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

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

  // 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

  Participant

  Topics: 5

  Replies: 4

  Been thanked: 0 times
  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

  Moderator

  Topics: 69

  Replies: 16455

  Been thanked: 3636 times
  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

  Participant

  Topics: 5

  Replies: 4

  Been thanked: 0 times
  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

  Participant

  Topics: 19

  Replies: 120

  Been thanked: 42 times
  02/04/2022 at 8:23 AM #187499
  justadude

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

  

  justadude

  Participant

  Topics: 5

  Replies: 4

  Been thanked: 0 times
  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]

  1 2 3

  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

  Participant

  Topics: 83

  Replies: 1237

  Been thanked: 978 times
• Author
  Posts