Profitable day trading strategy for ThinkorSwim users?

[Zedd]

Can someone share me with a day trading strategy that has worked for them. I have tried many strategies and used many indicators but ended up losing trades or the strategy didn't work good enough backtesting.

 

[MerryDay]

Thank you for the explanation and label! I was curious if you were willing to share your workspace so we could try more of the labels and indicators? Would love to try them out on SPX options. Thank you so much!

https://usethinkscript.com/threads/cabe1332-commonly-used-chart-indicators-for-thinkorswim.8853/

 

[STS Cyber Rogue]

@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.

Hello. I know this is from a while back but can you suggest some other "non-lagging," indicators?

 

[wborden44]

Hello. I know this is from a while back but can you suggest some other "non-lagging," indicators?

Price and volume! Study those two in depth and you'll have a much better understanding of technical analysis. After all, most indicators are based off of or are deviations of those two things.

 

[wlqkmdwq]

Let me add that the same script can be used to scan high probability entries, see below. Add your price and volume and the script below as a study filter into your scan at any aggregation and timeframe. Let me know if that helps. Good luck! @cabe1332.

#Scan for good probability entry
# by [email protected]

# Start of code

######### EMA21 - price below 21 ma
def dprice = close;
def dlength = 21;
def ddisplace = 0;
def EMA21 = MovingAverage(AverageType.eXPONENTIAL, dprice, dlength)[-ddisplace];
def v = if EMA21 > EMA21[1] then 1 else 0;

######### EMA50 - price below 50 ma
def eprice = close;
def elength = 50;
def edisplace = 0;
def EMA50 = MovingAverage(AverageType.eXPONENTIAL, eprice, elength)[-edisplace];
def x = if EMA50 > EMA50[1] then 1 else 0;

######### EMA200 - price below 200 ma - losing stock don't buy
def fprice = close;
def flength = 200;
def fdisplace = 0;
def EMA200 = MovingAverage(AverageType.eXPONENTIAL, fprice, flength)[-fdisplace];
def t = if EMA200 > EMA200[1] then 1 else 0;

############ HMA
def hprice = close;
def hlength = 20;
def displace = 0;
def HMA = MovingAverage(AverageType.HULL, hprice, hlength)[-displace];
def y = if HMA > HMA[1] then 1 else 0;

############ EMAs Stacked - a must for a good setup and entry
def stackedUp = MovAvgExponential("length" = 8)."AvgExp" is greater than MovAvgExponential("length" = 21)."AvgExp"
and MovAvgExponential("length" = 21)."AvgExp" is greater than MovAvgExponential("length" = 34)."AvgExp"
and MovAvgExponential("length" = 34)."AvgExp" is greater than MovAvgExponential("length" = 55)."AvgExp"
and MovAvgExponential("length" = 55)."AvgExp" is greater than MovAvgExponential("length" = 89)."AvgExp";
def e = if stackedUp then 1 else 0;

####### TTM_Squeeze - momo must be light blue
def H = reference TTM_Squeeze().Histogram;
def tt = if H > 0 and H > H[1] then 1 else 0;

#VWAPvalue
def vwapValue = reference VWAP();
def vw = if close > vwapValue then 1 else 0;

############ RSI
def rsilength = 5;
def rsi = reference RSI(length = rsilength)."RSI";
def rsioversold = if rsi < 20 then 1 else 0;
def rsioverbought = if rsi > 80 then 1 else 0;
def r = if rsioversold or rsioverbought then 1 else 0;

############ plot

plot z = if tt== 1 and x == 1 and y == 1 and e == 1 and v == 1 and r == 0 and t == 1 and vw == 1 then 1 else 0;

#End of code

Hi

@cabe1332 Can you share the link for this setup please?

 

[MerryDay]

Hi

@cabe1332 Can you share the link for this setup please?

The script you are asking for is attached to your question.

 

[afmiller1953]

Hello. I know this is from a while back but can you suggest some other "non-lagging," indicators?

As far as I know most all indicators and i include VWAP are lagging to a degree. The only ones going forward are trend lines and support/resistance lines which is why most professionals don't utilize a lot if any indicators other than VWAP (because it's used by so many people they realize it's importance in price movement). Multiple time frame windows open, watching darkpool action, options actions etc. are resources for all.

 

[JoeSD]

Hi @sunnybabu, I hope your trading has been profitable. All the indicators are available and you will find them here @usethinkscript.com. Just takes a little work for you to search and understand.

I like to keep things simple and easy systematically. Someone mentioned in the list "better entry" or "how can I avoid bad entry". Well, I wrote a script below I can share that may help all or at least the early traders. Yes, I do have a lot of indicators on my chart, but my consolidated decision (or AI) does a good job telling me to avoid entry or when certain situations to get out of the position. The label maybe will save you chart space and $$$ on all timeframes whether short or long trades. I have attached some screenshots of how it looks. I hope this helps you. Just let me know what you think and feedback or just thank you is appreciated. Good luck! @cabe1332

#PosEntry & Warning Label
# by [email protected]

# Start of code

######### EMA21 - price below 21 ma
def dprice = close;
def dlength = 21;
def ddisplace = 0;
def EMA21 = MovingAverage(AverageType.eXPONENTIAL, dprice, dlength)[-ddisplace];
def v = if EMA21 > EMA21[1] then 1 else 0;

######### EMA50 - price below 50 ma
def eprice = close;
def elength = 50;
def edisplace = 0;
def EMA50 = MovingAverage(AverageType.eXPONENTIAL, eprice, elength)[-edisplace];
def x = if EMA50 > EMA50[1] then 1 else 0;

######### EMA200 - price below 200 ma - losing stock don't buy
def fprice = close;
def flength = 200;
def fdisplace = 0;
def EMA200 = MovingAverage(AverageType.eXPONENTIAL, fprice, flength)[-fdisplace];
def t = if EMA200 > EMA200[1] then 1 else 0;

############ HMA
def hprice = close;
def hlength = 20;
def displace = 0;
def HMA = MovingAverage(AverageType.HULL, hprice, hlength)[-displace];
def y = if HMA > HMA[1] then 1 else 0;

############ EMAs Stacked - a must for a good setup and entry
def stackedUp = MovAvgExponential("length" = 8)."AvgExp" is greater than MovAvgExponential("length" = 21)."AvgExp"
and MovAvgExponential("length" = 21)."AvgExp" is greater than MovAvgExponential("length" = 34)."AvgExp"
and MovAvgExponential("length" = 34)."AvgExp" is greater than MovAvgExponential("length" = 55)."AvgExp"
and MovAvgExponential("length" = 55)."AvgExp" is greater than MovAvgExponential("length" = 89)."AvgExp";
def e = if stackedUp then 1 else 0;

####### TTM_Squeeze - momo must be light blue
def H = reference TTM_Squeeze().Histogram;
def tt = if H > 0 and H > H[1] then 1 else 0;

#VWAPvalue
def vwapValue = reference VWAP();
def vw = if close > vwapValue then 1 else 0;

############ RSI
def rsilength = 5;
def rsi = reference RSI(length = rsilength)."RSI";
def rsioversold = if rsi < 20 then 1 else 0;
def rsioverbought = if rsi > 80 then 1 else 0;
def r = if rsioversold or rsioverbought then 1 else 0;

############ Label
def z = if tt== 1 and x == 1 and y == 1 and e and 1 and r == 0 and t == 1 and vw == 1 then 1 else 0;

addlabel(yes, if z == 1 then "You're good. Good Luck!" else " Watch it!  " + (if e == 0 then "-EMAs not stacked " else "")  + (if v == 0 then "-Price below EMA21 " else "") + (if t == 0 then "-Price below EMA200 " else "") + (if vw == 0 then "-Price below VWAP " else "")+ (if x == 0 then "-Declining EMA50 " else "") + (if y == 0 then "-Declining HMA " else "") + (if tt == 0 then "-Declining MoMo " else "") + (if rsioversold == 1 then "-Oversold " else "") + (if rsioverbought == 1 then "-Overbought " else ""), if z == 1 then color.green else color.orange);

#End of code

Cabe, I am not sure what the indicator looks like??? Is it just the labels(s)? How would I use it? Thanks so much and sorry if my Q's seem ridiculous... Joe

 

[cabe1332]

Cabe, I am not sure what the indicator looks like??? Is it just the labels(s)? How would I use it? Thanks so much and sorry if my Q's seem ridiculous... Joe

@JoeSD Yes, it is just a label that provides you with warnings and good entry/exit conditions
Good Luck! @cabe1332.

 

[JoeSD]

@JoeSD Yes, it is just a label that provides you with warnings and good entry/exit conditions
Good Luck! @cabe1332.

Cabe, thanks. How do you use/interpret Dans_Squeeze Arrows indicator? Thanks. Joe

 

[MerryDay]

Cabe, thanks. How do you use/interpret Dans_Squeeze Arrows indicator? Thanks. Joe

Please provide a link to the post or paste the script that you are referring to. The label that you were asking about has no arrows.

 

[graci117]

@Daughters Keeper thank you for referring to the thread. I made several updates to the code since the first post and other indicators were added to confirm buy and sell signals.

@rogtrader this is the link to the thread. Please ensure you read the entire thread and comments and review the resources(page 5). I hope this helps.

https://usethinkscript.com/threads/completed-heikin_ashi-indicator.5251/

As are reminder always do your own diligence and have a trading plan.

Disclaimer- this is how I use my HA_smoothing indicator and MTF within my trading plan. It works for me. Everyone needs to find what works for them. This indicator is not the holy grail but I have found that combined with fundamentals and technicals it can take away some indecisiveness and keep one in the trade longer. On the flip side it can get you out of a trade and decrease the risk.

@BonBon I happened to come across your thread and it looks amazing! Thanks for the contribution. I was able to get it loaded on TOS and I was able to profit using swing Hi Lo. However, Zigzag lags and I saw in one of your comments that you had modified it to show it just before the trend reversal. You also asked to look at post #265 and I added that but that is just the swing hi lo. Could you possibly post the tweaked code or point me to it?? THANKS SO MUCH!!

 

[Morris]

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.

Frustration, Depression, overconfidence, FOMO, Fear of Loss are the range of emotions you experience while trading. Forget finding the perfect indicator or combination there of. The reason indicators look like they are predictive is because they follow data thats already happened. Everyday is a new story, hindsight is 20/20 and the future is uncertain. Follow these Five Truths that are stated in the Book Trading in the Zone by Mark Douglas.
1. Anything can happen.
2. You don't need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define and edge.
4. An Edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.

 

[Mr_Wheeler]

Good study system eliminates the Tea Leaves that are candle stick patterns as well as candle sticks themselves such as "falling hammer".

The other problem is that you need to know of potential price driving action ahead of time.

Then you shouldn't trade for the sake of trading which pressures you into making mistakes.

Lastly don't be a penny pincher regarding getting out of bad trades. If you're a few dollars from breaking even after being down several hundred or thousand dollars then it's alright to take a 10 dollar loss so that you can close your trade, your stock trading program, and get away from the computer for a week or so.

If you're feeling bitter about a trade then you should get out when you can. Trillions of dollars are traded each day.