Automated Strategies

Aroon Oscillator Strategy

Developer: FXCM

The Aroon Oscillator Strategy first identifies the strength of a trend using the Aroon Indicator, and then calculates that data into an oscillator.  It will place buy trades in up trending markets and sell trades in downward trending markets.

Generally a strong up trend is identified when the Aroon Oscillator reading is above 50. Likewise, a strong down trend is identified when the Aroon Oscillator reading is below -50.

This strategy has parameters which customize the trend strength level necessary to open and close positions.

This strategy was developed on FXCodebase.

TRADING LOGIC

In the strategy’s parameters, a single value is used to the upper and lower Aroon levels which will trigger new trades.

As an example, a value of “50” sets the upper Aroon level at +50 and the lower Aroon level at -50.  In that example if the oscillator crosses the +50 level, the strategy will close all open sell orders and enter a new buy order.  Likewise, if the oscillator crosses the -50 level the strategy will close all open buy orders and enter a new sell order.

MONEY MANAGEMENT

As an oscillator, this strategy will always have a trade in the market unless stops and/or limits are used.

PARAMETERS

The following inputs are available in the strategies parameter window and can be defined by the app user:

  • Period of Aroon oscillator: the number of periods used to calculate the Aroon indicator
  • Level for open/close orders: a single equidistant value from zero, used to create both the upper and lower Aroon levels
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This Indicator is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).