Can Price Action Trading Be Automated?

Discussion in 'Automated Trading' started by SimpleMeLike, Dec 26, 2016.

  1. Hello,

    I currently trade price action only, no indicators. I just watch the charts with a 2 emas for trend, look for patterns (trendlines, etc) and support and resistances.

    If I can calculate the support and resistance, can price action be programmed, backtested, and automated?

    Just asking as I like price action. Not experienced enough for indicators yet.

    Thanks
     
  2. big mac

    big mac

    Got to get inside you're own head ask why did I take that trade start writing down the reasons. Where you reach that impasse that you just don't know therein lacks the insight to go further. The greatest neural network is b/w your ears. Damn hard to quantify all that is going on..
     
    eusdaiki and KDASFTG like this.
  3. algofy

    algofy

    Yes it can all be backtested
     
    bklrnr likes this.
  4. wrbtrader

    wrbtrader

    Yes, price action (not everything) can be automated. Many canned stuff included in some data services (e.g. eSignal, TradeStation, TOS).

    By the way, ema's are indicators.

    Also, you can plot support/resistance but they aren't a trade signal. You will still need to have a trade signal to work with those automated s/r plots.

    Yeah, it all can be backtested too.
     
    bellman and SimpleMeLike like this.
  5. Thank you wrbtrader for responding.

    I am more interested in programming an idea and then automated backtesting using NinjaTrader for instance.

    I never programmed and beginning to learn. Entry, exit and stop loss will be programmed as well.

    Can 5 minutes bar be programmed as well? For example, if five 5 minutes bars close above the resistance price, buy or sell? I believe I will need a counter to continuously count the 5 minutes bars.

    Thanks
     
  6. algofy

    algofy

    Ninja will count the bars for you.
     
  7. Yes, it can be automated. But you need to clearly define for yourself (or for someone who will automate it for you) what constitutes "2 emas", "trendlines", "support", and "resistance".

    I would also say that beyond quantifying these terms, there are many other considerations involved in building automated trading system, which include risk management, position sizing, performance evaluation, robust order placement and order management, reporting/notifications, and accurate historical data.
     
    profitlocker and SimpleMeLike like this.
  8. Turveyd

    Turveyd

    Very very difficult, I think you'd be better off using a Tick Chart ( each bar is a price change ) and trying to code rules around that.

    ie, no new lows in 20 ticks for instance = Buyer so go long maybe ??

    Lets face it, all us M1 traders watch the price move and make a judgement off that, much faster than M1 bars.
     
  9. Thank you Turveyd,

    Why do you say this difficult?


    Are you referring to range bars that's do not plot another bar until x amount of price movements? For example, a 5 tick bar range does not plot another bar until 5 ticks go up or down.



    Thank you
     
    Last edited: Dec 26, 2016
  10. Thank you Algofy,

    So if I use range bars, say 8 tick bars, NinjaTrader can be programmed to count X amount of bars and if X is greater then 4, buy or sell? I am use to candles charts or time base bars.

    Thanks.
     
    #10     Dec 26, 2016