ColorHMA Direction Reversal Trading Signals

Summary

The Expert Advisor trades reversals in the direction of the ColorHMA moving average. It checks for a direction change when a bar closes, then uses that change to generate a trading signal. The document describes the signal rule but gives little detail about position management or the indicator’s calculation.

A test is identified for GBPJPY on an eight-hour chart in 2014, using the default EA inputs. Stop loss and take profit were not used in that test. No numerical performance results or risk analysis are provided, so the example does not establish whether the approach is profitable or robust. The EA also depends on a separately compiled ColorHMA indicator file, a practical requirement for running the strategy.

Key ideas

• The EA signals when the ColorHMA direction changes at a bar close.
• The approach is based on moving-average direction reversals.
• The described GBPJPY test used an eight-hour chart and default inputs.
• Stop loss and take profit were omitted from the reported test.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.