How to backtest strategy for CandleStickPattern

[cassb]

How would I use the CandleStickPattern indicator in a strategy? Let's say I want to run a strategy for 1 year of historical data, and place an order every time just the Hanging Man pattern appears. I see that the indicator plots a 1 or 0 depending on whether any pattern is found, but there it nothing for the strategy to know *which* pattern was found on a bar.

Is this possible to do?

Is a Plot() object the only thing I can use to backtest in the Strategy Analyzer, or can I use BarSeries or other series as well?

Thanks!
Bryan

[NinjaTrader_ChelseaB]

Hello Bryan,

Thanks for your post.

You are correct, the CandleStickPatterns indicator plots 1 no matter what pattern is found.

You could modify this indicator and make a custom version that plots a different value for each pattern type.

The plot will be all that can be called from the indicator as it is.

[koganam]

How would I use the CandleStickPattern indicator in a strategy? Let's say I want to run a strategy for 1 year of historical data, and place an order every time just the Hanging Man pattern appears. I see that the indicator plots a 1 or 0 depending on whether any pattern is found, but there it nothing for the strategy to know *which* pattern was found on a bar.

Is this possible to do?

Is a Plot() object the only thing I can use to backtest in the Strategy Analyzer, or can I use BarSeries or other series as well?

Thanks!
Bryan

The pattern is an enum, and is an input, exposed as a public parameter. Call the indicator with the correct pattern, and that is the only one that it will identify with a "1".

[cassb]

The pattern is an enum, and is an input, exposed as a public parameter. Call the indicator with the correct pattern, and that is the only one that it will identify with a "1".

Ah, good idea koganam, thank you!

And thanks, Chelsea. Can you tell me also whether only Plot values can be used in Strategy Analyzer, or is there a way to use a DataSeries object in a strategy to backtest in SA? In other words, can I have the strategy enter long/short based on a value of "Hammer" or "Doji" if I put those values into a DataSeries?

Thanks!
Bryan

[NinjaTrader_ChelseaB]

Hi Bryan,

Yes, dataseries, boolseries, dateseries, intseries, and stringseries can be made public as well.

Making a dataseries public is the same as for a plot, similar to how this is done in the MACD indicator for the Avg, and Diff dataseries.

For example:
In #region Variables:
private DataSeries myDataSeries;

In Initialize():
myDataSeries = new DataSeries(this);

In OnBarUpdate() or other method:
MyDataSeries.Set(100);

In #region Properties:
[Browsable(false)]
[XmlIgnore()]
public DataSeries MyDataSeries
{
get { return Values[1]; }
}

http://www.ninjatrader.com/support/helpGuides/nt7/dataseries_class.htm

[cassb]

OK, so if the series is declared public, then it can be picked up in the Strategy Analyzer? Even string values?

[NinjaTrader_ChelseaB]

Hi Bryan,

The public data series from an indicator allows for you to call the value from a strategy. So if you want the SMA value, call SMA(period)[0] and this will return the last value from the dataseries.

If you are asking how to make optimizable variables, this will not be involved with dataseries.

The Strategy Analyzer will run the code of the strategy and can change the parameters fed to the strategy. It is up to the strategy to make calulations and call dataseries. The Strategy Analyzer is not able to directly call indicators or dataseries, or run logic on its own.

What is your goal in using these dataseries?

[cassb]

What is your goal in using these dataseries?

Yes, I understand how the SA works with strategies. What I was thinking is if I could create a DataSeries in the CandleStickPattern indicator with the text of the pattern name as the trigger. Like if a Hangman happens, then the text "Hangman" would trigger the trade.

Bryan

[NinjaTrader_ChelseaB]

Hi Bryan,

That would work fine.

This would be essentially the same as plotting a number to correspond with the selected pattern type.

Again this would be available to the strategy itself as it runs, whether this is running in the Strategies tab of the Control Center, or a Chart, or the Strategy Analyzer.

In other words the Strategy Analyzer will not call the pattern, but yes you could use a string series and return a string to the strategy that is running.

[cassb]

OK, thank you Chelsea!