Reverse Candle Strategy

[Apprentice]

Based on request.
viewtopic.php?f=27&t=61730

Short reverse candle
- current high is higher than previous high;
- current close is lower than current open= current close is lower than previous close;
- previous close is higher than previous open;

If these conditions are met, we have a short reverse candle.
To trade these reverse candle, the price has to cross under the reverse candle`s low within the next period.

Stop loss should be set to the pipsize of the reverse candle (so distance between reverse candle high and low) .
Long reverse candles are the opposite.

Reverse Candle Strategy.lua

(19.08 KiB) Downloaded 920 times

[Martin]

hey Apprentice,

many many thanks for your work, very well done.

I am currently testing it in demo mode and found two issues:
The strategy sometimes starts to open 2 or 3 trades at the same time- see attachement
and
if a trade got opened and closed within one period and this period is still lasting, another trade is opened directly after the first one got closed.
Would you please have a look?

I really appreciate your help.
Thank you

Martin

[haveforexfun]

Hi Apprentice,

could you also create an MTF MCP Dashboard of these reverse candles (as separate view).

Short reverse candle
- current high is higher than previous high;
- current close is lower than current open= current close is lower than previous close;
- previous close is higher than previous open;

Long reverse candle
- current low is lower than previous low;
- current close is higher than current open= current close is higher than previous close;
- previous close is lower than previous open;

Thank you very much
Haveforexfun

[Apprentice]

Requested can be found here.
viewtopic.php?f=17&t=63267

[Martin]

hey Apprentice,

let's say I want to trade a short reverse candle, not if the price is crossing under the reverse candle's low, but is crossing under the reverse candle's low minus 2 Pips, how could I implement that into the code:

elseif Source.high[period]> Source.high[period-1]
and Source.close[period]< Source.open[period]
and Source.close[period-1]> Source.open[period-1]
and Source.close[period+1]< Source.low[period]

Thanks in advance
Martin

[Martin]

Hey Apprentice,

any updates on that?

Thanks in advance

Martin

[Apprentice]

Code: Select all

     if   Source.low[period]< Source.low[period-1]
   and Source.close[period]> Source.open[period]
   and Source.close[period-1]< Source.open[period-1]
   and Source.close[period+1]> (Source.high[period]+2*Source:pipSize())
   then   
       -Long
        elseif   Source.high[period]> Source.high[period-1]
   and Source.close[period]< Source.open[period]
   and Source.close[period-1]> Source.open[period-1]
   and (Source.close[period+1]< Source.low[period]-2*Source:pipSize())
   then
       --Short
         end

[Martin]

Hey Apprentice,

thanks a lot for your reply man, I really appreciate your help.
The strategy is working pretty well that way, the only thing
I would like to change is the following:
If a trade was opened and closed within the same period, the strategy directly
opens another trade as all conditions to do so are still met as we are still in [period+1].
How could I fix this? function tradescount??

Again many many thanks

Martin

[Apprentice]

Your request is added to the development list.

[Apprentice]

The strategy was revised and updated.