All Candlestick Patterns on Backtest [By MUQWISHI]

Aug 23, 2023

▋ INTRODUCTION :
The “All Candlestick Patterns on Backtest” indicator generates a table that offers a clear visualization of the historical return percentages for each candlestick pattern strategy over a specified time period. This table serves as an organized resource, serving as a launching point for in-depth research into candle formations. It may help to rectify any misconceptions surrounding candlestick patterns, refine trading approaches, and it could be foundation to make informed decisions in trading journey.

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▋ OVERVIEW:


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▋ CREDIT:
Credit to public technical “*All Candlestick Patterns*” indicator.


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▋ TABLE:


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▋ CHART:


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▋ INDICATOR SETTINGS:
#Section One: Table Setting


#Section Two: Backtest Setting

(1) Backtest Starting Period.
 Note: If the datetime of the first candle on the chart is after the entreated datetime, the calculation will start from the first candle on the chart.
(2) Initial Equity ($).
(3) Leverage: Current Equity x Leverage Value.
(4) Entry Mode:
 - “At Close”: Execute entry order as soon as the candle confirmed.
 - “Breakout High (Low for Short)”: Stop limit buy order, entry order will be executed as soon as the next candle breakout the high of last pattern’s candle (low for short)
(5) Cancel Entry Within Bars: This option is applicable with {Entry Mode = Breakout High (Low for Short)}, to cancel the Entry Order if it's not executed within certain selected number of bars.
(6) Stoploss Range: the range refers to high of pattern - low of pattern.

(7) Risk:Reward: the calculation of risk:reward range start from entry price level. For example: A pattern triggered with range 10 points, and entry price is 100.
 - For 1:1~risk:reward would the stoploss at 90 and takeprofit at 110.
 - For 1:3~risk:reward would the stoploss at 90 and takeprofit at 130.

#Section Three: Technical & Candle Patterns


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▋ Comments:

• This table was developed for research and educational purposes.
  
• Candlestick patterns are almost similar as seen in “*All Candlestick Patterns*” indicator.
  
• The table results should not be taken as a major concept to build a trading decision.
  
• Personally, I see candlestick patterns as a means to comprehend the psychology of the market, and help to follow the price action.
  

Please let me know if you have any questions.
Thank you.

Sep 7, 2023

Release Notes

▋ UPDATES 09-07-2023:
Added an option to choose the type of Stoploss Range :
1. ATR Range: Average True Range.
2. Pattern Range: High of Pattern - Low of Pattern.

Sep 10, 2023

Release Notes

▋ UPDATES 09-10-2023:
— Improved a logic related to entering new trade for {Entry Mode = Breakout High (Low for Short)}.
— Thanks to Strambatax for catching this.

Sep 20, 2023

Release Notes

▋ UPDATES 09-20-2023:
Updated CandlestickPatterns library to version 2.