The strategy is trend following strategy on EUR/USD. On retracement
in
bullish move and on bounce in bearish move, strategy opens the
position in the direction of trend. All indicators used is on 10 and
15 minutes period having the best possible trade setup based on back
testing. It first initialize all the variables and if then checks if
market has medium volatility (ATR 4 period on 15 minutes is used).
Then trend is identified if EMA 16 period(fast) is above or below 48
period(slow) EMA on 10 minutes chart. If EMA 16 is above EMA 48 the
trade flow goes to buy loop and if below then it goes into sell loop.
The entry is made on 2 CCI difference – one is 14 period and other
is 7 period on 15 minutes chart. If 14 period CCI above 0( that means
EUR/USD is bullish Provided 16 EMA above 48 period) and 7 period CCI
below -100. Then CCI difference of 14 period and 7 period is taken
into count. If the difference is above 110 then buy trade position
will be opened. Same way for sell trade if CCI 14 period below 0 and
CCI 7 period above 100(provided EMA 16 is below EMA 48) and
difference
is above 110, sell position is opened. This is main logic of the
strategy.
Further the strategy routine does validation if RSI above 55(on 10
minutes chart) for buy position and below 45 for sell position. Then
it does validation on previous 4 candles (on 10 minutes chart) and
one of the candles length should be above 2.75 pips (to avoid low
volatility and false signal) and one of the candle should be green
candle(buy candle, close should be higher than open) in case of sell
trade initiation and red candle(sell candle) in case of buy trade
initiation to avoid divergent signals. Also stochastics is used in
strategy but it is not doing anything as of now. In future version,
will need to see how stochastics indicator can be used for better
trades.
Strategy runs for 24 hours without any limitations, Take profit is 8
pips and stop loss is 50 pips. Default trade size is 15 million.