The strategy is trend following strategy on EUR/USD and EUR/JPY. 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 15(
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 120 then buy trade position
will be opened. Same way for sell trade if CCI 14 period below -15
and CCI 7 period above 100(provided EMA 16 is below EMA 48) and
difference is above 120, 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
this strategy and only validation it does is that slowk is above
slowd. Means it bounced along with CCI and is not diverging.
Strategy runs for 24 hours without any limitations, Take profit is 6
pips and stop loss is 50 pips. Default trade size is 15 million.