OPEN-SOURCE SCRIPT

SIMPLE CANDLESTICK PATTERN ALGO BACKTESTING - TESLA 4H

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Many traders spend a lot of time to create algorithms full of unrealistic and far from reality indicators and market conditions. With this script I want to help traders understand the advantage of the Pine language. Using indicators with no statistical foundation and creating algorithms with technical indicators and thousands of conditions is not always the right way to create an efficient tool.

With this script that we have called "SimpleBarPattern_LongOnly" we analyse the market through a simple condition, using bars or candles.

How it works [/I]

The condition is constructed as follows. You go long with 100% of the established capital and 0.03% commission. The first condition is that the minimum of the period under analysis falls below the opening level. The second condition is that the low of the period is below the low of the previous period.The third condition is that the close of the period is above the opening level. The final condition wants the current close to be higher than the previous open and higher than the previous close. We used a statistical approach in the creation of this script, some candlestick patterns that reflect these conditions are: Bullish Engulfing, Bullish Hammer and Morning Star.

This strategy aims to help traders make more accurate decisions while using candlesticks for their trading and scientifically demonstrates that candlesticks are valid statistical tools for financial analysis.

"SimpleBarPattern_LongOnly" is a very lightweight script created with Pine v5. We developed a user interface that can adjust the analysis period from a few days to several years.

The initial capital set is €1,000 (You can change this from the "Properties" section of the user interface).
Each individual trade uses 100% of the set capital, in this case €1,000.
The default commission per trade is 0.03% (You can change this in the "Properties" section of the user interface).

User Interface

1) General backtest time settings: Set the history period to be analysed

StartDate: backtest start date
StartMonth: backtest start month
StartYear: backtest start year
EndDate: backtest end day
EndMonth: backtest end month
EndYear: backtest end year

3) Stop Loss

4) Take Profit

Please do not hesitate to contact us for any questions or information.

Disclaimer

Be careful, the past is not a guarantee of future performance, so remember to use the script as a pure analysis tool. The developer takes no responsibility for any use other than research and analysis and can in no way be held liable for damages resulting from wrong use of this code.