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Candle Stick Pattern Auto Trader

  • #1
  • First Post: Edited Apr 2, 2010 12:02am Apr 1, 2010 11:42pm | Edited Apr 2, 2010 12:02am
Hello Everyone,
I am working on an EA that trades candle stick patterns, i.e.; Morning Stars, Evening Stars, etc... I thought I would share it with the forum so we can come up with ways to make it profitable. PLEASE test it and make suggestions on how to improve it. As the EA progresses I will update the info below. NOTE, I am not a professional programmer, but I can figure out what is needed to make the EA function as expected. Any programming suggestions are welcomed as well

Right now, the biggest issue I see is the Stop Loss has to be set high. This kills the risk:reward ratio!

The current strategy is this:
Pair: EURUSD
Timeframe: 1hr
Patterns Detected:

 

  1. Morning Star (Long Trade)
  2. Evening Star (Short Trade)

Filters:

 

  1. RSI(21)

Long Signals:

 

  1. Morning Star Pattern Detected
  2. RSI is below 50, indicating Morning Star is a trend reversal

Short Signals:

 

  1. Evening Star Pattern Detected
  2. RSI is above 50, indicating Even Star is a trend reversal

Version: 1.00

 

  1. Detects Morning Star and Even Star Patterns
  2. Utilizes RSI as a filter
  3. Can trade on only certain days and time
  4. Places hard Stop Loss and Take Profits
  5. Utilizes Trailing Stops Loss and Take Profits
  6. Can define order Magic number
  7. Can define the Lots and Slippage
  8. Can be set to trade only Long, Short, or Both
  9. Only has one open trade at a time.
  10. Can be set to "Log" only.

Attached Image (click to enlarge)
Click to Enlarge Name: v1.00-test.gif Size: 5 KB
Attached File(s)
File Type: ex4 Candle Stick Pattern Auto Trader v1.00.ex4   10 KB | 3,495 downloads
File Type: txt Options - v1.00.txt   1 KB | 2,078 downloads
File Type: zip test - v1.00.zip   35 KB | 2,296 downloads
  • #2
  • Apr 2, 2010 12:06am Apr 2, 2010 12:06am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
So you get the correct signals - whats the entry conditions, ie enter on the start of the next candle?

i would suggest using a pip value above/below the indicator candle, thus eliminating some of the fake signals by confirming the direction it's going in

ie morning star confirmed, RSI confrimed, set a buy 10pips above morining star candle.

just a thought

best of pips

MPP
  • #3
  • Apr 2, 2010 12:13am Apr 2, 2010 12:13am
Quoting MPP
So you get the correct signals - whats the entry conditions, ie enter on the start of the next candle?
Correct, it looks for the pattern at the start of a new candle. For example, if the last 3 bars form a Morning Star and RSI is below 50, open Long.
Quoting MPP

I would suggest using a pip value above/below the indicator candle, thus eliminating some of the fake signals by confirming the direction it's going in

ie morning star confirmed, RSI confrimed, set a buy 10pips above morining star candle.
Good idea! I will look at doing this and will post an updated EA with these options.
  • #4
  • Apr 2, 2010 9:33pm Apr 2, 2010 9:33pm
So doing research on the Morning / Evening Star Patterns I found two different sites with differentiating versions of what this these patterns are. Which one does the forum think is right? I think Link 1 is the connect pattern.

1.
http://www.investopedia.com/terms/m/morningstar.asp

2.
http://www.actionforex.com/articles-...2007111531932/
  • #5
  • Apr 2, 2010 9:45pm Apr 2, 2010 9:45pm
Quoting jerzhere
Hello Everyone,
I am working on an EA that trades candle stick patterns, i.e.; Morning Stars, Evening Stars, etc... I thought I would share it with the forum so we can come up with ways to make it profitable. PLEASE test it and make suggestions on how to improve it. As the EA progresses I will update the info below. NOTE, I am not a professional programmer, but I can figure out what is needed to make the EA function as expected. Any programming suggestions are welcomed as well

Right now, the biggest issue I see is the Stop Loss...
May i make a suggestion?
for MM u can use trade management EA (swiss army EA to set SL and TP or TS ect...if your EA actually have an edge and profitable , just let it do 1 task and let the other take over other issue
  • #6
  • Apr 2, 2010 11:56pm Apr 2, 2010 11:56pm
Quoting LaTeCoMeR
May i make a suggestion?
for MM u can use trade management EA (swiss army EA to set SL and TP or TS ect...if your EA actually have an edge and profitable , just let it do 1 task and let the other take over other issue
Thanks for the suggestion. I will look at it but right now I have it programmed to handle this. At this point, I feel more comfortable having the EA handle the trade from start to finish.
  • #7
  • Apr 10, 2010 1:36pm Apr 10, 2010 1:36pm
dear
can i use Candle Stick Pattern Auto Trader v1.00 in VT TRADER.
THANKS
  • #8
  • Apr 10, 2010 7:14pm Apr 10, 2010 7:14pm
Quoting bigboss2910
dear
can i use Candle Stick Pattern Auto Trader v1.00 in VT TRADER.
THANKS
I don't know. It is written for MetaTrader, so probably not.
  • #9
  • Apr 10, 2010 8:06pm Apr 10, 2010 8:06pm
Quoting jerzhere
So doing research on the Morning / Evening Star Patterns I found two different sites with differentiating versions of what this these patterns are. Which one does the forum think is right? I think Link 1 is the connect pattern.

1.
http://www.investopedia.com/terms/m/morningstar.asp

2.
http://www.actionforex.com/articles-...2007111531932/
They both are. They are however, different sub-sets of the Morning Star pattern. The sub set in link 1 emphasizes that the third candle open up above the middle candle. Link 2 is a sub-set where the third candle need not open up above the middle candle.

One sub-set tends to be more reliable than the other. I will leave that to you to discover. I would also look at the bodies of some of the intervals prior to the first candle.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #10
  • Apr 11, 2010 1:28pm Apr 11, 2010 1:28pm
Quoting HiddenGap
I would also look at the bodies of some of the intervals prior to the first candle.
Thanks for the input. Can you elaborate on this? I'm not sure what you mean.
  • #11
  • Apr 11, 2010 2:09pm Apr 11, 2010 2:09pm
Quoting jerzhere
Thanks for the input. Can you elaborate on this? I'm not sure what you mean.
I have not studied this particular pattern, nor do I have access to information from somebody that has at this time.

But............

Let's call the middle candle Cm.

1. I would suspect that the more reliable pattern would be where the body of Cm is less than the bodies of the three candles prior to the large candle (Cf for first candle).

2. If Cm has a lower shadow it should probably be smaller (less depth) than the lower shadows of the three candles prior to Cf.

3. If Cm has both an upper shadow and a lower shadow, the upper shadow should be smaller than the lower shadow.

These are just some of the types of repeatable price action clues you should be looking for when determining the most reliable candle patterns. Candlestick patterns do not define the price action, price action defines the candlestick pattern. Google "trading hammers revisted". Read that thread on elitetrader. You will get an idea on how generic candlestick patterns fair versus the more well defined patterns not usually found in books and internet sites.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #12
  • Edited 11:41pm Aug 25, 2010 11:31pm | Edited 11:41pm
Hi, please continue the development of this EA, I am seeking candle pattern EA for auto entry in my manual trading strategy.

Can you modify the EA to set auto stoploss at the high of highest High of candle pattern (for short and reverse for long) ? Thank you.
  • #13
  • Last Post: Dec 17, 2016 6:24am Dec 17, 2016 6:24am
is this thread alive...........finally i came to know this morning star evening star related........... please update to latest
Success is a Journey Not a Destination....... kind regards ramzam
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