# AIMS Momentum Strategy & Methodology

The **AIMS Momentum EA** automates the foundational trend breakout strategy taught by iTradeAIMS for over a decade.

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## 1. Directional Alignment & Structure[​](#1-directional-alignment--structure "Direct link to 1. Directional Alignment & Structure")

Before looking for an entry trigger, the market must meet three structural criteria on bar close:

1. **Alligator Expansion**:

   

   * **Bullish**: `Price > Lips (Green) > Teeth (Red) > Jaws (Blue)`
   * **Bearish**: `Price < Lips (Green) < Teeth (Red) < Jaws (Blue)`

2. **Purple Magic Line (SMMA 34/21)**:
   
   * Confirms the dominant macro trend. Price must close above Purple for Buys, and below Purple for Sells.

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## 2. Momentum Acceleration Trigger (AO Shift)[​](#2-momentum-acceleration-trigger-ao-shift "Direct link to 2. Momentum Acceleration Trigger (AO Shift)")

The Awesome Oscillator (AO) measures short-term momentum relative to medium-term momentum:

* **Bullish Trigger**: AO bar 2 was red/contracting (pullback candle), and AO bar 1 shifts back to green/lime (acceleration candle) while above or crossing zero.
* **Bearish Trigger**: AO bar 2 was green/expanding, and AO bar 1 shifts back to red (downward impulse) while below zero.

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## 3. Order Execution & Protection[​](#3-order-execution--protection "Direct link to 3. Order Execution & Protection")

* **Pending Stop Orders**: Instead of entering at market on open, the EA places a pending `BUY_STOP` at `High[1] + buffer` or `SELL_STOP` at `Low[1] - buffer`.

* **Stale Order Expiration**: If price does not break out within 3 bars, the pending order is cancelled.

* **Stop Loss Placement**:

  

  * **Indices & Metals**: Placed at Signal Candle Extreme (`Low[1]` for Buy, `High[1]` for Sell).
  * **Forex (USDJPY)**: Placed at recent swing fractal structure to allow wider room during currency consolidations.

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## 4. Pure Free Trade Model (Model A)[​](#4-pure-free-trade-model-model-a "Direct link to 4. Pure Free Trade Model (Model A)")

In a 4.5-year head-to-head tournament (2022–2026), **Model A** decisively defeated traditional retail trade management:

1. **At +1.0R Profit**: The EA closes **50% of the position** to bank cash profit directly into your balance.
2. **Zero Break-Even Whipsaws**: The Stop Loss is **not** moved to Entry. On equity indices and trending assets, normal pullbacks retest entry before exploding in the trade direction. Leaving the SL intact preserves the runner.
3. **Red Line Trailing**: The remaining 50% runner trails behind the Alligator Red Line (Teeth) on bar completion.
4. **Early Exit Guard**: If a bar closes across the Alligator Green Line (Lips) while in profit, the runner exits immediately to protect gains.