How to Use One-day Candle Prediction

Addaptron Software provides prices prediction of major ETFs for the next day. This article describes one of the simplest algorithms to use prediction data. The algorithm consists of four simple rules:

1. Buy Limit order with predicted Low price is placed before market open.
2. The order is canceled if it is not completed during the first half of the market day.
3. Once order is completed, Sell Limit order is placed with predicted High price.
4. If Sell order is not completed until almost closing market, it is canceled and Sell Market order is executed just before closing stock market.

The following charts and tables demonstrate one of the practical examples of described above approach.

Predicted and actual prices chart (dark green and red filled candles – predicted, light green and red line candles – actual):

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Predicted and actual prices table:

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Intraday performance chart (actual prices) for the same period:

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The result of using the described algorithm. The example is based on the following assumptions: 100 shares are used for trading, transaction fee is $10 so that 2 transactions (buy and sell) within day cost $20:

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Another example (symbol BOIL) can be find here