Buying A Bottom of a Market

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

    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

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

    At the moment, the results are completely random.

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

    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?

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

    [attachment file=”187470″]

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

    Thank you.

    forum-pic.png forum-pic.png
    02/03/2022 at 4:26 PM #187472 quote
    pableitor
    Participant
    Master

    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

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

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

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

    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]

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

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Buying A Bottom of a Market


ProOrder: Automated Strategies & Backtesting

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justadude @justadude Participant
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This topic contains 5 replies,
has 4 voices, and was last updated by nonetheless
4 years ago.

Topic Details
Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 02/03/2022
Status: Active
Attachments: 1 files
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