TASC 2017-10 | A Candlestick Strategy With Soldiers And Crows (D'Ambrosio, Star)

Modified on 2017/09/01 09:50 by Eugene — Categorized as: TASC Traders Tips

Traders' Tip text

The bullish one white soldier and bearish one black crow patterns have been added to our WealthLab.Rules.Candlesticks library for easy reference in users' Strategies. Here's the complete list of Strategy rules:

Enter long next bar at open if following conditions are met:

Stock price greater than $1
50-day simple moving average of volume is greater than 100,000
Yesterday’s close was less than the day before
Yesterday’s close was less than its open
Today’s open is greater than yesterday’s close
Today’s close is greater than yesterday’s open
Today’s open is less than yesterday’s open
As of yesterday’s close, price had been closing lower for three days

Sell short next bar at open if following conditions are met:

Stock price is greater than $10
50-day simple moving average of volume is greater than 100,000
Yesterday’s close was higher than the close the day before
Yesterday’s close was greater than yesterday’s open
Today’s open is less than yesterday’s close
Today’s close is less than yesterday’s open
Today’s open is higher than yesterday’s open
As of yesterday’s close, price had been closing higher for three days.

Exit long position if any condition is triggered:

Exit at market on two lower lows
Exit at market if either the 14-period Stochastic is at or above than 80 or the 14-period RSI is at or above 70
Exit at a 3% stop loss (if enabled)
Exit at a 5% take profit (if enabled)

Cover short position if any condition is triggered:

Exit at market on two higher highs
Exit at market if either the 14-period Stochastic is at or below 20 or the 14-period RSI is at or below 30
Exit at a 3% stop loss (if enabled)
Exit at a 5% take profit (if enabled)

Figure 1. Application of the Strategy to AIG (American International Group).

Get the companion Strategy's C# code by downloading it right from Wealth-Lab's "Open Strategy" dialog. Strategy requires Community Components library installed and/or upgraded to v2017.09 or later:

using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;

//Requires CandlePattern Rules Class

namespace WealthLab.Strategies
{
	public class TASC201710 : WealthScript
	{
		private StrategyParameter paramSL;
		private StrategyParameter paramTP;
		private StrategyParameter paramStops;
      
		public TASC201710()
		{
			paramStops = CreateParameter("Activate SL/PT",1,0,1,1);
			paramSL = CreateParameter("Stop %",3,1,10,1);
			paramTP = CreateParameter("Profit %",5,1,20,1);
		}
		
		protected override void Execute()
		{
			var sto = StochK.Series( Bars, 14 );
			var rsi = RSI.Series( Close, 14 );
			bool enableStopAndProfit = paramStops.ValueInt == 1 ? true : false;
		
			for(int bar = GetTradingLoopStartBar( 50 ); bar < Bars.Count; bar++)
			{				
				if (IsLastPositionActive)
				{
					Position p = LastPosition;
					if( p.PositionType == PositionType.Long )
					{
						var twoLowerLows = CumDown.Series( Low, 1)[bar - 1] >= 2;
						var overbot = (sto[bar] >= 80) || (rsi[bar] >= 70);
						double Stop = p.EntryPrice * (1 - paramSL.Value / 100d);
						double Profit = p.EntryPrice * (1 + paramTP.Value / 100.0d);
						
						if( twoLowerLows )
							SellAtMarket( bar+1, p, "2 lows" );
						else
							if( overbot )
								SellAtMarket( bar+1, p, "Overbought" );
						else if(enableStopAndProfit)
						{
							if(!SellAtStop( bar + 1, p, Stop, "Stop") )
								SellAtLimit( bar + 1, p, Profit, "Profit" );
						}
					}
					else
					{
						var twoHigherHighs = CumUp.Series( High ,1)[bar - 1] >= 2;
						var oversold = (sto[bar] <= 20) || (rsi[bar] <= 30);
						double Stop = p.EntryPrice * (1 + paramSL.Value / 100d);
						double Profit = p.EntryPrice * (1 - paramTP.Value / 100.0d);
						
						if( twoHigherHighs )
							CoverAtMarket( bar+1, p, "2 highs" );
						else
							if( oversold )
							CoverAtMarket( bar+1, p, "Oversold" );
						else if (enableStopAndProfit)
						{
							if(!CoverAtStop( bar + 1, p, Stop, "Stop") )
								CoverAtLimit( bar + 1, p, Profit, "Profit" );
						}
					}
				}
				else
				{
					//trend definition (define your own one)
					var trendBearish = CumDown.Series( Close, 1 )[bar - 1] >= 3;
					var trendBullish = CumUp.Series( Close, 1 )[bar - 1] >= 3;

					//50-day average volume is greater than 100,000
					var volume = SMA.Series( Volume, 50 )[bar] > 100000;

					//Bullish one white soldier scan
					var soldier = this.isBullishOneWhiteSoldier(bar);
					var price1 = Close[bar] > 1.0;
					
					//Bearish one black crow scan
					var crow = this.isBearishOneBlackCrow(bar);
					var price10 = Close[bar] > 10.0;
					
					//Scans
					var BullishScan = trendBearish && volume && soldier && price1;
					var BearishScan = trendBullish && volume && crow && price10;
					
					double[] rectangle = { bar-4, Highest.Series(High, 3)[bar-1], bar-4, Lowest.Series(Low, 3)[bar-1], 
						bar, Lowest.Series(Low, 3)[bar-1], bar, Highest.Series(High, 3)[bar-1] };
					
					if( BullishScan )
					{						
						DrawPolygon( PricePane, Color.Transparent, Color.FromArgb(30, Color.Green), LineStyle.Solid, 2, true, rectangle );
						BuyAtMarket(bar+1, "Bullish one white soldier");
					}
					else
						if( BearishScan )
					{
						DrawPolygon( PricePane, Color.Transparent, Color.FromArgb(30, Color.Red), LineStyle.Solid, 2, true, rectangle );
						ShortAtMarket(bar+1, "Bearish one black crow");
					}
				}
			}
		}
	}
}

Eugene (Gene Geren)
Wealth-Lab team
www.wealth-lab.com