Download the files:

https://github.com/psychicEgg/EDHM

Before starting:

Remove any custimizations from %LocalAppData%\Frontier Developments\Elite Dangerous\Options\Graphics\
Download the latest version, as of this review the add-on was at v1.32
Unzip the files into %UserProfile%\AppData\Local\Frontier_Developments\Products\elite-dangerous-64

Now open your Game and go to the graphics settings

• DISABLE GUI EFFECTS = OFF

Once the mod is loaded, use the function F keys to change the options.

• F1 to disable the Mod, revert to the default orange HUD (you can switch back and forth)
• F2 to cycle through shield colours
• F3 to cycle through OwnShip hologram colours
• F4 to cycle through distributor colours
• F5 to dim the HUD
• F6 to dim the lighting
• F7 to cycle through cabin lighting colours
• F8 to cycle through targeting reticle options

For FPS Drops, Recommended initial quality settings:

• Shadow Quality OFF
• Bloom OFF
• Anti-Aliasing FXAA (off for 4K)
• Supersampling 1.0
• Ambient Occlusion LOW
• FX Quality OFF
• Material Quality MEDIUM
• Volumetric Effects HIGH

These settings will maximise your FPS. Shadows, Ambient Occlusion and Supersampling have a huge impact on FPS, so increase them slowly.

Editing the Configuration

• Edit %UserProfile%\AppData\Local\Frontier_Developments\Products\elite-dangerous-64\d3dx.ini

My Settings are:

; ** HUD Dimmer **
w7 = 5

; ** Lighting Dimmer **
w2 = 1

; ** Ambient Cabin Lights **
; 2 = Tie Fighter Red
w4 = 2

; ** Targeting reticle **
; 3 = Purple / Blue / Green (good for combat)
w5 = 3

; ** Shield colour **
; 5 = Yellow / Red
w8 = 5

; ** OwnShip Hologram **
; 6 = Grey / White
w9 = 6

; ** Distributor **
; 2 = Green-Yellow-Red
w10 = 2

For a video showing it in action by Down to Earth Astronomy: https://www.youtube.com/watch?v=dReNh9Xxdug&feature=youtu.be
Reddit Post from the Author: https://www.reddit.com/r/EliteDangerous/comments/jbfu17/elite_dangerous_hud_mod_edhm_v131_update/