MilleMachine

This trading strategy relies on different moving averages to determine entry and exit points for both long and short positions. It uses a Hull Moving Average (HMA) as the entry indicator and an optional baseline indicator to confirm trends, with dynamic stop-loss based on the Average True Range (ATR).

To trade this strategy manually:

• Set up the Hull Moving Average (HMA) with a length of 46 on your chart as the primary entry signal.
• To filter trades, add a second moving average as a baseline. The default is the McGinley Dynamic with a length of 50, which indicates trend direction. Enter a long trade when the price crosses above the HMA and the baseline is trending upwards.
• Use the ATR (Average True Range) with a period of 14 and multiply it by 2 for the dynamic stop-loss. This value adjusts the stop-loss position based on market volatility.
• Set a Risk Reward Ratio of 2, meaning aim for profits twice the amount risked. This is achieved by placing a take profit at twice the distance from entry to stop-loss.
• Utilize trailing stops by placing them at the value of an EMA (default length of 5 for long positions) below the price for long trades, which adjusts as the price moves in your favor.
• Reverse the logic for short entries: Enter when the price crosses below the HMA and confirm with the baseline moving down, setting stops above the entry using ATR-based calculations.
• Make sure to activate "QuickSwitch" and "Use Trendchange" settings which quickly react to rapid changes in market conditions and help mitigate losses when reverse signals appear.

To enhance the "MilleMachine" TradingView strategy with manual trading adjustments, a more nuanced approach can be adopted. Here's a detailed plan for improvement:

• Optimize Indicator Settings:
  • Experiment with different moving average types beyond HMA and McGinley, such as Exponential Moving Averages (EMA) or Volume Weighted Moving Averages (VWMA), to adapt the strategy better to specific market conditions you are targeting.
  • Adjust the length settings for these indicators. Shorter periods may provide quicker signals in volatile markets, whereas longer periods might be more reliable during trends.
  • Consider using a combination of short and long-term moving averages to better signal entry and exit by crossover techniques.
• Dynamic Stop-Loss and Take-Profit Adjustments:
  • Enhance the dynamic stop-loss feature by continuously monitoring ATR settings. When market volatility changes, update ATR parameters to ensure stops are neither too tight (resulting in frequent early exits) nor too loose (risking larger losses).
  • Incorporate staggered take-profit levels. Secure partial profits at initial price targets, allowing the remainder of the trade to capitalize on extended trends. This split approach can maximize gains on large moves while maintaining liquidity.
• Market Condition Adaptation:
  • Implement a market analysis routine that determines the current market phase (trending, ranging, etc.) and adjust strategy parameters accordingly. For example, use tighter stop-losses and take-profits during consolidations.
  • Introduce volume-based or momentum indicators to validate trends and avoid false signals, thereby preventing trades during low-confidence conditions.
• Risk Management Enhancement:
  • Refine position sizing by linking it dynamically to account equity as well as market volatility, not just a fixed percentage. This helps optimize capital allocation per trade.
  • Include a maximum daily loss rule to prevent over-trading in adverse conditions, ensuring psychological discipline and safeguarding account health.
• Backtesting and Forward Testing:
  • Conduct rigorous backtesting using historical data spanning diverse market conditions. Analyze performance metrics such as win rate, risk-to-reward ratio, and frequency of signals.
  • Follow up with forward testing in a live environment or demo account to validate strategy robustness and uncover practical issues that aren't captured in backtesting.

This strategy is ideal for traders who prefer a trend-following approach and are comfortable operating in markets with extended moves. It is best suited for those who are able to tolerate periods of sideways movement, as the system thrives in clear, trending environments but might incur losses during ranging phases. This makes it suitable for:

• Swing Traders: Those looking to hold positions over several days or weeks, benefiting from prolonged market trends.
• Mid to Long-term Traders: Investors who prefer analyzing bigger market trends rather than short-term fluctuations.
• Technical Analysts: Traders who rely heavily on technical indicators and are open to optimizing settings based on market conditions.

Because the strategy incorporates adjustable indicators and risk management features, it requires traders who are proactive in tweaking settings to adapt to different market environments, making it less suitable for those seeking a fully automated, set-and-forget system.

• How it works: The strategy leverages a trend-following method utilizing a Hull Moving Average (HMA) for entry signals and an optional baseline moving average for trend confirmation.
• Automation and Manual Trading: Best employed by combining automated signals with manual analysis; traders can set alerts with TradingView to notify when entry conditions are met and confirm with additional chart analysis.
• Optimizing Usage: Experiment with different indicator types and lengths to align with the market phase. Adjust ATR-based trailing stops dynamically to adapt to changing volatility.
• Market Adaptation: Use multiple moving averages and additional volume or momentum indicators to validate market trends and avoid signals during low-confidence periods.
• Risk Management: Dynamically adjust position size based on a percentage of equity and market volatility. Implement a daily loss cap to prevent over-trading and ensure disciplined strategy adherence.
• Trader Suitability: Best suited for swing traders and mid to long-term traders who rely on technical analysis and are comfortable optimizing and adjusting strategy settings.