Renko Bar Based Trading System for ThinkorSwim

[irishgold]

Something I should have added since I was stressing using the code above for options. When buying Puts just turn on Trade Long and the same with buying Calls. I'm not sure why this strategy works so well with Options but it does better used with Options than Equities or Futures, at least what I have observed in a short time of playing with the code.

 

[rad14733]

Something I should have added since I was stressing using the code above for options. When buying Puts just turn on Trade Long and the same with buying Calls. I'm not sure why this strategy works so well with Options but it does better used with Options than Equities or Futures, at least what I have observed in a short time of playing with the code.

Thanks for sharing your code above... I'll definitely give it a go... I think the reason you are having better luck with Options is because they are the instrument it was designed for... While I've back-tested with Stocks and ETF's, some of the settings would need to be adjusted for best results...

 

[irishgold]

Thanks, This is your baby so any ideas to tweak it would be appreciated. I was also thinking of a weighted conditional signal where each signal ie WAE = 2 BOP =1 and BullPower = 1 and then if signal > 3 , something like that where you can create entries and exits that might not need all the signals to take the trade.

 

[rad14733]

Thanks, This is your baby so any ideas to tweak it would be appreciated. I was also thinking of a weighted conditional signal where each signal ie WAE = 2 BOP =1 and BullPower = 1 and then if signal > 3 , something like that where you can create entries and exits that might not need all the signals to take the trade.

I started working on BOMP and RBP... Signals from WAE might be a bit more tricky... Kinda got off on another tangent and need to get back to finishing scanner, watchlist , and strategy code... I did back-testing to get to this point manually and that took several fun-filled evenings so a solid strategy will be helpful...

 

[irishgold]

@manishji its not an indicator, its a strategy, it really doesn't plot anything. copy the code, click on studies, click on Strategy tab, create new Strategy, delete whatever is in there and then paste the code, name the strategy , click OK and then you are done.

 

[3AMBH]

Something I should have added since I was stressing using the code above for options. When buying Puts just turn on Trade Long and the same with buying Calls. I'm not sure why this strategy works so well with Options but it does better used with Options than Equities or Futures, at least what I have observed in a short time of playing with the code.

Hi Irishgold, Please explain " When buying Puts just turn on Trade Long and the same with buying Calls." Thank you.

 

[3AMBH]

Here is the link to my shared workspace, complete with my customized Studies... Comments welcomed... If you have questions, I'll do my best to answer them...

https://tos.mx/DHOcwrT

Hi Rad, Thank you for sharing. I installed https://tos.mx/DHOcwrT workspace and found that the settings you show above in the original post do not match the settings in the shared workspace. Do these setting need to be tweaked for each Option? For example, would settings for a SPY option be different than settings for a TQQQ option? OR would settings for an ETF be different than settings for a stock; AAPL? Thank you in advance.

 

[irishgold]

Hi Irishgold, Please explain " When buying Puts just turn on Trade Long and the same with buying Calls." Thank you.

If you only BUY calls and puts and not sell them, then that is why I said tradeLong only. The signal is reacting to the option itself and not the underlying instrument. ie .AAPL200814C450 or .AAPL200814P450 and not AAPL

 

[rad14733]

Hi Rad, Thank you for sharing. I installed https://tos.mx/DHOcwrT workspace and found that the settings you show above in the original post do not match the settings in the shared workspace. Do these setting need to be tweaked for each Option? For example, would settings for a SPY option be different than settings for a TQQQ option? OR would settings for an ETF be different than settings for a stock; AAPL? Thank you in advance.

I don't think the actual chart settings are included in shared workspaces so you should check and adjust as required... As far as settings changes between symbols, I do adjust Ticks or use ATR depending on the symbols recent history... Sometimes the ATR is far higher than I'm comfortable using for volatile options movement so I set to a low Tick count of 2 - 4... Alternatively, I have also adjusted the Days to be lower which can also help bring the ATR down to a lower Tick count... Just how many days of history do we need when day trading options anyway...???

 

[3AMBH]

@rad14733 Hi Rad, Why do you I primarily trade Call Options and very few Put Options...? Thank you

 

[rad14733]

Hi Rad, Why do you I primarily trade Call Options and very few Put Options...? Thank you

I do trade Puts at times but have found that they tend to trade less volume and are usually higher priced trades... I'm still recovering from the damage done by the market plummet a few months ago so I'm primarily focusing on Calls at this time... But, that being said, I made a lot of money on Puts right up until the market plummet while I has over-invested in Calls that all expired worthless because the market never rebounded before Expiration... So I went from my best couple of weeks to busted... I had to add funds to my trading account for the first time ever...!!!

 

[3AMBH]

I do trade Puts at times but have found that they tend to trade less volume and are usually higher priced trades... I'm still recovering from the damage done by the market plummet a few months ago so I'm primarily focusing on Calls at this time... But, that being said, I made a lot of money on Puts right up until the market plummet while I has over-invested in Calls that all expired worthless because the market never rebounded before Expiration... So I went from my best couple of weeks to busted... I had to add funds to my trading account for the first time ever...!!!

Sorry to hear that. As you can tell I am inexperienced. I have your Trading system up for 1 full day live so not yet have a feel for it. But this morning I opened 2 Options Charts on SPY; Put 136 and Call 134; Market opened at 135. Looks like 2 trades on the Call chart and 1 trade on the Put chart. If I trade this System, I would never hold over night. And, I would always exit at the first hint of a reversal. Also, I took off the RSI upper. I added the RSI to the lower. My ADHD really scrambles my brain when too many things on the chart.

Looking at putting on 1 trade tomorrow (Tuesday) SPY. The lower Indicators are spectacular. When the "stars" align......BOOM! My trading plan includes Money Management and trading only SPY Weekly on expiration days only and scalping it. I am open to input and can take criticism. I sincerely thank you for posting this System.

 

[rad14733]

Sorry to hear that. As you can tell I am inexperienced. I have your Trading system up for 1 full day live so not yet have a feel for it. But this morning I opened 2 Options Charts on SPY; Put 136 and Call 134; Market opened at 135. Looks like 2 trades on the Call chart and 1 trade on the Put chart. If I trade this System, I would never hold over night. And, I would always exit at the first hint of a reversal. Also, I took off the RSI upper. I added the RSI to the lower. My ADHD really scrambles my brain when too many things on the chart.

Looking at putting on 1 trade tomorrow (Tuesday) SPY. The lower Indicators are spectacular. When the "stars" align......BOOM! My trading plan includes Money Management and trading only SPY Weekly on expiration days only and scalping it. I am open to input and can take criticism. I sincerely thank you for posting this System.

I jumped on SPY too early this morning, without paying attention to indicators, and ended up backing out with a small loss... But GLD and GDX were profitable early on... I have also been trading weekly's recently and they are a whole different animal but I like them... I rarely ever hold anything overnight after getting beat up so bad doing so...

I'm glad you're liking the system and look forward to hearing how live trades play out for you... Good luck...!!!

 

[3AMBH]

I jumped on SPY too early this morning, without paying attention to indicators, and ended up backing out with a small loss... But GLD and GDX were profitable early on... I have also been trading weekly's recently and they are a whole different animal but I like them... I rarely ever hold anything overnight after getting beat up so bad doing so...

I'm glad you're liking the system and look forward to hearing how live trades play out for you... Good luck...!!!

Here is a list of Weekly's that I follow.
AAPL, AMZN, BA, BABA, BIDU, CAT, CMG, CRM, CVX, DIA, EBAY, FB, FCX, GDX, GLD, GOOGL, GS, HAL, HD, IBM, IWM, JPM, LVS, MA, NFLX, NVDA, QCOM, QQQ, SBUX, SLB, SLV, SPY, SPX, TLT, TSLA, TWTR, VLO, VXX, WYNN, X, XOM. Plus ACB, NIO. LIke I said though, I will stay with SPY for about 30 days to get a feel. In the TOS Watchlist you can add an ATR custom column and that helps me. Best of success.

 

[drbdanish]

@rad14733 this is an amazing strategy, If the rules are followed correctly. Thank you so much for sharing with us. I went live today with $AAPL and was quiet profitable in options day trading. I am using it with Ultimate RSI indicator and it works wonderful.

I'm using 15 days and 25 ticks. I place a trailing stop at $40. Either I breakeven or make profit. Very little chance of loss, if rules are being followed.
I also added pivot point indicator to get a better understanding of support and resistance, it helps in locking in profits.

If the trade is profitable at least 75 ticks I move the trailing stop to 25 ticks below from current mark.

If anyone wants to try paper trading this combination give it go. This works well with $AAPL.

Mostly I only take long on 4 comfirmations, first the reversal signal, second wadda must be green, third RBP must be green and fourth the RSI must be touching or above the white line.

 

[3AMBH]

@drbdanish Thanks for posting. What is the name of the Pivot Point indicator and the RSI indicator you are using? If you have links it would help. Thank you

 

[drbdanish]

Thanks for posting. What is the name of the Pivot Point indicator and the RSI indicator you are using? If you have links it would help. Thank you

Mobius Pivot Indicator (Got it from Usethinkscript)
http://tos.mx/rZRcmKZ

Ultimate RSI Indicator also from this forum somewhere
http://tos.mx/eWcDpnJ

 

[3AMBH]

Thank you all very much! drbdanish How did you select the Strike Price you show in the Options Chart/trade above? AAPL opened at $463 and you are trading 470? Would you mind sharing your philosophy?

 

[drbdanish]

Thank you all very much!
drbdanish
How did you select the Strike Price you show in the Options Chart/trade above? AAPL opened at $463 and you are trading 470? Would you mind sharing your philosophy?

My only criteria is more than 10K volume on that option and price must be within 3 strike OTM not more than that.

 

[rad14733]

@drbdanish, glad you are like the system and having success... I've used several different indicators for confirmations and at the end of the day it comes down to using the ones that work best for your personal preferences and trading style...

I alternate between using BalanceOfMarketPower and TMOWithFisher along with RayBullPower and Waddah_Attar_Explosion... And sometimes I use BalanceOfMarketPower instead of RayBullPower... I think it depends on overall volatility but can't say for sure...

Good luck, and keep us posted on your trading progress with this system...

Edited to add: One criteria I try to adhere to for strike price selection is a Delta of .30 or greater and .25 at the very minimum... If I can't afford an option within that Delta range or better, due to recent upward price movement, I don't trade options for that stock on that day... It ****s trying to build an account balance back up after having a pandemic blow up your account...!!!