CHFJPY Trading cBot

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 ~ 2024/07/18

Initial balance : 6,330 USD, Ending balance : 495,720 USD, Return : +6,685%

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