SPX Trading Strategy for ThinkorSwim

[iAskQs]

@babouin77 If you look at the candles, the TS_MACD_BB line, and the moving averages, you will notice that they are showing lackluster momentum... There is little gap between the first positive dot of the TS_MACD_BB and it didn't improve by the second dot, followed by a decline... The same goes for the candles themselves, and the angle of the moving averages... Just not enough momentum and it died off rapidly, pulled back, and then never took off... Nobody wants to enter an languishing scalping trade... We want it to take off, make us some profits, and allow us to exit before momentum diminishes... That momentum just wasn't there...

Good points. I've been looking through many days to observe what works, and the angle of the macdbb is important. If it looks like it's moving sideways, or close to it, then it's probably not a promising trade.

 

[Hypoluxa]

If u were to refer to edit setting of MACDBB, there is a price input. That is the price I was referring to. Did u choose the default or ... ?

Its set to "close".

 

[babouin77]

@babouin77 If you look at the candles, the TS_MACD_BB line, and the moving averages, you will notice that they are showing lackluster momentum... There is little gap between the first positive dot of the TS_MACD_BB and it didn't improve by the second dot, followed by a decline... The same goes for the candles themselves, and the angle of the moving averages... Just not enough momentum and it died off rapidly, pulled back, and then never took off... Nobody wants to enter an languishing scalping trade... We want it to take off, make us some profits, and allow us to exit before momentum diminishes... That momentum just wasn't there...

i understand the concept but I am trying to understand in the code what filter kept us out and id not trigger a confirmation... is it macd dots of the current bar less than the previous one? is that it?

 

[rad14733]

i understand the concept but I am trying to understand in the code what filter kept us out and id not trigger a confirmation... is it macd dots of the current bar less than the previous one? is that it?

Ok... If you are referring the the code posted by @barbaros I don't use it and haven't tested his recent updates since early last week... Perhaps he'll chime in to clarify that aspect...

 

[babouin77]

Ok... If you are referring the the code posted by @barbaros I don't use it and haven't tested his recent updates since early last week... Perhaps he'll chime in to clarify that aspect...

yeah @barbaros if you can chime in and let us know what filter kept us out of that trade that would be great.

 

[barbaros]

yeah @barbaros if you can chime in and let us know what filter kept us out of that trade that would be great.

I believe it's both the BBCrossInBars and BBCrossDistance. Both of these are for what @rad14733 mentioned. Momentum was very poor.

 

[babouin77]

I believe it's both the BBCrossInBars and BBCrossDistance. Both of these are for what @rad14733 mentioned. Momentum was very poor.

so you have them as 3 for bbcross in bars which happened and the bb cross distance is 1... what does that mean the value of 1? does it mean the dot has to be at 1 or above?

 

[barbaros]

so you have them as 3 for bbcross in bars which happened and the bb cross distance is 1... what does that mean the value of 1? does it mean the dot has to be at 1 or above?

Correct. The value came from one the comments for the strategy.

 

[babouin77]

Correct. The value came from one the comments for the strategy.

got you thanks

 

[babouin77]

in a short ES 3916

 

[Daybuck]

All indicators are reactionary to price. I don't think there has been any invented that are forward looking or predictionary. After an entry signal is given, going to a lower time frame for entry seems to help. Also, the ticker $ADD on a 1 or 5 minute chart can help identifying the trend momentum since it is derived from the overall market and not just SPX......my 02

 

[babouin77]

in a short ES 3916

stopped out at 3923.5

 

[Martian]

stopped out at 3923.5

That was not a good trade right, the macdbb line was not crossed by red dots to got shorts. You would have make money on SPX instead. ??

 

[Martian]

SPX warning at 3940 to go long. ( i am out of day trades on TOS )

 

[babouin77]

That was not a good trade right, the macdbb line was not crossed by red dots to got shorts. You would have make money on SPX instead. ??

it crossed to the red (on ES)

 

[rfb]

it crossed to the red (on ES)

SPX was fine for short. Warning @ 1120 EDT confirmation @ 1130 EDT. Great for a quick 1.5 - 3 pt scalp for those that took it and tolerance level. I missed the entry by a few minutes being away from the pc, but followed the trade. Very nice for SPX put. Hope some of you caught it!

 

[babouin77]

went long ES 3,934.00

 

[TraderCee32]

I am just backtesting the study, using the original scripts from post #1 and I am liking the 5 minute chart. Do you open the minute chart when looking for an entry? hoping to get a signal tomorrow so I can use the study with real money and SPX options. That put play at around 11:20 would have been nice.

 

[pal_yc]

I’ve only seen that the 3rd and 4th numbers are the only ones that changes anything. Try it and see.

You are right, I did some back testing over this weekend and did a +ve trade today and bb num dev = 0.5 or 0.8 doesn't seem to make any difference.

 

[Hypoluxa]

I am just backtesting the study, using the original scripts from post #1 and I am liking the 5 minute chart. Do you open the minute chart when looking for an entry? hoping to get a signal tomorrow so I can use the study with real money and SPX options. That put play at around 11:20 would have been nice.

Trust me when i say this - be VERY careful with these exact number settings on a 5 min chart. It looks great today because things are very deliberate. Just backtest it with a 5 and 10 min chart pulled up beside each other to see what i mean.
Also, i backtested this 10min setup again this morning and since Feb 16th...one month ago...its has a 19-4 success rate. I never count anything after 3:00 and only start at 9:40 crossing of MACDBB zero line...NOT 9:30.
This is a scalping setup too....so those 19 wins might only be a $5 or so move for SPX....but profitable for an option scalp.