00:00Hello, this is Andrew Palladino and I'm here to explain the Five Candle Mastery Indicator in TradingView.
00:08So, I currently have two versions of the indicator.
00:13One of them has a built-in system where you'll actually see buy and sell signals
00:23and you'll be able to adjust the risk and also a forward test.
00:30And another version is the indicator alone with no buy and sell signals.
00:36So, currently you're seeing the strategy version, the system.
00:41And here is a very good example of how the indicator works.
00:47As soon as you get a fractal high in this case, you will see the indicator will wait five bars
00:59and if the signal is still valid, you'll get a green vertical bar, meaning there's a buy setup.
01:08But in order for it to trigger a buy, it needs to break above that fractal.
01:14And it did. It bought 7,759 units and it closed here.
01:24And the close at the moment is based on the red moving average.
01:28So, it will close as soon as price crosses below that red moving average.
01:34Okay.
01:35And let me kind of go over the inputs here.
01:41So, you can turn off the alligator lines if you don't want to see them, the moving averages.
01:48That should have worked.
01:56Should have worked alligator lines.
02:01That's interesting.
02:19For some reason, when I had both of them on there, it wasn't working correctly.
02:23You only want to have one indicator, like one of them on a screen.
02:30So, you're either going to use the five-candle mastery system or the five-candle mastery indicator.
02:37In this case, I'll be demoing the five-candle mastery system.
02:40So, you can turn the alligator lines on and off.
02:49You can change the simple moving averages to exponential moving averages if you want.
02:58And you can also change the moving average periods.
03:05I just decided to add that in there just for additional flexibility.
03:11You'll see that for some of these pairs, the indicator may not, these moving averages may not be ideal because
03:22of the volatility of the pair.
03:23So, you may want to adjust those a little bit.
03:25But that's all user preference, really.
03:28So, these are the current input parameters the user can change.
03:37If you go to properties, this is everything related to the strategy.
03:42So, you can change your initial capital.
03:46You can pyramid, meaning currently it's defaulted to allowing only one order.
03:53But if you wanted to, for example, take two, three, four orders, where you may have multiple setups occurring while
04:05you still have the first order open.
04:09That will allow you to take, to basically add on to the position.
04:14Currently, it's just defaulted to one.
04:17Down here, you can set the order size, right, currently is set to 10% of equity.
04:24So, basically, for every single position, I am trading 10,000 units of that particular pair.
04:44Down here, and I haven't really played around with these, but you can add slippage and commission, you can add
04:53commission also as a percentage, or per order, per contract.
04:58You can change this as well.
05:00You can make this contracts, US dollar, or percent of equity.
05:05Currently, it's just defaulted to percent of equity.
05:08Style, I think style is important, because you can, what you can do here is, actually, you can, yeah, you
05:16can uncheck any of the moving averages individually.
05:22You can make the moving averages thicker.
05:26You can change the transparency of the moving averages.
05:30And you can do that on all the other indicators that are displayed on the plot.
05:35I mean, some people may find this a little too busy, so they may want to maybe reduce the transparency
05:44on the buy line and on the sell line.
05:47That could be, you know, a way to declutter the chart a little bit, but still see the lines, you
05:56know, and they're just a little more faded.
06:00You can change the fractal, you know, it can, it can be above, below bar, you can change the, the
06:09way the fractal looks.
06:11So, this is all standard trading view properties.
06:18So, this is a good example of a buy trade.
06:23Let me just show you one more thing here.
06:27This is a strategy tester.
06:29So, this only works for strategy.
06:32If you click on strategy tester, you can see how the indicator performed in, in the past, in the recent
06:39past.
06:41And how far the, how far it goes back really depends on the time frame you're on.
06:47So, for the 60-minute chart, seems like it goes back all the way to 2015.
06:53And, uh, you, you can see all the trades it took, uh, performance summary, you know, this is just standard
07:01statistics on how the strategy performed for a particular setup.
07:07So, this is why I like the strategy part, uh, how, like to integrate strategies because you can kind of
07:14see how the indicator performed, uh, over time on a particular pair, um, uh, disclosure.
07:22It, they're just not going to, it's not going to look this pretty for all the pairs, um, you know,
07:27we could cycle through and, and, and kind of see, but, you know, most of the pairs, there's, like, this
07:35indicator.
07:36It's, I mean, obviously, it's, it's a system that's, that's going to, uh, perform really well in trending markets.
07:41But as soon as, as soon as markets go sideways, uh, you may get a lot of false entries, a
07:47lot of stopouts.
07:48Um, I think it's, it's, it's expected, but it's, it's doing it, you know, it performs fairly well in most
07:57indicators.
08:02Um, so let me just kind of go through most of these pairs.
08:11All right, so let me see if I can find a short example.
08:14So this is a short entry that didn't, that got stopped out.
08:18So we have a fractal low here.
08:21It weighted five bars on a fifth bar.
08:25It gave me a red bar, meaning, um, there is, there could be a setup.
08:30And then, uh, and then, uh, and basically we're, at this point, we're just waiting for the trigger, for the
08:39triggered entry, which is a sell at the, uh, fractal low.
08:45And, uh, in this case, we got stopped out right away as soon as price crossed back, um, above the
08:55red line.
08:56So there are going to be instances where you will only see the red line.
09:02And what that means is, uh, the setup was there, but it never triggered.
09:07Okay.
09:08So in these cases, uh, you know, the setup just never triggered.
09:12You never got that break above.
09:14You never got that break below.
09:16Uh, this is another, um, another example where, you know, it was looking for this fractal low here, the setup
09:26triggered here.
09:28But I mean, the setup, uh, there, there was a setup here, but it just never broke down.
09:33Uh, this is an example of a.
09:37A buy that got stopped out fairly quickly, uh, setups that never triggered.
09:52Uh, this one here is a short that didn't, yeah, these are shorts that failed.
10:01So, yeah, I mean, you're going to get a lot of stopouts with this system, but I think the important,
10:07part of it is being able to get, you know, trends, this, this could have been a really nice setup.
10:19I'm not sure why.
10:20I, oh yeah, this didn't trigger because price, um, dropped below this moving average here.
10:27So it kind of canceled, it canceled the setup.
10:30Um, so, that is about it.
10:39That is about it.
10:41I think I've covered everything.
10:43Let me know if you have any questions.
10:45Let me know if you have any questions.
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