Join useThinkScript to post your question to a community of 21,000+ developers and traders.
Thanks for the reply. How do you get the chart and AT for the option? Is that the contract ID or something?
Thanks for the schooling, really appreciate it. TOS really is pretty slick. The Active Trader window really gives you all you need. Would love to know how you use those labels and studies in your options trading strategies... of course ;-) Do you ever use Market Orders when exiting or entering an options contract?
So you like to use hard stops on option contracts? Are they less inclined to get "hit" or "taken out" verses buying/selling shares? I have not had very good success with hard stops in trading on shorter timeframes. Seems like my stops get taken out to the $0.01 - $0.05 and then reverse too many times, makes me think "they" can see my stops and deliberately take them out.
Market Makers can see your stops... Sometimes I remove the Stop and never take my eyes off of the Active Trader Ladder... I primarily scalp options so I'm hands-&-eyes-on throughout the trades... The most important aspect of scalping options is that if momentum slows a bit, exit... Options prices plummet far faster then the underlying so I take what the market presents me... Limits are good for long trends but if the market changes I just hit Flatten Now before I'm stuck trying to catch falling knives and end up having a win turn into a loss... It's a tough habit to get into and when I break my own rules it costs me... Take what the market gives you rather than trying to read tea leaves... Better to take that small profit and then re-enter again and ride the trend up again if it rebounds rather riding the trade down to a potentially unrecoverable level... For scalping a .25 - .50 drop in the underlying can be unrecoverable for your option position, depending on the market... Rather than hoping for recovery, exit and look for a better trade...
If you want to trade options correctly, join RightwayOptions,... Stay for several months as mainly trading only with options.
Any chance I could get a try with that My_TTM_Squeeze_Pro?@lostcoastsurf I am not aware of any way to extrapolate and transpose the EntryPrice() of an Option onto the underlying Stocks chart... We don't have access to portfolio trade data... The correlation between the underlying and option is fairly complex and you don't buy the option at a specific underlying price, the transaction takes place totally separately... I run charts for both the stock and the option during trades, along with Active Trader for the option...
@Vorlauf Here you go... I wasn't even aware I was running this version instead of the one I wrote because, which is essentially the same...
# TTM_Squeeze_Pro_rad14733
# Based on: A version of the Squeeze Pro
# https://usethinkscript.com/threads/john-carters-squeeze-pro-indicator-for-thinkorswim-free.4021/post-60807
# Modified by rad14733
# v1.0 : 2021-01-24 : Added Momo Average and Vertical Squeeze Fire On/Off lines
# v1.1 : 2021-03-13 : Added avgMomo Acrylic line color and optional avgMomo cloud
declare lower;
input length = 20;
input avglength = 20;
input showVerticalLines = yes;
input showAvgMomoCloud = yes;
input momoAverageType = AverageType.SIMPLE;
#Keltner Channels
def hb = 1.0;
def mb = 1.5;
def lb = 2.0;
def avg = Average(close, length);
def k1 = avg + (hb * Average(TrueRange(high, close, low), length));
def k2 = avg + (mb * Average(TrueRange(high, close, low), length));
def k3 = avg + (lb * Average(TrueRange(high, close, low), length));
#Bollinger Bands
def BB_offset = 2.0;
def sDev = stdev(close, length);
def mid = Average(close, length);
def bb = mid + BB_offset * sDev;
#Squeeze
def s0 = bb > k3;
def s1 = bb < k1;
def s2 = bb < k2;
def s3 = bb < k3;
# Code taken from Momentum Squeeze by Mobius
# code is slightly modified to remove the squeeze portion
def c = close;
def h = high;
def l = low;
def K = (Highest(h, length) + Lowest(l, length)) / 2 + ExpAverage(c, length);
plot Momo = if isNaN(close) then double.nan else Inertia(c - K / 2, length);
Momo.setPaintingStrategy(PaintingStrategy.HISTOGRAM);
Momo.setLineWeight(3);
Momo.assignValueColor(
if Momo > Momo[1] and Momo > 0
then Color.Cyan
else if Momo > 0 and Momo < Momo[1]
then Color.DARK_ORANGE
else if Momo < 0 and Momo < Momo[1]
then Color.Red
else Color.Yellow
);
# End Code - Mobius' Momentum Squeeze
# Momo average line - rad14733 - v1.0
#plot avgMomo = Average(Momo, avglength);
plot avgMomo = MovingAverage(momoAverageType, Momo, avglength);
avgMomo.SetLineWeight(2);
# avgMomo Acrylic Line Color - rad14733 - v1.1
avgMomo.AssignValueColor(
if Momo > avgMomo and Momo > 0
then Color.WHITE
else if Momo > 0 and Momo < avgMomo
then Color.RED
else if Momo < 0 and Momo < avgMomo
then Color.WHITE
else Color.CYAN
);
# Squeeze dots on zeroline
plot squeeze = if s0 or s1 or s2 or s3 then 0 else double.nan;#
squeeze.SetLineWeight(3);
squeeze.SetStyle(curve.POINTS);
squeeze.AssignValueColor(
if s1 then color.orange
else if s2 then color.red
else if s3 then color.plum
else color.green
);
# Add vertical lines to further demarcate start and end of Squeeze - rad14733 - v1.0
def aggOk = if GetAggregationPeriod() < AggregationPeriod.DAY then 1 else Double.NaN;
AddVerticalLine(aggOk and showVerticalLines and bb crosses below k3, "Squeeze On", Color.RED);
AddVerticalLine(aggOk and showVerticalLines and bb crosses above k3, "Squeeze Off", Color.GREEN);
# AddCloud - rad14733 - v1.1
AddCloud(if showAvgMomoCloud then 0 else Double.Nan, if showAvgMomoCloud then avgMomo else Double.Nan, Color.WHITE, Color.WHITE);
# end codeYou can place a stop in the conditional order of TOS the same as a stock stop.
Wanted to offer something in return. Give this a try and let me know what you think. http://tos.mx/7oai1oA@Vorlauf Here you go... I wasn't even aware I was running this version instead of the one I wrote because, which is essentially the same...
Ruby:# TTM_Squeeze_Pro_rad14733 # Based on: A version of the Squeeze Pro # https://usethinkscript.com/threads/john-carters-squeeze-pro-indicator-for-thinkorswim-free.4021/post-60807 # Modified by rad14733 # v1.0 : 2021-01-24 : Added Momo Average and Vertical Squeeze Fire On/Off lines # v1.1 : 2021-03-13 : Added avgMomo Acrylic line color and optional avgMomo cloud declare lower; input length = 20; input avglength = 20; input showVerticalLines = yes; input showAvgMomoCloud = yes; input momoAverageType = AverageType.SIMPLE; #Keltner Channels def hb = 1.0; def mb = 1.5; def lb = 2.0; def avg = Average(close, length); def k1 = avg + (hb * Average(TrueRange(high, close, low), length)); def k2 = avg + (mb * Average(TrueRange(high, close, low), length)); def k3 = avg + (lb * Average(TrueRange(high, close, low), length)); #Bollinger Bands def BB_offset = 2.0; def sDev = stdev(close, length); def mid = Average(close, length); def bb = mid + BB_offset * sDev; #Squeeze def s0 = bb > k3; def s1 = bb < k1; def s2 = bb < k2; def s3 = bb < k3; # Code taken from Momentum Squeeze by Mobius # code is slightly modified to remove the squeeze portion def c = close; def h = high; def l = low; def K = (Highest(h, length) + Lowest(l, length)) / 2 + ExpAverage(c, length); plot Momo = if isNaN(close) then double.nan else Inertia(c - K / 2, length); Momo.setPaintingStrategy(PaintingStrategy.HISTOGRAM); Momo.setLineWeight(3); Momo.assignValueColor( if Momo > Momo[1] and Momo > 0 then Color.Cyan else if Momo > 0 and Momo < Momo[1] then Color.DARK_ORANGE else if Momo < 0 and Momo < Momo[1] then Color.Red else Color.Yellow ); # End Code - Mobius' Momentum Squeeze # Momo average line - rad14733 - v1.0 #plot avgMomo = Average(Momo, avglength); plot avgMomo = MovingAverage(momoAverageType, Momo, avglength); avgMomo.SetLineWeight(2); # avgMomo Acrylic Line Color - rad14733 - v1.1 avgMomo.AssignValueColor( if Momo > avgMomo and Momo > 0 then Color.WHITE else if Momo > 0 and Momo < avgMomo then Color.RED else if Momo < 0 and Momo < avgMomo then Color.WHITE else Color.CYAN ); # Squeeze dots on zeroline plot squeeze = if s0 or s1 or s2 or s3 then 0 else double.nan;# squeeze.SetLineWeight(3); squeeze.SetStyle(curve.POINTS); squeeze.AssignValueColor( if s1 then color.orange else if s2 then color.red else if s3 then color.plum else color.green ); # Add vertical lines to further demarcate start and end of Squeeze - rad14733 - v1.0 def aggOk = if GetAggregationPeriod() < AggregationPeriod.DAY then 1 else Double.NaN; AddVerticalLine(aggOk and showVerticalLines and bb crosses below k3, "Squeeze On", Color.RED); AddVerticalLine(aggOk and showVerticalLines and bb crosses above k3, "Squeeze Off", Color.GREEN); # AddCloud - rad14733 - v1.1 AddCloud(if showAvgMomoCloud then 0 else Double.Nan, if showAvgMomoCloud then avgMomo else Double.Nan, Color.WHITE, Color.WHITE); # end code
In my opinion it would be one that I'd be looking to multiple time frames. The reasoning behind that is if the trend is moving in a direction for a longer period of time then you are more likely to come out profitable. Scalping options can cause you to either make or lose a lot of money really fast (since you'll likely pick options with a very short time to expiration). Because of the high risk high reward setup you want to do whatever you can to minimize potential downside. One of the ways I personally do this is by picking setups that have a potential trend in the direction I'm trading on bigger time frames, that way if I miss my exit on a really short time frame I still have a chance to get out alive without losing all of my money.
Ohh wow. Same here. I usually day trade but swing occasionally if the charts are looking promising. I usually use RSI,MACD, Volume and VWAP. Just got into TTM Sqeeze recently (still trying to figure out how it works). I agree with you. The key is finding the best combinations that works for you. What time frame/s do you use ?
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| M | Best Daytrading Strategies For SPY | Questions | 6 | |
| S | What is the best way to identify the choppy price action? | Questions | 1 | |
|
Best editing tool in ThinkOrSwim | Questions | 1 | |
| F | Best Support/Resistance Indicator for ThinkOrSwim | Questions | 1 | |
|
Curious | Best BACKTESTED Results You Have Achieved | Questions | 2 |
useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.
We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.
If you are new, or just looking for guidance, here are some helpful links to get you started.