Indicator for Think or Swim based on Rob Smith's The STRAT

[Pelonsax]

Bro, I'm not the best person to ask about the Strat to be honest. I have about enough knowledge and common sense to be able to write this indicator using only the basic definitions of the three (six actually) types of scenarios and the four basic reversals, but I still don't have the full ideology under my belt. The stuff I do know has already made a tremendous difference in my trading which is why I wanted to write these in order to give myself a more 'visual' perspective. I'm a visual learner. I do intend to dive all the way into it and squeeze as much benefit as I can out of it, so I think there will be more indicators and studies on the way, but I also don't want to make the rookie mistake I made before and put out a study that is wrong, so it may be a little while.

To answer your other question, I assume you're referring to my pivot study, and the answer is 'sort of'. That study is actually based on price, acc/dist, pivots and now it has a strat component for trend following. I'll probably publish that soon. I sort of put it on the back burner after I wrote a TOS strategy for it that gave less than optimal results, but when used in conjunction with other systems (maybe Swing Arm, maybe STRAT), it can be incredibly valuable and powerful. Right now, I'm starting to merge some of these systems to see if I can synthesize my own out of them all. I'm a firm believer that you have to forge your own way in trading. The only way you can make money using somebody else's system is if you are that person's emotional, psychological and intellectual clone. Best of luck brother! More to come!

Bro! I've wanted to respond to you in TradingView but I can't for the life of me figure out how! I was able to respond once and now I can't access the chat portion anymore. Just wanted you to know I wasn't ignoring you buddy! Hey, check out the top post again my friend. I've made a lot of changes and updates and added a few more studies! Thanks for your support!

 

[luiscervantes30]

Can you put the final link thanks.

 

[ext99k]

Could someone please explain when a buy and sell signal is triggered with the numbered candles? Thanks

 

[Pelonsax]

Can you put the final link thanks.

All of the links are now updated with the most recent updated versions

 

[Pelonsax]

Could someone please explain when a buy and sell signal is triggered with the numbered candles? Thanks

I should be very clear. This is going to sound like I'm coming down on you or being condescending, but I ask that you please do not take it that way. My intention is really to help. There are NO, ZERO, buy or sell signals in my indicators. The decision to buy or sell must be predicated upon a deeper understanding of The STRAT and any other tools at your disposal. You and only you are responsible for the decisions you make trading. You must never use a new system or indicator or study or strategy to trade with live money until you've had the chance to really learn it inside out and have had ample opportunity to practice with paper money, and have made sure that it works, and it's right for you. That being said...

Rob makes several points about when to enter or exit and how to manage a trade. I, myself, have not had the chance to fully absorb all of his videos, but I've picked up a few things along the way that could be helpful. I suggest, you watch the video in the top post. He just recorded that this week as a kind of intro to the strat. It has some real good info in it. I've also seen some videos where he mentions "actionable signals." These are any time a bar is a "one" followed by a reversal back through the previous range or breaking out into full time frame continuity. Right now I'm at the stage where I'm trying to absorb the more complex reversals "revtrats" and the concept of broadening formations, price discovery, and time frame continuity.

Rob has very generously made several videos on the subject and I am in the process of watching them and focusing on those concepts I mentioned. So far, suite of products that I created or co-created has been focused on the stages of learning the strat that I have been through, so you'll see the first study had to do with the types of bars (scenarios, he calls them: 1, 2, 3), the four basic reversals that he described in his interview with Steve Burns, timeframe continuity, etc. I next plan to code for the more complex reversals, and I've already been looking at studies that draw broadening formations.

There's a VERY good study on this site that draws them based on wedge formations. Do a search for "wedge" and you'll find it. what you have to do is draw out the diagonal lines that arise out of each wedge and you'll see that they act as price projections. Not all of them are going to pull the price to them, but most often you see price go parabolic in the direction of one these diagonals and stay along it's axis until it reverses.

Strictly speaking this is not the same as Rob's broadening formation, but it helps to see how price interacts with the wedges. From the video in the top post there is a place where he talks about broadening formations. This is from my notes:

Price discovery works in a continuous series of broadening formations. To draw the lines of the triangle or broadening formation simply go off old highs and lows. You’ll get chopped up trading too early in price discovery. What you want to do is catch a reversal back through the previous range of one of these formations. Start with the video in the top post and then go to his youtube channel and you'll find a wealth of information about this trading system for free.

Best of luck, friend!

 

[ext99k]

I should be very clear. This is going to sound like I'm coming down on you or being condescending, but I ask that you please do not take it that way. My intention is really to help. There are NO, ZERO, buy or sell signals in my indicators. The decision to buy or sell must be predicated upon a deeper understanding of The STRAT and any other tools at your disposal. You and only you are responsible for the decisions you make trading. You must never use a new system or indicator or study or strategy to trade with live money until you've had the chance to really learn it inside out and have had ample opportunity to practice with paper money, and have made sure that it works, and it's right for you. That being said...

Rob makes several points about when to enter or exit and how to manage a trade. I, myself, have not had the chance to fully absorb all of his videos, but I've picked up a few things along the way that could be helpful. I suggest, you watch the video in the top post. He just recorded that this week as a kind of intro to the strat. It has some real good info in it. I've also seen some videos where he mentions "actionable signals." These are any time a bar is a "one" followed by a reversal back through the previous range or breaking out into full time frame continuity. Right now I'm at the stage where I'm trying to absorb the more complex reversals "revtrats" and the concept of broadening formations, price discovery, and time frame continuity.

Rob has very generously made several videos on the subject and I am in the process of watching them and focusing on those concepts I mentioned. So far, suite of products that I created or co-created has been focused on the stages of learning the strat that I have been through, so you'll see the first study had to do with the types of bars (scenarios, he calls them: 1, 2, 3), the four basic reversals that he described in his interview with Steve Burns, timeframe continuity, etc. I next plan to code for the more complex reversals, and I've already been looking at studies that draw broadening formations.

There's a VERY good study on this site that draws them based on wedge formations. Do a search for "wedge" and you'll find it. what you have to do is draw out the diagonal lines that arise out of each wedge and you'll see that they act as price projections. Not all of them are going to pull the price to them, but most often you see price go parabolic in the direction of one these diagonals and stay along it's axis until it reverses.

Strictly speaking this is not the same as Rob's broadening formation, but it helps to see how price interacts with the wedges. From the video in the top post there is a place where he talks about broadening formations. This is from my notes:

Price discovery works in a continuous series of broadening formations. To draw the lines of the triangle or broadening formation simply go off old highs and lows. You’ll get chopped up trading too early in price discovery. What you want to do is catch a reversal back through the previous range of one of these formations. Start with the video in the top post and then go to his youtube channel and you'll find a wealth of information about this trading system for free.

Best of luck, friend!

@Pelonsax Thanks so much for the great advice. I will definitely look into it more and I think it is a great tool to add with a few others to make more informed trades.

Can you please consider adding the following alert toggle options:

• 1, 2, 3 bars
• Each of the plots (ThreeBear, ThreeBull, etc)

Would really appreciate it, thanks again!

 

[Prison Mike]

Bro! I've wanted to respond to you in TradingView but I can't for the life of me figure out how! I was able to respond once and now I can't access the chat portion anymore. Just wanted you to know I wasn't ignoring you buddy! Hey, check out the top post again my friend. I've made a lot of changes and updates and added a few more studies! Thanks for your support!

Right back at you! The studies are looking great! I can tell that you have put a lot of labor into it. And I’m sure it has been a good learning experience. Cant wait to see the finished product.

Bro THE STRAT is awesome! So simple and understandable and there still is more ways to apply it that I’m not utilizing. Have been using only two indicators for my trades and that’s all I need. Thanks again for bringing him to my attention.
https://www.tradingview.com/chart/SQ/thANeLSU-SQ-The-STRAT-by-Rob-Smith/

Side note: Rob mentioned there was some scans and study codes on THE STRATS’ Facebook page. Don’t do F-book myself but might be something to check out.

 

[Pelonsax]

Right back at you! The studies are looking great! I can tell that you have put a lot of labor into it. And I’m sure it has been a good learning experience. Cant wait to see the finished product.

Bro THE STRAT is awesome! So simple and understandable and there still is more ways to apply it that I’m not utilizing. Have been using only two indicators for my trades and that’s all I need. Thanks again for bringing him to my attention.
https://www.tradingview.com/chart/SQ/thANeLSU-SQ-The-STRAT-by-Rob-Smith/

Side note: Rob mentioned there was some scans and study codes on THE STRATS’ Facebook page. Don’t do F-book myself but might be something to check out.

What are your signals if you don't mind my asking?

 

[Prison Mike]

Usually in the afternoon I'll scan my list of stocks for daily, weekly 1s, 3s, and 3.1s (Rob calls a 312 a "Chicago" bc that's the area code there) and add them to a watchlist. Also looking for time continuity with these stocks; that daily, weekly, monthly, yearly are green or red to give me a directional bias. For instance, I don't get exited about a long that is green for the day, but red on all other timeframes.

With after hrs off I usually wait 30 min after open to find signals for an entry. Signals are usually based off the break of a 1, or 3 candle on anytime frame. When I see volume pop and a move through the break of the prior 1 or 3 that's when I enter.

Also you have to be aware if your taking a trade based off a 15 min 1, but you are still a 1 on the hourly you could get chopped up. Example: INTC long trade a made today. It was also against time continuity which isn’t the smartest. Should have waited for the next inside hr candle to print and traded off that(see tradeview link)

For stuff that is moving you may only be able to grab a 1, inside candle, on a 5 min chart. Example SQ today.

Risk management, Rob says "We know what should happen, and if it doesn't then get out the trade." I have been a lot quicker to exit taking small gains or tiny losses. Usually when something doesn’t workout it’s bc things on a higher timeframe was enforced.

Two ways I’m not totally utilizing The STRAT are with REV strat, which is a 3, 2 down, 2 up, and megaphone, which is the widening formation.

Check the Tradingview link. Been using it to review my trades.

Disclaimer: I have never been a profitable trader, but THE STRAT has really worked well for me and Im seeing a positive P/L.

Im sure I have grammatical, spelling errors. Hopefully this all made sense. Have made a few edits.

 

[ashfordtrader]

Would you please share the updated code? I’ll send you my feedback afterwards

 

[Gator]

I should be very clear. This is going to sound like I'm coming down on you or being condescending, but I ask that you please do not take it that way. My intention is really to help. There are NO, ZERO, buy or sell signals in my indicators. The decision to buy or sell must be predicated upon a deeper understanding of The STRAT and any other tools at your disposal. You and only you are responsible for the decisions you make trading. You must never use a new system or indicator or study or strategy to trade with live money until you've had the chance to really learn it inside out and have had ample opportunity to practice with paper money, and have made sure that it works, and it's right for you. That being said...

Rob makes several points about when to enter or exit and how to manage a trade. I, myself, have not had the chance to fully absorb all of his videos, but I've picked up a few things along the way that could be helpful. I suggest, you watch the video in the top post. He just recorded that this week as a kind of intro to the strat. It has some real good info in it. I've also seen some videos where he mentions "actionable signals." These are any time a bar is a "one" followed by a reversal back through the previous range or breaking out into full time frame continuity. Right now I'm at the stage where I'm trying to absorb the more complex reversals "revtrats" and the concept of broadening formations, price discovery, and time frame continuity.

Rob has very generously made several videos on the subject and I am in the process of watching them and focusing on those concepts I mentioned. So far, suite of products that I created or co-created has been focused on the stages of learning the strat that I have been through, so you'll see the first study had to do with the types of bars (scenarios, he calls them: 1, 2, 3), the four basic reversals that he described in his interview with Steve Burns, timeframe continuity, etc. I next plan to code for the more complex reversals, and I've already been looking at studies that draw broadening formations.

There's a VERY good study on this site that draws them based on wedge formations. Do a search for "wedge" and you'll find it. what you have to do is draw out the diagonal lines that arise out of each wedge and you'll see that they act as price projections. Not all of them are going to pull the price to them, but most often you see price go parabolic in the direction of one these diagonals and stay along it's axis until it reverses.

Strictly speaking this is not the same as Rob's broadening formation, but it helps to see how price interacts with the wedges. From the video in the top post there is a place where he talks about broadening formations. This is from my notes:

Price discovery works in a continuous series of broadening formations. To draw the lines of the triangle or broadening formation simply go off old highs and lows. You’ll get chopped up trading too early in price discovery. What you want to do is catch a reversal back through the previous range of one of these formations. Start with the video in the top post and then go to his youtube channel and you'll find a wealth of information about this trading system for free.

Best of luck, friend!

Thank you for your hard work with writing this code for Thinkorswim. I’m not sure where the most up to date link is located. Would you please put it in your next post. Much appreciated. Have a great day.

 

[ext99k]

@Gator The most updated code is in the very first post of this thread...

Also, would really appreciate it if you could please add the alert codes, thanks again!

 

[Pelonsax]

@Gator The most updated code is in the very first post of this thread...

Also, would really appreciate it if you could please add the alert codes, thanks again!

What specific condition do you want an alert for?

 

[Pelonsax]

Usually in the afternoon I'll scan my list of stocks for daily, weekly 1s, 3s, and 3.1s (Rob calls a 312 a "Chicago" bc that's the area code there) and add them to a watchlist. Also looking for time continuity with these stocks; that daily, weekly, monthly, yearly are green or red to give me a directional bias. For instance, I don't get exited about a long that is green for the day, but red on all other timeframes.

With after hrs off I usually wait 30 min after open to find signals for an entry. Signals are usually based off the break of a 1, or 3 candle on anytime frame. When I see volume pop and a move through the break of the prior 1 or 3 that's when I enter.

Also you have to be aware if your taking a trade based off a 15 min 1, but you are still a 1 on the hourly you could get chopped up. Example: INTC long trade a made today. It was also against time continuity which isn’t the smartest. Should have waited for the next inside hr candle to print and traded off that(see tradeview link)

For stuff that is moving you may only be able to grab a 1, inside candle, on a 5 min chart. Example SQ today.

Risk management, Rob says "We know what should happen, and if it doesn't then get out the trade." I have been a lot quicker to exit taking small gains or tiny losses. Usually when something doesn’t workout it’s bc things on a higher timeframe was enforced.

Two ways I’m not totally utilizing The STRAT are with REV strat, which is a 3, 2 down, 2 up, and megaphone, which is the widening formation.

Check the Tradingview link. Been using it to review my trades.

Disclaimer: I have never been a profitable trader, but THE STRAT has really worked well for me and Im seeing a positive P/L.

Im sure I have grammatical, spelling errors. Hopefully this all made sense. Have made a few edits.

That was great brother thank you!

 

[ext99k]

What specific condition do you want an alert for?

@Pelonsax Specifically for the TwoOneTwoBear and TwoOneTwoBull - thanks!!

 

[Prison Mike]

What specific condition do you want an alert for?

Good question. Signals can be found all over the place. You could have a lot of alerts.

Today was a good day with The Strat. Traded TWTR while at the doctor’s office and AMD doing “paper work.”

 

[TIGER202020]

@Pelonsax, great work! one thought here is that it is not only the pattern (312, 3U etc) but also the size the of bar. small bars (mostly 2s) can be replaced with continuity label; So these small 2s can be ignored in chart labeling to avoid overloading information. overall, the most useful information are "reverse bars" or continuity bars

 

[Prison Mike]

@TIGER202020 While I understand I disagree and believe Rob Smith the creator of The Strat would too. The person that bought puts wouldn't think its "noise" when the pattern was 1, then 2 up. It's time continuity not "noise."

 

[Timeless]

I loaded it up and noticed when I scan, it shows patterns that are already started(basically you should be getting in the trades already) as it scans once the pattern is a success.

I was wondering, could you add a 3-1 pattern? And a 2-1 pattern, that way we can be alerted when its 2-1 or 3-1 and then watch the chart for the final 2 pattern that way we can also have example a watchlist scan for 3-1 and we can scroll through them to see how the 2 develops for like the 3-1-2 and we can manually select the best choice as we watch the chart to see how the 2 develops ? I think it would be incredibly helpful.

 

[Rsully2222]

Is there a watchlist column showing the time frame, what the current number is and direction with colored columns?