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Author Topic: Feature Request: Use Closed Candles (Buying)  (Read 354 times)

Offline StarterUser

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Feature Request: Use Closed Candles (Buying)
« on: December 08, 2020, 11:40:22 AM »
EDIT: I have edited this to match what's on the Github AMA.

I had an idea for a new feature on the BBTA strategy, when buying.

It could be called something like:
Use Closed Candles
(With on/off toggle).

At the moment, BBTA trades in real-time, in other words it will buy on an open candle if there's a price reversal.

One thing I realised about that is, the price can drop under the low BB, then rise again during that same
open candle, which triggers a buy - but then the price could drop again after you bought - which can lead
to ending up in a losing trade and hitting your stop limit.

The "Use Closed Candles" BBTA feature would behave like this, the rules are logical and simple:

Buy cycle starts when:
The previous candle closed under Low BB.

Buy actually happens when:
The price reverses and goes above Low BB, which could be on the current open candle, or any future candle (usual BBTA behavior).

It could also work that same way (in reverse) for selling too, with it only starting a sell cycle after the previous candle
closes above High BB and then actually selling when the price drops under High BB.

Using a feature like this when buying would certainly be useful. I have looked back on the BTC chart and seen the
proof of that. This feature would prevent getting stuck in bad trades, many many times. Examples of this are shown
in the 2nd and 3rd image links below.

If this feature could be enabled, the faster the price drops, the safer you would be in terms of avoiding a bad buy.

I have used 15m charts in all images below, but the principle is the same on all time frames.

The important thing about this feature would be that it ignores a price reversal on the current open candle.
This would stop a buy being triggered when the price might rise above Low BB, then drop below Low BB on the same
open candle - which is the standard way BBTA behaves when buying.


Here's an image to explain how this "Use Closed Candles" feature would work:
https://i.imgur.com/V33PlJn.png

Here's a real world example showing where BBTA bought before a price drop.
This buy would have been prevented if "Use Closed Candles" was in use:
https://i.imgur.com/xY0uU6Y.png

Here is another example:
https://i.imgur.com/lLepYXQ.png


In the last few days I hit my (5%) stop limit twice, causing a loss of 10%, but if this Closed Candles feature were
available in the BBTA strategy settings, one of those buys would have been avoided.

Imagine the difference this could make to profits if, half the time, it could keep you out of a losing trade :)

Of course it's impossible to avoid a bad trade every time - but it would be avoided on many occasions.

Cheers.
« Last Edit: December 12, 2020, 08:50:10 AM by StarterUser »

Offline Aitor

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Re: Feature Request: Use Closed Candles (Buying)
« Reply #1 on: December 09, 2020, 12:09:54 PM »
I had an idea for a new feature on BBTA when buying.

It could just be called:
Use Closed Candles

At the moment, BBTA trades "live" as in, it will buy on open candles.

The price can drop under the low BB, then rise again during that same open candle, which triggers a buy, but then
the price can drop again. This can sometimes lead to hitting your stop limit, if the price keeps dropping.

I came up with a slightly different way to help avoid hitting the stop limit as much.

The "Use Closed Candles" BBTA feature would behave like this, the rules are logical and simple:

Buy cycle:
- Previous candle closed under Low BB, enter buy cycle, but do not buy yet.
- Buy as soon as the price touches Low BB, on the current open candle.

Sell cycle:
- Exactly the same as it is now.


Other points:

An important part of this feature would be: It ignores a price reversal on the current open candle.

This would stop a buy being triggered when the price might rise above Low BB, then drop below
Low BB on the same open candle (which is the usual BBTA behavior).

An example of this is shown in the 2nd image below. It shows the BTC price on 8th Dec 2020.


Here's an image to explain how this "Use Closed Candles" feature would work:

(image might be cut off, please open in new tab)




Here's an example showing how BBTA bought before a big price drop. If a "Use Closed Candles"
feature was in use, it would have prevented the bot buying before the price dropped...

(image might be cut off, please open in new tab)




If this feature were possible, I would enable it in a heartbeat!

Cheers.

Hi StarterUser, thanks for sharing this interesting post. Note that this is not the place to make this kind of requests. If you want, send me a PM and I will point you to the right way to do it.

Offline StarterUser

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Re: Feature Request: Use Closed Candles (Buying)
« Reply #2 on: December 09, 2020, 12:46:55 PM »
OK sorry about that Aitor, PM sent.

EDIT: I have added the request here:
https://github.com/GuntharDeNiro/GunbotAMA/issues/93
« Last Edit: December 12, 2020, 08:21:51 AM by StarterUser »