RSI IFT (Inverse Fisher Transform)

Superfast

New member
Thanks, I'm looking at what indicators would work best with this. If it's a momentum indicator/strategy, it could be good to pair it with a volatility indicator (squeeze) or vix/vx indicator or something of the sort. There's the trendreversal indicator which repaints hence the reason I was asking about this one. Thanks again, please feel free to add anything else that may help.
 
first of all, thank you @cos251 for posting this indicator, it appears to be the missing piece to the indicator set I've been using, see below:
  • Hurwitz VWAP - google Hurwitz, he posts his TOS vwap tool for free on his site as well some high level vwap instruction
  • MACD BB - not sure where I got this, may have been here or from another TOS indicator group I used to belong to but its the standard macd bb indicator, mine has the white and red dots and zero line goes from green to red depending on where the dots are situated
  • RSI IFT - from this post
  • also I deleted all the EMAs I was using

I primarily "scalp" SPY options and there appears to be a high probability of success when -
  1. the RSI IFT fires buy or sell and at the same time the macd bb dots are crossing above or below the zero line
  2. price is above vwap for calls and below for puts.
  3. If SPY is crossing vwap in the direction of the signal at the same time, these trades appear to be gold.

I'm currently using 200 ticks for SPY and 20 ticks for options, same indicator set for both and only trading morning session. Signals for SPY and option tend to fire simultaneously or within a few bars of each other.

I'm going to keep watching for another day or two, but if what I've seen holds, this should be a profitable strategy and the approach should translate to other instruments and timeframes. Check it out and let me know what you think.

CC @MerryDay , @Superfast
 

cos251

Well-known member
first of all, thank you @cos251 for posting this indicator, it appears to be the missing piece to the indicator set I've been using, see below:
  • Hurwitz VWAP - google Hurwitz, he posts his TOS vwap tool for free on his site as well some high level vwap instruction
  • MACD BB - not sure where I got this, may have been here or from another TOS indicator group I used to belong to but its the standard macd bb indicator, mine has the white and red dots and zero line goes from green to red depending on where the dots are situated
  • RSI IFT - from this post
  • also I deleted all the EMAs I was using

I primarily "scalp" SPY options and there appears to be a high probability of success when -
  1. the RSI IFT fires buy or sell and at the same time the macd bb dots are crossing above or below the zero line
  2. price is above vwap for calls and below for puts.
  3. If SPY is crossing vwap in the direction of the signal at the same time, these trades appear to be gold.

I'm currently using 200 ticks for SPY and 20 ticks for options, same indicator set for both and only trading morning session. Signals for SPY and option tend to fire simultaneously or within a few bars of each other.

I'm going to keep watching for another day or two, but if what I've seen holds, this should be a profitable strategy and the approach should translate to other instruments and timeframes. Check it out and let me know what you think.

CC @MerryDay , @Superfast
This is a very nice setup @agorena123 - let us know how you fare with it!
 

Options Manor

New member
first of all, thank you @cos251 for posting this indicator, it appears to be the missing piece to the indicator set I've been using, see below:
  • Hurwitz VWAP - google Hurwitz, he posts his TOS vwap tool for free on his site as well some high level vwap instruction
  • MACD BB - not sure where I got this, may have been here or from another TOS indicator group I used to belong to but its the standard macd bb indicator, mine has the white and red dots and zero line goes from green to red depending on where the dots are situated
  • RSI IFT - from this post
  • also I deleted all the EMAs I was using

I primarily "scalp" SPY options and there appears to be a high probability of success when -
  1. the RSI IFT fires buy or sell and at the same time the macd bb dots are crossing above or below the zero line
  2. price is above vwap for calls and below for puts.
  3. If SPY is crossing vwap in the direction of the signal at the same time, these trades appear to be gold.

I'm currently using 200 ticks for SPY and 20 ticks for options, same indicator set for both and only trading morning session. Signals for SPY and option tend to fire simultaneously or within a few bars of each other.

I'm going to keep watching for another day or two, but if what I've seen holds, this should be a profitable strategy and the approach should translate to other instruments and timeframes. Check it out and let me know what you think.

CC @MerryDay , @Superfast
Hi, can you please post your setup via TOS? thank you for your hep!
 
hi @MerryDay, thanks for pointing out the vwap registration notice.

@Options Manor, my screen is split in two with SPY on top chart and option on the bottom. In addition to the chart set up, I have a simple SPY option scan for 0 - 6DTE and over 1k in volume. The scan is set up as a watchlist and I sort by volume. That makes it easy to toggle between options on the chart. Quick note, I used 200 ticks on SPY when I was first setting this up in late August but I believe volume has picked up so may be switching to 400 ticks on SPY, leaving 20 ticks for the options.

Watch it for a few days and you'll see patterns & set ups repeat themselves day after day. Option vwap crosses with the indicators confirming direction tend to be high probability plays.
 

rfb

Member
hi @MerryDay, thanks for pointing out the vwap registration notice.

@Options Manor, my screen is split in two with SPY on top chart and option on the bottom. In addition to the chart set up, I have a simple SPY option scan for 0 - 6DTE and over 1k in volume. The scan is set up as a watchlist and I sort by volume. That makes it easy to toggle between options on the chart. Quick note, I used 200 ticks on SPY when I was first setting this up in late August but I believe volume has picked up so may be switching to 400 ticks on SPY, leaving 20 ticks for the options.

Watch it for a few days and you'll see patterns & set ups repeat themselves day after day. Option vwap crosses with the indicators confirming direction tend to be high probability plays.
Interesting setup! Would you be able to share your screen setup? Thanks!
 
@rfb see post 26 regarding sharing screen share via TOS
@MerryDay posting screenshot without code if that's ok, please delete if not allowed

jnEw2V5.png
 

cos251

Well-known member
hi @MerryDay, thanks for pointing out the vwap registration notice.

@Options Manor, my screen is split in two with SPY on top chart and option on the bottom. In addition to the chart set up, I have a simple SPY option scan for 0 - 6DTE and over 1k in volume. The scan is set up as a watchlist and I sort by volume. That makes it easy to toggle between options on the chart. Quick note, I used 200 ticks on SPY when I was first setting this up in late August but I believe volume has picked up so may be switching to 400 ticks on SPY, leaving 20 ticks for the options.

Watch it for a few days and you'll see patterns & set ups repeat themselves day after day. Option vwap crosses with the indicators confirming direction tend to be high probability plays.
Have to say, very impressed with your setup. Very well thought out and simple!
 

rfb

Member
@rfb see post 26 regarding sharing screen share via TOS
@MerryDay posting screenshot without code if that's ok, please delete if not allowed

jnEw2V5.png
Thanks! Got all the info from the post and VWAP script. All good. Only downside to the VWAP script, it will not work on SPX, at least from my end! Thanks again!
 

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