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Table of Contents
  1. Combination Strategy: Trend + Breakout + Swing
    1. Key Features:
    2. Signals for the Combination:
    3. Application of Your Rules:
  2. Expected Benefits:

To start with a combination that covers different market conditions while aligning with your desired strategy, I recommend focusing on a hybrid of Trend TradingBreakout Strategy, and Swing Trading. These three strategies complement each other well and offer a balanced approach to both trending and volatile markets.

  1. Trend Trading: Capitalizes on long-lasting trends using indicators like ADXMACD, and Ichimoku to identify strong trends. This ensures you catch larger moves.
  2. Breakout Strategy: Helps in volatile conditions where price breaks out of consolidation. Use Bollinger BandsATR, and Momentum to identify breakouts and apply trailing stops to secure gains.
  3. Swing Trading: Captures intermediate price swings between market highs and lows. MACDRSI, and Fractals work well to time entry and exit points, ensuring you profit from reversals or corrections.
  • Trend Trading: Use ADX (>25) to confirm a strong trend. Combine with Ichimoku for entry points in the direction of the trend. Apply MACD for further momentum confirmation.
  • Breakout Strategy: Add Bollinger Bands for spotting volatility and breakout zones, while ATR helps manage trailing stops after the breakout. Momentum confirms the strength of the breakout.
  • Swing Trading: Use Fractals and RSI to identify swing highs and lows. Swing trades can be opened in the direction of the trend or at key reversal points. Apply a trailing stop or break-even to secure profits on swings that move in your favor.
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  1. Open Orders with Duplicates Allowed: During strong trend or breakout conditions, duplicate trades can be placed. For instance, multiple orders can be triggered as long as ADX shows a strong trend or Bollinger Bands expand during a breakout.
  2. Profit Targets: Exit trades when profit reaches 1-5% of total capital or the position exceeds 5 days. Use RSI or Fractals to close swing trades, while MACD and ATR help manage trend and breakout exits.
  3. Break-Even and Trailing Stop: Apply a Parabolic SAR or ATR-based trailing stop after price moves in your favor. For trend trades, break-even should trigger when the price has moved favorably by a set percentage (e.g., 1-2%).
  4. RRR > 1:3: Ensure all trades have a minimum risk-reward ratio of 1:3 by setting stop-losses based on ATR and take-profits aligned with trend direction.
  5. Close by Friday: Use an exit rule to ensure all positions are liquidated before Friday’s close, even if the profit target has not been met.
  6. Consecutive Wins/Losses > 2: Monitor consecutive wins or losses to adjust position sizing or avoid overtrading during losing streaks.

  • Trend Trading captures long-term movements in strong markets.
  • Breakout Strategy profits from high volatility and sharp market moves.
  • Swing Trading adds flexibility by allowing trades in both trending and counter-trending situations.

This combination can help you build a well-rounded system, adaptable to various market conditions while maximizing your profit potential.

Author: admin