Description
A CHFJPY (Swiss Franc/Japanese Yen) trend-following trading strategy aims to capitalize on the prevailing trend in the currency pair. Here’s an outline of such a strategy:
1. Identify the Trend
- Moving Averages: Use a combination of short-term (e.g., 20-day) and long-term (e.g., 50-day) moving averages. A bullish trend is indicated when the short-term MA crosses above the long-term MA, and a bearish trend is indicated when the short-term MA crosses below the long-term MA.
- ADX (Average Directional Index): Use ADX to measure the strength of the trend. An ADX value above 25 usually indicates a strong trend.
2. Entry Signals
- Bullish Entry: Enter a long position when the short-term moving average crosses above the long-term moving average and the ADX indicates a strong trend.
- Bearish Entry: Enter a short position when the short-term moving average crosses below the long-term moving average and the ADX indicates a strong trend.
3. Confirmation Indicators
- RSI (Relative Strength Index): Ensure the RSI is not in overbought territory (above 70) for long entries or oversold territory (below 30) for short entries.
- MACD (Moving Average Convergence Divergence): Look for confirmation with MACD line crossing above the signal line for long entries and below for short entries.
4. Position Sizing
- Risk a fixed percentage of your trading capital per trade, such as 1-2%. Adjust the position size based on the volatility of CHFJPY, using indicators like ATR (Average True Range) to set stop-loss levels.
5. Risk Management
- Stop-Loss: Place a stop-loss order below the recent swing low for long positions or above the recent swing high for short positions.
- Take-Profit: Set take-profit levels based on a risk-reward ratio of at least 1:2. Adjust take-profit levels based on key support and resistance levels.
6. Trailing Stop
- Use a trailing stop to lock in profits as the trend progresses. This can be based on a fixed pip distance or a percentage of the current price.
7. Regular Review and Adjustment
- Continuously monitor the performance of the strategy and adjust parameters as necessary based on changing market conditions.
Lots : auto
Backtest period : 2016/10/18 ~ 2024/12/01
Initial balance : 6,330 USD, Ending balance : 495,720 USD, Return : +6,685%
Free trial: >>>>>> Download the cBot <<<<<<
Contact: jadmad0828@gmail.com
Telegram: https://t.me/jadmad0828
The author decided to hide the source code.
YS
ys2310
Joined on 03.12.2021
- Distribution: Free
- Language: C#
- Trading platform: cTrader Automate
- File name: New cBot (4)_withSourceCode.algo
- Rating: 5
- Installs: 305
- Modified: 19/07/2024 01:43
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