Move to BE on Confirmation of Market Structure
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Hi All
One key strategy I use manually is confirmation of direction with market structure or break of market structure. This uses significant higher highs and significant lower lows.
I am wondering if it is possible to code this? For example if I enter into a Long trade with defined target (say TP=100) and stop loss (say SL=20), then when the market structure continues in my favour I want to move my SL to BE & then continue to move my SL via trailing stop as market continues in my favour
I currently do this by (on a Long Trade) looking for a past significant high to be broken up after entering ( current higher high) and a higher low been established after a previous significant Low.
I’ve attached a Line & Point as well as a candlestick chart to illustrate the strategy, so basically I would be looking for a sequence as below as price cycles up:
- H2 > H1
- L2 > L1
- Then move SL to break even
- IF H3 > H2 & L3 > L2 Then
- Move SL to L1 etc etc
- Exit would be if price breaks this market structure say if
- H3 < H2 & L3 < L2
The strategy obviously would need to be scanning previous reference bars from entering into the trade (or last reference bar if first BE condition has already been met) to establish these significant Highs & Lows rather than just the previous bar.
Does this sound feasible?
//TAKE PROFITS AT BREAK OF MARKET STRUCTURE //------------------------------------------------------------------------- // Definition of code parameters DEFPARAM CumulateOrders = False // Cumulating positions deactivated daysForbiddenEntry = OpenDayOfWeek = 6 OR OpenDayOfWeek = 0 if onmarket or strategyprofit<>strategyprofit[1] then flag = 1 endif if dayofweek <> dayofweek[1] then flag = 0 endif entry=13495 SET STOP pLOSS sl SET TARGET pPROFIT tp sl=20 tp=100 // Conditions to enter long position notradetime1=213000 notradetime2=233000 notradetime=time>notradetime1 and time<notradetime2 timeframe (20 seconds, updateonclose) c1=low<=entry timeframe(default, updateonclose) IF not daysForbiddenEntry and not flag and not onmarket and not notradetime and c1 Then Buy 1 perpoint AT MARKET ENDIF // from PRC timeframe (60 minutes, updateonclose) ONCE SigHI1 = 0 //ONCE SigHI2 = 0 ONCE SigLO1 = 0 //ONCE SigLO2 = 0 ONCE LookBack = 5 IF Not OnMarket Then MySL = 0 ENDIF MaxHI = max(open,close) MinLO = min(open,close) Bullish = close > open Bearish = close < open SwingHI = highest[LookBack](MaxHI) SwingLO = lowest[LookBack](MinLO) SigHI = SwingHI AND Bearish AND Bullish[1] SigLO = SwingLO AND Bullish AND Bearish[1] IF LongOnMarket AND SigHI > 0 AND SigHI > SigHI1 THEN //SigHI2 = SigHI1 SigHI1 = SigHI IF SigHI1 > SigLO1 THEN MySL = max(TradePrice,max(MySL,SigLO1)) ENDIF ELSIF ShortOnMarket AND SigLO > 0 AND SigLO < SigLO1 THEN //SigLO2 = SigLO1 SigLO1 = SigLO IF SigLO1 < SigHI1 THEN MySL = min(TradePrice,min(MySL,SigLO1)) ENDIF ENDIF IF OnMarket AND MySL <> 0 THEN SELL AT MySL Stop EXITSHORT AT MySL Stop ENDIFHi Roberto
Please find attached the code in which I’ve inserted your modified suggestion. I’ve also attached the results.
I cannot see why it doesn’t take profits at the first break of Market structure (I’ve marked up the chart)?
The code I’ve used gets me in at a set point on the 20 sec chart & I’me using your code on the 1 hr to monitor when there is a sign of it reversing.
The plan is if I can get this recognising a change in market structure (either a break, hence reversal or a continuation I can then ask it to either move my stop to BE and follow it up on subsequent significant higher highs etc. Or take profits if a definite
break of structure.
Any suggestions
SteveHi Roberto – I’ve used USD/JPY with a set point at 10691 just to get an entry
Regards
Steve
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This topic contains 19 replies,
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5 years, 7 months ago.
Topic Details
| Forum: | ProOrder: Automated Strategies & Backtesting |
| Language: | English |
| Started: | 06/27/2020 |
| Status: | Active |
| Attachments: | 6 files |
