SIMPLE CANDLESTICK PATTERN ALGO BACKTESTING - TESLA 4HMany traders spend a lot of time to create algorithms full of unrealistic and far from reality indicators and market conditions. With this script I want to help traders understand the advantage of the Pine language. Using indicators with no statistical foundation and creating algorithms with technical indicators and thousands of conditions is not always the right way to create an efficient tool.
With this script that we have called "SimpleBarPattern_LongOnly" we analyse the market through a simple condition, using bars or candles.
How it works
The condition is constructed as follows. You go long with 100% of the established capital and 0.03% commission. The first condition is that the minimum of the period under analysis falls below the opening level. The second condition is that the low of the period is below the low of the previous period. The third condition is that the close of the period is above the opening level. The final condition wants the current close to be higher than the previous open and higher than the previous close. We used a statistical approach in the creation of this script, some candlestick patterns that reflect these conditions are: Bullish Engulfing, Bullish Hammer and Morning Star .
This strategy aims to help traders make more accurate decisions while using candlesticks for their trading and scientifically demonstrates that candlesticks are valid statistical tools for financial analysis.
"SimpleBarPattern_LongOnly" is a very lightweight script created with Pine v5. We developed a user interface that can adjust the analysis period from a few days to several years.
The initial capital set is €1,000 (You can change this from the "Properties" section of the user interface).
Each individual trade uses 100% of the set capital, in this case €1,000.
The default commission per trade is 0.03% (You can change this in the "Properties" section of the user interface).
User Interface
1) General backtest time settings: Set the history period to be analysed
StartDate: backtest start date
StartMonth: backtest start month
StartYear: backtest start year
EndDate: backtest end day
EndMonth: backtest end month
EndYear: backtest end year
3) Stop Loss
4) Take Profit
Please do not hesitate to contact us for any questions or information.
Disclaimer
Be careful, the past is not a guarantee of future performance, so remember to use the script as a pure analysis tool. The developer takes no responsibility for any use other than research and analysis and can in no way be held liable for damages resulting from wrong use of this code.
Tesla
Vwap mtf Swing Stock StrategyThis is a trending strategy designed for stock market, especially long trending assets such as TSLA, NIO, AMAZON and so on.
Its made of volatility bands and weekly VWAP, in this case daily and weekly.
This strategy has been adapted to go long only.
Rules for entry
For long , we want to enter close of a candle is above vwap weekly, and at the same time the close of a candle cross-under the lower volatility band.
For exit , we want to enter close of a candle is below vwap weekly, and at the same time the close of a candle cross-over the upper volatility band.
This strategy does not have a risk management inside, so use it with caution.
If you have any questions, let me know !
Stock Market Strategy : VWAP, MACD, EMA, Breakout, BBHello there,
Today I bring you a stock market strategy, specialized in NASDAQ stocks.
Its a daytrading strategy, that can only do a max of 1 trade per day. In this case it only trades the first 2 opening hours of the market.
The rules are simple :
We follow the trend based on a big EMA, in this case 200, after that, we check for VWAP direction , then, we check histogram from MACD. This is the simple logic of the strategy.
Inside there is another strategy, that not just do the above, but also uses Bollinger bands, and checks for breakout of bottom or top line. Also it uses Average directional Index, for even a bigger criteria .
So for example a long condition it would be : candle is above the ema, and candle is above vwap, and histogram is positive, and candle break the top bb level and ADI < 40 -> long signal . The opposite works for short(ADI > 20).
In this case all this criterias are between the first 2 hours of market. So we enter between the first hour, and exit in the next hour. For this we need to use very short time frames.
Hope you enjoy it.
Let me know if you have any questions
