For example I have written a little candlestick indicator in order to understand which of 20 different patterns can be profitably traded. I can then horizontally scroll through my chart and see the results.
Below is a sample chart. The last pattern detected is a bearish engulfing pattern. The pattern is combined with a trendfilter.
Result: Over the last three years there were 2063 such patterns. The frequency was 2.9%. This means that about 3 out of 100 bars conformed to this pattern.
The average result per trade - here a simple approach with a time exit - would have been
- 0.1 ticks for a 3 bar trade
- 0.4 ticks for a 6 bar trade
- 1.3 ticks for a 10 bar trade
This is a weak bearish bias, but not tradeable on a 15 min chart.
It is definitely faster to evaluate patterns with this tool than running backtests via the strategy analyzer.
However, the strategy analyzer comes with a set of performance metrics that you will be unable to code with a simple indicator. Therefore the indicator can only be considered as a preparatory tool for a fully fledged strategy.
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