Buying A Bottom of a Market

• 02/03/2022 at 1:53 PM #187460
  justadude

  Hi there,

  Does anyone have any ideas about buying a bottom of a market, I’ve been experimenting with trying to create an algorithm that buys if the price falls candle after candle, then flattens out, and starts going back up.

  For Example:

  // Definition of code parameters DEFPARAM CumulateOrders = False // Cumulating positions deactivated // Conditions to enter long positions c1 = (close < close[1]) c2 = (close < close[2]) c3 = (close < close[3]) c4 = (close < close[4]) c5 = (close < close[5]) c6 = (close < close[6]) //here is the market turning after a fall c7 = (close > close[7]) c8 = (close > close[8]) IF c1 AND c2 AND c3 AND c4 AND c5 AND c6 AND c7 AND c8 THEN BUY 1 PERPOINT AT MARKET ENDIF // Stops and targets SET STOP pLOSS 5 SET TARGET pPROFIT 10

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  // Definition of code parameters DEFPARAM CumulateOrders = False // Cumulating positions deactivated   // Conditions to enter long positions c1 = (close < close[1]) c2 = (close < close[2]) c3 = (close < close[3]) c4 = (close < close[4]) c5 = (close < close[5]) c6 = (close < close[6]) //here is the market turning after a fall c7 = (close > close[7]) c8 = (close > close[8])   IF c1 AND c2 AND c3 AND c4 AND c5 AND c6 AND c7 AND c8 THEN BUY 1 PERPOINT AT MARKET ENDIF   // Stops and targets SET STOP pLOSS 5 SET TARGET pPROFIT 10

  Would it be possible to incorporate a volume spike at the bottom too?

  At the moment, the results are completely random.

   

  

  justadude

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  02/03/2022 at 3:33 PM #187467
  robertogozzi

  When do you want to start buying the very first time?

  Then you want to buy additional positions as it falls down?

  When shall it exit?

   

   

   

  

  robertogozzi

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  02/03/2022 at 3:59 PM #187469
  justadude

  

  See IMAGE
  Exit will be a fixed amount of points, for example – 7 points

  Thank you.

  

  justadude

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  02/03/2022 at 4:26 PM #187472
  pableitor

  You are just looking for a V shaped bottom which may be the easiest to program but  IMHO   may not be the most bottom.  I would look also for a W , reverse head&shoulders or better yet  a 123 bottom, but those are difficult to detect by  SW

  

  pableitor

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  02/04/2022 at 8:23 AM #187499
  justadude

  Do you have the code for a V shaped bottom, please?

  

  justadude

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  02/04/2022 at 12:09 PM #187516
  nonetheless

  It only takes 3 candles to make a V, but how will you know if it’s likely to continue, or just a bounce within the previous trend?

  You can’t do it with price action alone. Try adding a fast MA, for example:

  ma = hullaverage[10](typicalprice) // can also be written ma = average[10,7] long = ma > ma[1] and ma[1] < ma[2] short = ma < ma[1] and ma[1] > ma[2]

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  ma = hullaverage[10](typicalprice) // can also be written ma = average[10,7] long = ma > ma[1] and ma[1] < ma[2] short = ma < ma[1] and ma[1] > ma[2]

  On a 4 hour TF this is often a “fairly reliable” indicator of changes in the primary trend.

  

  nonetheless

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