## Trading Methods Using Aroon Oscillator

The Aroon Oscillator is commonly used as a trend following indicator. Meaning buy when trending up, sale when trending down. In this article we will look at the following strategies for trading the Aroon Oscillator:

- Buy when aroon oscillator crosses above 0
- Buy when aroon oscillator crosses above some value x
- Buy when aroon oscillator crosses below 0
- Buy when aroon oscillator crosses below some value x

#### Strategy #1: Buy when aroon oscillator crosses above 0

Almost all parameters result in negative expectancy

#### Strategy #2: Buy when aroon crosses above some value x

This strategy performs fairly well, as long as x is < 0. No parameter combination was able to exceed our target thresholds. However, a few came pretty close. The closest one would be AroonOscillator(40) crosses above -99

#### Strategy #3: Buy when aroon oscillator crosses below 0

Performs better than when crossing above 0, but is not enough of an edge to use in a strategy.

#### Strategy #4: Buy when aroon oscillator crosses below x

There were several parameter combinations that exceeded both profit and winning % after 5 bars. The best combination was when aroonoscillator(8) crossed below -80

**Summary:**

Using the aroon oscillator to trade “with the trend”, does not look like a viable strategy. However, buying when aroon oscillator crosses below certain values can yield a small edge. May be useful in filtering out bad trades as we start to build out a strategy.

**Source Code:**

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