APIBridge Candlestick Reversal System

3 ene 2023

Strategy Premise
This strategy uses the Wick Reversal System introduced in Pivot Boss and generates signals based on Candlestick Patterns.

– Wick Reversal System
– Extreme Reversal System
– Outside Reversal System
– Doji Reversal System

Wick Reversal System:
1. For a Bullish reversal wick to exist, the close of the bar should fall within the top 35% of the overall range of the candle.
2. For a bearish reversal wick to exist, the close of the bar should fall within the bottom 35% of the overall range of the candle.

Extreme Reversal System:
1. The first bar of the pattern is about two times larger than the average size of the candles in the look-back period.
2. The body of the first bar of the pattern should encompass more than 50% of the bar’s total range, but usually not more than 85%.
3. The second bar of the pattern opposes the first. If the first bar of the pattern is bullish (C > 0), then the second bar must be bearish (C < 0). If the first bar is bearish (C < 0), then the second bar must be bullish (C > 0).

Outside Reversal System:
1. The Engulfing bar of a bullish outside reversal setup has a low that is below the prior bar’s low (L < L) and a close that is above the prior bar’s high (C > H).
2. The Engulfing bar of a bearish outside reversal setup has a high that is above the prior bar’s high (H > H) and a close that is below the prior bar’s low (C < L).
3. The Engulfing bar is usually 5 to 25 percent larger than the size of the average bar in the look-back period.

Doji Reversal System:
1. The open and close prices of the Doji should fall within 10 percent of each other, as measured by the total range of the Candlestick .
2. For a Bullish Doji , the high of the Doji Candlestick should be below the ten-period Simple Moving Average (H <SMA (10)).
3. For a Bearish Doji , the low of the Doji Candlestick should be above the ten-period Simple Moving Average (L >SMA (10)).
4. For a Bearish Doji , one of the two bars following the Doji must close beneath the low of the Doji (C < L or C < L).
5. For a Bullish Doji setup, one of the two bars following the Doji must close above the high of the Doji (C > H) or C > H)

Strategy Logic
Long Entry:
When Low Pivot Point and Wick Reversal System and Bullish Wick Reversal Setup Pattern Send, LE

OR When Low Pivot Point and Extreme Reversal System and Bullish Extreme Reversal setup Send ,LE

OR When Low Pivot Point and Outside Reversal System and Bullish Outside Reversal Setup Send LE

OR When Low Pivot Point and Doji Reversal System and Bullish Doji Reversal Setup Send, LE

Long Exit:
Either when SL or Target is hit. If SL/ TGT is not hit and

When High Pivot Point and Wick Reversal System and Bearish Wick Reversal Setup Pattern Send LXSE

OR When High Pivot Point Extreme Reversal System and Bearish Extreme Reversal setup Send LXSE

OR When High Pivot Point Outside Reversal System and Bearish Outside Reversal Setup Send LXSE

OR When High Pivot Point Doji Reversal System and Bearish Doji Reversal Setup Send, LXSE

Short Entry:
When High Pivot Point and Wick Reversal System and Bearish Wick Reversal Setup Pattern Send SE

OR When High Pivot Point Extreme Reversal System and Bearish Extreme Reversal setup Send SE

OR When High Pivot Point Outside Reversal System and Bearish Outside Reversal Setup Send SE

OR When High Pivot Point Doji Reversal System and Bearish Doji Reversal Setup Send, SE

Short Exit:
Either when SL or Target is hit. If SL/ TGT is not hit and

When Low Pivot Point and Wick Reversal System and Bullish Wick Reversal Setup Pattern Send, SXLE

OR When Low Pivot Point and Extreme Reversal System and Bullish Extreme Reversal setup Send ,SXLE

OR When Low Pivot Point and Outside Reversal System and Bullish Outside Reversal Setup Send SXLE

OR When Low Pivot Point and Doji Reversal System and Bullish Doji Reversal Setup Send, SXLE

Candlestick Reversal System Algo Strategy Parameters for TradingView Charts
1.Length: This is number of bars used to calculated Ex: 14 à previous 14 candles are used

2.Backtesting : Use this to backtest the strategy between Starting and Ending Date and time , it can also be used to set trades in future time

3.Alert_Message : Need to copy while creating alert into Message Box

4.Trade Setup : Intraday / Positional (Selecct accordingly)

5.Start Time Stop Time (Session 1) : Intraday / Positional start time and end time of trade for session 1

6.End Session 1 : Define time to exit any existing position taken in session 1 so that exchange charges will not apply

7.Use Second Session : Check this to use second intraday session

8.Start Time Stop Time (Session 2) : Intraday / Positional start time and end time of trade for session 2

9.End Session 1 : Define time to exit any existing position taken in session 2 so that exchange charges will not apply

10.Use Target : check if you want to set required target if not cheque will not applicable

11.Use StopLoss : Cheque if you want to set stop loss if not cheque will not applicable

12.Trailling Stoploss : Cheque if you want to set trailing stop loss if not cheque will not applicable

13.Point Or Percentage For TG SL : Use Points or Percentage as per your choice

14.Target : Set as per the selection of (Point Or Percentage For TG SL)

15.Stop Loss : Set as per the selection of (Point Or Percentage For TG SL)

16.TSL_Type : Select as per your logic in %/ATR/Points

17.TSL_Input : Set in case you select %/Points in TSL_Type

18.ATR Length : Set as per your logic if you select ATR in the field of TSL_Type

19.ATR_Mult : Set as per your logic if you select ATR in the field of TSL_Type

20.Segment : Select segment of your logic EQ/FUTIDX/FUTSTK/OPTIDX/OPTSTK/FUTCUR/FUTCUM (Used in case of option / Futures )

21.Select Expiry Date : Select the expiry date of your trade as per the segment you selected (Used in case of option / Futures )

22.Select Expiry Month : Select the expiry Month of your trade as per the segment you selected (Used in case of option / Futures )

23.Year : Select the expiry Year of your trade as per the segment you selected (Used in case of option / Futures )

24.Quantity : Enter the quantity in which you want to trade (Used in case of option / Futures )

25.Product Type : Select MIS/Normal/ CNC as per your logic (Used in case of option / Futures )

26.Order Type : Select Market/Limit as per your logic (Used in case of option / Futures )

27.Strategy Tag : Enter the value in case you are using webhook / advance template in APIBridgeTM

28.Lotsize : Enter the lotsize as per your lotic and quentity selection (Used in case of option / Futures )

29.STEP (OTM/ATM/ ITM ) : Select OTM(+1)/ATM(0)/ ITM (-1) as per your logic works in case of options only

30.DIFFERENCE_BETWEEN 2 STRIKE : Select difference of 2 strikes you have used in APIBridge symbol setting list, like for Nifty 50 BankNifty 100

31.APIB Port : Set as per provided to you by Algoji in case of webhook / advance templet

The Segment full form is given below
EQ Equity
FUTIDX Future Index
FUTSTK Future Stock
OPTIDX Index Option
OPTSTK Stock Option
FUTCUR Futcur Currency
FUTCUM Future Commodity