Harami Candlestick Pattern - 50% Profit In 2020

[@mostafamohammed3275]

Great strategy Could u make a backtest on the cryptocurrency Market?

[@dionisis_20n]

how is all this content for free? Keep up the good work!!!

[@vineetverma4547]

David! I tested this on 1 minute time frame furures chart today. It works if used in correct context of market. Thanks for sharing.

[@CriticalTrading]

Glad you found it useful!

[@Empowerrr]

I admire you sharing these gems. Considering how hard it is to find a decent algo. One question I've got. Do you include slippage while simulating your strategies? If so what value do you use? Also why do you only trade on daily timeframes? Doesn't smaller time frames has more potential trades?

[@CriticalTrading]

Depends on the strategy - I generally trade systems with average trade sizes big enough so that slippage doesn't play a significant role. When it comes to mean reversion models like the one presented in this video I would recommend to either add slippage or employ different type of exit to increase the average trade size (like I did in this video)

[@brightdesk3804]

Hi can you backtest strategy in currency pair

[@vineetverma4547]

I have tested and benefitted from this. I have a small question. What does Wick tells us i.e. Is Body of Candle showing New Contracts traded while Wick shows exit positions from old contracts or does it shows something else.

[@Bonemanwalkin]

Nice work, would this be viable on a leveraged etf? With only 26 percent exposure it seems like you could really pump this thing and not really be hit with the management and rebalance fees with like TQqq for example. I am going to work on building a dynamic exit strategy like the one you described using ATR.

[@trinkladd]

#thestrat. Inside bar break is first. And 2d/2up is second pattern.

[@zacpeake162]

Thanks David. Great work, and very clear. The strategy made a lot of its gains in 2020. Is it’s performance potentially a bit situational - and if so is that mostly lack of exposure In other years? Any thoughts on how you’d improve that?

[@CriticalTrading]

Hi Zac, good point - the best way to improve that is to simply leave this strategy as is and combine it with another in a portfolio with a view to smoothen the combined equity. That's what I personally perceive to be much better thing to do than trying to optimise this particular approach for instance

[@abanobfajjour7390]

I've tested today 4 pairs forex with this harami pattern on 15 MIn 30 1hour 4 hours and daily all are losing due to spread and commissions this pattern is 50% win rate which is bad in forex

[@mickaelburguet4686]

Another good video, keep it up 😎 How is the capital allocated when you backtest a strategy on multiples tickers ? Is 100% of the capital used for each trade ? Or can you be in multiple trades at the same time ?

[@CriticalTrading]

Hi Mickael - thanks! Yes the backtest allows for multiple positions simultaneously - in this case I tested on 3 different ETFs, meaning capital is split into 3 parts for each

[@sauravchetry]

what other factors(market and external) do you usually look into while employing these patterns before getting into the market?

[@CriticalTrading]

How do they combine with my other strategies

[@mostafamohammed3275]

Great value 👏👌🏽

[@CriticalTrading]

Thanks!

[@timelsaer6729]

Nice strategy! Did you use a MA for trading in the right direction (e.g. Market > MA200)?

[@CriticalTrading]

Hi Tim yes exactly this filter was included in the tests I made - forgot to mention that in the video

[@goodnatureification]

Nice Video

[@edwardelric6450]

Great content, would you mind sharing how and where did you do the backtesting? Using python and backtrader?

[@CriticalTrading]

Hi Bruce, I use Amibroker for all my backtests

[@edwardelric6450]

thanks! does this software include backtesting portfolio ideas? Like I want to design a portfolio with growth stocks with the criteria that growth > 15% and EV/Sales < 30 etc.

[@edwardelric6450]

what’s the difference between this software and python open source backtrader or algotrader?

[@CriticalTrading]

Yes it can be used for portfolio level backtesting, highly recommended. I don't really use python for backtesting as such, just for analysis (pyfolio) so can't tell

[@edwardelric6450]

@@CriticalTrading can Amibroker test stock screener? Like I have a rule of choosing stocks and use Amibroker to test the selection logic?

[@iameladlevi]

Hi There, why did you find harami (alone) as a good entry? It basically means no decision bar, it could go long or short.. I thought that once crossing the h[1] you can enter much more safely. what do you think? thanks for sharing great info. E.

[@iameladlevi]

Also, how did you got the Spy keep and hold annual return? I got it differently, from around 90 till 390 divided by 18 = more like 24% per year. Am I missing something? Cheers!

[@CriticalTrading]

Hi, figures I had on my screen are calculated automatically by the software I'm using and are in line with what I would be expecting - 24% per year using buy and hold seems very unrealistic, it's calculated in a different way and is generally less than 10% (depending on an index) with max DD of around 56% (2008 aftermath)

[@iameladlevi]

@@CriticalTrading thanks for the reply, but what am I missing here? Starting price ~90 and end price around 390 gets this annual return by keep and hold. Can you help me understand better?

[@iameladlevi]

Hi Do you have any *good* strategies with less than 10% dd?

[@CriticalTrading]

Hi, no, such DD seems too low and would go hand in hand with low returns

[@mostafamohammed3275]

Hi sir I want to learn how to program trading bots Would u recommend any courses or tutorials to start with And with coding language u recommend to learn

[@CriticalTrading]

Hi, I would personally recommend software called Amibroker - all tests I make for my videos are made with this software

[@HK-fq6vh]

@@CriticalTrading noted

[@cetilly]

@@CriticalTrading Interesting. Are you able to automate and place trades with any broker from this platform? (assuming the broker has an API)

[@Anyone.c]

Which platforms do you use for backtesting and charting?

[@Anyone.c]

Your content is top level💯🔥 thankyou for providing this for free!

[@CriticalTrading]

Hi Devansh, thanks! I use Amibroker

[@Anyone.c]

@@CriticalTrading can you suggest any free platforms for backtesting...cause for now I'm only focused on getting a strategy... I'll get a trading broker later.

[@nicholashea]

Hello David, I’m trying to hire someone to help me write out the code for my strategy. Where do you think I can find this person? Many of the programmers that I have inquired do not understand how to code algo trading and I would have to pay them to learn. Thanks

[@CriticalTrading]

Hi Nicholas, I would try quantocracy

[@nicholashea]

@@CriticalTrading Got it, thanks for your time!

[@AbhishekDeshpandecoder]

What software do you use to backtest these strategies?

[@CriticalTrading]

Amibroker

[@jeramykennedy6813]

First!