Convictionby Timo

    Conviction

    About this playbook

    Conviction — the EMA regime, gated by genuine trend strength.

    The regime

    The 20 and 50 EMAs set the side. Above, the playbook is looking for longs; below, shorts. It is a regime rather than a signal — the state persists rather than firing once and disappearing.

    Both averages render on the chart so the regime you are trading is always visible.

    The strength gate

    A moving-average regime on its own will happily trade sideways chop, where the averages cross back and forth and every entry is a coin flip. ADX is the filter that stops it: it measures how strongly a market is trending, regardless of direction.

    Conviction only takes the regime’s trade while ADX confirms a genuine trend. In a drifting market it simply stands aside — which is the whole point of the name.

    The settings that matter

    ADX Threshold is the conviction dial — how much trend strength you insist on before taking the regime’s trade. Raising it takes fewer, cleaner trades; lowering it takes more of everything, including the chop.

    The EMA pair sets how quickly the regime flips, and the entry cutoff stops new positions being opened late in the session, when a fresh trend is least likely to have time to run.

    Prefer to stay in control? Let Timo AI track the session, highlight live setups, and you execute the trades yourself at the click of a button. Want it fully hands-off? Turn on the auto playbook and Timo will handle entries, exits, and risk management for you.

    Disclaimer

    The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by Timo. Past performance is not indicative of future results.