ColorHMA Signal Trading with Directional Exits

Summary

This document describes an Expert Advisor that trades signals from the ColorHMA_StDev indicator. It enters when a new color point appears at a bar’s close and exits when the indicator changes direction against the open position. The approach therefore uses indicator color changes both to trigger entries and to signal reversals, without specifying additional entry filters.

The document reports tests on EURUSD H8 during 2015 using the Expert Advisor’s default inputs. Stop loss and take profit were not used in those tests. It refers to example trades and testing charts, but provides no performance figures or detailed analysis in the text. The method depends on a separate compiled indicator and is presented as a system description rather than evidence that the signals are profitable. Results may depend on indicator settings, market conditions, and execution details not covered here.

Key ideas

• Entries are triggered at bar close when the indicator displays a new color point.
• An opposing indicator direction change signals an exit from an open position.
• The cited test used EURUSD on the H8 timeframe during 2015.
• Stop loss and take profit were omitted from the reported test setup.
• The trading system requires the separate ColorHMA_StDev indicator.

Tags

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