMA. Positions are closed based on the Stochastic RSI signals and predefined take profit and stop loss levels.

To trade this strategy manually on TradingView, proceed as follows:

• Configure two EMAs with lengths of 49 (Slow EMA) and 9 (Fast EMA).
• Set up the ALMA with a period of 130, offset of 0.775, and sigma of 4.5.
• Add a Stochastic RSI with smoothing factors K=3, D=15, RSI Length=14, and Stochastic Length=8.
• For long entries, identify a crossover of Fast EMA above Slow EMA, and ensure the closing price is above the ALMA.
• For short entries, identify a crossunder of Fast EMA below Slow EMA, and ensure the closing price is under the ALMA.
• Cancel pending longs if Stoch RSI K-line is over 75, cancel pending shorts if below 25.
• Close longs when Stoch RSI K-line crosses under D-line with K-line over 92; close shorts when K-line crosses over D-line below 8.
• Set take profit at 3% above or below the entry price for longs and shorts respectively, and stop loss at 5.49%, adjusting the levels as the moving averages and RSI update.

Improving a TradingView strategy for manual trading involves refining its components and rules to enhance precision and adaptability. For the ALMA/EMA/SRSI Strategy, consider the following plan:

• Analyze the Market Context: Before applying the strategy, assess the broader market conditions. Look for strong trends or ranging environments to adjust the sensitivity of EMAs and ALMA. In a trending market, use longer periods for EMAs to avoid false signals. In ranging markets, shorter periods may yield more opportunities.
• Optimize EMA Settings: Experiment with different lengths for the fast and slow EMAs to find the most responsive yet reliable signal crossover points. Use historical data to backtest the different settings.
• Refine ALMA Parameters: Since ALMA settings can significantly influence the strategy, fine-tune the period, offset, and sigma parameters. The goal is to accurately reflect the macro movement of price action for the specific asset being traded.
• Customize Stochastic RSI Thresholds: Modify the overbought (above 75) and oversold (below 25) levels of the Stochastic RSI based on historical volatility and performance to be more effective in signaling reversals.
• Incorporate Price Action Analysis: Complement the indicator signals with classic price action techniques. Identify support and resistance levels, chart patterns, and candlestick formations for an additional layer of confirmation.
• Utilize Multiple Time Frame Analysis: Cross-verify signals by consulting different time frames. A signal might be stronger if it has confluence with signals from the higher time frames.
• Employ Additional Indicators: Introduce other complementary indicators such as MACD or RSI divergence to confirm the momentum behind a potential trade setup indicated by the EMA crossovers.
• Implement Risk Management Techniques: Rather than fixed-percentage stops and targets, consider a variable approach based on recent volatility measurements or Average True Range (ATR).
• Journal Trades and Adjust: Keep a detailed record of trades and outcomes. Analyze this data regularly to identify patterns and make informed adjustments to the strategy.
• Discretion on Signals: Develop discretion by deciding not to take certain signals that do not meet additional criteria, such as those against the dominant trend or right before high-impact news announcements.

Remember, the aim is to create a more robust trading system that can adapt to changing market conditions while maintaining a disciplined approach through controlled risk management and methodical trade analysis.

The ALMA/EMA/SRSI Strategy is designed for active traders who are comfortable with technical analysis and possess the ability to make quick decisions based on evolving market conditions. It suits:

• Intraday Traders: With signals optimized for a 15-minute time frame, it caters to those looking to capitalize on short-term market movements.
• Technical Traders: Traders adept at interpreting moving average crossovers and momentum indicators will benefit most from this strategy.

Regarding trading style, this strategy aligns with:

• Trend-Following: By using EMAs and ALMA, the strategy inherently follows prevailing trends, catering to traders who prefer to ride momentum.
• Swing Trading: Those who aim to capture gains over several hours to days can adapt the principles, although the default setting is for shorter intraday trades.

It offers a structured approach with clear entry and exit signals, demanding discipline and adherence to the set parameters for optimal results.

• Strategy Essence: Utilizes ALMA for trend analysis, EMA crossovers for trade signals, and Stochastic RSI to filter extremes.
• How It Works: Signals are generated on a 15-minute timeframe, with long positions on EMA crossovers above ALMA and short positions when below.
• Using The Strategy: Best applied through TradingView's automated platform, but users can set alerts for potential trade signals or manually trade by closely monitoring indicated parameters.
• To Enhance It: Adjust EMA and ALMA settings for backtest performance, customize Stochastic RSI thresholds, apply multi-timeframe analysis, and supplement with other technical indicators.
• Risk Management: Dynamic adjustments following volatility measures or ATR recommended instead of fixed percentages for stop-loss and take-profit levels.
• For Whom: Suitable for intraday and technical traders, ideal for those with a proactive trading style and the ability to swiftly act on technical cues.