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The MA Laguerre is a trading strategy based on the functioning of two effective indicators. Both indicators included in the strategy are used to determine the current trend, and only then, to find the best points for opening positions. Thus, confirming each other's signals, they are with great accuracy determine the trend and the possibility of opening a position at the moment of its determination.
The strategy can be used with any currency pairs, however, the choice of timeframe should be approached more carefully. So, the most effective for the strategy will be the intervals from M5 to M15.
Strategy indicators
The MA Laguerre strategy includes two indicators, which is clear from its name. Thus, in combination with each other, they create a very effective, but at the same time extremely easy-to-use algorithm that allows quickly finding market entry points.
- EMA (16) - fast exponential moving average, the period of which is 16, and the applied price type is Close.
- EMA (48) - slow exponential moving average. Its period is set to 48, and the price value is set to Close price.
- Laguerre - indicator, whose Gamma parameter is 0.7.At the same time, additional signal levels of 0.2 and 0.8 should be added to its settings.
Trading with the MA Laguerre strategy
The application of the MA Laguerre strategy is not difficult. All trades are made taking into account the values of both indicators, they are used in the strategy for their intended purpose. Therefore, before using the strategy in practice, it is recommended to study them separately. After two exponential moving averages cross in a certain order, it will be possible to determine the trend, which will be confirmed by the Laguerre indicator. And after that, the direction of the trade can be determined.
Conditions for Buy trades:
- The fast moving average intersects with the slow moving average and is located above it.
- At this point, the Laguerre indicator should rise above its 0.8 level.
After these conditions match on a certain candle, a buy trade can be opened. If Laguerre has not yet crossed the 0.8 level at the time of entering the market, it should be waited for this moment, and only then open a position. Stop loss should be set at a rate of 20-25 points, as well as take profit. Such a trade should be closed after the moving averages cross in the opposite direction, since in this case the possibility of opening a new trade is considered.
Conditions for Sell trades:
- Moving averages cross so that the EMA (48) is above the EMA (16).
- Laguerre indicator line will drop below 0.2.
After these signals coincide on a certain candle, a short position can be opened. If at this moment the Laguerre indicator has not yet crossed the 0.2 level,it should be waited for this, and only then open a trade. Stop loss, like take profit, should be set at 20-25 points. The trade should be closed after the EMA (16) and EMA (48) are exchanged in the opposite direction.
Conclusion
The MA Laguerre strategy is based on the functioning of indicators that are often used in trading, as their effectiveness has been proven by time. In order to learn how to use the strategy correctly, preliminary practice on a demo account is recommended, as well as studying the indicators included in it separately.
