Trendlines

Active Trader can work with trendlines the user draws in the chart and
Active Trader can plot own trendlines.

User drawn trendlines 

In live trading or in visual backtests set PanelButtonSize (at bottom of the settings) to a value from 1 to 8 to see 3 buttons in the left upper corner of the chart.

If Trendl is pressed trendlines in the chart can trigger or close trades. If Alert is pressed an alert can be triggered by a trendline. The names al1 or al2 or al3 or al4 trigger an alarm when the price reaches the trendline. According to the settings a popup, email or push alarm will be sent.

A double click on the trendline marks it, then with a click on the right mouse button select Trendline properties. A popup window opens. Give the trendline the property you want as name.

The name ‘sls‘ makes a line a StopLoss line. When Active Trader detects the line it shows in the chart how many points distance the price has to trigger the (hidden) StopLoss.

When the order was closed at the StopLoss line Active Trader shows in the chart at what price it was triggered.

The Trendline properties shows now as Description: done. The trendline doesn’t work anymore as StopLoss for sells with the ‘done’. To use the line as trigger again the ‘done’ must be removed.

Here the trendline was named ‘slsc‘, so it closes the order only if the close of a candle is above the line.

  • Possible names for trigger lines:
  • slb – closes a Buy when the price reaches the line – the price must be above the line.
  • slbc – closes a Buy when the close is below the line- the price must be above the line.
  • sls – closes a Sell when the price reaches the line – the price must be below the line.
  • slsc – closes a Sell when the close is above the line – the price must be below the line.
  • buy – opens a Buy when the price reaches the line – the price can be above or below the line. That is like a hidden BuyLimit or a BuyStop order.
  • sell – opens a Sell when the price reaches the line – the price can be above or below the line. That is like a hidden SellStop or a SellLimit order.
  • buyc – opens a Buy when a candle opens below the line and closes above the line – like a hidden BuyStop after close order.
  • buyc also opens a Buy when a candle opens above the line and closes below it – like a hidden BuyLimit after close order.
  • sellc – opens a sell when a candle opens above the line and closes below the line – like a hidden SellStop after close order.
  • sellc also opens a Sell when a candle opens below the line and closes above it – like a hidden SellLimit after close order.

Note: Trigger lines work in visual backtesting but alert lines can’t trigger alerts in tests.

Trendlines generated by the Active Trader system

The setting DrawTrendlines sets the mode how Active Trader plots trendlines. Set to 1 it starts drawing a line from the high of the day before to the current highest high of the day. The same it does with the lows. To find later high and low of a day Active Trader marks them with short blue and red lines.

This is what you see after a while starting a backtest on Tuesday 2. Jan. 2018. Active Trader is prepared to show in a backtest how to trade with the lines it draws.

The prepared backtest is shown if you set ‘2018’ in the setting TestFilterBuy (last setting). The test shows an example for after-work-trading. The trader looks at the chart in the evening between 18 o’clock to midnight.

On Wednesday 3. Jan. the trader renamed above shown trendline to buyc. A buy is triggered if a candle closes above it. In the test the line is red now. A text shows how much distance the current price has to reach the line.

Next day Thursday in the morning 2 candles reach over the line but still no buy is triggered as none of the candles closed above the line.

The candle that started at 11 o’clock closed above the red line. At 12 a buy was triggered.

At about 5 p.m. the trade is closed with profit by Active Trader.

At 6 p.m. Active Traders main strategy triggered a sell trade.

At about 4:20 p.m. the sell is closed with profit. It is Friday now.

The next week Monday at 6 p.m.
Active Traders main strategy triggered another sell trade that is still open. The trader renamed the line through todays and Fridays high to buyc. The line is red now, a text shows the distance.

Wednesday at 3 o’clock in the morning the red line triggered a buy trade.

At about 12:40 the buy trade triggered by the red line is closed with profit.

This is what a backtest for 2018 shows as prepared trendline trades until now. That will be continued. But the backtest for the rest of 2018 is prepared with yellow and clear blue lines for you. The lines mark good opportunities to learn using trendlines as buy or sell triggers.

The setting DrawTrendlines sets the mode how Active Trader plots trendlines. Set to 2 it starts drawing a line from the high two days before to the current highest high of the day. The same it does with the lows.