Which candlestick pattern is the best (lets test it)

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NIKO TORI
404
NIKO TORI  
Hello everyone, i have one goal and that is to find the best candlestick pattern to trade.
But i am not interested in just some random listing of patterns, like: "engulf, morning star, hammer,...", i want FACTS, i want to see serious analysis, do you have it? Can i repeat it? Do you know for some software that i can do such tests?

So tell me what do you got, why and which pattern is the best, in what situation?

To give you some idea what i mean by serious tests, please take a look at my numbers and even whole process behind it (video). I am serious guys, lets find this holy grail once and for all.

MARUBOZU pattern (naked testing, without any filter like trends and snr)

You can see i got four different tables. With yellow you can see most important info, that is how much would you get on 100% investment, profit is everything above 100.
  1. AUD/USD, 1h time frame, 10 year testing period, bullish body, sell at close price, (stop loss 1 = value of body)
  2. USD/JPY, 1h time frame, 10 year testing period, bearish body, buy at close price, (stop loss 1 = value of body)
  3. USD/JPY, 5min time frame, 1 year testing period, bullish body, sell at close price, (stop loss 1= value of body)
  4. USD/JPY, 5min time frame, 1 year testing period, bearish body, buy at close price, (stop loss 1= value of body)

1

As you see, profitability is quite low, so do you have better solution, proof of better results? Please give me ideas.

Sergey Golubev
Moderator
117645
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Something Interesting

Sergey Golubev, 2020.06.26 07:06

Hammer and Hanging Man Candlestick EA - expert for MetaTrader 5

Hammer and Hanging Man Candlestick EA - expert for MetaTrader 5

Trading in two patterns: 'Hammer' (Hammer) and 'Hanging Man' (Hanged Man). Stop loss is floating and depends on the pattern found.

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Video with mini-articles

  • Candlesticks patterns. Hammer, part #1: post #143 
  • Candlesticks patterns. Inverted Hammer (part #2): post #144 
  • Candlesticks patterns. Hanging Man: post #145  
  • All the patterns in one image: post #5

NIKO TORI
404
NIKO TORI  

Thank you for your reply. I like those explanations. It is clearly that for better results of testing i would need to include trends as well. I wonder how much would profitability rise from these numbers of naked testing:

hs 1

interesting is that for 5min time frame results got so worse. You might wonder why is there SELL instead of BUY. Well for buy it is even worse result. Man i really need trend building option.

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