Aroon Strategy Templates

Strategy Overview

1. Aroon Trend Following — aroonUp_above_aroonDown entries filtered by ADX
2. Aroon Signal Line Crossover — aroon_above_signalLine for momentum timing
3. Aroon + RSI Confluence — Aroon trend + RSI extremes for pullback entries

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Strategy 1: Aroon Trend Following

Overview

Enter when Aroon confirms trend direction, filtered by ADX for trend strength.

When This Works Best

• Trending markets
• After breakouts
• 4H to 1D timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	50% of equity (REL)
Order Type	MARKET
Timeout	COOLDOWN_ONLY, 3 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroonUp_above_aroonDown	50
Required	ADX	adx_above_threshold	25

Long Exit Conditions

Setting	Value
Required	Aroon · aroonUp_below_aroonDown
Stop Loss	5% (REL), trailing
Take Profit	10% (REL)

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroonUp_below_aroonDown	-50
Required	ADX	adx_above_threshold	25

Short Exit Conditions

Setting	Value
Required	Aroon · aroonUp_above_aroonDown
Stop Loss	5% (REL), trailing
Take Profit	10% (REL)

Recommended Parameters

Indicator	Parameter	Value	Notes
Aroon	Period	14 bars	Lookback
ADX	Threshold	25	Trend filter

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Strategy 2: Aroon Signal Line Crossover

Overview

Use Aroon signal line crossovers for momentum timing.

When This Works Best

• Momentum transitions
• After consolidation
• 1H to 4H timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	40% of equity (REL)
Order Type	MARKET
Timeout	REGULAR, 2 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroon_above_signalLine	—

Long Exit Conditions

Setting	Value
Required	Aroon · aroon_below_signalLine
Stop Loss	4% (REL)
Take Profit	8% (REL)

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroon_below_signalLine	—

Short Exit Conditions

Setting	Value
Required	Aroon · aroon_above_signalLine
Stop Loss	4% (REL)
Take Profit	8% (REL)

Recommended Parameters

Indicator	Parameter	Value	Notes
Aroon	Period	14 bars	Lookback
Aroon	Signal Line	9 bars	Smoothing

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Strategy 3: Aroon + RSI Confluence

Overview

Enter pullbacks in Aroon-confirmed trends using RSI extremes.

When This Works Best

• Trending markets with pullbacks
• 1H to 1D timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	35% of equity (REL)
Order Type	MARKET
Timeout	COOLDOWN_ONLY, 5 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroonUp_above_aroonDown	0
Required	RSI	rsi_below_threshold	35

Long Exit Conditions

Setting	Value
Required	RSI · rsi_above_threshold · 60
Stop Loss	4% (REL)
Take Profit	8% (REL)

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	Aroon	aroonUp_below_aroonDown	0
Required	RSI	rsi_above_threshold	65

Short Exit Conditions

Setting	Value
Required	RSI · rsi_below_threshold · 40
Stop Loss	4% (REL)
Take Profit	8% (REL)

Recommended Parameters

Indicator	Parameter	Value	Notes
Aroon	Period	14 bars	Trend detection
RSI	Period	14 bars	Momentum

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Backtesting Recommendations

• Test period variations: 7 vs 14 vs 25
• Compare with ADX: Both measure trend — see which filters better
• Test threshold levels: Aroon > 50 vs > 0 for entry quality

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Note

Pro Tip: When building strategies in Reversion, put your primary signal in the Required group and confirmation signals in Optional. This ensures the core signal must always be present while allowing flexibility in confirmation. Always backtest parameters per asset — crypto often benefits from adjusted settings due to higher volatility.