Algo Trading using Bearing and Bullish Engulfing Strategy

In this episode, we will be
scripting a pattern recognition strategy to trade based on  Bearing and Bullish Engulfing  patterns.

Bearing and Bullish
Engulfing  strategy

I am not going to go into
the details of whats bearish or bullish engulfing, we talked about it in
multiple videos and sessions already. So if you have queries on the strategy ,
watch earlier videos. Also, there are various variations of this strategy based
on candle formation and we are picking just one formation here. In simple
terms, we will buy are sell when one candle enguls/covers another. With that
note, lets jump into the script.

It is going to be a simple script, So, let’s jump right into
it …

Rules

Buy :
We need to buy, If price forms a bullish engulfing candle
Short :
We need to short, If price forms a bearish engulfing candle
Simple., isn’t it?

Let’s jump to the script part
now

Buy :
We need to buy, If today’s open price is lower than yesterday’s closing price,
today’s low price is lower than yesterday’s low and today’s closing price is
greater than yesterday’s high. In simple terms, a bullish engulfing candle.
Short :
We need to short, If today’s open price is greater than yesterday’s closing
price, today’s high price is higher than yesterday’s high and today’s closing
price is lower than yesterday’s low. In simple terms, a bearish engulfing
candle.

/* Engulfing Candle (Bulish/Bearish) from market secrets*/

Buy=O<Ref(C,-1) AND L<Ref(L,-1) AND C>Ref(H,-1) ;

Sell=O>Ref(C,-1) AND
H>Ref(H,-1) AND C<Ref(L,-1);

That’s all. Simple, isn’t it?

And let’s move to backtesting. We can run backtest of this strategy in multiple
TFs to check the results (use 15 min TF, long. 
50% with 18% drawdown)

Check Out Script Library to get script used for this episode:

https://marketsecrets.in/script-library/

To know more, checkout: