[QUESTION] - Can You Have An Edge With Simple Candlestick Patterns?

[Tradex]

too easy.
some want to look and look and look some more.
lol

I hear you!

Most traders believe that trading HAS to be complicated.

For example, they believe that a 20-day breakout confirmed by a simple moving average CANNOT possibly be a profitable strategy, it's too...easy!

In reality, one can earn a very comfortable living with VERY simple trading setups.

 

[easymon1]

20-day breakout confirmed by a simple moving average

got any screenshots? put 'em in here if you wanna.
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-14#post-5139712

 

[Tradex]

got any screenshots? put 'em in here if you wanna.
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-14#post-5139712

I will EasyMon1.

The 20-day breakout technique was used by the famous Turtles in the Futures market.
They made out like bandits with this simple system, to the tune of $100 millions.

 

[GotherL]

because backtesting and simulator do not involve issues that impact your trade performance in comparison to real money.

Take away the mental aspect and everyone believes they have an edge or million dollar formula.

 

[EsKiller]

I just did a little bit of manual backtesting on the ES intraday 5 min charts testing a simple strategy I put together looking at engulfing patterns.

The strategy looks decent, and from what I can see so far looks to give some good trades on both sides of the market, however, I feel like a simple candlestick pattern like this overlayed with another indicator is way too simple and cannot possibly provide an edge long term. Maybe I am getting in my own head because it's so simple but I feel like there is no way you could use something as simple as this to trade the ES.

Sorry if this is way stupid but I'd really appreciate some input from those of you who day trade.

candlesticks alone will not give you an edge. But use enough filters on something like an engulfing pattern and you can find edge.

I rarely enter at engulfing patterns in ES. If a candle engulfs, I will have already been in the trade or I am completely out. I don't like to take price risk. I prefer taking information risk. Read up on the difference.

 

[easymon1]

unbelievable
dblbot

 

[easymon1]

unbelievable
dblbot

 

[easymon1]

dblbot

dbl bottom, the 30m version, different price action method targets

dbl bottom, the 300m version, different price action method targets

 

[MiscMitchelroger]

Candlestick pattern is a good strategy but at the same time it’s complex also. One needs to be very experienced for using this strategy and it may not give the same results every time. Strategies need to be changed as per the situation.

 

[ges]

No.