Profitable day trading strategy for ThinkorSwim users?
- Thread starter Zedd
- Start date
tradebyday
Active member
Best strategy is your own strategy. You will not see the same set up as someone else, even if you're staring at the exact same charts and signals. Gotta put in the grind my friend. Also, you should be more specific on the style of trading and assets you trade so people can at least direct you to relevant sources. You know do you trade stocks, options, etc.....?
appreciate the help. I am interested and trade emini's and stocks only. tried scalping but mostly ends up with loss or even. And then tried to look for intraday trend that I can ride for mins or even hours but its hard to predict. seems like the stock I chose to focus on with all the right indications that It will go my way takes an opposite turn the second I get in the trade.
Trader Raider
Member
@TrueDepth, @Zedd, I don't mean to sound unsupportive, but you're in for a world of hurt if you think you can slap a couple indicators on a chart and become a successful trader. A good indicator confirms a decision to enter/exit a trade but shouldn't make those decisions for you. No strategy works on every time frame or every market condition. If you want to day trade successfully, you need to learn about price action.
For example, if the market is in a hard trend, a reversal strategy probably isn't your best choice. If you cannot identify what price is doing in a general sense, you cannot select the best strategy or indicator to confirm your trade decisions.
Also, no indicator can make a trading plan for you. If you want to succeed, you need a trading plan that is based on time of day, type of instrument, timeframe, price action, etc. You need to know when your trading style is likely to work and when it's a day to stay out. You need to know what your strengths/weaknesses are as a trader so that your plan is based on your strengths and has safeguards around your weaknesses. No indicator can make that self-assessment for you and build it into your trade plan.
I don't mean to discourage you. I just think it's misguided to expect indicators to make you a good trader. Your ability to understand what the market is doing will make you a good trader, not bells and whistles on the chart.
Finally, it seems unfair to call something "shitty" just because it doesn't give the results you hoped for. There is no shortcut to successful trading. It takes a lot of study, a lot of discipline, and the ability to make mistakes and learn from them. If you're serious about learning, please try reading some good books on price action. Instead of calling something "shitty," perhaps you could watch the indicator for a while and see what it tells you about price. For example, plot a DMI on your chart watch what price does when the (+) and (-) cross the ADX or the ADX flattens. Plot an Ehlers MAMA on your chart and watch what happens when the lines cross. I wouldn't use those as trading signals, but they may help you learn about price action and get a feel for what indicators can--and can't--tell you.
Best wishes.
For example, if the market is in a hard trend, a reversal strategy probably isn't your best choice. If you cannot identify what price is doing in a general sense, you cannot select the best strategy or indicator to confirm your trade decisions.
Also, no indicator can make a trading plan for you. If you want to succeed, you need a trading plan that is based on time of day, type of instrument, timeframe, price action, etc. You need to know when your trading style is likely to work and when it's a day to stay out. You need to know what your strengths/weaknesses are as a trader so that your plan is based on your strengths and has safeguards around your weaknesses. No indicator can make that self-assessment for you and build it into your trade plan.
I don't mean to discourage you. I just think it's misguided to expect indicators to make you a good trader. Your ability to understand what the market is doing will make you a good trader, not bells and whistles on the chart.
Finally, it seems unfair to call something "shitty" just because it doesn't give the results you hoped for. There is no shortcut to successful trading. It takes a lot of study, a lot of discipline, and the ability to make mistakes and learn from them. If you're serious about learning, please try reading some good books on price action. Instead of calling something "shitty," perhaps you could watch the indicator for a while and see what it tells you about price. For example, plot a DMI on your chart watch what price does when the (+) and (-) cross the ADX or the ADX flattens. Plot an Ehlers MAMA on your chart and watch what happens when the lines cross. I wouldn't use those as trading signals, but they may help you learn about price action and get a feel for what indicators can--and can't--tell you.
Best wishes.
Last edited:
Start here...
https://usethinkscript.com/threads/es-trading-strategy-on-thinkorswim.987/
Keep in mind even the best strategy will not work all the time. A profitable strategy for someone may not be profitable for you because it fits their trading style and the market they're trading among other things. Learn to spot areas of support and resistance and how price reacts around those areas. Make sure you're entering where your stop loss is the amount you're comfortable with losing to find out if the price doesn't hit your target. Lastly, wait for a pullback and trade in the direction of the overall trend. Money and risk management is key to staying in the game.
https://usethinkscript.com/threads/es-trading-strategy-on-thinkorswim.987/
Keep in mind even the best strategy will not work all the time. A profitable strategy for someone may not be profitable for you because it fits their trading style and the market they're trading among other things. Learn to spot areas of support and resistance and how price reacts around those areas. Make sure you're entering where your stop loss is the amount you're comfortable with losing to find out if the price doesn't hit your target. Lastly, wait for a pullback and trade in the direction of the overall trend. Money and risk management is key to staying in the game.
I feel like I've tried 20 indicators (not at once) and even with backtesting and strict entry requirements, my trades are 50/50.
I feel mesmerized by indicators that look like they predict the market perfectly, but when I try to use them it doesn't work out that well. Even being strict, using various indicators to help with entry/exits.
Every time I looked at some professional's charts from a picture taken from a trading desk they always have very little indicators. It looks like some sort of EMA/SMA cross, VWAP, volume, multiple time frames from a single stock, and the news bar.
So if these people doing 100K+ a month are using so little then what is their edge?
There must be so many different edges out there. If you are a successful trader, can you share your edge?
example: I scalp /ES on the 3m when RSI is below 30 and see a bump in volume. or I trade options verticle spreads with a %70 delta.
I just cant find my edge and its frustrating. I've been at this for over a year.. every day... I tried Futures now im trying to learn options.
I feel mesmerized by indicators that look like they predict the market perfectly, but when I try to use them it doesn't work out that well. Even being strict, using various indicators to help with entry/exits.
Every time I looked at some professional's charts from a picture taken from a trading desk they always have very little indicators. It looks like some sort of EMA/SMA cross, VWAP, volume, multiple time frames from a single stock, and the news bar.
So if these people doing 100K+ a month are using so little then what is their edge?
There must be so many different edges out there. If you are a successful trader, can you share your edge?
example: I scalp /ES on the 3m when RSI is below 30 and see a bump in volume. or I trade options verticle spreads with a %70 delta.
I just cant find my edge and its frustrating. I've been at this for over a year.. every day... I tried Futures now im trying to learn options.
@murkr Nothing will be able to predict the market perfectly. Keep that in mind 
I always recommend people to start drawing trendlines, support, and resistance. I think it's a good starting place to get a feel of the chart, know your price levels, and understanding where price may likely to bounce or reverse from. For S/R, you must know how to draw them yourself, here is an excellent introduction post. There are various videos on YouTube regarding this subject as well.
VWAP is a great indicator; it's non-lagging and gives you an overall trend pretty well. It can also be used for counter-trend trading.
I always recommend people to start drawing trendlines, support, and resistance. I think it's a good starting place to get a feel of the chart, know your price levels, and understanding where price may likely to bounce or reverse from. For S/R, you must know how to draw them yourself, here is an excellent introduction post. There are various videos on YouTube regarding this subject as well.
VWAP is a great indicator; it's non-lagging and gives you an overall trend pretty well. It can also be used for counter-trend trading.
@BenTen Thanks, I already know a lot about charting S/R and different patterns like h&s, falling wedge, pennants, triangles.
Now I'm trying to learn about volume because I've always seemed to neglect that and turn it off on my charts. When I search "volume" in Thinkorswim there are so many volume indicators, I also see some are created here. Do you have a favorite volume indicator?
Now I'm trying to learn about volume because I've always seemed to neglect that and turn it off on my charts. When I search "volume" in Thinkorswim there are so many volume indicators, I also see some are created here. Do you have a favorite volume indicator?
@murkr -- Trading/investing goes through cycles of whats popular and whats not. Many value/active investors have been blown out as the trend from active to passive has increased dramatically. So, many of those indicators may have worked but are worthless now, imo. I see many folks endlessly fine tuning 10,20,30 year old indicators and am absolutely lost why they do it. I'll just list some bullet points to make this easier to read-
1. You may want to read Virtu's ipo and other docs to see what they do. One of the important observations is that break even trades are as important as win/loss.
2. When you see a "professionals" chart, be aware that real pros wont let you near their screen due to NDAs. There are many "pros", my guess is they make a living from selling tools not trading. I'd also add consider changing colors on indicators as alot of apps use similar colors as casinos which affect your decisions. Many highly paid 'pros' eg, market makers, are executing customer orders and take very little exposure to the mkt.
2.a. If a "pro" shows a screen and says they make x, ask for their audited 1040s, I've never seen a guru respond to that.
2.b. Theres an academic paper posted here, somewhere, which describes the vaious MAs and rates the, worth a read even if you disagree.
3. Volume/money flow can be misleading as you simply dont know whats on the other side of the trade
4. Consider looking at the latest fad, and the mechanics of it, eg, gamma/vanna , its a big deal (for now)
And, never forget, as well-intentioned as some are, its your money, your decisions. I could be the biggest clown in the trading world, you simply dont know and should be a skeptic.
1. You may want to read Virtu's ipo and other docs to see what they do. One of the important observations is that break even trades are as important as win/loss.
2. When you see a "professionals" chart, be aware that real pros wont let you near their screen due to NDAs. There are many "pros", my guess is they make a living from selling tools not trading. I'd also add consider changing colors on indicators as alot of apps use similar colors as casinos which affect your decisions. Many highly paid 'pros' eg, market makers, are executing customer orders and take very little exposure to the mkt.
2.a. If a "pro" shows a screen and says they make x, ask for their audited 1040s, I've never seen a guru respond to that.
2.b. Theres an academic paper posted here, somewhere, which describes the vaious MAs and rates the, worth a read even if you disagree.
3. Volume/money flow can be misleading as you simply dont know whats on the other side of the trade
4. Consider looking at the latest fad, and the mechanics of it, eg, gamma/vanna , its a big deal (for now)
And, never forget, as well-intentioned as some are, its your money, your decisions. I could be the biggest clown in the trading world, you simply dont know and should be a skeptic.
Vince Field
Member
Which of the custom indicators available in this forum would you recommend for day trading and scalping for a new trader? Which have you found to give the most accurate signals? Which do you personally use? Thanks!
scott69
Member
Bottom line, read all the books you can on trading. I've read hundreds of books. As you read, pick out strategies that sound like something you can live with. Can you sit and watch every tick? Will you swing trade, long term positions? There are some surprisingly easy emini systems that do work. Don't design the space shuttle if a model T will do the trick. And most importantly, losses are a part of the game. Controlling risk is what it is all about. If losses make you uncomfortable, you are in the wrong game. As all the other traders said, please put the work into your profession - trading. Good luck !!!!
Been trading for many decades, trade for a living now.
As has been said there is no magic indicator or strategy. Keep in mind you are in a battle when you are trading! A battle for cash - in order for you to win someone is losing. With that said it is best to learn the game by doing.
I went years losing and breaking even. There is no one indicator that will make you a long term winner - the market is ever changing and you must use different indicators that work with the change. In closing you must learn how to read the trend and then create a method that is yours to take advantage of the current trend.
There are many people on this site that share their work - learn from them and then create your masterpiece for success. It may take you years but if you are wise with money management success will come.
My advice, based on over 35 years of following and trading the stock market, is to pick a certain number of stocks and get to know them intimately... I know some traders like to scan for stocks to trade every day but that is not a good method for beginners to practice... Back when I used a satellite dish and DOS based stock market software I narrowed my big list to 100 stocks and of those 100 I would rotate 10 - 12 stocks that I knew intimately into my short list... In doing so I knew the pulse of each of those stocks and could detect abnormalities as they presented themselves... If a stock went cool it was replaced with a stock that looked to be going hot... Trading was far different back then compared to now...
Back then a hedge fund manager and I ran similar algorithm's and we could even detect insider trading based on option versus stock activity and those showed up on a report that I coded and ran several times throughout each trading session... The problem with the hedge fund manager was that he had a terrible habit of sitting on his hands rather than believing what the algorithm's told him... He'd hold out for a better price and would miss out on profitable trade after trade... And in doing so he lost over 4.3 million dollars of investors money before picking a new career... But I digress...
Back then a hedge fund manager and I ran similar algorithm's and we could even detect insider trading based on option versus stock activity and those showed up on a report that I coded and ran several times throughout each trading session... The problem with the hedge fund manager was that he had a terrible habit of sitting on his hands rather than believing what the algorithm's told him... He'd hold out for a better price and would miss out on profitable trade after trade... And in doing so he lost over 4.3 million dollars of investors money before picking a new career... But I digress...
I'm a new trader. I desperately need an indicator to alert me when to buy and sell. My entries and exits are not consistent. Well, they're consistently terrible. I use a 1day 5min chart setup on TOS. 'm most comfortable with this setup. I read the posts on the forum and when I think I've found what I'm looking for; I continue to read and get confused as to what script is going to work for me. Someone here please help me. I don't want to give up trading.
@Six6God You shouldn't give up on trading but you should definitely try to do more research. There is more to just finding an indicator that will alert you when to buy and sell. If that is what you really want, there are plenty on this forum. But as you mentioned, that is not consistent. If you are basing your trading decision based on an indicator, that will not work. Learn to read price action, draw support and resistance levels, and risk management. Indicators should be used as a supplement.
Google 'best strategy' for whatever you are: a daytrader, swing trader, gapper, etc... to get some idea of what indicators others are using. DO NOT buy any indicators there are 100's of indicators built-in to TOS and custom scripts on here. And then spend a hundred hours paper-trading those indicators, observe, take notes, watch patterns. And READ READ READ. So many great books out there if you are looking to become a good technical analyst and maximize the use of indicators.
Like @BenTen said: you want to google how to draw your own support and resistance, and play with what moving averages work for you, plug and play all the standard indicators: MACD, RSI, TMO, Stoch, and some squeezes, etc.. see what appeals to your style and the amount of time, you have to devote to trading.
Know that no indicator works in all market conditions. So, develop your 1st strategy, know what market conditions are necessary for it to be used successfully, and limit which instruments you trade to just a couple whose behaviors you can learn to know intimately and whose news you can keep abreast of.
And lastly, know that losing is part of trading.
Besides the shelves full of books that I read; I think I read every post on this site even if it didn't apply to what I was attempting to do. The posters here share their successes and their failures which you can then watch for in your own trading. And the experts on here are truly phenomenal. By reading their responses to the posts on this site, I have learned more than I could ever have learned on my own.
No one can give you a strategy that will be guaranteed to make you money and if anyone promises to do, run don't walk in the other direction.
But by putting in the hours, paper-trading, you can train yourself, to recognize price action and the interaction with the indicators to help improve your trades.
Like @BenTen said: you want to google how to draw your own support and resistance, and play with what moving averages work for you, plug and play all the standard indicators: MACD, RSI, TMO, Stoch, and some squeezes, etc.. see what appeals to your style and the amount of time, you have to devote to trading.
Know that no indicator works in all market conditions. So, develop your 1st strategy, know what market conditions are necessary for it to be used successfully, and limit which instruments you trade to just a couple whose behaviors you can learn to know intimately and whose news you can keep abreast of.
And lastly, know that losing is part of trading.
Besides the shelves full of books that I read; I think I read every post on this site even if it didn't apply to what I was attempting to do. The posters here share their successes and their failures which you can then watch for in your own trading. And the experts on here are truly phenomenal. By reading their responses to the posts on this site, I have learned more than I could ever have learned on my own.
No one can give you a strategy that will be guaranteed to make you money and if anyone promises to do, run don't walk in the other direction.
But by putting in the hours, paper-trading, you can train yourself, to recognize price action and the interaction with the indicators to help improve your trades.
@BenTen I completely understand all of those things. I have some indecision. My indecision is screwing with my confidence. I'm not afraid to lose. But at the same time I'm not winning. I've taken paid courses to learn. I didn't go into trading without educating myself. But it's not the same. Maybe it's not an indicator I need. Maybe it's an alert? I keep missing out on stocks that run. Buy and sell, breakout, something. I can a successful trader. for some reason there are some dots i haven't been able to connect.
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