Hi guys, I’ve just found out that you can get a EA to trade price action. Now how far can you take this, could you get it to recognize and trade certain patterns, double tops double bottoms, wedges, channels, head and shoulder, morning/evening stars the lot!
Anyone heard or come across this?
'best
Darth
Everything that you can translate in a math algorithms can be done, but it ain’t easy man
you need to think in terms of comparison and formula, things that a computer can process
hmm you know anyone could do it, or seen it be done?
There are a lot of commercial ones, I am personally building my own one for MetaTrader with MQL4 language, but nothing as complex as double tops, wedges, triangles and so on…
There are also graphical tools to help in the creation of EAs but I don’t think they are enough to build a smart EA
if you watch out MQL website there is also a market where developers sell their services
ok, well good luck on your endevour mate.
G’day old mate. So a bot that thinks like a human, a neural bot. Scalping bots, grid bots, Hedge bots, swing bots, arbitrage bots, pattern/harmonics bots and of course price action bots. As spino1981 said
Everything that you can translate in a math algorithms can be done, but it ain’t easy man
You’re only limited to your imagination.
Bob
my man, the thing is though i’m not a coder so I have no idea what and what isn’t possible when it comes to coding. You know where I can find one bob? or who to ask. as forex is a game of thrones everyone wants to win it and no one wants to give power away.
'best
darth
Making an algorithm to identify price patterns can be done. I’d try to take any problem and break it down into smaller pieces and solve each piece at a time.
For your idea, it’s best if you have some way of filtering the noise and only identifying main leg of the move. From there it’s as easy as geometry. Good luck 
I think that to recognize patterns is very judgmental. Different people will see different trand in one pattern
One strategy is simply looking for the most rigid and defined patterns. Basically a digital 0 or 1.
Another alternative would be to look at fuzzy logic that will behave more discretionarily. But that is a more complex.
I did one on wedges, it was very hard, but I gained a lot of experience and discovered some bugs in different platforms (finally stayed with mt4), wedges work perfect (90% profit ratio) on EURUSD but they are rare, only a few entries per annum. When tried to run on other currencies, it was completely different as a results. I tried to adjust inputs but nothing.
Remember that I was backtesting it on 15 years and EURUSD PF was 7-8 on such a long period. You may find a lot of such patterns but seemingly the ones that are of that kind of quality are rare and aren’t present on every pair with the same frequency either.
In my opinion you do not need to have AI robots to trade. with this one I am able to make huge profits, yet the principle is simple and I am sure no AI robot will ever compete.
By the way there are open source AI scripts you can use in anything and they can recognize pictures and compare them and describe them, really funny
People can give birth to baby and EA (program)
can do (generate) another program, such as for example Hlaiman EA Generator.
And, of course, this EA, as a child, be sure to train - it’s in the article.
There is some literature around that delves into the detection of certain well known patterns. Its been a while since I read it, but I believe Aronson's book Evidence Based Technical Analysis includes a study on the head and shoulders pattern. This paper - http://front.cc.nctu.edu.tw/Richfiles/15844-930305.pdf - also discusses several well known patterns.
If you want to go down the road of a price action automated system, it might be worth looking into machine learning. This blog post shows some interesting (and surprising) results. Intelligent Trading: Quantitative Candlestick Pattern Recognition (HMM, Baum Welch, and all that)
I actually did my own K-means for candle shapes but with several different methods to quantify the candles (his way didn't meet my needs). I wrote a small sequence analyzer as well which I created a thread for.
Man that some serious technical info formation, how do you even start to process that knowledge into something tandible?
'best
Darth
K-Means clustering is one of the most simple algorithms. Simply do a quick search on Google/YouTube and I’m sure you’d understand.
if you say so. lol i’ll take a look. Thanks for the info.
'best
darth
This is fantastic. Thanks so much for sharing with the forum, ClarkFX.
An EA needs an human mind to think and it cannot do anything itself, it has to be programmed to do certain function’s so it cant be made to think like humans.
There are certain things that computers can do better than humans.