Create a custom strategy from Hull moving average

[Alex]

Hey! I would like to turn the default thinkorswim Hull moving average into a custom strategy. Whenever the color of the hull moving average slope changes its color from up / down I’d like the strategy to open / close an order only on the close of the candle / bar. In addition I would like an alert to pop up whenever all of the conditions are met. I'm not much of a coder myself so hopefully this isn't too complicated...

Here is the default thinkorswim HullMovingAvg code:

#
# TD Ameritrade IP Company, Inc. (c) 2008-2020
#

input price = close;
input length = 20;
input displace = 0;

plot HMA = MovingAverage(AverageType.HULL, price, length)[-displace];

HMA.DefineColor("Up", GetColor(1));

HMA.DefineColor("Down", GetColor(0));

HMA.AssignValueColor(if HMA > HMA[1] then HMA.color("Up") else HMA.color("Down"));

 

[Pensar]

@Alex, try adding this to the bottom of your code.

AddOrder(OrderType.BUY_AUTO, HMA > HMA[1]);
AddOrder(OrderType.SELL_AUTO, HMA < HMA[1]);

Alert(HMA > HMA[1] and HMA[1] < HMA[2], "BUY SIGNAL", Alert.BAR, Sound.Ring);
Alert(HMA < HMA[1] and HMA[1] > HMA[2], "SELL SIGNAL", Alert.BAR, Sound.Ring);

Make sure you add the completed code to the Strategies section. It should place simulation trades in either direction on a change in the HMA color and give alerts. If you want to backtest only buy orders, change "BUY_AUTO" and "SELL_AUTO" to "BUY_TO_OPEN" and SELL_TO_CLOSE". Hope this helps!

 

[Alex]

@Pensar appreciate the help exactly what i was looking for. Thanks!

 

[frick53]

Can someone help with this strategy:
input tradeSize = 1;
def signal = HullMovingAvg(price=close, "length" = 10, "displace" = 1) crosses above HullMovingAvg(price=close,"length" = 20);
addOrder(OrderType.buy_TO_OPEN, signal, open[-1], tradeSize, Color.CYAN, Color.CYAN);
def exit = HullMovingAvg(price=close, "length" = 10, "displace" = 1) crosses below HullMovingAvg(price=close,"length" = 20);
addOrder(OrderType.sell_TO_CLOSE, exit, open[-1], tradeSize, Color.MAGENTA, Color.MAGENTA);

I want the strategy and conditional order to only execute when the bar closes and it's true. For both it's executing when it is true.

 

[Biz_and_Birdies]

Hello, I appreciate all your guy's time and effort. I was wondering if its possible to do this same thing but conditionally with multiple HMA's, for example when a slow HMA's trend up or down matches a mid HMA and a fast HMA it enters the trade and when the fast HMA changes trend it exits. Please see attached picture. Any help would be awesome. Thank you

 

[VenB]

Hello there, can you please help if you have TOS scan code when two HMA like 10 & 20 changes color either up or down? Thank you in advance.

 

[BenTen]

@VenB At the same time?

 

[VenB]

@VenB At the same time?

Yes Ben. My observation is that when two HMAs turns green or red at the same time, there is a significant pressure. Thank you!!’

 

[MerryDay]

@VenB Deleted this post... Because the logic didn't work..
I posted a revised study, down in message #14

 

[VenB]

Thank you @MerryDay will check. Can we also add that turning green and red within 2 bars?

 

[VenB]

Thank you @MerryDay. I'm still exploring on how to utilize. Thank you

 

[VenB]

Thank you @MerryDay. I'm still exploring on how to utilize. Thank you

@MerryDay @BenTen

Thank you for the help. The above doesn't show when two HMA turned either green or red at the same time. Could you please take another look?

Another query for the code posted above, both up and down plots are having the same code. Should the down plot be used less than symbol?

Also, please help on how to add a column on scan results where red or green shown in the above snapshot?

Thank you.

 

[BenTen]

@VenB I haven't had the chance to look at this request, but are you sure that both moving averages can turn either green or red at the same time? I imagine it would not be possible because one is 2x of the other.

Maybe you can post a screenshot of the scenario. I'll look at this later tonight.

 

[MerryDay]

edited 1am...
@VenB Here are the plots on a chart.

TaDa.... I got the scan to work.
And I must say, that you may have something here.
It is showing some interesting potential results.

# ########################################################
# TOS HullMovingAVg
plot HMA1 = HullMovingAvg(price = HL2, length = 10); #12
plot HMA2 = HullMovingAvg(price = HL2, length = 20); #89

def HMA1up = HMA1>HMA1[1];
def HMA2up = HMA2>HMA2[1];
plot HMAup = HMA1up and HMA2up ;

def HMA1dn = HMA1<HMA1[1];
def HMA2dn = HMA2<HMA2[1];
plot HMAdn = HMA1dn and HMA2dn ;


HMA1.SetLineWeight(2);
HMA1.DefineColor("Positive", Color.violet);
HMA1.DefineColor("Negative", Color.light_orange);
HMA1.AssignValueColor(if HMA1 > HMA1[1] then HMA1.color("Positive") else HMA1.color("Negative"));
                                                                 
HMA2.SetLineWeight(2);
HMA2.DefineColor("Positive", Color.green);
HMA2.DefineColor("Negative", Color.red);
HMA2.AssignValueColor(if HMA2 > HMA2[1] then HMA2.color("Positive") else HMA2.color("Negative"));

 

[MerryDay]

@VenB To make a scan:

1. Save the above code as a study
2. Scan for HMAup is true

In the scan image where it says: A2_HMAplot, you need to substitute the name you saved your study as.

 

[VenB]

Yes, it does Ben. Unfortunately, it's not allowing me to attach a snapshot. Will share over discord.

Thank you @MerryDay, I will check again as per your instructions. How do you get red/green column in the search results?

 

[MerryDay]

@VenB
That is the Finite Volume Elements (FVE) Indicator. It is a rather complex indicator. Red is not necessarily bad and Green is not necessarily good.

Instead of the FVE Volume; I combined your Hull script with the following volume profile:

# Scan for Price in value area and volume spike
# Mobius
# Chat Room Request 04.05.2018
def yyyymmdd = GetYYYYMMDD();
def day_number = DaysFromDate(First(yyyymmdd)) + GetDayOfWeek(First(yyyymmdd));
def period = Floor(day_number / 7);
def cond = 0 < period - period[1];
profile vol = VolumeProfile("startNewProfile" = cond, "onExpansion" = no);
vol.Show("va color" = Color.YELLOW);
def b = vol.GetHighestValueArea();
def a = vol.GetLowestValueArea();
plot condition = between(close, a, b) and volume > Average(volume, 21);

I scan for the Hull10 and Hull20 to be up on a daily agg and for the above volume profile to be true on a 15min agg.
This provides a nice pool of stocks against which I then run my favorite strategies such as @BenTen's BTD indicator.

 

[mohitdas]

Hello,

I am following this youtube link and trying to recreate the same, but would like to understand why the Sell Signal is shown after multiple candles. I have tried it on different time frames but but result remains the same. I would like to get the Buy signal when the HMA turns Green and i would like it to give me a sell signal atleast closer to the top and not after a significant dip. Thank You

Daily Candle of a different stock

Daily Candle of a different stock

 

[rad14733]

@mohitdas Virtually all MA-based Strategies work in this manner, basically because they are based on crossovers alone... For a true trading strategy, or system if you will, it requires multiple methods of determining entry and exit... One simple method would be the use of a Trailing Stop Loss... Another would be to base exit on RSI reaching OverBought or loss of momentum based on a lower indicator with histogram such as Waddah Attar, MACD, ErgodicOsc, one of the TTM suite of indicators, or others...

Remember, it is virtually impossible to catch the absolute bottom entry price and top exit price... Doing so it a recipe for disaster in the long run... What you really want to do is to ride the momentum portion of the trade... That means waiting until you are certain that there is enough momentum to carry you from entry point to profit and then exit before the price pulls back too far... With simple MA crossovers you are essentially doing just that - most of the time but not always... But in doing so you may be losing profit by waiting for the exit crossover... Nobody says you have to wait for the entry or exit crossovers if you are fairly certain that they will occur in the near future... You can just as easily enter and exit based on the MA's convergence and divergence and, in doing so, enter and exit a candle or two earlier with increased profit...

In addition, monitoring the trade on multiple timeframes can be extremely beneficial... A slower timeframe can determine overall trend but a faster timeframe can help determine actual entry and exit... Just make sure you don't use too short of a timeframe or you'll make false entries and exits which can be costly over time...

And you also need to take your style of trading into consideration, whether scalping, day trading, swing, or long term trading... What works best for one style may not be ideal for another... Only you can make those decisions based on your risk factor, trading style, and understanding of how the trade instrument is currently performing...

 

[mohitdas]

@rad14733 Thank You for the detailed explanation, i will keep those factors in mind and keep testing it. Thanks again. Appreciate it