• Mona Sutherland posted an update in the group Group logo of Pattern TradersPattern Traders 5 months, 2 weeks ago

    Hi Pattern Traders!

    Does anyone use a rule for max number of bars between any 2 consecutive points? Especially for backtesting?

    I’ve just backtested the Cypher on the Daily (with the help of Enigma) for NZDUSD, and I’ve made a rule to not use if they take more than 60 bars to complete.

    I’m starting on the EURUSD and there are some enormous Cyphers that I want to eliminate. The default setting on Enigma is 100, and I’m thinking of putting 20…


    • Hey Mona, i have a rule that i do not have more that 250 candles on my chart whilst testing, so if the whole pattern is more than that its invalid. i also have a 2 candle or more rule for my X-A & A-B. Hope that helps

      • Thanks Nicky! Is there a setting to implement that? I checked properties on MT5 and am not seeing something similar.

      • Hi again!

        Question… What timeframe do you trade? I backtested the Cypher on the EURUSD and NZDUSD on the Daily and SO many A-B were just 1 candle or the very next candle… I actually tracked it… For the EURUSD, of the 46 trades I recorded from 2000 to now, just 4 had 2 or more candles between A-B.

        Also, how did you decide on the 2 candle rule? The 20 I came up with a bit arbitrarily… Kind of based on what I’ve been seeing.


    • Hey Mona, I am testing the 240 at the moment. The reason i came up with that rule is because i dont see a single candle as a impulse/anchor leg, so if i came up with that rule i then i can back test consistently with what i need to identify as a leg. The B leg rule may also get scrapped (too early to know yet) as i do see spikes up to the 382 fib and go on to hit targets but right now im just collecting data. In regards to the size of the chart i use the ruler tool and just measure my screen. Also on the the single candle for the A leg if thats what you see and its profitable i wouldnt deny it based on my rule, its pretty much down to the individual. Hope this helps

    • Hi, Im using 30bar rule for the whole pattern, I have seen when it is greater than 80/90 it gives better entry and then only look for reaction till same width of the pattern.