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New article: Fuzzy logic to create manual trading strategies

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MetaQuotes Software Corp.
MetaQuotes Software Corp.  

New article Fuzzy logic to create manual trading strategies has been published at

This article suggests the ways of improving manual trading strategy by applying fuzzy set theory. As an example we have provided a step-by-step description of the strategy search and the selection of its parameters, followed by fuzzy logic application to blur overly formal criteria for the market entry. This way, after strategy modification we obtain flexible conditions for opening a position that has a reasonable reaction to a market situation.


Many modern traders choose to take responsibility for entering and exiting positions, rather than rely on automated systems. They require to develop their own trading strategy that would take into account all possible outcomes of the market behavior. Afterwards, one would have to follow it strictly and resist any impulses that could be provoked by fear and greed.

Therefore, first we need to come up with a trading strategy. Let me describe you three stages of how we are going to build it.

  • Stage No1. Finding and identifying instruments that will be used for our strategy.
  • Stage No2. Setting specific conditions used by a trader to open a position on the market.
  • Stage No3. Setting specific conditions when a position will have to be closed with either positive or negative result.

Stage No1.

At the first stage I have selected three indicators for building a trading strategy as an example:

  1. Average Directional Movement Index, ADX. This is a trending indicator that determines the strength of the current trend.
  2. Relative Vigor Index, RVI oscillator.
  3. Accelerator Oscillator(AC) indicator by Bill Williams.

Selected general view and settings of the MQL4 trading terminal:

Fig. 1. General view of strategy settings

Author: Alexander Fedosov

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