Question about Strategies (Beginner)

Blue&Gold

New member
I added the code from a strategy from this forum onto my TOS and everything is there I am just curious as to what its actual function is. I am not sure if it just tells me when I SHOULD go long or if it actually purchases the option contracts automatically. It was posted by @irishgold in response to a renko bar chart setup by @rad14733. I have set up the charts and indicators and understand what the data is telling me, I am just not sure what the strategy code will actually do when I go live on Tuesday.
 
All backtesting strategy in ToS will be purchasing shares (100 by default but adjustable via the backtesting code). I hope that answers your question. ThinkorSwim does not support auto trading. So it will not have have any effect on your account.
 
@BenTen do you have the stragety active on your chart during the trading day, or just for backtesting?
Some people do keep the backtesting strategies going during trading hours as yet another indicator... I often have one running but only use the Buy and Sell signals for extra confirmation and not as a means of making primary trade decisions... I also have my strategies configured so I can turn off the actual Buy and Sell signals and just use the indicator...
 
@Blue&Gold as @BenTen says TOS provides the strategy concept for backtesting so that you can experiment with ideas and see if they are profitable. The problem with TOS its strategies are not always tradable in real time. For example you may see a BTO Buy to Open appear and then a few bars later its gone, that's unreliable. Since TOS does not provide any way to truly test strategies in real time or allow auto trading I am now working with Ninjatrader as it does let you use your strategies in real accounts. With @rad14733 trading ideas, I took the ideas and made conditions that AddOrder based on certain conditions. Using the Renko with 10 ticks on an Option you can get some interesting signals. For the Nasdaq using 25 ticks also interesting. Unfortunately with something like the NQ, only a computer trading can react fast enough and will give you a lot of trades and a lot of commissions which TDAmeritrade is not cheap. A micro on TDA is $4.70 RoundTrip but a option contract is only $.70. Use the strategy as a tool in TOS not a trading method.
 

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