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Scalping Strategy Based on Price/Volume?

trader54

New member
Hello friends,

I have tried many strategies you have posted on this site based on different moving averages and different indicators.
If we back test any of those strategies based on any indicator it works great. However in live trading those are not giving good results. and this is because indicators and averages keep changing in live trading. But in back testing those indicator values are fixed because of the past data. It won't work on live data.

So i am looking for a simple strategy that only uses price/volume. because price/volume can not be changed once they reflect on TOS. but indicators may change based on the future candles data.

So i am looking for a strategy that gives signal based on the price. for example, if price crosses previous high/low, or price crosses the price actions or fibonacci levels. Does anyone ever came across this kind of strategy? any references? Thanks in advance for your help.

Thanks.
 
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BenTen

Administrative
Staff member
Staff
VIP
Which indicator or strategy did you test? If the indicator is repainting (example here would be the trend reversal) or lagging behind a few bars (example here would be the TTM_Scalper) then they would not work at all. It's important to know what you are using and how they work before proceeding for actual trading.
 

JabronLames

Member
VIP
Hi,

I have limited experience, but I enjoy using the RelativeVolumeStDev study on TOS on intraDay trades. I wrote this crude script below that I placed in my watchlist. I aggregate it on the 2 minute chart. It adds the RelativeVolumeStDev of the last 3 closed candles and highlights the cell in the watchlist if there is a significant increase in volume, and plots the number.

Code:
# Rel Volume Watchlist Column

# By Dan Dude
# Copyright forever

def RelVolume = reference RelativeVolumeStDev();
def RelVolume1 = reference RelativeVolumeStDev()[1];
def RelVolume2 = reference RelativeVolumeStDev()[2];

def RelVolumeSum = (RelVolume + RelVolume1 + RelVolume2);

AssignBackgroundColor(if RelVolumeSum > 1 then color.dark_green else color.current);

AddLabel(yes, AsText((if RelVolumeSum > 0 then RelVolumeSum else 0),NumberFormat.TWO_DECIMAL_PLACES));
[/CODE}

Hopefully this helps!

*This works best for trades that are NOT in the first or last hour of trading, since the relative volume at that time is abnormally high anyways.
 

trader54

New member
Which indicator or strategy did you test? If the indicator is repainting (example here would be the trend reversal) or lagging behind a few bars (example here would be the TTM_Scalper) then they would not work at all. It's important to know what you are using and how they work before proceeding for actual trading.

Hi @BenTen , I tried to use many indicators. For example, i want to trade using 1min/5min chart. In that i want to decide whether to go short/long. For that i tried using hull moving average (HMA) on 15min chart. Based on the HMA on 15min chart (whether its green or red), i decide whether to go long/short in 1min/5min chart. Here 1min chart will have 15 candles corresponding to 1 candle in 15min chart. Similarly 5min chart will have 3 candles corresponding to 1 candle in 15min chart.

Now lets say for one candle in 1min chart the corresponding HMA in 15min chart is green/bullish and in 1min chart i am getting other signal to go long (e.g. MACD rising). So i will go long in 1min chart. But that HMA green signal in 15min chart can change any time over 15 candles in 1min chart right? In case the candle in 15min chart reverses, it will negate the long position we already opened. But in backtesting these kind of situation will never arise. because everything is fixed while backtesting. Means candles are never going to fluctuate in historical data.

From some research on other websites, i got to know that, these kind of strategies are repainting strategies. and to overcome this issue, you have to use the signal from the previous completed candles so that signal never gets re-painted. I tried that also, but in that case strategies are not giving any profit.

so anyone has came across any kind of non-repainting strategy which is giving good profit in backtesting?

Thanks.
 
Last edited:

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