Python Forex Trading Strategy

The Python Forex trading strategy offers traders a fair number of nice trading opportunities.

The idea behind this strategy is to follow the most profitable trend at all times.

The strategy suits all currency pairs and time frames.

It is a very simple forex trading strategy that fits for newbies and professional traders alike and can be used for scalping, day trading and swing trading.

Chart Setup

MetaTrader 4 Indicators: Moving Average.ex4 (Parameters Modified; Period=28, MA method=Exponential, Style=Yellow), MUV.ex4 (Colors Width Modified; #1=2), MFI_price.ex4 (Inputs Variable Modified; ExtMFIPeriod=18)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example: GBP/USD (Sterling / US Dollar), H1 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the yellow 28 EMA Metatrader 4 indicator line crosses below the red MUV custom indicator line in a bottom up fashion as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, therefore a buy alert will suffice.
  • If the blue MFI_price indicator line breaks and hovers above the 50.00 horizontal level as seen on Fig. 1.0, the general market sentiment is said to be bullish, thus a trigger to go long on the selected currency pair.

Stop Loss for Buy Entry: Place stop loss a few pips below the yellow 28 period EMA line.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If the yellow line of the 28 EMA forex indicator intersectsthe red MUV indicator line during the course of a bullish trend, bulls power is said to be diminishing, as such an exit or take profit stance is recommended.
  • If the blue MFI_price indicator line pops up below the 50.00 reference level while a bullish trend is running, a bearish reversal is said to be looming i.e. a trigger to exit or take profit forthwith.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the yellow 28 EMA indicator line crosses above the red MUV custom indicator line in a top downward manner as seen on Fig.1 .1, the overall market sentiment is said to be bearish, as such a sell alert will do.
  • If the blue MFI_price indicator line breaks and hovers below the 50.00 horizontal level as depicted on Fig. 1.1, the leading market trend is said to be bearish, thus a trigger to go short on the designated forex pair.

Stop Loss for Sell Entry: Place stop loss a few pips above the yellow 28 period EMA line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the yellow line of the 28 EMA forex indicator intersectsthe red MUV indicator line while a bearish trend is on course, bears are said to be leaving the market increasingly, thus a signal to exit or take profit immediately.
  • If the blue MFI_price indicator line realigns above the 50.00 reference level during a bearish trend, a bullish reversal is said to be on the horizon i.e. a trigger to exit or take profit without delay.

Sell Trade Example: GBP/USD (Sterling / US Dollar), H1 Chart

Fig. 1.1

Free Download

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About The Forex Technical Indicators Used

The 28 EMA is an exponential moving average that has its period set at 28.

It reduces lag by adding more weight to recent price.

The MUV custom indicator is a Tom Demark (TD) Moving Average indicator, written for MetaTrader4.

It defines the logical locations for introducing stop loss orders or closing trades.

The MFI_price or Money Flow Index (MFI) is also known as volume-weighted RSI and was designed by Gene Quong and Avrum Soudack.

The MFI_price indicator for MetaTrader4 is an oscillator that deploys both price and volume in gauging buying and selling pressures in the market.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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