Candlestick calculation doesn’t seem to work

• 06/05/2024 at 8:05 AM #233507
  ATCOtrader

  Hi,

  This is my first post here! I’m trying to backtest an idea where I calculate and measure the different parts of the candlesticks. I want to calculate the lower wick and if it is bigger than the higher wick it’s an entry signal. However it doesent seem to be working, it gives random results. This is the code:

  body=close-open if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif shadowtop=high-bodytop shadowbottom=bodybottom-low Hammer= Shadowbottom > Shadowtop Exit= (BarIndex - TradeIndex) = 1 IF Hammer THEN BUY 1 CONTRACTS AT MARKET ENDIF If LongOnMarket THEN SELL AT MARKET ENDIF

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  body=close-open   if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif   shadowtop=high-bodytop shadowbottom=bodybottom-low   Hammer= Shadowbottom > Shadowtop Exit= (BarIndex - TradeIndex) = 1   IF  Hammer THEN BUY 1 CONTRACTS AT MARKET ENDIF   If LongOnMarket THEN SELL AT MARKET ENDIF

  I have created an indicator with the same calculation of the wick and this seem to be working fine, see attached picture. You can also see in the attached picture that entries is not according to my expected behaviour. What am I missing?

  Best regards

  

  ATCOtrader

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  06/05/2024 at 9:27 AM #233521
  Iván

  Hi. The problem with your code comes when you have two or more bars “hammer” type.
  When a hammer bar appears the system buy 1 contract in the next bar open and sells after 1 bar.
  If you have 2 consecutive hammer bars the second one doesn’t exits for the system.
  In order to avoid it we can change the code like this:

  IF Hammer and not onmarket THEN BUY 1 CONTRACT AT MARKET ENDIF if onmarket then if hammer then buy 1 contract AT MARKET sell 1 contract at market else sell at market ENDIF endif

  1 2 3 4 5 6 7 8 9 10 11

  IF Hammer and not onmarket THEN BUY 1 CONTRACT AT MARKET ENDIF if onmarket then if hammer then buy 1 contract AT MARKET sell 1 contract at market else sell at market ENDIF endif

  if there are 3 consecutive candles with hammer type you should be on market 3 bars.

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  ATCOtrader, druby

  

  Iván

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  06/05/2024 at 9:27 AM #233522
  druby

  Is the Timeframe your displaying in image, the same as the running backtest code , image suggests no.

  What was your expected behaviour for the result.

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  ATCOtrader

  

  druby

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  06/05/2024 at 10:44 AM #233524
  ATCOtrader

  Thank you very much for your replies!

  It still doesn’t seem to work though. The picture is the same timeframe as the backtest.

  What I want to achieve is to have a backtest that buys when the wick under the body is x times as big as the wick above the body. I have updated my code with the input from above and also added the criteria that the wick under the body should be 3 times bigger than the one above in order for it to be easier to spot if it works or not.

  candlesticks

  body=close-open if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif shadowtop=high-bodytop shadowbottom=bodybottom-low Hammer= Shadowbottom > 3 * Shadowtop Exit= (BarIndex - TradeIndex) = 1 IF Hammer and not onmarket THEN BUY 1 CONTRACT AT MARKET ENDIF if onmarket then if hammer then buy 1 contract AT MARKET sell 1 contract at market else sell at market ENDIF endif

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  body=close-open   if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif   shadowtop=high-bodytop shadowbottom=bodybottom-low   Hammer= Shadowbottom > 3 * Shadowtop Exit= (BarIndex - TradeIndex) = 1   IF Hammer and not onmarket THEN BUY 1 CONTRACT AT MARKET ENDIF if onmarket then if hammer   then buy 1 contract AT MARKET sell 1 contract at market else sell at market ENDIF endif

   

  

  ATCOtrader

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  06/05/2024 at 11:56 AM #233527
  druby

  Try this,

  Comment out lines 15, 22 and 23  by placing // at the beginning of these lines

  15. Exiting after 1 bar seems to go against staying in.

  22,23 If in market, buying and then selling same qty is the same as staying in market at current qty.

  25. Then only sell if in market and closing bar is not a hammer.

  The logic appears to be ,

  If not on market, Buy at Market  on a Hammer,

  If on market sell Market  on  NOT hammer

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  ATCOtrader

  

  druby

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  06/05/2024 at 1:55 PM #233538
  ATCOtrader

  Thank you, I have tried this but with no luck. There seems to something else that is off… I have made the code even more basic to prove the point -> buy all times condition is met. Result is that the system is buying at correct points mostly but sometimes it’s off. Sometimes it indicates two orders same day but with different execution dates (see picture). There must be something that is not in sync?

  candle

  body=close-open if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif shadowtop=high-bodytop shadowbottom=bodybottom-low Hammer= Shadowbottom > 3 * Shadowtop IF Hammer THEN BUY 1 CONTRACT AT MARKET ENDIF

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

  body=close-open   if body>0 then bodytop=close bodybottom=open else bodytop=open bodybottom=close endif   shadowtop=high-bodytop shadowbottom=bodybottom-low   Hammer= Shadowbottom > 3 * Shadowtop   IF Hammer THEN BUY 1 CONTRACT AT MARKET ENDIF

   

  

  ATCOtrader

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  06/05/2024 at 3:30 PM #233548
  JS

  Hi,

  What you show (two orders/day) probably only happens on Friday…?

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  ATCOtrader

  

  JS

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  06/05/2024 at 4:07 PM #233551
  ATCOtrader

  Yes, that is correct – it’s on a friday. Why is it that way? It shows entry the date day after (saturday), that must be wrong?

  

  ATCOtrader

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  06/05/2024 at 4:13 PM #233552
  JS

  Hi,

  Is IG that is “out of sync”…

  IG has a very nasty “Sunday candle”…

  What happens is: buy on Friday and then again on Sunday and then again on Monday… And when the option “don’t show weekend dates” is enabled, then the Sunday order shifts to Friday, hence the two orders on one day…

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  ATCOtrader

  

  JS

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  06/05/2024 at 4:53 PM #233557
  ATCOtrader

  Thank you very much for that insight, explaines a whole lot for my strategies.. Thanks again!

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  JS

  

  ATCOtrader

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