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If you study candlestick patterns, we have something exciting for you. In this tutorial we are going to setup an automated trading system based on any combination of 15 candlestick patterns.

STRATEGY FEATURES:

  • You can choose single or any combination of multiple candlestick patterns to trade from available 15 patterns
  • All alerts are configured for auto trading via APIBridge; you can adjust trade quantity also
  • Intraday setup with Entry and Exit time
  • Optional Target and Stoploss

To setup this algo, we will pick strategy from public library named “Candlestick Patterns Identified (updated 3/11/15) “,

STEP 1: Download the code here

STEP 2: Go to trading view chart, paste the downloaded code in blank pine editor space, save the code and add to chart

STEP 3: Configuring input – click on settings to get input options. In inputs you can find 15 different candlestick patterns, intraday settings, target and stop loss parameters.

Illustration of using parameters

There are 15 candlestick patterns you can use to trade. Beginners can find type of action which will be taken by candle at the end of candle stick name  ex: USE HANGING MAN FOR BEARISH means that if Hanging pattern occurs “BEARISH” (short trade) will be taken

There are two ways which you can use this template:

You can create different alerts for different combination of candlestick patterns,

EXAMPLE: 1st alert is created with Bullish Harami for entry and bearish harami for exit

2nd alert is created for with bullish engulfing for entry and bearish engulfing for exit

2 nd method to use this strategy

You can use multiple patterns at same strategy and one alert for multiple patterns,

In this instance whenever Bullish Harmi or Bullish Engulfing occurs long trade will be taken

Whenever Bearish engulfing or Bearish Harami occurs short trade will be taken

  • If a long position is taken by Bullish Harmi and is open and furtherly Bullish Engulfing is formed or Bullish Harami occurs again no new trade will be added and existing long will be carried
  • If a long position is taken by bullish harmi and is open and Bearish harami or Bearish engulfing occurs the position will be reversed

OTHER PARAMETERS

  • DOJI pattern indicates trend reversal, there is an option to exit positions if Doji pattern occurs
  • Target and stop loss can be specified as optional parameters
  • Other parameters to specify intraday trade and square off timings

After creating the alert all you need to do is add the script in abridge software(with no quantities specified in api bridge) and enjoy the automated trading

Do you want coding help to deploy your own strategy for live trading? Check our coding assistance.