Loom Algo

Loom Algo indicator is a trading tool designed to help the trader identify both trend following opportunities and counter trend ones,

What Makes Loom Algo Unique?
Many would argue that a lot of traditional indicators alone don't provide valuable entry and exit signals, so i believe that we usually need to combine multiple indicators to get better quality signals, this is what Loom Algo does in bringing out noise filtered trend following signals, while visually showing counter trend opportunities.

And in providing profitable signals over a period of time and a good quantity of trades as shown in the preview, this indicator has proven its usefulness,



How does it work :

As the founder of this indicator i basically turned one of my trading strategies into a fully working indicator and added some more options into so it can be more helpful to different types of traders,

Loom Algo indicator, uses a process to combine multiple indicators to bring out clear signals, the basic logic is to have trend following signals based off the STOCHASTIC indicator but to filter it as much as possible, i use a combination of multiple indicators such as the STOCHASTIC, The ADX, The McGinley Dynamic, The VWMA, The Kalman Midline, The Regression line, The SuperTrend indicator, The Donchain midline, The TEMA and The DEMA midlines, to produce and filter the signals,

So for the buy and sell signals i use a method where i bring out total trend shifting signals, as the trend shifting from bullish to bearish or the opposite, and then i have all the different indicators i provided to use as filter for those signals to filter out the weak ones as much as possible, as i found it necessary to combine those different indicators as filters, because each one of them would work differently on different assets and different time frames, and different chart types, as different traders would prefer to use different things i provided the options so the trader can test and see what filters at what settings would work better with his preferred asset, time frame and chart type,

Signals are confirmed on candle close, ensuring non repainting signals,

And for the bands the logic is to have a smoothed line that stays with the price in a very smoothed way that shows the main direction by seeing is the price above or below the midline at the same time the outer bands are made to demonstrate and show mean reversion and counter trend opportunities, so when the price would be extended in what direction it would reach the mid or outer bands and then we can add this to our analysis and understand that there is a higher chance of a reversals at those places,



The Default settings:

The default setting i tested for Gold, the 5 min chart, and the normal chart candles, as it gives the best results for that asset, the user can change the settings and test as he wishes to find the most suitable set of settings for him,



The settings:


Bands settings:
1- Bands Smoothing, is the smoothing of the midline and the the 4 outer bands as they are an identical extension of the midline

2- Bands Distance Type, is the way to calculate the bands distance from the midline whether in percentage or points

3- Outer Band 1 Distance, this is the distance for the first two bands from the midline

4- Outer Band 2 Distance, this is the distance for the second outer two bands from the midline


Signals settings:
1- filter from 1 to 8 are line indicators that are used as filter so we only take the buy signals when the price is above the filters we turned on or we only take sell signals when the price is under the filters we turned on, and each filter has its own values that we can change

2- ADX filter, this is about turning on or off the ADX filter so we only take trades when the ADX is above certain values to insure that we have a strong trend

3- Momentum type, and Trades speed those are options based of the stochastic indicator to change the frequency of the signals

4- SL and TP, we have both stop loss and take profit options with a choice to turn them on or off, if we turn them off then the indicator is going to close each signal when an opposite signal appears

5- Session filter, this is an option to filter out time, so we can make the indicator only take signals in certain sessions or time spans daily that we choose and it can be turned on or off



Why It's Invite Only :
Although Loom Algo incorporates popular indicators, but as a trader myself i incorporated one of my personal trading strategies into this indicator so i would like to preserve the value of my personal hard work and the true value for this indicator is in the way it produces its signals and filters them to bring out as clear as possible trend shifting signals while showing the bands to visually show the mean reversion possibilities for the price.



Performance & Testing:
Loom Algo has been back tested with a conservative amount risk per trade, using realistic commission and slippage settings.
While performance may vary based on user settings, the system is designed to adapt to both trending and ranging conditions.



Back testing Settings Used in Preview:
For transparency and realistic expectations, the performance preview of Loom Algo is based on the following strategy settings, chosen to reflect practical trading conditions:

• Initial Capital: $10,000 USD
  
• Position Size: 50% of available equity per trade
  
• Commissions: 0.03% per trade
  
• Slippage: 2 ticks
  

Active Filters:

• Filter1 (On)
  
• Filter2 (On)
  
• ADX Filter (On)
  
• Momentum Type: Fast
  
• Trade Speed: 4
  

Risk Management
Risk controls are enabled to demonstrate realistic position handling:

• Stop Loss: 1% (0.01)
  
• Take Profit: 2% (0.02)
  

No optimization was performed beyond default parameters to preserve the indicator's raw performance capability. Results are based on historical data and do not guarantee future outcomes.

Disclaimer: This tool is for educational purposes only. Past performance does not guarantee future results. It does not constitute financial advice or promise of profits.