Strategies / Pattern / Candlestick Pattern Signals

Candlestick Pattern Signals

Buys when any listed bullish candlestick pattern completes, such as engulfing, hammer, morning star or three white soldiers, and closes the long when a bearish pattern completes. No stop or target is set.

PatternLong onlySwingDAX 40Daily

1.74Profit factor

23,151Net profit EUR

54.02%Win rate

398Trades

-4,199Max drawdown

58.17Avg trade

Best run of 13. DAX 40, Daily, spread 3, from run pf:2026-10-13-DAX40-D.tsv:1.

Entry rules, long

Signals are only checked after bar 5.

Exit rules

No stop or target is set.

Test conditions

Period	Up to 2026-10-13
Instrument	DAX 40, Daily
Spread	3 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-13

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	Daily	1.74	398	54.02	23,151 EUR	-4,199
Nasdaq 100	4 hours	1.37	1,032	48.26	19,704 EUR	-2,781
EUR/USD	5 min	n/a	6,287	37.98	83,779 USD	-78,437
Nikkei 225	4 hours	n/a	768	46.88	27,260 USD	-10,504
Dow Jones	Daily	n/a	384	52.60	22,828 EUR	-8,298
Nasdaq 100	Daily	n/a	402	48.01	17,643 EUR	-7,076
Dow Jones	30 min	n/a	2,615	47.11	14,238 EUR	-9,406
DAX 40	4 hours	n/a	930	49.03	6,839 EUR	-6,440
Nasdaq 100	1 hour	n/a	3,583	43.87	5,594 EUR	-5,171
S&P 500	Daily	n/a	428	52.80	3,224 EUR	-1,543
S&P 500	4 hours	n/a	926	50.00	2,883 EUR	-1,029
Gold	4 hours	n/a	931	48.44	2,503 EUR	-1,239
Gold	Daily	n/a	419	49.64	2,085 EUR	-846

Charts

Results by run

Top 10 of 13 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Candlestick Pattern Signals
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

34 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Candlestick Pattern Signals in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 13 market and timeframe combinations. The best run was DAX 40, Daily, with a profit factor of 1.74 over 398 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,199 EUR at the tested position size, against a net result of 23,151 EUR.

Does it trade long, short or both?

It only takes long trades.

Heikin Ashi Color Flip

Best run on the same market, DAX 40.

1.12 PF · 3,692 trades

Stochastic Reversal With Smoothed RSI

Also a pattern strategy.

1.68 PF · 316 trades

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs