Exceeded Candle [Alorse] is a mean-reversion strategy that identifies candlestick engulfing patterns combined with Bollinger Bands filters. It enters a long position when a green candle surpasses the body of the previous red candle while price is below the mid
Strategy · Pine Script v4 · On the chart
Engulfing Candle Short Strategy (Not Good)
This strategy identifies bearish engulfing candlestick formations to execute short positions.
GitHub stars5on the repository
Pine versionv4older, still runs
Lines of code54
Settings7inputs
LicenceApache-2.0
Last update3 years ago12 May 2023
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
54 lines of Pine Script v4 from Engulfing_Candle/Engulfing_Candle_Short_Strategy.txt, published under Apache-2.0. Keep the author's credit and licence lines when you reuse it.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © krosenfeld7
//@version=4
strategy("Engulfing Candle Short Strategy (Not Good)", overlay = true, pyramiding = 0,
margin_long = 100, margin_short = 100, default_qty_type = strategy.percent_of_equity,
default_qty_value = 20, initial_capital = 2000, process_orders_on_close = true)
// Set the starting point for backtesting
start = input(title="Backtesting Start", type=input.time, defval=timestamp("1 Jan 2015"))
// Expiration time on orders
maxTimeOpen = input(title="Order Expiration", type=input.integer, defval=100, minval=1)
useAtr = input(title="Use ATR?", type=input.bool, defval=false)
// Algorithm / Strategy Goes here
// Set short variables to execute positions below
openBarPrevious = open[1]
closeBarPrevious = close[1]
openBarCurrent = open
closeBarCurrent = close
//If current bar open is greater than equal to previous bar close AND current bar open is greater than previous bar open AND current bar close is less than previous bar open THEN True
bearishEngulfing = (openBarCurrent >= closeBarPrevious) and (openBarCurrent > openBarPrevious) and (closeBarCurrent < openBarPrevious)
short = bearishEngulfing
// Average True Range
length = input(title="ATR Length", defval=14, minval=1)
atrMultiplier = input(title="ATR Multiplier", type=input.float, defval=1, minval=0.1)
atr = atr(length)
shortProfitPercent = input(title = "Profit %",
type = input.float, minval = 0.0, step = 0.1, defval = 10) / 100
shortLossPercent = input(title = "Loss %",
type = input.float, minval = 0.0, step = 0.1, defval = 10) / 100
// Calculating exact prices for stop loss and exit prices
shortExitPercentPrice = strategy.position_avg_price * (1 - shortProfitPercent)
shortStopPercentPrice = strategy.position_avg_price * (1 + shortLossPercent)
// Profit & Loss via ATR
shortExitPrice = useAtr ? strategy.position_avg_price - atr * atrMultiplier : shortExitPercentPrice
shortStopPrice = useAtr ? strategy.position_avg_price + atr * atrMultiplier : shortStopPercentPrice
// Plotting profit / loss targets
plot(series = (strategy.position_size < 0) ? shortExitPrice : na, color = #33b802, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Short Target")
plot(series = (strategy.position_size < 0) ? shortStopPrice : na, color = #ff0900, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Short Stop Loss")
// Submit entry orders
if time >= start
strategy.entry(id = "Short", long = strategy.short, comment = "Short Open", when = short)
// Submit exit orders
strategy.exit(id = "Short", limit = shortExitPrice, stop = shortStopPrice, comment = "Short Close", when = strategy.position_size < 0)
strategy.close(id = "Short", comment = "Expired: >" + tostring(maxTimeOpen), when = (barssince(change(strategy.opentrades)) + 1) >= maxTimeOpen)
Overview
A short entry triggers when the current bar opens at or above the previous bar's open and close, then closes below the previous open. Position exits are managed either through fixed percentage profit and loss targets or dynamically using Average True Range (ATR) multiples. It also enforces a maximum trade holding duration that closes open trades after a defined bar count, while plotting active stop-loss and profit target lines on the chart.
- Bearish engulfing pattern detection
- Dual exit modes via percentage or ATR
- Time-based bar expiration exit
- On-chart stop loss and take profit visualizer
Details
Published by
krosenfeld7 on GitHub
Type
Strategy, Pine Script v4
Draws
On the price chart
Category
Candlestick patterns
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Backtesting Start | time | timestamp("1 Jan 2015") | start |
| Order Expiration | int | 100 | maxTimeOpen |
| Use ATR? | bool | false | useAtr |
| ATR Length | int | 14 | length |
| ATR Multiplier | float | 1 | atrMultiplier |
| Profit % | float | 10 | shortProfitPercent |
| Loss % | float | 10 | shortLossPercent |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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