ndle reversal patterns—a bullish one white soldier and a bearish one black crow—that requ
The Expert Design Studio code for Jerry D’Ambrosio and Barbara Star’s article, “A Candlestick Strategy With Soldiers And Crows,” in Stocks & Commodities October 2018 issue is shown below.”Among the more well-known candlestick reversal patterns are soldiers and crows. These occur in a three-candle pattern such as three white soldiers or three black crows. Recently, on the website Candlesticker.com, we learned of two other candle reversal patterns—a bullish one white soldier and a bearish one black crow—that require fewer candles. ”
!A CANDLESTICK STRATEGY WITH SOLDIERS AND CROWS !Author: Jerry D'Ambrosio & Barbara Star, TASC Oct 2017 !Coded by: Richard Denning 8/05/2017 !www.TradersEdgeSystems.com !CODING ABBREVIATIONS: O is [open]. O1 is valresult(O,1). C is [close]. C1 is valresult(C,1). C2 is valresult(C,2). H is [high]. L is [low]. V is [volume]. !INPUTS: minPriceBull is 1. minPriceBear is 10. minVolume is 1000. !in hundreds volAvgLen is 50. dayCount is 5. longExitBars is 7. shortExitBars is 1. okToBuy if simpleavg(C,50) > simpleavg(C,200) or CminPriceBull and simpleavg(V,volAvgLen)>minVolume. BullWS if C1C1 and C>O1 and O= longExitBars. okToSell if simpleavg(C,50) < simpleavg(C,200) or C>simpleavg(C,200)*1.1. okToSellMkt if TickerRule("SPX",okToSell). PVfilterBear if C>minPriceBear and simpleavg(V,volAvgLen). BearBC if C1>C2 and C1>O1 and OO1 and countof(C1>C2,dayCount)=dayCount and PVfilterBear and okToSellMkt. ExitShort if {position days} >= shortExitBars.
I ran several backtests using the NASDAQ 100 list of stocks over the period from 8/04/2000 to 8/04/2017. I varied the following inputs to find the optimum set of parameters for the candlestick patterns. For longs, the “dayCount” = 5 with an “longExitBars” = 7 produced the best results, which is shown in Figure 5. For shorts, the “dayCount” = 5 with a “shortExitBars” = 1 produced the best results, which is shown in Figure 6. Neither commission nor slippage were subtracted from the results.
FIGURE 5: WINWAY. EDS summary report for longs only.
FIGURE 6: WINWAY. EDS summary report for shorts only.
ire fewer candles. “