Mimicking "Power X Strategy" by Markus Heitkoetter

[Vince Field]

Very interesting setup. Can you please also share your entry and exit strategies?

I mainly trade ORBs, ABCDs, bull flags, flat tops/ascending wedges, EMA/VWAP trends and pullbacks, and reversals. I have a cash account so I only trade long. I enter when the setup presents itself on the right stock (high momentum and volume, especially gappers with news), I keep my stops tight, and I take partial profits at 1 R, 2R, 3R, and then I let it ride. I move my stop loss to breakeven after my first scale out. My stop loss depends on the setup but it's usually just below a key support level like an EMA, VWAP, previous consolidation, etc. I try to enter as close to key levels as possible to keep the risk low, and I've been trying to anticipate breakouts and uptrend continuations before they take off so I maximize profits while minimizing the stop loss distance. Keep in mind that I'm a new trader so I'm still figuring things out but I do believe I'm making great progress. It's incredible to see a pattern setting up, buying in and then watching it take off!

 

[Joseph Patrick 18]

Hi Cos sorry to bother...When I use Oversold, Overbought, Up RSI, Down RSI, Overbought ST, Oversold ST, Up ST, Down ST all being set to TRUE...I am not seeing anything on the scan side...maybe its just me?

 

[cos251]

Hi Cos sorry to bother...When I use Oversold, Overbought, Up RSI, Down RSI, Overbought ST, Oversold ST, Up ST, Down ST all being set to TRUE...I am not seeing anything on the scan side...maybe its just me

Those will always be true since they are static and never change. You would need to use the crosses above/below OversolST, Overbought, etc....

 

[Joseph Patrick 18]

Those will always be true since they are static and never change. You would need to use the crosses above/below OversolST, Overbought, etc....

 

[cos251]

@Joseph Patrick 18 - this is awesome. Thank you so much for sharing the grid. I give it a try and let you know how it goes. I'll also have to go back and re-read the PowerX Document to make sure I'm using it properly. Are you trading options or going long/short on shares?

 

[Joseph Patrick 18]

@Joseph Patrick 18 - this is awesome. Thank you so much for sharing the grid. I give it a try and let you know how it goes. I'll also have to go back and re-read the PowerX Document to make sure I'm using it properly. Are you trading options or going long/short on shares?

No problem at all...Here is the PDF Power X page 13. https://rockwell-files.s3.amazonaws.com/PXCompanionGuide2ndEd_cover.pdf

...No options yet...one day lol...newbie...I scalp (just starting out) and do long and short shares...thanks again lemme know what you think when you have time to look at it...the premarket setup is good...I like it...thanks!

 

[Joseph Patrick 18]

@Joseph Patrick 18 - this is awesome. Thank you so much for sharing the grid. I give it a try and let you know how it goes. I'll also have to go back and re-read the PowerX Document to make sure I'm using it properly. Are you trading options or going long/short on shares?

Also forgot to put my setup for the scan if anyone needs...(UPDATE: BETTER SEARCH RESULTS IF YOU CHANGE 35M TO 50M ON MARKET CAP)

Do your research on each stock sometimes they report or reported earnings...ALT $11.82-$12, ADS $57.89, GOLD & CTYK looks interesting (ABUS looks like its about to go positive so watch...)


Was watching XPEV on 11/4 @$27.41 lmao today its up to a high of $33.20!

 

[Joseph Patrick 18]

Okay thanks so much!!

 

[cos251]

okay gothcha thanks for the quick response.

Also I attached a flex grid that might interest you..After looking at what Barbaros said earlier that the Power X looks like its set up for a daily chart...I went ahead and linked it with Slim Millers Long Term Trend and after scanning with the Power X pre_market with it set on UPTREND I have hit 7 out of 8 over the last 2 days for profit..It's almost like a precursor to what the stock might do on the open like the same way that the BLAST OFF Indicator does but this at least gives you a direction.

I scan and look for any stocks that are in an UPTREND.
I then look for it to have just the 1st day turn positive just like the POWER X guide states. (if you look at the flexgrid I sent I got in on ABBV on Nov 2nd at $88.60 and have held it since. Same thing with CRDF...

Hey dumb question when people say they backtest something is there a function on TOS to do that or do you have to do it Paper trading?

Here is the Flex grid with pic underneath. And thanks again.

EDIT

LINK to Latest Code

https://usethinkscript.com/threads/rsm-indicator-for-thinkorswim.5407/

https://imgur.com/JXDKlDu

Lemme know what you think...the other thing too is the other 5 that were profitable (I didnt hold those 5, when I got a profit I sold just to see if it might work...a couple went down at market open but then they all went up but one) what I did was look at CNBC to see what the market conditions were premarket..I think on the 2nd they were up 400pts premarket so thats why I scanned uptrend to look for the pop...and visa versa if premarket is down big then look at downtrends...interesting tho.

Hi @Joseph Patrick 18 - you had asked about back testing a strategy. I took my first stab at adding the indicators we put together into a strategy. When you right click on the long/short/exit indicators on the chart you can click the "Show Report" option and it will show you the P/L. Pretty neat. I do see an issue though and have not yet figured out how to fix, but I'll keep working on it. The issue is that the AddOrder is plotted one or two bars after the first green or red bar. I plotted arrows to indicate the first green bar of a trend (green arrow) and first red bar of a downtrend (red arrow). I also added 2 new plots you can use in the scan section to make it easier to find stocks that are just starting the trend. The two plots are called "UpTrendJustStarted" and "DownTrendJustStarted". You'll want to scan for true. Because of these I had to change the UpTrend and DownTrend plots to equal 1 or 0. So if you still use those two to scan you can scan for values to equal 1 or 0. I'll post a picture of this later today but for now here is the shared flex grid you had originally shared with the new strat indicator.

As for the Strategy indicator, I just took what we put together before and made it an Upper indicator without plotting all the RSI, MACD and Stochastic stuff. I just used the calculations. In the indicator you can choose to turn on/off paintbars and the shaded area on the price chart.

Let me know what you think.

I guess I should also say, this is how back testing is done I think. This is my first attempt at it so I apologize up front if this is not what you were looking for.


*EDIT - forgot to mention you can set the strategy to long, short or both signals.
*EDIT - updated w/ image

 

[Joseph Patrick 18]

Hi @Joseph Patrick 18 - you had asked about back testing a strategy. I took my first stab at adding the indicators we put together into a strategy. When you right click on the long/short/exit indicators on the chart you can click the "Show Report" option and it will show you the P/L. Pretty neat. I do see an issue though and have not yet figured out how to fix, but I'll keep working on it. The issue is that the AddOrder is plotted one or two bars after the first green or red bar. I plotted arrows to indicate the first green bar of a trend (green arrow) and first red bar of a downtrend (red arrow). I also added 2 new plots you can use in the scan section to make it easier to find stocks that are just starting the trend. The two plots are called "UpTrendJustStarted" and "DownTrendJustStarted". You'll want to scan for true. Because of these I had to change the UpTrend and DownTrend plots to equal 1 or 0. So if you still use those two to scan you can scan for values to equal 1 or 0. I'll post a picture of this later today but for now here is the shared flex grid you had originally shared with the new strat indicator.

As for the Strategy indicator, I just took what we put together before and made it an Upper indicator without plotting all the RSI, MACD and Stochastic stuff. I just used the calculations. In the indicator you can choose to turn on/off paintbars and the shaded area on the price chart.

Let me know what you think.

I guess I should also say, this is how back testing is done I think. This is my first attempt at it so I apologize up front if this is not what you were looking for.

https://tos.mx/y1zSZwa

*EDIT - forgot to mention you can set the strategy to long, short or both signals.
*EDIT - updated w/ image

Cos thanks so much!!! I appreciate you taking time out to help me out!! Hopefully this strategy helps you and other people! I really appreciate you working to fix any issues to fine tune this..if there's anything you need just let me know..thanks I will test it out and get back to you...Have a good night talk to you soon! THIS LOOKS AMAZING!!!!! There is nothing to apologize about!! You are helping me out and I appreciate whatever you can do so no worries...I learn 10 new things every day and I appreciate your help and guidance. Thanks Cos

 

[RickAns]

This is looking really good guys. Thanks for all the hard work.

 

[samoya]

@Joseph Patrick 18 Joseph, this is really awesome. I appreciate your work and the others are sharing. I have troubles to set up the scan. I dont know what I am doing wrong. Would you be so kind to share the link for the scan you use? Thank you vey much.

 

[cos251]

A quick update to this thread. For those of you not wanting to use the strategy portion of the script and who may also be looking for an MTF version of this script, I modified the original strategy. Please beware, if you use this version and set your current chart to a higher timeframe IT WILL REPAINT due to the higher timeframe candle needing to close. I also removed the strat portion and replaced it with just the green up and red down arrows to show entry. As usual you can use this in conjunction with other indicators to help time an entry/exit. Please let me know if you see any issues with this version.

EDIT
See below for lastest code
https://usethinkscript.com/threads/rsm-indicator-for-thinkorswim.5407/

 

[TradeUp]

@cos251 Thank you so much for updating this indicator. I use it everyday. I wanted to ask you if it is possible to make it work on tick charts? I like using it on the 512 tick chart. However, I noticed your latest update doesn't work on tick charts. Thanks again.

 

[RickAns]

Hi @cos251, glad to see you are still actively working on this code. I have been using daily it since you first posted it and it has really helped me in timing my trades and picking stocks moving in the right direction. A big Thanks on that . I have a favor to ask if you do not mind for an enhancement to this project.

I was looking at some of Markus Heitkoetter's youtube videos on the PowerX strategy recently and noticed on one of his charts he has a green and red horizontal line with cloud plots. They look to be his Take Profit and Stop Loss mark indicator zones. They can be seen at the 1:18 min and 2:27 min mark as well in this video

This chart seems to be before he added the vertical colored clouds in lower panel.

Thought it would make a nice addition to what you have crafted here so I tried to write some code to do it but am having trouble getting it to work properly. I have the profit / stop points plotted correctly. The colored clouds correct and they are plotted correctly in time with the vertical clouds you made in the lower panel to show the entry/ hold / sell zones. My problem is my plots are marking each individual days profit / stop points making it look more like a Bollinger Band cloud. Instead of plotting the first signal days profit /stop points and then drawing a horizontal pivot type line from there for the rest of the days the signal is true.

Would you please consider adding such a feature, or posting up code so I can add it to my own copy? The ADR, Take Profit, Stop Loss formulas are in post #7 for reference. Obviously I am overlooking something and I figure you could bash it out easier than I am able to at the moment. I have not posted what I tried to code because I figure you do not need it to create a correct working sample.

Cheers,
Rick

 

[CT88]

Hi Cos,

Great job on the coding. I'd like to ask if you could please code a version of the strategy you shared in the link above (https://tos.mx/y1zSZwa) with the RSI and the SKD in two separate indicators? In addition to its intended purpose, I use the RSI as a sort of trendline to identify patterns difficult to see in the HA candles. Also, if you could please keep the D line in the SKD visible that would be great. I use the D line for buy and sell signals primarily. In addition to the RSI and SKD, I use the DMI oscillator (instead of the MACD) and the CCI sometimes. However, there's no need for you to incorporate those into the study unless you'd like to. All the values & parameters you're currently using work great together, and are accurate. I personally find the DMI oscillator superior to the MACD, so I subbed it for the MACD a while ago, before even learning about this study. However, the MACD as you have it in the study is fine, I don't know if the DMI oscillator would skew the study. Lastly, if you can omit or tell me how I can turn off the Long, Short, Long Exit, and Short Exit texts while keeping the arrows I'd greatly appreciate it. Thanks!

 

[andre.muhammad]

@cos251 The scan worked perfectly! Thanks!

 

[cos251]

@TradeUp - I will post a working version of this code that works on TICK charts today or tomorrow if possible. I have not yet figured out how to make the TICK charts to show signals for higher TICK aggregations, I believe from the documentation and how TOS works this is not possible but I will pursue that task at a later time.

Thanks so much for the feedback.

 

[cos251]

@RickAns - thanks for the feedback and reference material. I whipped up a quick version of this request and currently have it painting just Regular Trading Hours, that does not match the video you shared though. I will keep working on it and see if I can get it to match correctly. I did manage to make sure the ADR, Take Profit and Stop Loss lines are plotted horizontal/across with no deviation (they are straight the whole way through). I'll keep you posted.

 

[cos251]

Hi @CT88 - just want to make sure I understood your request correctly. You want the RSI and Stochastics separated so they can be used independently (similar to MACD version)? And keep the SlowK and SlowD plotted? I should be able to get this separated for you this weekend. Let me know if this is what you were looking for, thanks.