This is a profitable strategy script I created to teach my students how to automate their scripts using 3rd party APIs (more info available in my profile link at the bottom of this page).
What Is This?
This strategy is called the "Follow The Bear" strategy.
It's a forex trading strategy designed for one purpose and one purpose only: to take advantage of a recurring pattern on EURUSD's 1-Hour chart during the European market open.
The basic explanation is this:
During the European open we want to see a rally followed by a swing high shooting star / reversal pinbar candle. This typically means that traders buying EURUSD during the European/London open are now trapped long, and as price begins to retrace they are forced to sell, fueling a short-term retracement.
This strategy takes advantage of that pattern by aggressively selling short with a tight stop-loss above the pinbar candle and a conservative target.
There are many ways to trade this pattern, but this script represents my personal method for trading it.
It is not 100% accurate (no strategy is), but it does have a considerably high win rate over the past 6+ years considering its simplicity and I've been trading it for several months and can attest to its edge over the markets (at least through the Oanda data feed which is what I use).
The strategy rules are this:
Market: EURUSD
Timeframe: 1-Hour
Direction: Short Only
Timezone: 6AM-10AM GMT
Days: Tuesday, Wednesday, Thursday
Entry: Close of Pinbar Setup
Stop: 2 pips above signal candle
Target: 1:1
Risk: Up to you (backtest first! I use 1%)
The rule for the pinbar/shooting star candle pattern is that the candle must both open and close in the lower 50% of the bar's total size.
Automation
This script is already prepared to be auto-traded through a 3rd-party API that was created to relay TradingView alerts to your broker to execute and manage trades.
Sorry for the lack of information - due to TradingView's house rules I cannot go into any more detail here, but if you're interested in automating this script there is more info available in the resources offered under my profile link at the bottom of this page.
Disclaimer
The material and the resources offered here are for educational purposes only. Always do your own research and only execute trades based on your own personal judgement.
Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency, investments in foreign exchange speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate.
The leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. Not only may investors get back less than they invested, but in the case of higher risk strategies, investors may lose the entirety of their investment. It is for this reason that when speculating in such markets it is advisable to use only risk capital.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Notes de version
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- - Updated to Pine v5 - Added Backtester Display table - Tidied up settings menu a little bit
Hi, I use pineconnector to automate trades on mt5, but I want to switch to a broker on mt4. Do you have an updated EA for MT4? The ex4 version doesn't work with the new MT4 data folder. Thanks in advance
uglyandbroke
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Hi, I follow you on theartoftrading and here. I made you Basic course and my first Indicators thanks to you. One question where I could not find anything in the Web. Is it in any way possible to trigger a button from a chart window, indicator window or even a Browser Add-on with pine script. I'm planing a script for a kind of trade panel for trade over PineConnector directly to a MT4 account. I hope You have some Idea how to do that because I searched for a week now without any clue, maybe I don't know what to search.
Thanks for all, the courses and your Scrips.
Live from Germany.
Johannes!
ZenAndTheArtOfTrading
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@uglyandbroke, Hello friend! Sorry for the late reply, but I don't believe this is possible unfortunately.
Wicked-Pro
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Hi, does the Tradingview server use more that 0.1 pip for their math? I noticed that in some rare cases, when the bearfib is exactly the same as the close, it triggers an alert, even though the condition is close < bearfib and not close <= bearfib. So it shouldn't be considered a valid star. I am using your FTB on 1m timeframe for EURUSD (oanda). if you take a look at the candle of July 15th 2022, 6:14 AM (UTC 00:00), the close is exactly the same as bearfib. The strategy on the chart didn't do a strategy.entry, but I recevied an alert. Sometimes (can't always replicate the issue), If I clear my browser cache or reopen tradingview, a trade setup will appear on the candle of 2022-07-15, 6:15 AM (UTC00:00). Not sure how that happens. That's why I'm asking if the server side and the client side of tradingview has different tick data.
ZenAndTheArtOfTrading
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@Wicked-Pro, hey Wicked! I don't know anything about that particular scenario but I've definitely noticed similar strange behaviours with my charts in the past. That's definitely something I'd reach out to the TradingView support team about. It sounds like a bug to me but maybe they have a technical explanation for why that's happening
Wicked-Pro
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@ZenAndTheArtOfTrading, Thanks for taking the time to reply to me. I have been using your FTB on 1m chart with EURUSD along with 10:1 RR With very good success with only 0.5% risk per trade, about to pass my FTMO with it. I have also reached out to Tradingview support about this weird issue
Peace :)
Wicked-Pro
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@ZenAndTheArtOfTrading, I have added a 2nd condition to have a valid star : close <= bearFib - syminfo.mintick and close < bearFib. I hoped that it will avoid this situation in the future :) I would love to chat with you privately to share with you my version of FTB :)
santanudas2002
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Hi, to avoid stop out because of drawdown, how much min capital would be required? Do you have any other strategy which maybe called follow the bulls?
antmill1
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Hi, how could I set this indicator to AUD/USD instead of the EURO? And is there a way to incorporate long positions?
nachob1987
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hi!, original inputs return 37%, around 6% DD, could take the return around 50% with some refinements. Good but still not 100% convinced as this data is from 2020, so that´s around 2.5years...
Could u find better outputs? (return and DD / time),or that´s enough profitable for you to automate??