BEST Engulfing + Breakout Strategy by Daveatt
By Daveatt
Performance Metrics
- Author: Daveatt
- Symbol: BINANCE:BTCUSDT
- Timeframe: 1 day
- Net P&L: +814.98 USD (+8.15%)
- Win Rate: 21.6%
- Profit Factor: 2.214
- Max Drawdown: 171.30 USD (1.71%)
- Total Trades: 37
- Sharpe Ratio: 0.117
Description
Feb 17, 2020Hello tradersThis is a simple algorithm for a Tradingview strategy tracking a convergence of 2 unrelated indicators.Convergence is the solution to my trading problems. It's a puzzle with infinite possibilities and only a few working combinations.Here's one that I like- Engulfing pattern- Price vs Moving average for detecting a breakoutDefinitionTake out the notebooks :) and some coffee (good for focus). I'm bullish in coffeeThe engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows. The bullish Engulfing pattern appears in a downtrend and is a combination of one red candle followed by a larger green candleThe bearish Engulfing pattern appears in a downtrend and is a combination of one green candle followed by a larger red candleExample: imgur.com/a/krDDUz4We're bored sir... what's the point of all this?In summary, an engulfing is a pattern to track reversals. (the whole TradingView audience stands up now giving a standing ovation)Adding the Price vs Moving average filters allows to track reversals with momentums (half of the audience collapsed because this is too awesome)Ok sir... you picked up my interestI included some cool backtest filters:- date range filtering- flexible take profit in USD value (plotted in blue)- flexible stop loss in USD value (plotted in red)All the bestDaveFeb 17, 2020Release Notes- Added pyramiding