Using this Profitable Swing Trading Strategy to Scale Up Trading


Photo by Quantitatives on Unsplash

It’s time to scale up trading! The cumulative trading results for the past four weeks have been nothing but smashing!

Discovered by Python Code

It is worthy to note that this extremely simple and clear strategy was discovered by using Python code to experiment, prototype, and backtest.

The strategy has three benefits:

  1. It is extremely simple, so it reduces the possibility of execution errors.
  2. It is also extremely clear it only uses line charts (no candles sticks), so that it reduces noises on the charts.
  3. It also executes on the daily charts, so it is ultra low-maintenance and the signals are much more reliable than those on the lower timeframe.

Trading Statistics

Trading TypeWin/Loss %Profit Factor
Private trading80%3.91
Prop trading75%2.13
Trading Stats: 4-Week Period Mar 4, 2022

Strategy Used

The strategy used in the above equity curve is as follows:

  • This is a manual trading strategy on D1 (daily) charts.
  • On all trading, stop loss is always set.
  • This is manual trading, not algo.
  • On my private trading, I set the risk per trade to be 5%. This is extremely high but this is also an extremely small account (starting balance was at $100).
  • On my prop trading, 0.3% risk per trade only.
  • The core strategy is a line chart strategy:
  • Entry signal:
    • To enter a short position: my strategy requires the price to cross below the 15-period Simple Moving Average on the low (computing the simple moving average using the daily lowest price), AND require the Aroon Up indicator to be lower than the Aroon Down indicator.
    • To enter a long position: my strategy requires the price to cross above the 15-period Simple Moving Average on the high (computing the simple moving average using the daily highest price), AND requires the Aroon Up indicator to be higher than the Aroon Down indicator.
  • Exit Signal:
    • For a short position, the exit signal is when EITHER Aroon Up is now above Aroon Down, OR when the price has crossed over the 15-period Simple Moving Average on the low (computed on the daily lows).
    • For a long position, the exit signal is when EITHER Aroon Up is now below Aroon Down, OR when the price has crossed under the 15-period Simple Moving Average on the high (computed on the daily highs).
  • No more candlesticks — only line charts were used to reduce noise.

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This strategy was discovered by using Python to experiment, prototype, and backtest. You can learn about how you can use Python to get the broker-level market data for Forex and Crypto, build indicators, and perform risk and money management.

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