Hey, everyone, and welcome in this new video.
In this video, I will show you how to create a strategy using support and resistance.
So first, I have created a signal column, which is full of zero and zero means that we do nothing.
So we will put some one if the strategy tell us today to take a buy order and minus one.
If the strategy tell us to take a sit order, so then we need to create all smooth resistance and smooth
super.
And this column is.
This line and this line.
So the smooth resistance will be this and this new super rules will be this because it will be very
difficult to walk with a lot of column and.
It will be very difficult to create a strategy using just this land, and it's possible to do it, but
it's a little bit more complex.
So to take this strategy easily.
We will use the smoke resistance and supports.
So now we need to treat all conditions, and the bay condition will be that if we cross that.
The resistance.
We will take a bite or two, and if we cross down the support, we will take a sell order.
This.
Strategy is not adept to forex daily data.
I just want to warn you, and I will explain you quite quickly.
But if you want to go deeper into the.
Real specificity and complexity of the data.
You can check.
The cruise cryptocurrency strategy or forex strategy or the YouTube video?
Technical analysis is garbage or not.
So if you want to truly understand that, I realize you to check one of these free results because
to explain you quickly, forex is just generally data.
It means that there is not a twin and no pro trend or a downward trend into the data.
For example, here we can see that when we go a little bit down, the price increases, then decrease
increase, decrease increase, decrease, increase decrease, etc..
OK.
Instead of, for example, Google or the Bitcoin, which all assets with a very approved twin?
OK.
And you can check also about assets with Donald Trump.
And.
Because of this different type of assets, we will not use the support and resistance as the same way.
OK, so it's very important to understand that when you use a technical indicators or price action strategy
like support and resistance, you need all the ways to understand.
What you do, you cannot go on YouTube.
Check Best Price Action Strategy, see that when you step to resistance, you need to take a bite and
a settled there when you cross down.
OK.
Because it doesn't work.
Always, OK.
For example, on the forex data, it doesn't work, and it doesn't work on the daily forex data they
important to.
I like this blunt, and that's why we will.
Nuts create the good strategy for the daily data, because the goal of this charter is to create a scalping
strategy.
It means that we will treat the strategy on data at the minute and the data at the minute.
Jen.
Take advantage of this little uproar movement, because it's really like a nipple train when we walk
at the meetings.
OK, so that's why we will use the support and resistance.
In the following way that I will detail, but if you want to walk daily, for example, you will not
choose to support the same way.
I will show you the difference in one moment, but if you really want to go deeper and you want to trade
forex, I really advise you to check these details.
I like this detail in my quotes forex strategies for algorithmic trading.
But you can check some of their video on YouTube, but it's very important to to check out, though.
Really, though, now we will trade by condition.
The bank condition will be very simple.
If yesterday the price was above the resistance and today the price is above the resistance, so we.
Plus, a certain threshold, a safety threshold.
OK, we will teach obey order.
For example, we trust the resistance.
And if the value is just here very, very close to the resistance, we will wait.
We will waive that.
The price is, for example, here to be sure that we don't have a lot of false signal.
So how can we implement that?
So we need to choose to condition.
First condition is that.
The closing price of yesterday.
Is.
Below.
The move.
Resistance of yesterday.
So we put the shift one to take the yesterday values, then we need to add another condition.
And the other condition will be that the smooth resistance.
Must be below.
The cruise price and we have our safety official, so to admit it's very simple.
You just need to multiply.
The value.
By one place, the percentage of the safety threshold in this case, 0.5 percent.
And if this.
Is.
Below.
The cruise price, then we take a buy condition, and for the sell condition, it's exactly the same
pink, but we need to put the opposite way and obviously we need to put the supports.
And here for the safety, sure, you also need to adapt it.
OK, if you need to multiply by one point zero five zero zero five ZOE to apply a safety official here
if we take.
This report and multiply it by zero point.
By one point, you will you will five, we only have a safety position here.
OK, so we need to have a safety threshold here, so we need to remove five percent and that has the
five percent very important.
So if the cruise price of yesterday.
Was above the supports and today is below the support plus the safety threshold, then we will take
the Senate order, so I will just take it because I have.
Made a little mistake.
So here is a resistance, so we need to have first the cross below and then the cross price above.
But it's true because I have put the two column in the opposite way, so it's good.
And here we just need to put this and.
It's also good.
So if.
So here we just have a little issue.
So it.
We just need to have a parenthesis here.
And to remove this one.
OK, so and the same ship.
So he said it's always a little bit.
Tricky when I needed to.
Major occurred in life, and I want to do it because I want to show you that even if I know what they
need to do some things, we can make some issue, some error, some mistake when we could.
And it's important to understand it because when I was a beginner, I.
Fruit that.
If you make a little mistake, it means that we don't know how to code, you need to improve your skills,
etc. But it's not true.
You just need to.
Correct your mistakes.
So then I will show you how to compute the percentage.
Of profits of strategic.
So first, we need to compute the percentage of variation of the assets.
As we take us on the line.
So here is a you, you can see.
And then we need to.
Take so first, the person to change, and we will multiply this percentage by this signal.
And very important, we multiply the signal shifted by one rope.
And why do we need to do it?
We need to do that because we walk with the cruise price.
What does it mean?
It means that if we walk on the cruise price, if we want to stimulate a little bit the reality, for
example, the market open at seven a.m. and close at seven p.m. OK.
It means that we will take all.
Decision or investment decision?
At seven p.m..
OK.
But if we take our decision investment at 7pm, we cannot tell that the retail strategy of today is
the variation from seven a.m. to seven p.m. multiply by the decision that we have taken at seven p.m..
OK.
It's really nonsense.
So you need to take.
The signal of yesterday at seven p.m. and multiplied this signal by the variation of today from seven
a.m. to seven p.m., that's why we need to put this shift and then we can close.
There are results, though, as we can see, we don't have any position, so.
It seems very real, so I need to.
To check.
OK.
So because it's.
Truly impossible that we don't have any.
Position, because here we can see that we need to be in position.
OK, so well, it puts the zero fresh to be sure that it's not this.
That's.
Was to have.
Zero position.
OK.
So as we can see, it was all fresh, and that is to argue that we will.
Just.
Puts the Zebo OK, but for the following of this.
Chapter, I will put in the automated Asian function 0.5 because it's very, very important to have
a safety threshold.
And then I wanted to.
I let you another specificity.
Here we take day by day, so if we trust the resistance, we will just be in position one day and usually
the.
Resistance and support strategy need to be in position.
Many Candlestick, if you work with Minute, you need to be many millions because.
If.
You.
Take only one day.
It will be a very.
Big noise in your region strategy, and if you take, for example, five day, you will have less noise
and usually in my experience, if not a financial advice, but the profits will be more.
Big.
OK, so the perfect will be bigger.
So.
How we can simulate that we are in position several date.
It's very simple, so I will just do a copy paste and I will explain you this line of code.
So here, when we want to take one day before we take a percentage shift by zero and a signal shift
by one because we want to take one day before, if we wanted to take two days before.
OK, we need to do.
She percentage shifts by one percentage shift by two, multiplied by signal, shifts by two.
OK, so following this.
I will just put.
This as the comment.
We can use.
And look, OK.
And it will be very, very simple to understand this loop.
OK, we'll just create this some of the percentage percentage from and they before today too to date.
OK.
And then we need to put the signal shift by the duration.
And here it's very important to not begin the orange one because we need to have that shift.
Zero zero is equal to the value of today.
And as Biden begins to comes from zero, it will be very useful to in this case because.
We will take the percentage from zero to and minus one.
And it's exactly what we need to have, because if an easy world to chew here, we can see that we have
zero and one.
So from zero to and minus one and the G8, the shift of the signal is equal to the duration.
So as we can see, we don't have a good profit, and I explain a little bit why in the beginning of
this video, but I would advise you to check about it because it's a very, very interesting process
and a process that you need to muster if you want to really rule on algorithmic trading.