The strategy outlined in the JSON centers on executing trades based on bullish and bearish hammer patterns using the 10-period Exponential Moving Average (EMA) on the XAUUSD 15-minute chart during the London trading session. This approach focuses on identifying trade setups where bullish hammers form below the 10 EMA and bearish inverted hammers form above it, ensuring to validate these patterns with volume confirmation.
Upon accurately identifying these setups, the strategy moves to the execution phase, where trades are entered with strict risk management. Buy orders are placed above bullish hammers and sell orders below bearish inverted hammers, with defined stop-loss points to control risk. The trades employ a 1:2 risk-reward ratio and utilize trailing stops to secure profits as they accumulate.
The strategy is continuously analyzed and refined by maintaining a detailed trading journal, reviewing each trade, and adjusting parameters based on performance outcomes. This involves backtesting the strategy with historical data and incorporating feedback from trading communities and mentors to ensure effective decision-making in dynamic market conditions.
The strategies
⛳️ Strategy 1: Identify trade setups accurately
- Monitor XAUUSD on the 15-minute chart starting with the London session opening
- Enable the 10 EMA indicator on the chart
- Identify a bullish hammer pattern that forms below the 10 EMA
- Identify a bearish inverted hammer pattern that forms above the 10 EMA without touching it
- Validate the hammer patterns with volume confirmation
- Set alerts for potential hammers formed at key EMAs
- Use a technical analysis tool to confirm support and resistance levels
- Filter false signals by checking trend direction with higher timeframes
- Review recent market news affecting XAUUSD before taking positions
- Document each identified pattern in a trading journal for analysis
⛳️ Strategy 2: Execute trades with defined risk management
- Place a buy order above the high of the bullish hammer pattern
- Place a sell order below the low of the bearish inverted hammer pattern
- Set a stop-loss below the previous swing low for buys
- Set a stop-loss above the previous swing high for sells
- Use a 1:2 risk-reward ratio for all trades
- Set target prices based on the risk-reward ratio calculated
- Utilise a trailing stop to lock in profits as the trade moves in favour
- Regularly review and adjust trade positions as needed
- Limit risk to a maximum of 1-2% of trading capital per trade
- Keep emotions in check and avoid over-trading
⛳️ Strategy 3: Analyse and refine trading strategy
- Maintain a detailed trading journal with entry and exit points and market conditions
- Conduct weekly reviews of all trades taken during the London session
- Analyse patterns and trends from successful and failed trades
- Adjust strategy parameters based on performance data and insights
- Continuously backtest the strategy using historical data
- Seek feedback from experienced traders or mentors
- Participate in trading communities to share insights and learnings
- Keep updated with market trends and changes in economic conditions
- Regularly update knowledge on technical analysis techniques
- Implement changes steadily and track their impact closely
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
