SPX Fear & Greed Mean Reversion Strategy Indicator for ThinkorSwim

BenTen

Administrative
Staff member
Staff
VIP
Lifetime
Recently stumbled upon this indicator with auto buy/sell strategy for ThinkorSwim called $SPX Fear & Greed Mean Reversion. It was developed by korygill based on the work of @kerberos007.

The indicator generate buy and sell signals based on Bollinger Bands, Percent B (%B), and a few other parameters.

Here is what it looks like.

liv64MQ.png


As you can see, it comes in 2 parts. An indicator on the lower study that tells you when to Go long, Go short, Cover long, and Cover short. Same thing with the upper study. However, with the upper study, that is a strategy that automatically buys and sells based on 100 shares of the stock. It also gives you fewer signals.

Notes from the author:

  • go long when %B(20,1) crosses > 0
  • cover long when %B(20,2) crosses > 100
  • go short when %B(20,2) crosses < 100
  • cover short when %B(20,1) crosses < 0

You should add both indicators into your chart and learn how to use it, tweak it, and improve it to your own trading style.

Fear and Greed Strategy

Rich (BB code):
#
# $SPX Fear & Greed Mean Reversion Strategy (FGMR_Strat)
#
# This script adapted from posts from @kerberos007
# https://twitter.com/kerberos007
#
# Want the latest version of this script?
# https://github.com/korygill/technical-analysis
#
# Use on thinkorswim and thinkscript
# author @korygill
#

script GetBollingerBandPercent
{
    input price = close;
    input upper = 2;
    input lower = -2;
    input averageType = AverageType.SIMPLE;
    input displace = 0;
    input length = 20;

    def upperBand = BollingerBands(price, displace, length, lower, upper, averageType).UpperBand;
    def lowerBand = BollingerBands(price, displace, length, lower, upper, averageType).LowerBand;

    plot BBPercent = (price - lowerBand) / (upperBand - lowerBand) * 100;
}

input averageType = AverageType.SIMPLE;
input price = close;
input displace = 0;
input length = 20;
input StdDev_DnBuy = -2.0;
input StdDev_UpBuy = 2.0;
input StdDev_DnSell = -1.0;
input StdDev_UpSell = 1.0;
input LongShortBoth = {Long, Short, default Both};

def PercentBBuy = GetBollingerBandPercent(price, StdDev_UpBuy, StdDev_DnBuy);

def PercentBSell = GetBollingerBandPercent(price, StdDev_UpSell, StdDev_DnSell);

def ZeroLine = 0;
def HalfLine = 50;
def UnitLine = 100;

def lsb;
switch (LongShortBoth)
{
    case Long: lsb = 0;
    case Short: lsb = 1;
    default: lsb = 2;
}

# LONG
AddOrder(OrderType.BUY_TO_OPEN,
    Crosses(PercentBBuy, ZeroLine, CrossingDirection.ABOVE) and lsb != 1,
    tickColor = COLOR.WHITE, arrowColor = COLOR.GREEN
    );

AddOrder(OrderType.SELL_TO_CLOSE,
    Crosses(PercentBSell, UnitLine, CrossingDirection.ABOVE) and lsb != 1,
    tickColor = COLOR.WHITE, arrowColor = COLOR.RED
    );

# SHORT
AddOrder(OrderType.SELL_TO_OPEN,
    Crosses(PercentBBuy, UnitLine, CrossingDirection.BELOW) and lsb != 0,
    tickColor = COLOR.WHITE, arrowColor = COLOR.YELLOW
    );

AddOrder(OrderType.BUY_TO_CLOSE,
    Crosses(PercentBSell, ZeroLine, CrossingDirection.BELOW) and lsb != 0,
    tickColor = COLOR.WHITE, arrowColor = COLOR.MAGENTA
    );

AddLabel(yes, "Go Long", COLOR.GREEN);
AddLabel(yes, "Cover Long", COLOR.RED);
AddLabel(yes, "Go Short", COLOR.YELLOW);
AddLabel(yes, "Cover Short", COLOR.MAGENTA);

thinkScript Code

Rich (BB code):
#
# $SPX Fear & Greed Mean Reversion Study (FGMR)
#
# This script adapted from posts from @kerberos007
# https://twitter.com/kerberos007
#
# Want the latest version of this script?
# https://github.com/korygill/technical-analysis
#
# Use on thinkorswim and thinkscript
# author @korygill
#

script GetBollingerBandPercent
{
    input price = close;
    input upper = 2;
    input lower = -2;
    input averageType = AverageType.SIMPLE;
    input displace = 0;
    input length = 20;

    def upperBand = BollingerBands(price, displace, length, lower, upper, averageType).UpperBand;
    def lowerBand = BollingerBands(price, displace, length, lower, upper, averageType).LowerBand;

    plot BBPercent = (price - lowerBand) / (upperBand - lowerBand) * 100;
}

declare lower;

input averageType = AverageType.Simple;
input price = close;
input displace = 0;
input length = 20;
input StdDev_DnBuy = -2.0;
input StdDev_UpBuy = 2.0;
input StdDev_DnSell = -1.0;
input StdDev_UpSell = 1.0;

plot PercentBBuy = GetBollingerBandPercent(price, StdDev_UpBuy, StdDev_DnBuy);
plot PercentBSell = GetBollingerBandPercent(price, StdDev_UpSell, StdDev_DnSell);

plot ZeroLine = 0;
plot HalfLine = 50;
plot UnitLine = 100;

def vixPrice = close("VIX");
def vixPercentBBuy = GetBollingerBandPercent(vixPrice, StdDev_UpBuy, StdDev_DnBuy);
def vixPercentBSell = GetBollingerBandPercent(vixPrice, StdDev_UpSell, StdDev_DnSell);

def opacity = 25;
def linewidth = 1;

PercentBBuy.SetDefaultColor(Color.GREEN);#(GetColor(3));
PercentBBuy.AssignValueColor(CreateColor(
    0,
    255, #255-Max(0,Min(100-opacity,PercentBBuy))*2.55,
    0));
PercentBBuy.SetPaintingStrategy(PaintingStrategy.LINE);
PercentBBuy.SetLineWeight(linewidth);

PercentBSell.SetDefaultColor(Color.RED);#(GetColor(7));
PercentBSell.AssignValueColor(CreateColor(
    255, #Max(opacity,Min(100,PercentBSell))*2.55,
    0,
    0));
PercentBSell.SetPaintingStrategy(PaintingStrategy.LINE);
PercentBSell.SetLineWeight(linewidth);

ZeroLine.SetDefaultColor(Color.GREEN);
HalfLine.SetDefaultColor(GetColor(8));
UnitLine.SetDefaultColor(Color.RED);

# LONG
AddVerticalLine(
  Crosses(PercentBBuy, ZeroLine, CrossingDirection.ABOVE),
  "+++ Go Long +++", Color.GREEN, curve.SHORT_DASH
);

AddVerticalLine(
  Crosses(PercentBSell, UnitLine, CrossingDirection.ABOVE),
  "+++ Cover Long +++", Color.RED, curve.SHORT_DASH
);

# SHORT
AddVerticalLine(
  Crosses(PercentBBuy, UnitLine, CrossingDirection.BELOW),
  "--- (Go Short) ---", Color.YELLOW, curve.SHORT_DASH
);

AddVerticalLine(
  Crosses(PercentBSell, ZeroLine, CrossingDirection.BELOW),
  "--- (Cover Short) ---", Color.MAGENTA, curve.SHORT_DASH
);

#AddVerticalLine(
#  GetDayofWeek(GetYYYYMMDD()) == 5,
#  "Friday", Color.LIGHT_GRAY, curve.MEDIUM_DASH
#);

AddLabel(yes, GetSymbol(), COLOR.CYAN);
AddLabel(yes, "Long=Green cross > 0, Cover=Red cross > 100", COLOR.GREEN);
AddLabel(yes, "Short=Red cross < 100, Cover=Green cross < 0", COLOR.RED);

The indicator and strategy were designed for $SPX and $SPY. You can try it on other stocks as well but result may vary. You can also pair it with the VIX Fear and Greed indicator.
 

Attachments

  • liv64MQ.png
    liv64MQ.png
    234.5 KB · Views: 240
Last edited:
i am having issues with the upper study loading correctly, can you share the TOS link?

 
Last edited:
Thanks Ben.I was able to load upper study using link you gave. Can you also provide link for lower study as I am having problems copy/pasting the think script above?

 
Last edited:
@shethpratik I thought this is a strategy not studies. So, if you copy the code you have to select Strategies tab instead studies or simply use Ben Ten Link. Hope this help
 
Hi, is it possible to create an alert with the lower study? Sorry, I am a noob with coding and don't know how to do that.
 
Tried this out- doesn't work very well, be careful. To be specific alerts are incorrect on the 1 min and 5min scalp range. if you had followed and gone long today 8/22, @ 6.35pst you would have lost a lot of $$.
 

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
383 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top