Trending markets are probably one of the easiest market conditions to trade. The direction of the trend is clear, so the direction of trade should also be simple. Once a trader understands this correctly, it usually means that the probability that the trade will make a profit is greater than 50%. That might not sound like a lot, but keep that in mind because you know the trend. You are probably right more often than wrong. Now let's say if you are right you will earn 2x more than you risk. That means you profit twice as much as you lose. That sure sounds like a good suggestion to me.
The Hull Optimum Forex Trading Strategy enables traders to achieve a high rate of return while still achieving a positive reward-risk ratio. This is because the Hull Optimum Forex Trading Strategy is a trend continuation strategy. It is one that is traded during an established trend so that traders can easily tell whether to buy or sell. The only question remains when.
AMA Optimum Indicator
AMA stands for Adaptive Moving Average. The AMA Optimum Custom Indicator is a modified moving average indicator that allows traders to easily identify the trend direction using a moving average. The smoothed property of this particular moving average allows it to fall cleanly up or down in a trending market environment. This somehow reduces the confusion about what the trending direction is or whether or not the market is trending strongly enough at all.
In bullish market conditions, the AMA Optimum tends to trend cleanly up. On the other hand, it also tends to drop cleanly during a bear market condition. This also applies if the period used is that of a medium-term parameter.
BS trend indicator
The BS Trend Indicator stands for Buy Sell Indicator. It is a custom type of trend filter. It reads the trend direction and shows traders the trend direction by printing either a green or a red bar. Green bars represent a bearish market condition, while red bars represent a bearish market condition.
This feature allows traders to objectively filter out trades that do not align with the big picture trend direction.
Hull moving average
The hull moving average is a variation on a moving average introduced by Alan Hull. This particular type of moving average is something the best of both worlds. It's a very responsive moving average that works well with short-term trends. In fact, it kind of tries to minimize the delay. Despite his ability to react, he still manages to smooth his movements well.
This trend continuation strategy enables retailers to enter the market even if the trend is already established. This is done using the AMA Optimum Indicator and the BS Trend Indicator.
The AMA Optimum Indicator is a smoothed moving average that traders can use to clearly identify a trending market based on the slope of a moving average. During a trending market, the AMA Optimum Indicator tends to fall gently up or down depending on the direction of the trend, while it appears to be somehow flatter during a choppy or area-bound market. As a trader, you would have chosen because of the slope of this moving average.
The BS trend indicator then confirms this by showing the direction based on the color of the bars in its window. During a trending market, the BS trend indicator usually has a long span of time with bars of the same color or sometimes only a few short-lived instances of a disruptive set of bar colors.
Choose markets with a sharply sloping AMA Optimum line and a BS Trend Indicator window, with one color dominating most of the window.
The specific input signal is then based on the Hull Moving Average. The smoothed, yet very responsive nature of the Hull Moving Average makes it a very good indicator to use as an entry trigger. This special version of the hull moving average changes color every time the moving average changes its slope. This color change would be the basis for entrances and exits.
- i-AMA optimum
- Hull moving average
Time window: 1-hour, 4-hour, and daily charts
Currency pairs: Major and minor pairs
Trading session: Meetings in Tokyo, London and New York
Buy (Long) Trade Setup
- The AMA trend indicator should rise gently, indicating an uptrend
- The BS trend indicator should be dominated by green bars, with the current bar being green, indicating an established bullish market condition
- Have the price tracked in the short term
- Enter a buy order as soon as the hull moving average turns green, indicating a short-term bullish reversal
- Set the stop loss to the support level below the entry candle
- Once the Hull Moving Average changes to purple, close the trade, indicating a short-term bearish reversal
Sell (Short) Trade Setup
- The AMA trend indicator should decline gently, indicating a bearish trend
- The BS trend indicator should be dominated by red bars, with the current bar being larger, indicating an established market decline
- Have the price tracked in the short term
- Enter a sell order as soon as the Hull Moving Average changes to purple, indicating a short-term bearish reversal
- Set the stop loss to the resistance level above the entry candle
- Close the trade as soon as the hull moving average turns green, indicating a short-term bullish reversal
Traders should have a strategy in place that can be used in an established market environment. The Hull Optimum Forex Trading Strategy is one that you can use in such circumstances.
This strategy could be run multiple times in a trending market environment. Enter the market during these short retracements and exit when the short expansion phase of the trend ends. Then have the price tracked and repeated. However, avoid markets that appear overwhelmed. You will notice this whenever you see the expansion phases getting shorter and shorter. This means that the momentum behind the trend is weakening.
The key to this strategy is to properly identify whether the market is trending enough.
Forex Trading Strategy Installation Instructions
The Hull Optimum Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
The Hull Optimum Forex Trading Strategy provides the ability to spot various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust this strategy accordingly.
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How Do I Install Hull Optimum Forex Trading Strategy?
- Download Hull Optimum Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader Directory / Experts / Indicators /
- Copy the tpl file (template) into your Metatrader directory / templates /
- Start or restart your Metatrader client
- Select the chart and timeframe in which you want to test your forex strategy
- Right click on your trading chart and hover over “Template”.
- Move right to select Hull Optimum Forex Trading Strategy
- You will see that the Hull Optimum Forex Trading Strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.
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