Example D6: Candle pattern search used for initial stop loss and initial take profit
This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.
Description
This example uses candle pattern recognition to determine optimal stop loss and take profit levels. When patterns like hammers or engulfing formations occur, they provide ideal exit levels based on the pattern's structure. The 2.00 forward adjustment allows fine-tuning of these idealized levels.
Multiple patterns are enabled, increasing signal frequency and providing diverse entry opportunities. Each pattern has specific characteristics that suggest probable price behavior, making them valuable for exit level determination. The visual pattern identification helps traders learn pattern recognition while the system trades automatically.
Pattern-based exits align with traditional technical analysis principles, using the same concepts manual traders have employed for decades. This bridges classical charting techniques with modern algorithmic trading.
Recommended to use M1 - M15
Recreate the Example
You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:
Trade Basics
- Operation type = Long
- One trade mode = Off
Signal Generation - Candle Patterns
- Signal in use = On
- Signal used for = Entry
- Hammer = On
- Hanging Man = On
- Bullish Belt Hold = On
- Bearish Belt Hold = On
- Bullish Engulfing = On
- Bearish Engulfing = On
- Bullish Harami = On
- Bearish Harami = On
- Bullish Harami Cross = On
- Bearish Harami Cross = On
- Bullish Doji = On
- Bearish Doji = On
- Bullish Long Legged Doji = On
- Bearish Long Legged Doji = On
- Bullish Gravestone Doji = On
- Bearish Gravestone Doji = On
- Bullish Dragonfly Doji = On
- Bearish Dragonfly Doji = On
- Dark Cloud Cover = On
- Piercing Pattern = On
- Morning Star = On
- Evening Star = On
- Bullish Inside Days = On
- Bearish Inside Days = On
- Stop loss forward adjustment = 2.00
- Take profit forward adjustment = 2.00
Initial Stop Loss
- Selection = Candle patterns
Initial Take Profit
- Selection = Candle patterns
Screenshots
