Principle of Operation for REMINDEA
REMINDEA: Advanced Pattern Analysis and Trading EA
REMINDEA is a sophisticated Expert Advisor (EA) that employs advanced statistical methods, inspired by neural networks, to analyze and trade market patterns. The EA focuses on detecting patterns at the end of the chart and then searches for these patterns throughout historical data. It uses statistical analysis to evaluate the similarity of the detected pattern with other patterns found in the chart, and crucially, it incorporates the subsequent price movements following these patterns into a statistical forecast of future price action.
Key Functions of REMINDEA:
Pattern Detection at the End of the Chart:
The EA begins by detecting a pattern at the end of the price chart, which serves as a reference for further analysis. This pattern is defined by key price points, such as the open, close, high, and low of individual candlesticks.
Searching for Similar Patterns in Historical Data:
After identifying the reference pattern, REMINDEA scans the entire historical data series to find similar patterns that occurred in the past. This is achieved through the SerieDifference function, which calculates the difference between the reference pattern and other patterns in the chart.
Statistical Evaluation of Pattern Similarity:
The EA employs statistical methods to assess the similarity of identified patterns. If the error between patterns is below a predefined threshold (e.g., Pattern_Error_Value), the pattern is considered similar. This process helps to identify patterns that closely resemble the reference pattern.
In-depth Analysis of Subsequent Price Movements:
Upon recognizing a pattern, the EA not only records the pattern itself but also its continuation into the future. The identified pattern and its subsequent price movement are added to the input data set for further analysis. REMINDEA then performs a comprehensive analysis of how the market behaved following the pattern, including both the market’s dynamics and the price range as measured by the Average True Range (ATR). This analysis occurs in a normalized state, ensuring consistency and accuracy across different market conditions.
All patterns with an error below a certain threshold are analyzed using their Mean Squared Error (MSQError). The MSQError is calculated by taking the square of the difference between the observed and expected values, averaging these squares across all data points. The smaller the MSQError, the more similar the pattern is considered to be, and thus, it has a greater influence in the final statistical model. The weight of each pattern’s MSQError is factored into the analysis, contributing to the overall impact on the forecasted price development.
Decision-Making for Position Entry:
If the statistical analysis indicates that the future price action following the pattern is dynamic and repeats more frequently than usual, the EA may decide to enter a trade. It does so by considering the comprehensive statistical curves of the subsequent price movements.
Setting Take Profit (TP) and Stop Loss (SL):
Based on the statistical analysis, the EA automatically sets TP and SL levels to maximize profit potential while minimizing risk. The TP and SL are calculated with consideration of historical scenarios and their impact on price, ensuring that the EA maintains a strong risk management focus.
Strict Stop Loss Application at Trade Entry:
REMINDEA strictly applies a Stop Loss at the moment a position is entered, ensuring that risk is managed from the outset of the trade. This approach minimizes the potential for capital loss and protects the client’s account from unpredictable market movements.
Suitability for Advanced Users:
REMINDEA is designed for advanced and experienced traders who understand how to configure the EA according to their account size and risk tolerance. Proper configuration of the EA is crucial to optimize its performance and ensure that the trading strategy operates within the desired risk parameters.
This method allows REMINDEA to efficiently detect and trade market patterns, increasing the probability of successful trades while minimizing risk through careful application of TP and SL. With its foundation in advanced statistical analysis, REMINDEA offers a reliable and intelligent trading solution for those looking to capitalize on market patterns with confidence.
Advanced Description of REMINDEA EA and the RTSPattern-Profi Indicator
The REMINDEA Expert Advisor (EA) utilizes advanced statistical methods to analyze market patterns and their impact on future price movements. REMINDEA not only autonomously detects and evaluates patterns in the chart but also ensures consistent trading with strict risk management through Stop Loss (SL) and Take Profit (TP). Derived from this EA, the RTSPattern-Profi indicator allows users to visualize curves of probable scenarios based on the same principles employed by REMINDEA. This indicator can be downloaded and used to predict future price developments directly on your trading chart.
The RTSPattern-Profi indicator is independent of the EA, meaning that the EA does not require the indicator to function, and the indicator was developed specifically for research and visual analysis purposes. Additionally, the RTSPattern-Profi indicator currently displays lines for breakout strategies. Although this breakout method differs from the standard breakout approach, it shows great promise and can be a valuable tool for traders looking to capitalize on breakout opportunities.
Detailed Description of REMINDEA EA Functions:
- SerieDifference:
- Purpose: This function is crucial for comparing patterns in the chart. It calculates the difference between two series of price points (patterns) and normalizes these differences to identify similar patterns in historical data.
- Function: It takes two patterns (specified as indices in the chart) and calculates the average absolute deviation between them, including various price points such as open, close, high, and low, and optionally volume.
- MaxTimeserie and MinTimeserie:
- Purpose: These functions are used to determine the maximum and minimum prices that followed a detected pattern, which is vital for predicting future price movements.
- Function:
MaxTimeserieidentifies the highest price, andMinTimeserieidentifies the lowest price within the time period following a pattern. These values are then used to determine optimal TP and SL levels.
- ProcessCandles:
- Purpose: This function processes all candles in the chart, analyzes historical data, and determines whether to enter a trade.
- Function: For each identified pattern in the chart, it calculates the pattern error, determines whether the pattern is suitable for further analysis, and then uses historical data to predict future price movements. Based on these predictions, it decides whether to open a trade and sets corresponding SL and TP levels.
- DrawTPSL:
- Purpose: Used to visualize the Stop Loss (SL) and Take Profit (TP) levels on the chart, making it easier for the trader to monitor the strategy.
- Function: This function creates horizontal lines on the chart representing SL and TP levels and adjusts their appearance based on set parameters (color, line style, line width).
- OpenPositions:
- Purpose: To open trading positions based on the parameters calculated by the
ProcessCandlesfunction. - Function: It checks the number of open positions to ensure that the maximum number of trades is not exceeded. Then it opens new positions with the set SL and TP values. The function also ensures that the correct trade volumes are used and that all necessary conditions for entering a trade are met.
- Purpose: To open trading positions based on the parameters calculated by the
- EnsureTimeframe:
- Purpose: To ensure that the chart uses the correct timeframe for analysis.
- Function: This function automatically changes the chart’s timeframe to 10 minutes if it is currently set to a lower timeframe. This is important to ensure the strategy functions correctly.
RTSPattern-Profi Indicator:
The RTSPattern-Profi indicator, derived from this EA, is designed to visualize probable price scenarios directly on the trading chart. This indicator utilizes the same advanced statistical methods to detect and evaluate patterns, which are then displayed as predictive curves. The indicator is independent of the EA, meaning that the EA does not require the indicator to function, and the indicator was developed specifically for research and visual analysis purposes.
Additionally, the RTSPattern-Profi indicator currently displays lines for breakout strategies. Although this breakout method differs from the standard breakout approach, it shows great promise and can be a valuable tool for traders looking to capitalize on breakout opportunities.
Summary:
REMINDEA EA and the RTSPattern-Profi indicator are powerful tools for market analysis and pattern-based trading. The EA automates the entire process of detecting, analyzing, and trading based on statistical patterns, while the RTSPattern-Profi provides visual support by displaying probable scenarios directly on the chart. These tools are ideal for advanced traders who seek to maximize their chances of success through thorough market pattern analysis and disciplined risk management.
