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VRVP StrategyVRVP Strategy

VRVP Strategy

The Volume Range Value Profile (VRVP) Strategy is a sophisticated multi-timeframe Forex trading system that combines four powerful technical indicators to generate high-probability trading signals.

Overview

VRVP Strategy uses a confluence-based approach, requiring multiple indicators to align before generating trade signals. This reduces false signals and improves win rate compared to single-indicator strategies.

Key Features

  • Multi-timeframe Analysis: Combines 4-hour trend filtering with 1-hour entry signals
  • Volume Profile Integration: Uses POC, VAH, VAL, and HVN/LVN zones for precision entries
  • Smart Money Concepts: Fair Value Gap detection for institutional order flow analysis
  • Risk Management: ATR-based stops, fixed fractional position sizing, and exposure limits
  • Production Ready: FastAPI server, Docker support, and email notifications

Indicators Used

IndicatorTimeframePurpose
Supertrend4-HourTrend direction filtering
Stochastic RSI1-HourMomentum and reversal detection
Fair Value Gap1-HourPrice imbalance zones
Volume Profile1-HourSupport/resistance levels

Trading Logic

Long Entry Conditions

All conditions must be met:

  1. Supertrend confirms uptrend on 4H timeframe (trend = 1)
  2. StochRSI crosses above oversold OR moving from oversold (K < 60)
  3. Confluence zone identified:
    • Price bouncing off bullish FVG, OR
    • Price near Volume Profile support (POC/VAL)
  4. Price is NOT in a Low Volume Node (LVN) zone

Short Entry Conditions

All conditions must be met:

  1. Supertrend confirms downtrend on 4H timeframe (trend = -1)
  2. StochRSI crosses below overbought OR moving from overbought (K > 40)
  3. Confluence zone identified:
    • Price bouncing off bearish FVG, OR
    • Price near Volume Profile resistance (POC/VAH)
  4. Price is NOT in a Low Volume Node (LVN) zone

Exit Conditions

  • Stop Loss: ATR-based (2x ATR by default)
  • Take Profit: ATR-based (4x ATR, achieving 2:1 R:R)
  • Trailing Stop: Move to break-even after 1% profit
  • Signal Exit: On Supertrend reversal or extreme StochRSI readings

Supported Instruments

Major Pairs

EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, NZD/USD

Cross Pairs

EUR/GBP, EUR/JPY, GBP/JPY, AUD/JPY, EUR/CHF, AUD/NZD, EUR/AUD, GBP/AUD

Quick Start

# Clone and navigate
cd vrvp-strategy
 
# Install dependencies
pip install -r requirements-main.txt
 
# Configure environment
cp .env.example .env
# Edit .env with your Capital.com API credentials
 
# Run backtest
python main.py backtest -i EUR_USD -s 2023-01-01 -e 2024-01-01 -b 10000
 
# Start paper trading
python main.py paper -i EUR_USD

Next Steps

Last updated on
Getting Started