How to Trade with the Hull Moving Average (HMA) Indicator?
The Hull Moving Average (HMA), created by Alan Hull, is an extremely fast and smooth moving average. In fact, the HMA almost eliminates lag altogether and manages to improve smoothing at the same time. This robot will automatically open and close positions based on this indicator.
You can purchase his book on Trading Tactics at GoodReads here
You Can Use It For Trading Signals
You will have the option to turn auto-trading off and use it for an alert system, it provides both a windows pop-up and email alert.
- Symbol: XAUUSD
- Timeframe: Hour
- Time: 12:34
- Price: 1325.00
- HMA Result value: 38
- Trade direction: Buy
How is the Hull MA Calculated?
The Hull Moving Average uses the weighted moving average (WMA) in its calculation, you calculate the WMA with the period (n / 2) and multiply this by 2, then you calculate the WMA for period “n” and subtract. The last step is to calculate the weighted moving average with a period sqrt (n) using the data.
Hull MA= WMA (2*WMA (n/2) − WMA (n)), sqrt (n))
‘n’ is the time period configurable based on the trader’s requirement.
How Do We Capture a Trend?
The robot will take a long position if prices are rising and the HMA is trending upwards and it can take a short position if the prevailing trend is falling. It also works very well as a reversal filter as the exit signals can be very reliable. The Hull MA is better than the other moving average indicators as it is more dynamic in regards to price activity while maintaining a smooth curve.
Advanced Risk Management Features
Having an automated strategy that relies mostly on technical indicators will need some form of protection against high impact market events like news releases or even low liquidity when the spreads are so high that when new positions are opened they could be many pips down from the start.
- Max spread - you can set a limit so that a position will not open if the symbol spread is too high.
- Stop loss and take profit.
- Trailing stop with pip step - when the price gains a set amount of pips to stop loss is moved (x) pips behind the price and as the price increases, it is adjusted a set amount of pips (step).
- Trading hours #1 - you can set the hours you want the robot to open new positions, there may be times when it is best avoided, open positions will still be managed, this can be a morning session.
- Trading hours #2 - this can be the afternoon session.
Trading Hour Sessions Explained
We found that on certain symbols the best results are when using two trading sessions and avoiding lunchtimes and after 6 pm. High impact news releases or other market events can cause losses, so it is best to identify these times using backtesting or optimization to reduce your losses and increase net profit.
Instant Telegram Message Alerts
You can configure this trading robot to also send instant Telegram alerts direct to your PC, Tablet or mobile phone.
High-Impact News Event Manager Included
We include a free copy of the news management robot which integrates into this trading robot to pause trading during high-impact news events.
This Strategy Works With All Symbols
We ran a back-tests on the following symbols using a broker that supports indices. When you load the example parameters you may need to change the symbol name if you are using a different broker.
Adjustable Settings & Features
We have made sure that you are not just buying a strategy that just opens and closes positions when the indicators are oversold or overbought, we have included the most useful risk management and alert features that you will need to get the most out of this robot.
If you are trading a cryptocurrency make sure you set the Trading Cryptocurrency parameter to Yes, for all other symbols set this to No
Watch Hands-On Video Tutorials
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 9 minutes
How To Optimize Robot Settings
With the advanced optimization feature of cTrader, you can find the optimal set of parameters for your cBot.
Duration: 10 minutes
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.