Renko Bar Based Trading System for ThinkorSwim

[rad14733]

First off, nice job my dude! I've been lurking around this site for a while now and you got me to finally sign up! quality stuff. My questions is if I wanted to day trade stocks and/or forex what would you recommend to be changed?

@Desrex Glad to have you onboard... The original setup should work fine for day trading and scalping as I have used them for both myself... I have tried several different indicators with this setup but be aware that some play better with Renko Bars than others due to their being Tick rather than Time based...

 

[Desrex]

@Desrex Glad to have you onboard... The original setup should work fine for day trading and scalping as I have used them for both myself... I have tried several different indicators with this setup but be aware that some play better with Renko Bars than others due to their being Tick rather than Time based...

@rad14733 , Awesome, I think I like how you have this setup as it is, I’m still rather new so I’ll stick to this until I get better and maybe expand into other indicators to pair with this.
Question about WAE, when I go to different stocks sometimes the WAE zooms out soo small that I can’t see the histogram, I have zoom in and re position it to see the WAE. Do you know how I could make it where the WAE auto zooms to fit the space so when I switch tickets I don’t have to resize it every time?

 

[rad14733]

@Desrex One aspect of the Waddah Attar Explosion indicator that is rarely discussed is the fact that you may need to optimize the settings for each instrument you monitor and trade... This can primarily include Sensitivity, and Dead-Zone, but can also extend to the rest of the settings... WAE being similar in concept to the TTM Squeeze indicator, it uses Bollinger Bands and MACD to determine momentum and squeezes or, in simpler terms, consolidations... And considering how the WAE indicator is considered best for scalping the fine tuning will help in entering trades when momentum out of consolidation increases and exiting trades as soon as momentum starts to decline by optimization of settings... That isn't to say that WAE can't be used for other styles of trading, however... Hope this information helps...

 

[Desrex]

@Desrex One aspect of the Waddah Attar Explosion indicator that is rarely discussed is the fact that you may need to optimize the settings for each instrument you monitor and trade... This can primarily include Sensitivity, and Dead-Zone, but can also extend to the rest of the settings... WAE being similar in concept to the TTM Squeeze indicator, it uses Bollinger Bands and MACD to determine momentum and squeezes or, in simpler terms, consolidations... And considering how the WAE indicator is considered best for scalping the fine tuning will help in entering trades when momentum out of consolidation increases and exiting trades as soon as momentum starts to decline by optimization of settings... That isn't to say that WAE can't be used for other styles of trading, however... Hope this information helps...

It does thank you very much! do you have any scans studies you like to pair up with this trading strategy?

 

[rad14733]

@Desrex I predominantly trade options and only for a select few symbols so I have a watchlist of those choice symbols... And I also have a scan which lists only the options with strike prices within the range I prefer to trade for the symbols in said watchlist and that runs in yet another watchlist... Then if I see that one of the stocks is primed for a move I can quickly decide whether there is an option I'd like to setup a potential trade for in Active Trader... It's more complex than that but this gives you a quick overview... I sometimes use different indicators for the underlying symbols I monitor... Again, hope this helps...

 

[Desrex]

@Desrex I predominantly trade options and only for a select few symbols so I have a watchlist of those choice symbols... And I also have a scan which lists only the options with strike prices within the range I prefer to trade for the symbols in said watchlist and that runs in yet another watchlist... Then if I see that one of the stocks is primed for a move I can quickly decide whether there is an option I'd like to setup a potential trade for in Active Trader... It's more complex than that but this gives you a quick overview... I sometimes use different indicators for the underlying symbols I monitor... Again, hope this helps...

that helps a ton! thanks for the reply

 

[irishgold]

that helps a ton! thanks for the reply

@Desrex I predominantly trade options and only for a select few symbols so I have a watchlist of those choice symbols... And I also have a scan which lists only the options with strike prices within the range I prefer to trade for the symbols in said watchlist and that runs in yet another watchlist... Then if I see that one of the stocks is primed for a move I can quickly decide whether there is an option I'd like to setup a potential trade for in Active Trader... It's more complex than that but this gives you a quick overview... I sometimes use different indicators for the underlying symbols I monitor... Again, hope this helps...

What is your preferred list of options and scan you mentioned. Can you share that?

 

[rad14733]

@irishgold Over the years I've refined my stock list for options based on average volume of Open Interest, Volume, and Option Price... I trade Option Prices in the ~0.40 - ~2.00 range because when scalping there is a greater percentage of profit compared to higher priced options... So in order to be trading ITM or just OTM options the stock list becomes somewhat limited... I watch a total of about 25 symbols but some are for monitoring the current overall health of the market...

A short list of optionable symbols would be AAL, AAPL, AMD, BAC, CSCO, GDX, GLD, GOLD, MSFT, MU. NIO, PFE, SPY, SQQ, TLT, TNA, TWTR, UVXY, VIX, VXX, WFC, WMT...

A few others may get rotated in and a few of those may get rotated out depending on performance... Some of those symbols are far more volatile and risky than others, and some may not be good trading candidates over extended periods of time... Again, I'm watching for the underlying to pop and it's not uncommon to make 300% profit on a minutes long scalp...

But on the flip-side, if you don't have a good trading plan with stop-loss in place you can lose your entire investment... The covid crash last spring gutted my trading account when the markets plummeted and never recovered prior to expiration... Option prices fell below stop-losses and either sold at a huge loss or never traded so I couldn't exit and they expired worthless... The use of stop-loss is not a panacea when trading options... Those were swing trades and due to the losses I no longer hold any positions overnight unless I have a huge level of certainty that they will pop on the open...

I hope this information is found to be helpful...

 

[mourningwood4521]

Again, this is due to problems created during the TOS updates over the weekend... Last I checked, they hadn't resolved the issue yet... I'm sure they have more important bugs to resolve before they get to the tos.mx site issue...

like I said, I found a hack to get around this. copy this line, take out the space In htt ps:// and type that into your open shared item and boom I just shared a link with you.


htt ps://tos.mx/omoF6IA

me and my friends have been sharing crayon drawings with each other this week this way.

 

[Desrex]

What is your preferred list of options and scan you mentioned. Can you share that?

who were you directing this too?

 

[irishgold]

@Desrex I was asking the OP @rad14733 and he responded. Thanks @rad14733

 

[phantomluvs]

Apparently this looks like a great system for TOS. Unfortunately non of the links are working not able to find the settings for Trend_Reversal_Indicator_with_Signals.

Anyone sharing the code / settings will be greatly appreciated

 

[Trader_Rich]

like I said, I found a hack to get around this. copy this line, take out the space In htt ps:// and type that into your open shared item and boom I just shared a link with you.


htt ps://tos.mx/omoF6IA

me and my friends have been sharing crayon drawings with each other this week this way.

@mourningwood see if this works

htt ps://tos.mx/wRmgtUr

 

[rad14733]

Apparently this looks like a great system for TOS. Unfortunately non of the links are working not able to find the settings for Trend_Reversal_Indicator_with_Signals.

Anyone sharing the code / settings will be greatly appreciated

That is a repainting indicator that we no longer recommend... Signals will repaint so what looked like a good signal will vanish even beyond the close of the candle/bar that fires it... The topic is scattered with such warnings... Many have started using it only to realize after trade losses that it's an inferior indicator... The problem is that it relies on the ZigZagHighLow indicator which also repaints... If you need to prove it to yourself, set it up and monitor SPY or /ES on a tick-based Chart with a tick size between 1 - 5 and you'll be convince within a few minutes...

 

[mourningwood4521]

@Trader_Rich It worked! Amazing man. Thank you!

@rad14733 turned me on to the ATR charts from some of his magnificent work. So much easier to read these charts than the candles.
I’ll probably have some questions for you @rad14733 when I finish reading all the comments on this post. But this workspace you shared is so freaking dope man! This the most lit thing I’ve come across in my time here.

 

[rad14733]

Sorry, did not work

@phantomluvs Copy the URL https://tos.mx/wRmgtUr and Paste into Setup > Import Shared Link and check the Open Shared Items after I press Import checkbox and it should import and open without issue... As I stated previously, the standard import method has been broken since the weekend updates and is not working as yet...

@mourningwood4521 Thank you for the kind words... I am constantly looking for, evaluating , and modifying indicators in an effort to make our trading efforts better... I'm glad the indicator combination is working for you...

 

[traderpro]

@rad14733 Thank you for this strategy and amazing in-depth analysis. I'm looking to use this for options but looking for a simpler/reduced conditions that can provide higher probabilities where it be using "ATR" or specific ticks. I like to use QQQ and AAPL for options as they are not very expensive and have high volume/open interest. How would you approach option trading on those underlying stocks? Thanks!

 

[rad14733]

@rad14733 Thank you for this strategy and amazing in-depth analysis. I'm looking to use this for options but looking for a simpler/reduced conditions that can provide higher probabilities where it be using "ATR" or specific ticks. I like to use QQQ and AAPL for options as they are not very expensive and have high volume/open interest. How would you approach option trading on those underlying stocks? Thanks!

I have traded both QQQ and AAPL with the setup provided in the first post... I've used from 2t to ATR and above, depending on current pricing and market volatility...

I've used various methods of watching the underlying and currently use my EMA_x5_Stack, on-chart RSI, TTM_Squeeze_Pro_Priceline, TTM_Squeeze_Pro lower indicator, Waddah_Attar_Explosion, ErgodicOsc, Didi_Index, and a custom dashboard... I've used other combinations in the past but have settled on these as of late... I monitor 2m, 5m, 10m, 15m, and 30m charts but don't use lower indicators, and a minimum of uppers, on the lower timeframes that are on a 4-up chart grid...

Hope this helps...

 

[traderpro]

I have traded both QQQ and AAPL with the setup provided in the first post... I've used from 2t to ATR and above, depending on current pricing and market volatility...

I've used various methods of watching the underlying and currently use my EMA_x5_Stack, on-chart RSI, TTM_Squeeze_Pro_Priceline, TTM_Squeeze_Pro lower indicator, Waddah_Attar_Explosion, ErgodicOsc, Didi_Index, and a custom dashboard... I've used other combinations in the past but have settled on these as of late... I monitor 2m, 5m, 10m, 15m, and 30m charts but don't use lower indicators, and a minimum of uppers, on the lower timeframes that are on a 4-up chart grid...

Hope this helps...

I'm convinced in this strategy but need to develop higher conviction...thanks!

 

[sunstar]

I have traded both QQQ and AAPL with the setup provided in the first post... I've used from 2t to ATR and above, depending on current pricing and market volatility...

I've used various methods of watching the underlying and currently use my EMA_x5_Stack, on-chart RSI, TTM_Squeeze_Pro_Priceline, TTM_Squeeze_Pro lower indicator, Waddah_Attar_Explosion, ErgodicOsc, Didi_Index, and a custom dashboard... I've used other combinations in the past but have settled on these as of late... I monitor 2m, 5m, 10m, 15m, and 30m charts but don't use lower indicators, and a minimum of uppers, on the lower timeframes that are on a 4-up chart grid...

Hope this helps...

@rad14733 for this particular instrument, " .AAPL210226C127 " can you please let me know the settings you use for ErgodicOsc and Didi_Index

as such I've these settings for ErgodicOsc - 26,13,8,exponential
Didi index - Close, 8, 21, 55