Strategy BackTest Of Price Channel Break Out In Python

[@jimparsons6803]

Enjoyed the presentation. I have started to study Python, starting in the middle of last week because of your presentations. I have a little background in math, and your programming is about that basically. Hopefully there is some $ at the end of the programming and so forth. Glad you made a point of stating that the process is executed over a number of years or decades.

[@CodeTradingCafe]

Welcome to the club 🙂 for the $ don't expect a get rich quick... Obvious. But my journey was nice and enjoyable since 10 years I think because I did this as a hobby and I didn't rely on trading to make a living, so just for fun it was really fun and the programming part is really nice if you like this kind of stuff, it's neardy I know but as long as you enjoy it why not. Good luck!

[@tmyersf4]

Great video. Not sure how this would change the result but I would try excluding any pivots from the last 10 candles from the regression formula and then see if any of those candles are breaking above/below the line. In much the same way you would draw a trend line on a chart and extend out the lines to detect a break of trend. If you are factoring too many recent pivots into the regression then you are essentially always lagging behind a possible breakout. Also worth adding another entry confirmation to check for a successful close above/below the most recent pivot.

[@CodeTradingCafe]

Actually you are right I might be updating the channel too often with all the recent pivots... disregarding recent pivots is one way to avoid this

[@GabrielBonelloYT]

Really interesting stuff, I've recently started experimenting with my own automated trading strategies in python. I would love to know if there is any automated strategy you are currently making use of and how it works.

[@CodeTradingCafe]

Hi, a profitable strategy yes there is, but don't expect much in return it's few percent per year. I still do coding in this field, on a side, because I learned a lot over the years and I honestly enjoy it :) Good luck!

[@raviy9189]

​@@CodeTradingCafecan u kindly that code name plz

[@nobuohtsuka]

Is there a way to put "candle" and "window" to the class so that the these parameters are optimized?

[@CodeTradingCafe]

Definitely yes, I haven't done it yet I was intending to make an optimization video. But anyway if you decide to do it keep in mind that the testing will run much slower because the indicators are computed for each backtest with a new set of parameters.

[@k2icc]

Using yfinance will work?

[@CodeTradingCafe]

Hi, yes it should provide you with a free streaming source, differences might arise for extremely low timeframes (1min- 5 min)

[@GuidanceToFulfillment]

HI. Code trading. I want to know how to backtest and show results for multiple currenncies and plot the each currencies performance/blance all in one graph preferably using plotly

[@CodeTradingCafe]

Hi, I understand your point but I wouldn't recommend it because for different assets it's best to use different input parameters so you have to think about this also.

[@GuidanceToFulfillment]

@@CodeTradingCafe Thanks. Ill find a way but how can i add code to a python strategy to execute on metatrader 5 demo.

[@CodeTradingCafe]

Hi, I think there is a package you can install in python (metatrader or something similar) I have seen it on one of the libraries descriptions online but never used it so far.

[@rezasadeghi2520]

Would be great if we have a moving average fitted into Lstm model ( to detect trend the up or down )

[@CodeTradingCafe]

I agree LSTM might be good to detect trend but in this video I am not sure how to combine it with channel break out, do you have any specific plan?

[@Notepad123]

Great video. Do you have a group discord channel ?

[@CodeTradingCafe]

Hey, unfortunately not it was too much to manage for me

[@ghairatullah7267]

How to use this in trading view

[@CodeTradingCafe]

It might be challenging to include regression in pinescript for tradingview but maybe I am wrong, in my opinion it's easier in Python. Check my community tab I have free voucher for Python courses.

[@ghairatullah7267]

@@CodeTradingCafe sir how can I use mt4 please quide me🙏

[@albertovidalfernandez112]

I want to learn more, thank u! When more IA trading ❤?

[@CodeTradingCafe]

Thank you for your support!

[@preetipics]

Amazing videos, thanks. I’m trying to automate a strategy that combines support and resistance with change of character and break of structure. I have seen your sr video but have you done anything on identifying change of character and bos? Thanks a lot

[@CodeTradingCafe]

Hey, thank you! I am not sure I got what you mean by change of character and bos, do you have any references or maybe a quick elaboration?

[@preetipics]

@@CodeTradingCafe Yep, happy to help if it leads to a video on this :) change of structure is a reversal pattern. So if the trend is down with lower lows and lower highs, a change of character is when a lower high is traded above to form the first higher high. You would then. expect price to retrace and then if the high that was formed to make the change of character is traded above, this is then break of structure which is confirmation the trend is changing. I have no idea how to code this though but will be amazing if you could

[@CodeTradingCafe]

@@preetipics Thank you, I will look into this, see how to code it the easy way.

[@preetipics]

@@CodeTradingCafe amazing thanks a lot

[@thinketh2408]

Every video is awesome

[@CodeTradingCafe]

Thanks a lot for your support 😊

[@jamestiong2279]

I am interested to know the result for this strategy for breakout to be valid only when it is completely above or below the channels. i.e. the lowest price is below the high channel and vice versa. Also, is it better to have a trailing profit and sl with the same ratio, refresh on every new candle? Thank you.

[@CodeTradingCafe]

Hi, I totally agree for the SL TP refresh on every new candle, this is the trade management part that I will be including hopefully in future videos at some point, it plays a crucial role in trading.

[@Soccer1987]

Great job buddy, but plz it would be great to combine head and shoulders pattern strategy (including some pull back conditions) with pin bar strategy I guess it would be the G. O. A. T. of all strategies

[@CodeTradingCafe]

Hey thanks for sharing. Did you check my videos on head and shoulder and triangle patterns?

[@Soccer1987]

@@CodeTradingCafe Yes Actually am a big fan of your channel, but if it could be possible to get in touch privately, I'll explain more in details whats my point

[@amjoode2]

Hi I am fairly new to trading and haven't made any real trades for now. my question is how does trade costs count? are the costs related to the volume bought/sold or it is a fixed fee? could you create a video where you into account trading costs into your strategy?

[@CodeTradingCafe]

Hi welcome to the club! First l would say keep a practice account for at least 6 months. Cost of trades depends a lot on your broker and the platform you are using some brokers their charge per trade percentage and overnight swap fees you you have to consider also the spread of the price meaning the difference between the bid and ask levels, that's a lot to take into account for sure that you can take it one step at a time. Good luck!

[@felixheuer]

hey you have a very nice channel, i have a question, you iport every time: "from backtesting import Strategy from backtesting import Backtest import backtesting" can you give me these files too ? it would be very helpful.

[@CodeTradingCafe]

Hi, thank you, these files are from the backtesting library, in your jupyter notebook type "!pip install backtesting" it will install the package on your pc. Good luck!

[@N_Molokwane]

In my testing and as well as will Bill Williams strategy... you want to buy the top of the high (fractal)..... momentum type trade

[@CodeTradingCafe]

Hey thank you, can you please elaborate, isn't the high fractal a bit too high for a buying position?

[@N_Molokwane]

@@CodeTradingCafe I think watching the video Bill Williams explaining it would be better kzbin.info/www/bejne/nZOxZHR6etGFfKc

[@N_Molokwane]

@@CodeTradingCafe buying on the higher time frame the best ... I believe that it's better something in a up trend as it's going up making new high's.... then buying a turning point in the market, buying a pull back hoping it's going to up feels like gambling to me

[@CodeTradingCafe]

I get your point, multiple timeframe strategy can fix this issue I think

[@N_Molokwane]

​@@CodeTradingCafe yeah fractal can be used on all timeframes... I'm using a 21, 50 and 200 moving average to show the trend and buying the top of a up fractal(swing high) with my stop at a down fractal(swing low)...

[@eliotharreau7627]

Very nice idee to make two take profit. That's change the game.👍👍

[@CodeTradingCafe]

thank you, indeed I haven't included any trade management on the channel yet ;)

[@zimpot1690]

can you do elliot wave and fibs or AI4Finance Foundation An open-source community sharing AI tools for finance.

[@CodeTradingCafe]

Hey, well it can be done but the Elliot wave and fibs were not impressive in real trading (only my humble experience). I had better results with other indicators.

[@zeromass-q2m]

Here breakouts are validated also on diverging channels, I'm not sure that'd be valid in the original strategy.

[@CodeTradingCafe]

Good point we can add a condition on the channel slopes to filter out irrelevant cases.

[@kodzuvu]

You should use triangle pattern in this strategy

[@CodeTradingCafe]

I might but this means less signals

[@kodzuvu]

@@CodeTradingCafe Personally, I think risk/reward and win rate are more important than multiple signals. You can refer to the smart money concept strategy with orderblock because this strategy gives a risk/reward ratio up to 1:20+

[@CodeTradingCafe]

1:20 is impressive if it works of course but I get your point, will do some research.

[@kodzuvu]

I also know a lot of talib libraries and learned a lot from you, after researching for a while I found that the backtesting library has a lot of errors for the forex market. And if you can, set up a separate telegram channel for people to discuss algotrade, I think it's an effective way to find good strategies to bring into the real market.

[@CodeTradingCafe]

Hi for some reason I just saw your message, can you share any resources discussing the backtesting library errors? I could check if these influenced our strategies in some way

[@popovichrush]

Please I have a strategy I will be happy if you can help me code it....

[@CodeTradingCafe]

Hi thank you for your comment, unfortunately I am not able to take any coding projects at the moment.

[@popovichrush]

@@CodeTradingCafe ok thanks loads do let me know when you ready ok