All Candlestick Patterns on Backtest [By MUQWISHI]

23. Aug. 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.

7. Sept. 2023

Versionshinweise

▋ 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.

10. Sept. 2023

Versionshinweise

▋ 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.

20. Sept. 2023

Versionshinweise

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