PAT Automation: Entry Conditions

The PAT Automation allows users to create, backtest, and automate strategies using features from the Price Action Toolkit. This article explains how each entry condition functions in the PAT Automation for building long and short strategies.

Steps Explained

Before you create a strategy, it's important to understand how to use steps. Within the PAT Automation you can create long and short entry conditions which are triggered when a certain set of criteria are met while following an order.

Consecutive Steps

If you’re creating a strategy with three steps, you can set your conditions in order as Step 1, Step 2, and Step 3.

If your strategy only requires two steps, but one step can be met by either of two conditions, assign both conditions to the same step. For example, if Step 1 can be satisfied by detecting either a Fair Value Gap or a Breaker Block, both conditions should be labeled as Step 1. In short, assigning multiple conditions to the same step means the step is satisfied if any of those conditions are met.

Entry Conditions

The PAT Automation can use the following conditions for entry conditions.

Order Block (OB)

• Detection: Triggered when an Order Block forms or is detected

• Retest: Triggered when price retests an Order Block. A retest is confirmed when a candle enters an Order Block and closes outside of it.

• Retracement: Triggered when price touches an Order Block

• Break: Triggered when an Order Block is invalidated by candle close or wick, depending on the user's input.

Breaker Block (BB)

• Detection: Triggered when a Breaker Block forms or is detected

• Retest: Triggered when price retests a Breaker Block. A retest is confirmed when a candle enters a Breaker Block and closes outside of it.

• Retracement: Triggered when price touches a Breaker Block

• Break: Triggered when a Breaker Block is invalidated by candle close or wick, depending on the user's input.

Fair Value Gap (FVG)

• Detection: Triggered when an FVG forms or is detected

• Retest: Triggered when price retests an FVG. A retest is confirmed when a candle enters an FVG and closes outside of it.

• Retracement: Triggered when price touches an FVG

• Break: Triggered when an FVG is invalidated by candle close or wick, depending on the user's input.

Inversion Fair Value Gap (IFVG)

• Detection: Triggered when an IFVG forms or is detected

• Retest: Triggered when price retests an IFVG. A retest is confirmed when a candle enters an IFVG and closes outside of it.

• Retracement: Triggered when price touches an IFVG

• Break: Triggered when an IFVG is invalidated by candle close or wick, depending on the user's input.

Break of Structure (BOS)

• Detection: Triggered when a BOS forms or is detected

Change of Character (CHoCH)

• Detection: Triggered when a CHoCH forms or is detected

Change of Character Plus (CHoCH+)

• Detection: Triggered when a CHoCH+ forms or is detected

Volume Imbalance (VI)

• Detection: Triggered when a Volume Imbalance forms or is detected

Equal High (EQH)

• Detection: Triggered when an EQH is detected

Equal Low (EQL)

• Detection: Triggered when an EQL is detected

Buyside Liquidity Grab

• Detection: Triggered when a liquidity grab occurs at Buyside Liquidity (BSL).

Sellside Liquidity Grab

• Detection: Triggered when a liquidity grab occurs at Sellside Liquidity (SSL).

Timeframe Conditions

The PAT Automation supports Multi-Timeframe (MTF) features, just like the Price Action Toolkit. When setting an entry condition, you can also choose the timeframe.

To set up MTF conditions, navigate to the 'Timeframes' section in the settings, select your desired timeframes, and enable them. You can choose up to three timeframes.

Once you've selected your timeframes, you can use them in your strategy. When setting long and short entry conditions, you can choose from Timeframe 1, Timeframe 2, or Timeframe 3.

Based on the image above, the timeframes correspond as follows:

• Timeframe 1: Chart

• Timeframe 2: 4 Hours

• Timeframe 3: 1 Day

External Conditions

Users can use external indicators on the chart to set entry conditions.

The second dropdown in the external condition settings allows you to choose a conditional operator to compare external outputs. Available options include:

• Less Than or Equal To: <=

• Less Than: <

• Equal To: =

• Greater Than: >

• Greater Than or Equal To: >=

Here is an example of the external condition being set for price closing above an Exponential Moving Average (EMA).

Session Conditions

The PAT Automation allows traders to choose when to execute trades and when not to execute trades.

Only Take Trades

This setting lets users specify the time period when their strategy can open or execute trades.

Don't Take Trades

This setting lets users specify time periods when their strategy can't open or execute trades.