This is simple strategy based on Aroon Oscillator. I have found that using length 144 or 169 on hourly chart shows excellent results.
Tested on SPY , QQQ and AAPL. Especially when you look at AAPL results , it has 60% profitable in recent trades. ( Dont assume this will be same for other stocks or ETFs)
Aroon Oscillator setting : 169 ( 169 is square root of 13 ... you can also use fib level 144 , which is square root of 12 )
BUY When Aroon Oscillator crosses above zero line
Add if Long position is already opened, and current close is less than BUY price and RSI 13 crossing above 30 line
Exit when Aroon Oscialltor crosses below zero line
Stop Loss default stop loss has been set to 5%
Note: I have not plotted RSI to the chart. Please include RSI 13 to see how position gets added ... Also add ema 169 to see how the price is aligned with the Aroon Oscillator
Warning For the educational purposes only
Catatan Rilis
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I have added another parameter to whether exitOnAroonOscialltor cross down to zero. Since script already has logic to capture partial profits when Osc crossdown below 90, at some point all the long positions will be emptied out.
This will also allow us to stay in the traded by sticking to our stoploss 5% , rather than just exiting on a whipsaw signal.
Catatan Rilis
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1. Stop Loss calculation fixed 2. Entry quantity and Addition quantity calculation has been changed 3. bar color changed to purple when Aroon Oscillator is above 90 4. if Aroon Osc cross down zero setting is selected --- stop loss value is not considered , it simply exits on oscillator crossing below zero line
Aroon oscillator derived from Aroon indicator. When Aroon indicator up line crosses above Aroon down line , oscillator crosses above zero. Vice versa ...
Having higher number of periods generates smooth signals and also keeps well in trending market for long term.
The number I have used is 169 on hourly chart. That means approximately 26 days ( 169 hrs/ 6.5 ). Which is very close to default setting of daily indicator.
strategy always takes the position after the signal close. So there is no question of repaint
magksss
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Excellent work. Is there any possibility to add alerts and take profit? I would like to automate this strategy for 3 commas :)
JasonLeighton
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I wrote a comment on your script before but i just had to again because this script is literally the best strategy I've used in FX trading! I use it on lower time frames say like 3min or 5min to catch the little swings in trend. I've tried to use it on higher time frames but it seems to really work best on the lower time frames. I love how you put in partial exits because i usually close out my trades on the 2nd or 3rd exit to avoid drawdowns. Man i can't thank you enough for this script :) I like it way better than the actual Aroon indicator
Thank you so much for this because it has been the most accurate for me in the FX markets. I used to sit in front of my screen all day waiting for entries but now i just use your strategy with alerts.
A little side note : This is best used in the FX markets on lower time frames (5min, 15min) because you can catch the cycles in trends a lot quicker than say higher time frames. I set it at 100 and it seems to work the best on that setting. What i like about Aroon is that it measures the high low to come up with its calcuation and the FX market is all about high low structure so it's perfect for it. Some trades are looses but if you filter out the bad trades with a confluence filter (say a 100 or 200 ema) you just take entries in the direction of the main trend on the higher time frames.
I also use the exit entries to short which seems to work well too!
if U want there is aroon single line indicator here on TV.