Mimicking "Power X Strategy" by Markus Heitkoetter

[diazlaz]

Thanks, it was all COS!!!

Nice work everyone. Who else trades this strategy in this community?

I've done some work and build a number of data models and tests for this strategy, and have found a atr 5 instead of adr has a higher expectancy.

 

[RickAns]

Cool. I think I follow you. Let me spend some time tinkering and see if we can achieve this.

When I use the term ADR clouds I mean the Profit and Stop target points that are created when a Buy or Sell signal is generated in the daily chart. In the original formula from the pdf he uses an ADR formula and that is why I have called it such. Drawing those points horizontally for as long as the signal is valid. Once the signal goes Idle or reverses there is no need to continue the Profit / Stop cloud since one is expected to exit the position. Hope this helps.

Sorry for all the hassle, it seemed such an easy and simple thing in my head.

 

[FOTM_8888]

I'm testing this indicator folks, Started the day with a long position it worked like a charm. Now the instrument is setting up for short, i see labels confirming short. The starting price and profit target label is not updated. Just posting my observations here..

hi. please can you share your chart grid with us. thank you some much. is look very nice

 

[Sree]

hi. please can you share your chart grid with us. thank you some much. is look very nice

Here you go: All standard except the Beta testing of this indicator study on upper studies in the chart. I have switched off the labels as it is not helping me at this time. This reduces clutter. Uptrend and downtrend arrow plot is also switched off as the color coded vertical bars indicate the same. Also removed 50 period MA as the tolerances between it and 200 are very little in the 5 min chart. you can compare this one to the above chart and you will see what I mean. Less clutter
Candle style: Heiken Ashi

 

[cos251]

When I use the term ADR clouds I mean the Profit and Stop target points that are created when a Buy or Sell signal is generated in the daily chart. In the original formula from the pdf he uses an ADR formula and that is why I have called it such. Drawing those points horizontally for as long as the signal is valid. Once the signal goes Idle or reverses there is no need to continue the Profit / Stop cloud since one is expected to exit the position. Hope this helps.

Sorry for all the hassle, it seemed such an easy and simple thing in my head.

Similar to this?

 

[Sree]

Cos251, If I may suggest a tweak !? for the recommended Profit target calculation - use ATRtrailing stop to determine the current stoploss point, find the difference of it from current price, double the difference number for suggested Profit target and display it dynamically. I don't see a reason why it will not work on any time frame (Intraday, daily, weekly, monthly). This allows the user to relieve the stress a bit, cuz we can wait for the dynamic target (Maximize profit run ) or simply exit when the market wicks out the stop loss order.

 

[Joseph Patrick 18]

Nice work everyone. Who else trades this strategy in this community?

I've done some work and build a number of data models and tests for this strategy, and have found a atr 5 instead of adr has a higher expectancy.

Hi Diaz, I have traded with it and have used the scans pretty succesfully...maybe you would like to get involved with Cos to help him fine tune it? Thanks in advance!

 

[RickAns]

Yes @cos251 that is exactly what I am thinking of. If it can also be done on a daily chart- example 6 mo / 1 day it would be awesome sauce! I am gladly willing to send you some beer money via paypal to your email if you like as a means of Thanks . Not sure if there is an option to private message you to keep emails off the public forums

 

[Sree]

Tried today with Tesla options, not seeing fruitful results for Option scalping, especially when there is no volatility or on side grind...the theta is eating away micro gains or the market is wicking the stop loss order if its too close. Too wide stop loss order leads to a loss trade - either way no good. I guess it is good to use on a trending stock, then you are not scalping anyway.

This strategy may be good on swing trades, but have to continue testing...

 

[cos251]

Yes @cos251 that is exactly what I am thinking of. If it can also be done on a daily chart- example 6 mo / 1 day it would be awesome sauce! I am gladly willing to send you some beer money via paypal to your email if you like as a means of Thanks . Not sure if there is an option to private message you to keep emails off the public forums

Awesome, let me see what I can do about the daily plot.

 

[Sree]

Yes @cos251 that is exactly what I am thinking of. If it can also be done on a daily chart- example 6 mo / 1 day it would be awesome sauce! I am gladly willing to send you some beer money via paypal to your email if you like as a means of Thanks . Not sure if there is an option to private message you to keep emails off the public forums

Perhaps a free premium membership in the forum for Cos251 sponsored by RickAns

 

[cos251]

Tried today with Tesla options, not seeing fruitful results for Option scalping, especially when there is no volatility or on side grind...the theta is eating away micro gains or the market is wicking the stop loss order if its too close. Too wide stop loss order leads to a loss trade - either way no good. I guess it is good to use on a trending stock, then you are not scalping anyway.

This strategy may be good on swing trades, but have to continue testing...

I would concur with this. As usual, all depends on trading style. For options, again depending, you want some volatility and volume. I have a watchlist and only try and trade what moves up on my list (consists of ATR, RVOL and % Change from Open). I'm usually looking for quick movers on the RVOL and ATR side within the first 5 minutes.

 

[cos251]

@Sree - I added the ATR calculation as part of the additional updates from the previous screenshots I posted. I'll see if I can update the code for the labels so that updates as well based on the new trend. I'll get a fresh version of the code up today most likely. Thanks again for all the feedback, I'm happy to work on this as it is very conducive to my learning and trading. Thanks for the opportunity.

 

[Sree]

@Sree - I add the ATR calculation as part of the additional updates from the previous screenshots I posted. I'll see if I can update the code for the labels so that updates as well based on the new trend. I'll get a fresh version of the code up today most likely. Thanks again for all the feedback, I'm happy to work on this as it is very conducive to my learning and trading. Thanks for the opportunity.

You bet, same feeling here with me as well, wonderful to test and try. Make some money and loose some in the process, but hey if it works to a certain degree in a certain market style, lets use it. Appreciate it Cos, yes we started on something, lets build it in full and leave it out there. Folks can benefit out of it.

 

[RickAns]

I have paid and am subscribed to Power X community with Markus - very nice person.

I ordered his The PowerX Strategy book a week ago because of this thread. It arrived today and I am looking forward to it. This thread has really been helpful to me.

 

[Sree]

I ordered his The PowerX Strategy book a week ago because of this thread. It arrived today and I am looking forward to it. This thread has really been helpful to me.

He also conducts seminars around the nation periodically. I attended one recently in Houston, met and conversed with him in person. He has a great team of very knowledgeable traders and associates in his company! Like I mentioned in my previous post, all of this we are trying to build here is already available in his software, only caveat is we have to use his browser based program to reap benefits. It also works as a Silo ( at least the time I looked at it, it was) just a charting program and still have to use TOS or other platforms for order execution. Good cause of buying his book RickAns, some contributions for his idea!

 

[diazlaz]

He also conducts seminars around the nation periodically. I attended one recently in Houston, met and conversed with him in person. He has a great team of very knowledgeable traders and associates in his company! Like I mentioned in my previous post, all of this we are trying to build here is already available in his software, only caveat is we have to use his browser based program to reap benefits. It also works as a Silo ( at least the time I looked at it, it was) just a charting program and still have to use TOS or other platforms for order execution. Good cause of buying his book RickAns, some contributions for his idea!

I built my custom indicator a few months ago and using slightly different parameters for stoch. i need to go back and check. it's a great strategy for intermediate swing trading. if there are a few members that trade the strategy, we should coordinate a follow-up to discuss trading the strategy.

 

[FOTM_8888]

I built my custom indicator a few months ago and using slightly different parameters for stoch. i need to go back and check. it's a great strategy for intermediate swing trading. if there are a few members that trade the strategy, we should coordinate a follow-up to discuss trading the strategy.

very good plan DiazLaz.

 

[RickAns]

Sounds like a good idea, @diazlaz. I am interested in learning more from those of us using this strategy. Would you be willing to share some things you have learned when you created your indicator around this trading strategy?

 

[diazlaz]

Sounds like a good idea, @diazlaz. I am interested in learning more from those of us using this strategy. Would you be willing to share some things you have learned when you created your indicator around this trading strategy?

sounds good. i will get this going shortly.