Simple EMA Scalping Trading Strategy Backtest In Python (Part 1)

Simple scalping Trading strategy using 3 exponential moving averages backtested in python, the scalping strategy is explained and the python code also in Jupyter notebook. The Python notebook is
🍓 If you want to follow structured courses with more details and practice exercises check my "About" page for Discount Coupons on my Udemy courses covering: Python basics, Object Oriented Programming and Data Analysis with NumPy and Pandas, ... more courses are on the way drop me a message if you have a particular interesting topic! Good luck!
available for download from the link:
drive.google.com/file/d/1ufhD...
#TradingBot #PythonCoding #forexanalysis
00:00 Scalping Strategy Introduction
02:24 Python Code For Algorithmic Strategy
11:53 Backtesting The Scalping Strategy
13:02 Scalping Backtest Results

[@krzysztofkubiak3578]

Really good job!! It is my favourite channel about AlgoTrading :-)

[@CodeTradingCafe]

Thanks a lot for your supportive comment, I hope to find a winner strategy safe enough I could recommend in one of those videos

[@ClearVista]

Going on a binge of you channel. Absolutely love the videos. I use IC Markets for my broker and cTrader as my platform but even though cTrader is in C#, I use Python for researching. I'm going to work on translating the code to C# and testing it there as soon as I can. I really appreciate the time you put in. You deserve a lot more than 2.6k subscribers.

[@CodeTradingCafe]

Thanks a lot for your support 😊 it's nice to read this and know these videos are of help. Honestly most of the strategies look promising at first sight but then when it comes to long term backtesting the real outcome is shown that's one true message behind these videos. Good luck in your research.

[@ClearVista]

@@CodeTradingCafe There's a hell of a lot of randomness in the charts. I think I'll always stick to manual trading but using this to get a feel of what what could be a good starting point for strategies is fun for me.

[@CodeTradingCafe]

Yes manual trading still provides less risk, I also run few bots to send alerts on my phone when some conditions are true at the same time (RSI, EMA slope and let's say price close to a strong support/resistance on the daily timeframe) this way I can log in and check if it's a real opportunity. I agree ...numerical tests are fun :)

[@a.winath4024]

Thanks again for sharing such videos!

[@CodeTradingCafe]

Thank you for your support I am glad videos are of help

[@souvikdey3910]

great sir. will be waiting for its optimized version with a flexible return.

[@CodeTradingCafe]

Yes it was long and tedious to optimize, I don't like scalping I guess

[@jensasp1806]

Hi, some ideas, which maybe can be used in an update … Hull moving average (faster/more responsive), choppyness as filter, and two ways of muliple timeframe: a) trend from 1hour as filter combined with entry/exit on 15 min, and b) the 1 hour trend based on 15min data with Rolling 1h dataframe updated every 15 minute, ie the 1h trend dataframe is ‘shifted’ every 15m ? …… THX for great videos and code👍👌🙌

[@CodeTradingCafe]

Thanks a lot, in fact trend on a timeframe while trading another timeframe is a good idea, I will probably make a specific video on this.

[@danielpartyhead2234]

@@CodeTradingCafe yeah. hull second best. firs in my oppionion is Jurik MA or JMA. in init - self.sma1 = self.I(ta.jma, pd.Series(self.data.Close), self.p1) , from import pandas_ta as ta . only problem its calculats 100 times longer :)

[@CodeTradingCafe]

Thank you for sharing, it's ok for a function to be slow as long as the results are good in this case. I will have to try it!

[@planb5386]

thank you

[@CodeTradingCafe]

Good luck with your program

[@sibiljas3628]

nice.we are luck.

[@CodeTradingCafe]

Thanks for watching, good luck, optimization video coming next week

[@mohakaz4157]

Excellent. Please learning api conncet bybit for sell and buy

[@santhoshdasari7]

Thanks a lot for sharing…

[@CodeTradingCafe]

Thank you for your support

[@santhoshdasari7]

R u still planning to make a video on 2 period RSI (10 and 90) and ema slapping strategy

[@CodeTradingCafe]

@@santhoshdasari7 Yes ... It's coming, which timeframe you are interested in?

[@santhoshdasari7]

@@CodeTradingCafe u r the guru for this strategic…. Following u for some time u will optimize it for sure… I really like the way u explain and keep the things simple… keep up the good work…

[@CodeTradingCafe]

@@santhoshdasari7 thanks a lot for the compliment 🙂

[@thyagolukas]

can you help me complete a bot in python for iq option? Based on EMA20, the bot will open an order if it is trending at minutes: 00, 15, 30 and 45; expiration in 5 min. And to make it more assertive, I would open the order if it was in a strong trend using other trend functions with tredingview or investing. the trend thermometer. and the cycle function for recovering a possible loss. By your videos, you are an excellent programmer. I await your reply. thanks in advance.God bless you.

[@CodeTradingCafe]

Hi, thank you for your support. I am not familiar with all the indicators on tradingview and I don't use the platform, I rely only on python gives me more control.

[@thyagolukas]

@@CodeTradingCafe OK!! Tks

[@garychan2833]

I am getting an error on line 2 df= pd.read_csv... which reads: ~\anaconda3\lib\site-packages\pandas\util\_decorators.py in wrapper(*args, **kwargs)

[@CodeTradingCafe]

I am not sure why is that, do you have any other error messages? try to check your pandas is properly installed (which I assume it is) or any left typos in the code, it happens. Let me know if it works.

[@boamahmarcus4002]

Maybe use the ATR as a stop loss?

[@CodeTradingCafe]

Yes I tried it in other videos, can't remember which ones, but in the recent videos I frequently include the ATR for SL and TP levels.

[@kodzuvu]

Bob Volman strategy is the best

[@CodeTradingCafe]

Thanks I will check it out, if I like it I will backtest it

[@user-oq4do4kj1o]

I think in your code these numpy conditions conditions = [ ((df['EMA50'] < df['EMA100']) & (df['EMA100'] < df['EMA150']) & (df['slopeEMA50'] < 0) & (df['slopeEMA100'] < 0) & (df['slopeEMA150'] < 0)), ((df['EMA50'] > df['EMA100']) & (df['EMA100'] > df['EMA150']) & (df['slopeEMA50'] > 0) & (df['slopeEMA100'] > 0) & (df['slopeEMA150'] > 0)) ] The first condition should represent the bearish signal and second condition should represent the bullish signal right ? Because short term EMA < medium term EMA which is less that long term EMA, also slopes are negative means that is a downtrend.

[@CodeTradingCafe]

That is correct the first set of conditions are for downtrend the 2nd for uptrend. Good luck!

[@Max-yz4dg]

what is this software where you write your code ?

[@CodeTradingCafe]

Hi it's python jupyter notebook if you are not familiar with python check my playlists there is one where you can learn how to do financial analysis in Python

[@CodeTradingCafe]

Check this list Python Learning: kzbin.info/aero/PLwEOixRFAUxZVV0XNWlapem1yoRA4rt_O

[@adinan1000]

Hi, where is the file: "EURUSD_Candlestick_15_M_BID_31.01.2019-30.01.2022.csv" ?

[@CodeTradingCafe]

try this one it should be recent drive.google.com/file/d/1AsOqh_5xWv5hTfFnYwAUlSj-HlW_fND1/view?usp=sharing

[@delhitepawan5804]

learn new things for algo trading

[@CodeTradingCafe]

Hi, I am not sure I understand what you mean

[@rupamgohain3890]

language Hindi

[@CodeTradingCafe]

Sorry I wish I spoke Hindi, you can still download the code and figure out what it does. Good luck!