New article Movement continuation model - searching on the chart and execution statistics has been published:
This article provides programmatic definition of one of the movement continuation models. The main idea is defining two waves — the main and the correction one. For extreme points, I apply fractals as well as "potential" fractals - extreme points that have not yet formed as fractals.
Movement continuation model described in the article consists of two
waves: the main and the correction one. The model is schematically
described in Figure 1. AB is the main wave, BC is the correction wave,
while CD is the continuation of the movement towards the main trend.
Fig. 1. Movement continuation model
On the chart, this looks as follows:
Fig. 2. Movement continuation model on AUDJPY H4
In this article, we have analyzed the method of programmatically
determining one of the movement continuation models. The key idea of the
method is a search for a correction movement high/low extremum without
applying any indicators. The consecutive points of the model are then
detected based on the found extremum.
We also discussed the method of collecting statistical data based
on the results of testing in the strategy tester by writing the test
results into an array and their subsequent processing. I believe, it is
possible to develop a more efficient way of collecting and processing
statistical data. However, this method seems most simple and
comprehensive to me.
Keep in mind that the article describes the minimum requirements
for defining the model, and most importantly, the most minimal set of
controls provided by the EA. For real trading, the set of controls
should be expanded.
Author: Almat Kaldybay