/ES Futures Trading Strategy on ThinkorSwim

[blakecmathis]

Wasn't going to pass on this play again like I did on Tuesday morning. Only trade of the day so far.

 

[lzstock]

I found this website last week, and I do think it is amazing. However, I do have a question. If I use this link it works great for stocks with lots of volume. However, I get little lines when I try certain stocks which are hard to read. I assume I can change the 5D-1000t setting to make it look better. Has anyone found another setting which works better on stocks with less volume?
https://tos.mx/mWfhOCS

 

[skynetgen]

I found this website last week, and I do think it is amazing. However, I do have a question. If I use this link it works great for stocks with lots of volume. However, I get little lines when I try certain stocks which are hard to read. I assume I can change the 5D-1000t setting to make it look better. Has anyone found another setting which works better on stocks with less volume?
https://tos.mx/mWfhOCS

333 is good for most stocks. However IMHO this strat is not directly applicable to stocks as they trade in different patterns than /ES

 

[blakecmathis]

I really liked the idea that @XeoNoX had of hiding bars that are under 2.0 times the relative volume (RelativeVolumeStDev). So I took the same kind of logic and applied it to Freedom Of Movement. Overlay that with my current setup on the 1000t and 2000t chart: FOM shown as wedges and Volume as standard bars. The dashed vertical lines on the 2000t were when both FOM and Vol moved above two std dev on the same candle.....pretty interesting results. Let me know what you guys think.

 

[skynetgen]

I really liked the idea that @XeoNoX had of hiding bars that are under 2.0 times the relative volume (RelativeVolumeStDev). So I took the same kind of logic and applied it to Freedom Of Movement. Overlay that with my current setup on the 1000t and 2000t chart: FOM shown as wedges and Volume as standard bars. The dashed vertical lines on the 2000t were when both FOM and Vol moved above two std dev on the same candle.....pretty interesting results. Let me know what you guys think.

I did some testing and reflection and imho neither FOM neither relstddev volume make much sense on tick chart. - On a tick chart volume is roughly same on every bar (because every bar is fixed amount of orders)
FOM makes a bit of sense - because part of its relative range . And since volume is about same its effectively relative stdev of atr indicator.
But volume is just bogus signals

 

[blakecmathis]

@skynetgen Agreed brotha. Did some OnDemand last night and volume provided little to zero data with the current setup. It was just all over the place.

 

[blakecmathis]

@skynetgen Changed FOM length for the 1000t to 21 with std dev at 3.0 as well.

 

[corello]

@blakecmathis here's the way I personally use this setup.

Green candle = long signal (or close out short), sell when red candles appear on chart, or for significant resistance levels.

Red candle = short signal (or close out long), sell when green candles appear, or for significant support levels.

To everyone out there, no need to over complicate your strategy. Don't get analysis paralysis.

Yes, there will be rocky trades in between but you will catch the big moves which far surpass the smaller chop.

 

[Sully]

@blakecmathis Did you manage to get the CCI signal on the 1000t charts enabling you to remove the 2000t? Impressive strategy! Thank you!

 

[blakecmathis]

@Sully Not yet brotha trying to learn a little bit about coding!!

 

[blakecmathis]

@corello For me personally, the slim ribbon coloring of the candles is more for psychological support. I don't ever enter or exit a trade just simply based on the color of one candle. But I think that's why this setup has been so successful because it really is beyond simple my dude.

 

[skynetgen]

@blakecmathis here's the way I personally use this setup.

Green candle = long signal (or close out short), sell when red candles appear on chart, or for significant resistance levels.

Red candle = short signal (or close out long), sell when green candles appear, or for significant support levels.

To everyone out there, no need to over complicate your strategy. Don't get analysis paralysis.

Yes, there will be rocky trades in between but you will catch the big moves which far surpass the smaller chop.

Meh. This setup would be of no value if it was like that. If you want scalp based on "feel" and can emotionally handle it - god bless you.
The whole point of rule based system is to minimize the amount of bad RR entries. Emotional stops, revenge trading, overtrading etc
If you do a few trades and you get chopped out - the emotional damage those stops cause will likely destroy your readiness for next right play. its better to have very precise, strict system which generates very few signals and misses a lot than having a system which gives a lot of "entries" (which is what "long green - short red" is).

Of course there are successful scalpers who succeed in the simple approach. But its their very personal edge, not systematical approach transferable to anyone else. Its more of quick intuition type game for them. They also dont care much about RR and take profits quick (which is the actual edge - if you take profits quick you dont get stop out)
their whole edge comes from experience in seeing setups and execution . They enter fast and take profits fast. They dont catch trend(most often its no use for them - whole play is done under 5 minutes ) - its not the point. "get green -get out" is their motto. Their whole system is in their head and their edge is that they have emotional discipline to trade this way .
Most people who see signal/setup - want to jump on it. And in 90% of time that is precisely wrong thing to do (because most simple signals most people use are wrong most of the time)

I personally struggle psychological with discipline in real time and what helps is having clear signals on my chart . Which I backtested beforehand, analyzed and know they work. I have a rule when in position " when in doubt -trail it out" - which means move stop precisely to my trailstop indicator - no more, no less. So its paramount to have a such indicator on my chart and not wildly press buttons every time a 1/5 min candles go opposite way

 

[Talochka]

Another day another play. Testing various stuff with larger confirmation timeframe but one thing is clear - the 1000 tick setup by blakecmathis
is amazing. Thanks man!

can you let us know, what are the green arrows on the bottom of the screen on 1000 t

 

[Talochka]

Today is Friday, pre-holiday weekend. I dont really like market playing as odds off choppy ranged without clean setups are very high.
The fast low volume fake out pullback to 3055 by 10, base, W and rally would be preferred play thesis. Very likely market will die in PM
Here is premarket thesis

which indicator on TOS are you using for volume?

 

[blakecmathis]

@Talochka As of today and over the entire use of this strategy, zero volume indicators have been used aside from the test on friday which provided no substantial contribution to the current setup to validate an inclusion.

 

[blakecmathis]

@Talochka The arrows are buy signals from the Wave Trend Oscillator which can be found earlier in this thread. But be careful dude, be patient. Don't jump in immediately. Wait for confirmation of the trend change with a pull back and confirmation from the CCI combo. Pair that with what @skynetgen mentioned about a precise stop loss, S/R, price action, and a good mental state, you will come out in the black at the end of the day. The best trades I've ever made are when all my bills are paid, 8 hours of sleep, kiss the wife goodbye in the morning on good terms with any problems put to rest.

 

[LouChez]

@blakecmathis

I have been watching charts with your indicators, around 1020am today, would you have gone short? If not, what would have prevented it? Chart attached, thanks!

 

[DaGekko]

The candles on the 1,000 tick chart never turned red - therefore it would have kept you out of the position

 

[blakecmathis]

Chop Update

 

[blakecmathis]

@LouChez @DaGekko I mentioned the coloring of the candles and how they pertain to this setup a few posts back. Just because the CCI simply changes color that does not mean open a position.Gotta pay attention to S/R and price action my man. These are merely tools to accompany the greatest indicator of all: your eyes.