3 Candle Strategy

• 07/25/2018 at 12:20 PM #76703
  Marc

  Hi together,

  here is another system which works like bullish / bearish harami pattern.
  In the End for a long position 3 lower highs and lower lows have to follow immediately. Close of current candle must be higher than open if first candle is bearish or close of current candle must be higher if first candle is bullish. TP is high of first candle.

  For Short vice versa.

  Perhaps somebody can check if this code seems to be okay?

  DEFPARAM CumulateOrders = False //Buy-Condition l1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze muss größer sein als der Schlusskurs der ersten Kerze l1 = OPEN[3] < CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Close[3] //Buy-Condition l2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze ist größer als das Open der ersten Kerze l2 = OPEN[3] > CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Open[3] //Sell-Condition s1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit höheren Hochs und höheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s1 = OPEN[3] < CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Close[3] //Sell-Condition s2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit höheren hoch und hheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s2 =OPEN[3] > CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Open[3] //Kauforder zur Eröffnung der nächsten Kerze wenn Konditionen l1 oder l2 erfüllt sind IF l1 OR l2 THEN BUY 1 SHARES AT MARKET NextBarOpen ENDIF //Verkauforder zur Eröffnung der nächsten Kerze wenn Konditionen s1 oder s2 erfüllt sind IF s1 OR s2 THEN SELLSHORT 1 SHARE AT MARKET NextBarOpen ENDIF //TP und SL-Definition SET TARGET %Profit 1 SET STOP %Loss 1

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  DEFPARAM CumulateOrders = False   //Buy-Condition l1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze muss größer sein als der Schlusskurs der ersten Kerze l1 = OPEN[3] < CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Close[3]   //Buy-Condition l2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze ist größer als das Open der ersten Kerze l2 = OPEN[3] > CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Open[3]   //Sell-Condition s1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit höheren Hochs und höheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s1 = OPEN[3] < CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Close[3] //Sell-Condition s2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit höheren hoch und hheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s2 =OPEN[3] > CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Open[3]   //Kauforder zur Eröffnung der nächsten Kerze wenn Konditionen l1 oder l2 erfüllt sind IF l1 OR l2 THEN BUY 1 SHARES AT MARKET NextBarOpen ENDIF   //Verkauforder zur Eröffnung der nächsten Kerze wenn Konditionen s1 oder s2 erfüllt sind IF s1 OR s2 THEN SELLSHORT 1 SHARE AT MARKET NextBarOpen ENDIF //TP und SL-Definition SET TARGET %Profit 1 SET STOP %Loss 1

   

  

  Marc

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  07/25/2018 at 2:30 PM #76719
  robertogozzi

  That seems good. They are rare patterns, but the code works!

  On Eur/Usd, daily, I could find just one occurrence of L1 (line 4) in a few years!

   

  

  robertogozzi

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  07/25/2018 at 2:43 PM #76724
  Marc

  Great 🙂

  Can you t ell me how I can set or implement TP on High of Candle 1 and SL on Low of candle 3 (for Long trades) and vice versa for short?

   

  Mille Grazie

  Marc

  

  Marc

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  07/25/2018 at 2:53 PM #76726
  robertogozzi

  //For LONG trades: SET STOP LOSS (close – low[3]) //difference betwee current price and LOW of candle 3 SET TARGET PROFIT (high[1] – close) //difference between the HIGH of candle 1 and current price (a lower current price is assumed) //For SHORT trades: SET STOP LOSS (high[3] – close) //difference betwee current price and HIGHof candle 3 SET TARGET PROFIT (close – low[1]) //difference between the LOW of candle 1 and current price (a higher current price is assumed)

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  //For LONG trades:     SET STOP LOSS (close – low[3])       //difference betwee current price and LOW of candle 3     SET TARGET PROFIT (high[1] – close)  //difference between the HIGH of candle 1 and current price (a lower current price is assumed)   //For SHORT trades:     SET STOP LOSS (high[3] – close)     //difference betwee current price and HIGHof candle 3     SET TARGET PROFIT (close – low[1])  //difference between the LOW of candle 1 and current price (a higher current price is assumed)

   

  

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  07/25/2018 at 4:06 PM #76735
  Marc

  Hi Roberto,

  agein I’d like to thank you.

  Is this correct?

  DEFPARAM CumulateOrders = true //Buy-Condition l1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze muss größer sein als der Schlusskurs der ersten Kerze l1 = OPEN[3] < CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Close[3] //Buy-Condition l2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze ist größer als das Open der ersten Kerze l2 = OPEN[3] > CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Open[3] //Sell-Condition s1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit höheren Hochs und höheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s1 = OPEN[3] < CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Close[3] //Sell-Condition s2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit höheren hoch und hheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s2 =OPEN[3] > CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Open[3] //Kauforder zur Eröffnung der nächsten Kerze wenn Konditionen l1 oder l2 erfüllt sind IF l1 OR l2 THEN BUY 1 SHARES AT MARKET NextBarOpen ENDIF //Verkauforder zur Eröffnung der nächsten Kerze wenn Konditionen s1 oder s2 erfüllt sind IF s1 OR s2 THEN SELLSHORT 1 SHARE AT MARKET NextBarOpen ENDIF //For LONG trades: IF LongOnMarket THEN SET STOP LOSS (close - low[3]) //difference betwee current price and LOW of candle 3 SET TARGET PROFIT (high[1] - close) //difference between the HIGH of candle 1 and current price (a lower current price is assumed) EndIF //For SHORT trades: IF ShortOnMarket THEN SET STOP LOSS (high[3] - close) //difference betwee current price and HIGHof candle 3 SET TARGET PROFIT (close - low[1]) //difference between the LOW of candle 1 and current price (a higher current price is assumed) EndIf

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  DEFPARAM CumulateOrders = true   //Buy-Condition l1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze muss größer sein als der Schlusskurs der ersten Kerze l1 = OPEN[3] < CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Close[3]   //Buy-Condition l2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit tieferen Hochs und tieferen Tiefs folgen und der Schlusskurs der vorherigen Kerze ist größer als das Open der ersten Kerze l2 = OPEN[3] > CLOSE[3] AND High[3] > High [2] AND High[2] > High[1] AND Low[3] > Low[2] AND Low[2] > Low[1] AND Close[1] >= Open[3]   //Sell-Condition s1: Kerze vor 3 Perioden muss bullish sein und es müssen 3 Kerzen mit höheren Hochs und höheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s1 = OPEN[3] < CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Close[3] //Sell-Condition s2: Kerze vor 3 Perioden muss bearish sein und es müssen 3 Kerzen mit höheren hoch und hheren Tiefs und der SK der vorherigen Kerze ist kleiner als der SK's der ersten Kerze, wenn der SK von Kerze 1 kleiner als das Close ist s2 =OPEN[3] > CLOSE[3] AND High[3] < High [2] AND High[2] < High[1] AND Low[3] < Low[2] AND Low[2] < Low[1] AND Close[1] <= Open[3]   //Kauforder zur Eröffnung der nächsten Kerze wenn Konditionen l1 oder l2 erfüllt sind IF l1 OR l2 THEN BUY 1 SHARES AT MARKET NextBarOpen ENDIF   //Verkauforder zur Eröffnung der nächsten Kerze wenn Konditionen s1 oder s2 erfüllt sind IF s1 OR s2 THEN SELLSHORT 1 SHARE AT MARKET NextBarOpen ENDIF   //For LONG trades: IF LongOnMarket THEN SET STOP LOSS (close - low[3])       //difference betwee current price and LOW of candle 3 SET TARGET PROFIT (high[1] - close)  //difference between the HIGH of candle 1 and current price (a lower current price is assumed) EndIF //For SHORT trades: IF ShortOnMarket THEN SET STOP LOSS (high[3] - close)     //difference betwee current price and HIGHof candle 3 SET TARGET PROFIT (close - low[1])  //difference between the LOW of candle 1 and current price (a higher current price is assumed) EndIf

   

  

  Marc

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  07/26/2018 at 12:23 AM #76756
  robertogozzi

  Yes, it is correct. Good job!

   

  

  robertogozzi

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  07/26/2018 at 9:17 AM #76769
  Marc

  Ciao Roberto
  thank you very much for your feedback.

  Is there a possibility to exclude sundaycandles? When testing this strategy with IG I get other results than using the demo. Perhaps the reason is the tickbytick data…?

  Rgds

  Marc

   

  

  Marc

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  07/26/2018 at 10:25 AM #76779
  robertogozzi

  You should always use tick-by-tick option, to get correct results, especially on higher TFs.

  As for sunday and weekend data, NO you cannot! You can exclude them from being displayed but they are still there and indicators will use them.

   

  

  robertogozzi

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  07/26/2018 at 11:11 AM #76788
  Vonasi

  If your strategy has SET instructions or LIMIT or STOP instructions in it (which yours does) then you must test with tick by tick data turned on. If however your strategy does not have these and does all its trading at candle close/open then you do not need it turned on and you will then have the benefit of far more data to test on as tick by tick data is only available back to a certain date.

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  07/26/2018 at 2:56 PM #76813
  Marc

  I think SL and TP should be amended…

  When I’m Long:
  SL is Low of candle before entry and TP is High of 3 candles before entry

  When I’m Short:
  SL is High of candle before entry and TP is Low of 3 candles before entry

   

  Pls find example attached

   

  

  Marc

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  07/28/2018 at 9:31 AM #76938
  GraHal

  You agree with below Marc?

  I’ll try below on my copy, I was expecting better performance and below may be what it needs?

  Edit / PS – Still doesn’t look good? What are you getting, what is intended market and TF?

  IF LongonMarket THEN SET STOP LOSS (Close - Low[1]) SET TARGET PROFIT (High[3] - Close) EndIf IF ShortOnMarket THEN SET STOP LOSS (High[1] - Close) SET TARGET PROFIT (Close - Low[3]) EndIf

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  IF LongonMarket THEN SET STOP LOSS (Close - Low[1]) SET TARGET PROFIT (High[3] - Close) EndIf   IF ShortOnMarket THEN SET STOP LOSS (High[1] - Close) SET TARGET PROFIT (Close - Low[3]) EndIf

   

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  GraHal

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  07/28/2018 at 9:52 AM #76939
  robertogozzi

  I want to outline that Marc‘s code to deal with SL & TP will only work fron the 2nd candle on, since SET are not written after BUY/SELLSHORT, but only after detecting it’s ONMARKET (either long or short), which takes one whole candle to ProOrder to become aware of it! Not having a TP & SL for one candle is not a big problem for 1-minute charts, but for daily charts….. it could be an awful surprise!

   

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  robertogozzi

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  07/28/2018 at 10:26 AM #76944
  GraHal

  Thank you Roberto.

  I think the exit strategy needs work anyway as I changed to below and got attached far better results with the values shown on attached.

  IF LongonMarket THEN //SET STOP LOSS (Close - Low[1]) //SET TARGET PROFIT (High[3] - Close) SET TARGET PPROFIT A SET STOP PLOSS B EndIf IF ShortOnMarket THEN //SET STOP LOSS (High[1] - Close) //SET TARGET PROFIT (Close - Low[3]) SET TARGET PPROFIT C SET STOP PLOSS D EndIf

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  IF LongonMarket THEN //SET STOP LOSS (Close - Low[1]) //SET TARGET PROFIT (High[3] - Close) SET TARGET PPROFIT A SET STOP PLOSS B EndIf IF ShortOnMarket THEN //SET STOP LOSS (High[1] - Close) //SET TARGET PROFIT (Close - Low[3]) SET TARGET PPROFIT C SET STOP PLOSS D EndIf

   

   

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  07/28/2018 at 10:41 AM #76948
  robertogozzi

  What values did you assign to A, B, C and D?

  

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  07/28/2018 at 10:59 AM #76949
  Vonasi

  robertogozzi wrote:

  What values did you assign to A, B, C and D?

  I’m guessing 40 60 25 and 120.

  

   

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