Algorithms and Trading Systems based on Chess game strategies - page 7
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With that said, I believe simple is better. I would start off by ranking the known Japanese_Candlestick patterns. Like the ones listed Here.
A [Dark Cloud Cover] followed by a [Doji] followed by a [Gravestone] could be considered a tactic for example.
The mql5 eaBuilder already have some standard jpyCandleStick bars defined (I believe) someone could look at for examples.
If such a pattern happens with Dark_Candles, you may want to consider going Long.
A simple back-test would show if such approach does any better than Random.
A [Dark Cloud Cover] followed by a [Doji] followed by a [Gravestone] could be considered a tactic for example.
The mql5 eaBuilder already have some standard jpyCandleStick bars defined (I believe) someone could look at for examples.
If such a pattern happens with Dark_Candles, you may want to consider going Long.
A simple back-test would show if such approach does any better than Random.
Now I understand, ok, thanks for sharing. I'll say one thing just to do some brainstorming.
I think empirical tests can demonstrate the correctness of that sequence, but there should be a strategic reasoning behind it. Although maybe it's not necessary, because your approach seems to be more mechanical than discretionary, if this is the case there's no need of strategy.
Now I understand, ok, thanks for sharing. I'll say one thing just to do some brainstorming.
I think empirical tests can demonstrate the correctness of that sequence, but there should be a strategic reasoning behind it. Although maybe it's not necessary, because your approach seems to be more mechanical than discretionary, if this is the case there's no need of strategy.
Discretionary trading cannot be defined and therefore cannot be programmed.
I don't know how someone could tell an EA to read one news_paper and go Long.
While telling the same EA to read the same news_paper again and go Short.
Discretionary trading cannot be defined and therefore cannot be programmed.
I don't know how someone could tell an EA to read one news_paper and go Long.
While telling the same EA to read the same news_paper again and go Short.
It seems to me that your approach is a mechanistic one.
I haven't backtested [Dark Cloud Cover] followed by a [Doji] followed by a [Gravestone], so I don't know how efficient it is.
I suppose it depends on many things, but as far as I know, traders should also take into account prices to place orders based on such a tactic. Shouldn't they? If so, maybe you can base your strategy on chart analysis to trigger it, but then I am not very clear about the original "chess pieces" of your system, the ones you listed at first.
A [Dark Cloud Cover] followed by a [Doji] followed by a [Gravestone] could be considered a tactic for example.
The mql5 eaBuilder already have some standard jpyCandleStick bars defined (I believe) someone could look at for examples.
If such a pattern happens with Dark_Candles, you may want to consider going Long.
A simple back-test would show if such approach does any better than Random.
Good points, but, sorry the ignorance, if we have the candles and patterns why do we need think about chess?
It's not easier just detect the patterns and trade, like several EAs that use this approach?
In other words, where/how are the connections with the Chess tactics that we can really bring to real market conditions?
In other words, where/how are the connections with the Chess tactics that we can really bring to real market conditions?
For me they are in traders' and players' brains.
These are the cognitive processes of strategic thinking:
laplacianlab: It seems to me that your approach is a mechanistic one. I haven't backtested [Dark Cloud Cover] followed by a [Doji] followed by a [Gravestone], so I don't know how efficient it is.
I suppose it depends on many things, but as far as I know, traders should also take into account prices to place orders based on such a tactic. Shouldn't they? If so, maybe you can base your strategy on chart analysis to trigger it, but then I am not very clear about the original "chess pieces" of your system, the ones you listed at first.
Well its just another brain storm. There's not guarantee that whatever chess approach is going to be profitable. Computers are still binary and therefore mechanistic. They see only true|false, yes|no, black|white. They do-not see shades of gray. We have to take our blurry thinking and communicate that with a computer. This is mostly an exercise which have to define 16 pieces of a chess game in terms of price-action.
Trying to include everything a trader might consider for the sake of profitability would deviate from the original model. <-We already do this within our everyday trading and developing.
Good points, but, sorry the ignorance, if we have the candles and patterns why do we need think about chess?
It's not easier just detect the patterns and trade, like several EAs that use this approach?
In other words, where/how are the connections with the Chess tactics that we can really bring to real market conditions?
For me they are in traders' and players' brains.
These are the cognitive processes of strategic thinking:
How do you define patience in terms of algorithm?
How do you define initiative in terms of algorithm?
How do you define opportunity cost in terms of algo? etc? etc?