Quantopian Forex Strategy

The Quantopian Forex strategy makes use of the Turtle trading channel and MACD indicator to generate buy and sell signals that work for any currency pair and timeframe.

The configuration for this strategy is simple and easy to understand, even for newbies.

Lets take a look at the setup and buy/sell trade examples below to explain how traders can take advantage of the simple, yet effective Quantopian Forex strategy.

Chart Setup

MetaTrader 4 Indicators: TheTurtleTradingChannel.ex4 (Inputs Variable Modified; TradePeriod=24), Ravi.ex4 (Colors Width Modified; #0=2, #1=2, #2=2), MACD.ex4 (Parameters Modified; Fast EMA=17, Slow EMA=31, MACD SMA=14)

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

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Buy Trade Example: AUD/NZD (Australian Dollar / New Zealand 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 dodger blue TheTurtleTradingChannel indicator line aligns somewhat below the candlestick as shown on Fig. 1.0, the overall market sentiment is said to be bullish, thus a buy signal will suffice.
  • If the gray and green histograms of the Ravi custom indicator break and hover above the zero horizontal level as illustrated on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the designated currency pair.
  • If the silver histograms of the MACD Metatrader 4 forex indicator riseabove the 0.00 reference level as seen on Fig. 1.0, bulls are said to be driving sentiments, therefore an alert to buy the forex pair of interest.

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

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

  • If the TheTurtleTradingChannel custom indicator displays a red line that sits fairly above the candlesticks (see Fig. 1.0), bulls are said to be closing their positions increasingly, as such an exit or take profit stance is recommended.
  • If the Ravi custom indicator pops up a gray histogram below the zero horizontal level during the course of a bullish trend, it is indicative of diminishing bulls power, thus an alert to exit or take profit forthwith.
  • If the MACD indicator pops up a silver histogram below the 0.00 horizontal level while a bullish trend is running, a bearish reversal is said to be imminent, as such an exit or take profit stance is apt.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red TheTurtleTradingChannel indicator line aligns slightly above the candlestick as illustrated on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to go short on the selected fx pair.
  • If the gray and red histograms of the Ravi custom indicator break and hover below the zero signal level (refer to Fig. 1.1), price is said to be dragged lower, as such a sell alert will do.
  • If the silver histograms of the MACD forex indicator fall below the 0.00 horizontal level as exemplified on Fig. 1.1, the leading sentiment is said to be bearish, therefore a sell alert is duly advised.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the TheTurtleTradingChannel custom indicator displays a dodger blue line that sits below the price bars while holding bearish positions (check out Fig. 1.1), more and more bears are said to be leaving the market, as such an exit or take profit stance is advised.
  • If the Ravi custom indicator pops up a gray histogram above the zero horizontal level while a bearish trend is running, bears power is said to be halting, thus a signal to exit or take profit straightaway.
  • If the MACD indicator pops up a silver histogram above the 0.00 horizontal level during the course of a bearish trend, a bullish reversal is said to be looming, as such an exit or profit stance is pertinent.

Sell Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), H1 Chart

Fig. 1.1

Free Download

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About The Forex Technical Indicators Used

The TheTurtleTradingChannel is a technical study that was designed by Dennis Gartman and Bill Eckhart, and relies on the breakouts of historic highs and lows, in order to enable traders enter and close trades.

The ravi is an MT4 indicator that deploys two moving averages computed in percent.

The indicator has been tweaked to show strong bullish trends using its green colored histograms, while strong bearish trends are labelled red.

The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.

Easy Installation

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

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