Get Tability: OKRs that don't suck | Learn more →

2 strategies and tactics for Engulfing Pattern

What is Engulfing Pattern strategy?

Team success often hinges on the ability to develop and implement effective strategies and tactics. It's a bit like playing chess, except that you have more than 1 player on each side.

Crafting the perfect Engulfing Pattern strategy can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.

Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.

How to write your own Engulfing Pattern strategy with AI

While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI generator below or our more complete goal-setting system to generate your own strategies.

Engulfing Pattern strategy examples

You will find in the next section many different Engulfing Pattern tactics. We've included action items in our templates to make it as actionable as possible.

Strategies and tactics for creating an MT5 Expert Advisor with Engulfing Pattern Entry

  • ⛳️ Strategy 1: Define requirements and gather resources

    • Identify the specific currency pairs and timeframes for the EA
    • Determine position sizing and risk management rules
    • Gather historical data for the chosen currency pairs
    • Study algorithms for detecting engulfing patterns
    • Research MetaTrader 5 MQL5 programming language
    • Download MetaTrader 5 and set up a demo account
    • Find existing EA code samples for reference
    • Review examples of engulfing patterns in price charts
    • Ensure you have a reliable internet connection for updates
    • Create a folder to organise resources and research materials

  • ⛳️ Strategy 2: Develop the EA in MetaEditor

    • Open MetaEditor and create a new EA project
    • Program the EA to scan charts for the engulfing pattern
    • Implement entry logic to open trades based on pattern detection
    • Incorporate risk management with stop loss and take profit settings
    • Enable trade management functions like trailing stops
    • Include notifications for trade actions
    • Test the EA using Tester in MetaTrader 5
    • Validate accuracy in engulfing pattern detection
    • Debug and optimise the code for better performance
    • Document code, logic, and any assumptions made

  • ⛳️ Strategy 3: Backtest and optimise the EA

    • Select a range of historical data for backtesting
    • Run backtests on various timeframes to evaluate performance
    • Analyse results for profitability and reliability
    • Adjust parameters and logic based on backtest outcomes
    • Ensure the EA is diverse in market conditions
    • Test the EA on a forward test environment using a demo account
    • Monitor trade executions and patterns accuracy
    • Refine based on forward test performance
    • Ensure compliance with any broker rules and regulations
    • Prepare the EA for live trading deployment
trading-automationengulfing-patternsoftware-developerquantitative-analystdevelopment-teamtesting-team
Implement these strategies

Strategies and tactics for developing a Profitable Day Trading Strategy

  • ⛳️ Strategy 1: Adopt the EMA Pullback Method

    • Set up 9 EMA and 21 EMA on your trading charts
    • Choose assets that are highly liquid such as major forex pairs or SP500 futures
    • Monitor the 5-minute chart actively during the highest liquidity hours for your chosen market
    • Identify the trend by ensuring the price is above both 9 EMA and 21 EMA for a bullish trend
    • Wait for the price to pull back to the 9 or 21 EMA in the direction of the trend
    • Confirm an entry using volume spikes on breakout candles and bullish candlestick patterns
    • Place a buy stop order above the high of the pullback candle
    • Set a stop loss below the recent swing low or use 1.5x ATR for volatility adjustment
    • Establish initial profit targets at 1:1 risk-reward ratio and adjust as needed
    • Ensure total exposure to risk per trade does not exceed 1% of your account balance

  • ⛳️ Strategy 2: Utilise Effective Risk Management

    • Define your maximum risk tolerance per trade and systematically adhere to it
    • Set a daily maximum loss cap at 2% of your account balance to cease trading if reached
    • Implement position sizing methods to ensure capital preservation
    • Avoid trades during major scheduled news events to manage unexpected volatility
    • Utilise ATR to determine the appropriate market conditions and avoid low volatility trades
    • Confirm that higher timeframe trends align with 5-minute chart setups for consistency
    • Exclude trades in markets deemed to provide choppy or unclear signals
    • Define clear conditions under which you will avoid or limit leveraged trades
    • Backtest risk parameters on historical data and adjust accordingly
    • Evaluate overall performance monthly and recalibrate risk strategies if necessary

  • ⛳️ Strategy 3: Maintain Trading Discipline and Setups

    • Create a predefined trading plan specifying entry, exit, and stop criteria
    • Document every trade in detail for subsequent analysis and learning
    • Restrain from making impulsive decisions and overtrading throughout sessions
    • Monitor psychological aspects such as greed or fear which affect decision making
    • Focus only on high-probability setup opportunities termed as A+ setups
    • Commit to frequent review of strategy effectiveness and adaptability
    • Ingrain a structured routine to aid consistent and disciplined trading practices
    • Use mechanical aids like hotkeys to ensure swift execution during peak moments
    • Engage in strategy optimisation based on observed performance and market shifts
    • Develop coping strategies to manage emotional stress and minimise revenge trading
scalpingtechnical-analysisday-traderrisk-managertrading-teamrisk-management-team
Implement these strategies

How to track your Engulfing Pattern strategies and tactics

Having a plan is one thing, sticking to it is another.

Having a good strategy is only half the effort. You'll increase significantly your chances of success if you commit to a weekly check-in process.

A tool like Tability can also help you by combining AI and goal-setting to keep you on track.

More strategies recently published

We have more templates to help you draft your team goals and OKRs.

Planning resources

OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:

Table of contents
Copyright © 2024 Tability