SeleneAlgo Basic Trade Strategy

1. Confirm you are trading with the trend and not against by confirming OBV and the Trend Cloud are not deep in the red if you plan to take a Long position. If you are successfully in the green for both, go Long on Long signals.

2. Take incremental profits every time you see a ‘Profit’ signal (or larger profits if it’s a high percent).

3. If you see a ‘Minor Loss (Check ADX)’ signal, watch ADX Momentum Insight carefully for the next few candles. If you are in Long position, 2 scenarios you may want to to exit the trade are:

  • ADX Momentum Insight shows a tall Bullish green ‘peak’ that downturns showing bearish movement / interpreted direction (red background color)
  • Bearish red momentum breaking up through the Ranging-Bound Threshold line.

Remember, if ADX is either below or entering below the Range-Bound Threshold line, you can confidently HODL without exiting your current position knowing the candle price wont move drastically one way or another while it’s under that line. Wait for it to break out up through the Range-Bound Threshold and based on whether its bearish/red or bullish/green, that will determine the trend that is about to happen on the chart. Then you can act accordingly)

4. If you see a ‘SHORT’ signal, you will most likely want to exit your current Long position, unless you have a strong Bullish OBV, Bullish Trend Cloud, and weak bearish ADX momentum (sideways ADX movement or below the threshold), then you may choose to stay in and wait it out a few more candles just to confirm it is in fact a down trend.

This tends to be a little bit of a gamble but usually if you zoom out of your chart and look at the ‘big picture’, you can often make a fairly educated decision.

5. If you see a ‘Break Even’ signal while in a Red Trend Cloud, you will most likely want to exit your current Long position, unless your ADX Momentum Insight level is either below or entering below the Range-Bound Threshold line. If it is, cautiously watch the ADX DIrectional Index, MACD integration, and ADX line break out up through the Range-Bound Threshold. Based on whether the breakout is bearish/red or bullish/green, you can make a more informed decision.

*** The goal is to take incremental profits at ‘Profit’ signals before you exit your position, do not wait until the Short (if you’ve taken a Long position) to take profit. If you see the market moving against you based on ADX, OBV, or any other information, do not be afraid to exit your position. Remember, it’s always better to leave money on the table then to risk a loss.


Supporting Indicators

ADX Momentum Insight


SeleneAlgo In-Depth

Trading Mode

(coming soon)