Fibonacci Swing Trader

Strategy Intent

Trading Criteria Details
Market Suitability All markets but will work faster in a bull market when volatility is higher
Difficulty Intermediate
Strategy Type Swing Trading
Take Profit
DCA
Positive DCA
Pending Orders
Trailing Stop Loss
Published
Demo Server

Note:

  1. Click the cloud icon to view the demo server for this strategy;
  2. Note if the cloud icon is showing in red it means the demo server is not available right now;

Strategy Overview

  • The intent of the strategy is to ride the long tail trends.
  • This strategy takes that original strategy a step further by exploiting the long term trends. It picks trading pairs that in a long term uptrend and buys into that trend.
  • Unlike the original Fibonacci Day Trader Strategy, this strategy makes use of MACD crosses instead of EMA crosses. It does this so we can take advantage of the signal line and extend it to cover the long term trends, most strategies will use a 9 day moving average of the MACD Line, we extend that to a 50 day moving average.
  • The 50 day moving average is used by institutional traders to look at long term trends, usually along with the 100 or 200 day moving. We use the Fibonacci levels for the long term trend values instead of the these more traditional moving averages.

Entry Criteria

  • The strategy entry criteria uses MACD (144/233) as the main means of confirming the upward trend.
  • It uses another MACD (21/55) as the trade entry signal looking to buy into a strong upward trend. ie. buy into strength.
  • It then looks to ride the long term trend for as long as it lasts, that can be minutes, hours or days depending on the prevailing market conditions.
  • Trailing buy is turned off as we are buying into an upward trend.

Trade Management

  • The strategy applies the 2% and 10% rules of trading.
  • Position size is limited to 2% of risk capital per trade.
  • Only 5 trading pairs are active at any time to ensure no more than 10% of total risk capital is employed in trading at any time.
  • A trailing stop loss is employed rather than a fixed stop loss.
  • Take profit is employed to prevent loss of profits.

Exit Criteria

  • This strategy uses another MACD (13/34) as the trade exit signal to sell when the long term trend starts to weaken.
  • Here is an example of a large swing over time and the MACD's used showing the crossovers with the yellow circles:


  • It takes advantage of Positive DCA but with a limit of just 1 additional buy level.
  • It also uses Pending Orders to cover scenarios where there is a strong pullback from the prevailing upward trend.

Strategy Tips

  • While this strategy will work in all market conditions where small upward trends exist. As it is based on upward trends it will work best in a Bull Market.
  • The key to this strategy is patience as it depends on the market conditions prevalent at the time as we are looking for strong uptrends, Bear and sideways markets will be slow due to low volatility.
  • Apart from patience you will need the ability to hold your nerve, these trades rely on strong upward trends and will take longer than you may be used too to complete the buying and selling for the trade.
  • Also it can get tempting to sell a trading pair that has a high profit percentage but you need to have patience and hold on and wait for it to complete the trade.
  • Make sure you do not overextend yourself by getting your max trading pairs and initial cost right to suit your trading budget.
  • Use the DCA calculator we provide to work these values out covering at least 4 levels of DCA for all your pairs. Once you have those values enter them into this strategy. The DCA calculator also ensures you have a 50/50 split on your trading budget to ensure you have sufficient budget for the sell side of this strategy.


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  • fibswingtrader.txt
  • Last modified: 6 days ago
  • by cryptocoyn