Backtesting Candlestick Patterns in Python

Learn to programmatically identify common candlestick patterns using TA-lib in python, and backtest a strategy composed of such patterns in VectorBT.

⭐ Code:

Blog link (with code):

How to install TA-lib on windows:

For mac / linux:

[ibkmkhf]

Thank you for the video. I learned a lot from you. Time stood still when watching the video.

[izem]

Keep on going mate, your videos are precious resources!

[rnalgotrading]

Thanks for the video Chad, Really appreciate for sharing this.

[thomastthai]

Thanks for the video! Upward and downward trends, which these candlestick patterns rely on, weren't considered along with the candlestick pattern in the backtests. That may have an impact on the outcome.

[more_yasnotsi]

Hey Chad, thanks for your videos! Could you PLEASE make a tutorial on analyzing bitcoin node data using python without any remote APIs? Like when I have a full node on my computer. Youtube is silent on that, and frankly the docs are pretty vague for me as well. Thank you!

[memo]

Hi, if i want to pass logic for buy at high price for previous candel?

[jal]

I'm looking for something that allows me to plot lines (MAs, whatever) and marks for signals and text. And also something that I can zoom and scroll. Does any chart librarly allow that kind of stuff or all they "all at once" like it looks here?

[davidmilligan]

ok i have a dumb question on candle stick pattern recognition why do some candle stick patterns when being tested preform better when you reverse them ie: piercing pattern normally gives a bullish or bearish signal but if you back test it and set it so that the bullish signal is a buy order you will horrible results but if you set the bullish signal to sell instead you get a rediculous high win rate i did this experiment on eth/usdt by the way, am i missing something here or is this the difference between stocks and crypto?

[orikahmadov]

the problem is, this talib library somehow did not work on windows.. It would have been better, if you could also demostrate installing it.

[jroche]

How do you get the signal to reflect the following day ie trading stocks not crypto?

[i_bench_]

Shouldn't you be buying on the Open price?
I think vbt shifts the values so you'd be buying on the open after the signal

[kirill.yudkin]

Great video, but I personally think that using candles for trading is for witches & wizards. I just use my computer...

[FahadSaqer-lnjc]

After watching few of your videos I can say as usual in most of your videos using an almost impossible packages to install while using the words simple and easy !!!! this comment is written after trying provided solution link for ta-lib and many other solutions from online sources + vectorbt refuses to install and giving many error messages including not compatible with the new python teaching "beginners" is useless when you use vim and nightmare packages.

[MrRahul]

Your name sounds pretty much Maharashtrian

[JTutorials]

*Google Colab:*
!pip install vectorbt
!pip install yfinance
!pip install talib-binary