Problem with timing position opening

• 09/03/2022 at 8:22 PM #200094
  Mr.Crni

  Hello PRC Forum

  I have the following problem: my indicator signals me an entry point, but during the backtest the position is opened one bar later. Engulfing requires the evaluation of the 2 past candles, why is no position opened on the 3rd candle but on the 4th candle?

  Indicator:

  SecondToLastCandleHeight = abs(close[2]-open[2]) LastCandleHeight = abs(close[1]-open[1]) Engulfing = LastCandleHeight > SecondToLastCandleHeight ShortMarketCondition = DIminus[14](CLOSE[1]) > DIplus[14](CLOSE[1]) AND ADX[14] > 12 AND ADX[14] >= ADX[14][2] LongMarketCondition = DIplus[14](CLOSE[1]) > DIminus[14](CLOSE[1]) AND ADX[14] > 12 AND ADX[14] >= ADX[14][2] EngulfingShort = Engulfing AND CLOSE[2] > OPEN[2] AND CLOSE[1] < OPEN[2] AND ShortMarketCondition IF EngulfingShort THEN DRAWARROWDOWN(barindex,close) coloured(255,255,0) ENDIF EngulfingLong = Engulfing AND CLOSE[2] < OPEN[2] AND CLOSE[1] > OPEN[2] AND LongMarketCondition IF EngulfingLong THEN DRAWARROWUP(barindex,close) coloured(0,255,255) ENDIF RETURN EngulfingShort as "EngulfingShort", EngulfingLong as "EngulfingLong", LastCandleHeight as "LastCandleHeight", SecondToLastCandleHeight as "SecondToLastCandleHeight"

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

  SecondToLastCandleHeight = abs(close[2]-open[2]) LastCandleHeight = abs(close[1]-open[1])   Engulfing = LastCandleHeight > SecondToLastCandleHeight   ShortMarketCondition = DIminus[14](CLOSE[1]) > DIplus[14](CLOSE[1]) AND ADX[14] > 12 AND ADX[14] >= ADX[14][2] LongMarketCondition = DIplus[14](CLOSE[1]) > DIminus[14](CLOSE[1]) AND ADX[14] > 12 AND ADX[14] >= ADX[14][2]   EngulfingShort = Engulfing AND CLOSE[2] > OPEN[2] AND CLOSE[1] < OPEN[2] AND ShortMarketCondition IF EngulfingShort THEN DRAWARROWDOWN(barindex,close) coloured(255,255,0) ENDIF   EngulfingLong = Engulfing AND CLOSE[2] < OPEN[2] AND CLOSE[1] > OPEN[2] AND LongMarketCondition IF EngulfingLong THEN DRAWARROWUP(barindex,close) coloured(0,255,255) ENDIF   RETURN EngulfingShort as "EngulfingShort", EngulfingLong as "EngulfingLong", LastCandleHeight as "LastCandleHeight", SecondToLastCandleHeight as "SecondToLastCandleHeight"

  Strategy:

  //Engulfing/DMI //MainTime: 1H, SubordinateTime: 5M //Cornel Schmid, 03.09.2022 //TERMS AND CONDITIONS DEFPARAM PreLoadBars = 300 DEFPARAM CumulateOrders = true Position=1 //ENGULFING EngulfingShort, EngulfingLong, LastCandleHeight, SecondToLastCandleHeight = CALL "FR_Engulfing_DMI" //ENGULFINGRATIO EngulfingRatio = (LastCandleHeight/SecondToLastCandleHeight) < MaxRatio //EXECUTION IF Engulfingshort THEN SELLSHORT Position PERPOINT AT MARKET SET STOP PLOSS StopLossShort ENDIF IF EngulfingLong THEN BUY Position PERPOINT AT MARKET SET STOP PLOSS StopLossLong ENDIF [REM Trailing Stop, Exitconditions, etc....]

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

  //Engulfing/DMI //MainTime: 1H, SubordinateTime: 5M //Cornel Schmid, 03.09.2022   //TERMS AND CONDITIONS DEFPARAM PreLoadBars = 300 DEFPARAM CumulateOrders = true Position=1   //ENGULFING EngulfingShort, EngulfingLong, LastCandleHeight, SecondToLastCandleHeight = CALL "FR_Engulfing_DMI"   //ENGULFINGRATIO EngulfingRatio = (LastCandleHeight/SecondToLastCandleHeight) < MaxRatio   //EXECUTION IF Engulfingshort THEN SELLSHORT Position PERPOINT AT MARKET SET STOP PLOSS StopLossShort ENDIF   IF EngulfingLong THEN BUY Position PERPOINT AT MARKET SET STOP PLOSS StopLossLong ENDIF   [REM Trailing Stop, Exitconditions, etc....]

  I have added a picture: Yellow and turquoise arrows = Indicator, Green and red arrows = Strategy

  What is the problem?

  

  Mr.Crni

  Participant

  Topics: 4

  Replies: 6

  Been thanked: 1 time
  09/03/2022 at 10:37 PM #200103
  JS

  This is the normal course of events, when a condition is true (in your indicator), then a position is opened on the Open of the next bar in your trading system.

  

  JS

  Participant

  Topics: 29

  Replies: 2338

  Been thanked: 1371 times
  09/04/2022 at 9:03 AM #200105
  robertogozzi

  It’s because your indicator is lagging by 1 candle.

  Replace all occurrences of [1] with [0], then [2]  with [1].

   

  

  robertogozzi

  Moderator

  Topics: 69

  Replies: 17891

  Been thanked: 4505 times
  09/09/2022 at 9:39 PM #200459
  Mr.Crni

  Thank you Roberto! It works

  

  Mr.Crni

  Participant

  Topics: 4

  Replies: 6

  Been thanked: 1 time
• Author
  Posts