Hello,
I am about 6 weeks into learning python. I work on learning python around 2 hours a day, taking online classes from different providers etc. I am trying to figure out how to build a backtest around the midpoint. So the midpoint would be initialized at 10:30 AM. Then if the market is above Midpoint and retraces within $2 of the Midpoint price the algo will buy and look for a profit of $6.00. If the market drops more then $2 past midpoint then it will sell for a loss. Then I want the same scenario to play out on the short side. The problem is I don't have the slightest idea how to do this on future contracts. Any guidance, suggestions or funny comments are welcomed. I am not looking for someone to solve the problem for me, just kind of guide me would be nice.
Just curious, how are you defining the midpoint? Is this done at 10:30 am by taking the midpoint of the high/low between 9:30am and 10:30am? What if the price is already extended past $2 of the midpoint, immediately buy/short, or would you consider that a missed opportunity?
Yes the midpoint is the 50% mark of high - low. It’s calculated from 9;30am-4;15pm est. I only want to start trading around the mid point after 10:30 am.
If it was not in the $2 zone then it’s an invalid set up, it only becomes valid once it has retraced to the midpoint $2.00 zone. Then that would trigger the order and would have a lmao order at $6 Mark and a stop loss of $4
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