SPX Trading Strategy for ThinkorSwim

[rad14733]

I have added the PriceLine indicator (more visual current price, plus S/R) and an 89 EMA (for trend) to the upper and have been experimenting with the singular additions of Didi_Index and WaveTrend_Indicator lower indicators to my charts... Didi_Index usually matches entries and WaveTrend can indicate earlier yet riskier entries...

 

[Hypoluxa]

I have added the PriceLine indicator (more visual current price, plus S/R) and an 89 EMA (for trend) to the upper and have been experimenting with the singular additions of Didi_Index and WaveTrend_Indicator lower indicators to my charts... Didi_Index usually matches entries and WaveTrend can indicate earlier yet riskier entries...

awesome - can you post a screenshot of that? thx!

 

[Chence27]

@rad14733 Nice. Could you share the chart?

@Hypoluxa I haven't found a case where Ergodic color bars don't correspond with the MACD BB zero cross. Seems a bit redundant, no?

 

[Hypoluxa]

@Chence27: Here's an example of what i mean when i say "staying safe". Look at the screenshot at 15:00...the SMA's have crossed...but the red dots get close to the zero line....but they don't cross. so that's a no go. Tweak till you remove as many quick swings as possible like this one.

Where that indicator is helpful...is for the amount of time you may want to stay in the trade. If the candles end up having a mix of green and red after you get in...but you're in a put and the Ergo is staying red...you may want to hold. same for a call.

 

[samoya]

@Hypoluxa Maybe a solution is to use HeikonAshi candles. Then the trend is clear

 

[rad14733]

@Hypoluxa & @Chence27 Here are two configurations I will be testing this coming week on different timeframes... One with the Didi_Index and the other with the WaveTrend_Indicator... I am also running my EMA_x5_Stack Study with a 3&9 cloud and crossover arrows... The Didi_Index and 3&9 crossover can be used to confirm the earlier entries and the Didi_Index can also be used to stay in trades longer than a quick scalp... The WaveTrend_Indicator can be used for super-early entries for those comfortable with the added risk... It will take some observation time to determine whether either of these additional indicators is worthwhile in this setup...

 

[Hypoluxa]

@Hypoluxa Maybe a solution is to use HeikonAshi candles. Then the trend is clear

I took them off because they always point in the direction of the trend anyway.....just like the MACDBB dots do. I'm kind of OCD with having a clean chart and indicators.

 

[PhillyEaglesS]

I'm pretty new to coding within ToS, but am trying to add up/down arrow indicators when all conditions are met for this method. Getting close, however running into a few issues due to lack of familiarity with the coding language. Issues I'd like to fix are repeating arrows after conditions are met, ensuring there hasn't been movement in the opposite direction on the MACD chart after crossing the zero line, ensuring the first condition to be met is the SMA's crossing. Has anyone else coded in up/down arrow indicators yet?

#
# TD Ameritrade IP Company, Inc. (c) 2017-2020
#

# INPUTS

input price = close;
input length_fast = 3;
input displace_fast = 0;
input length_slow = 9;
input displace_slow = 0;

# MACD

input MACDfastLength = 12;
input MACDslowLength = 26;
input MACDLength = 5;

# Erg

input longLength = 2;
input shortLength = 10;
input signalLength = 36;
input averageType = AverageType.EXPONENTIAL;

#
# SMA
#

def SMA_fast = Average(price[-displace_fast], length_fast);
def SMA_slow = Average(price[-displace_slow], length_slow);

#
# MACD
#

def MACD_Data = MACD(fastLength = MACDfastLength, slowLength = MACDslowLength, MACDLength = MACDLength);

def MACD_Dots = MACD_Data;
def MACD_Line = MACD_Data;

#
# ErgodicOsc
#

def ErgodicOsc = TrueStrengthIndex(longLength, shortLength, signalLength, averageType).TSI - TrueStrengthIndex(longLength, shortLength, signalLength, averageType).Signal;

def ZeroLine = 0;

def UpCond1 = SMA_fast crosses above SMA_slow within 10 bars;
def UpCond2 = MACD_Dots >= 0.5;
def UpCond3 = ErgodicOsc >= 5;
def UpCond4 = MACD_Dots crosses above ZeroLine within 10 bars;
def UpCond5 = MACD_Dots > MACD_Dots[1];

def DownCond1 = SMA_fast crosses below SMA_slow within 10 bars;
def DownCond2 = MACD_Dots <= -0.5;
def DownCond3 = ErgodicOsc <= -5;
def DownCond4 = MACD_Dots crosses below ZeroLine within 10 bars;
def DownCond5 = MACD_Dots < MACD_Dots[1];

plot SPXUp = UpCond1 and UpCond2 and UpCond3 and UpCond4 and UpCond5;
plot SPXDown = DownCond1 and DownCond2 and DownCond3 and DownCond4 and DownCond5;

SPXUp.SetDefaultColor(Color.DARK_ORANGE);
SPXUp.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
SPXDown.SetDefaultColor(Color.DARK_RED);
SPXDown.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);

 

[rad14733]

@PhillyEaglesS Good start... I'll take a look in a bit... I'm actually trying to finish a Watchlist Indicator for this right now...

 

[Options Manor]

Hi @Hypoluxa thank you for the insight, can you please share this exact chat via TOS, I appreciate the help

@FOTM_8888 do you know if he shared via TOS?

 

[BenTen]

@legendarycorp Take a look at @Hypoluxa comment here. The only custom indicator that needs to be imported is the MACD Bollinger Bands. Everything else can be found directly in ThinkorSwim.

 

[Options Manor]

@legendarycorp Take a look at @Hypoluxa comment here. The only custom indicator that needs to be imported is the MACD Bollinger Bands. Everything else can be found directly in ThinkorSwim.

Thanks @BenTen!

 

[Lukhy11]

@Hypoluxa & @Chence27 Here are two configurations I will be testing this coming week on different timeframes... One with the Didi_Index and the other with the WaveTrend_Indicator... I am also running my EMA_x5_Stack Study with a 3&9 cloud and crossover arrows... The Didi_Index and 3&9 crossover can be used to confirm the earlier entries and the Didi_Index can also be used to stay in trades longer than a quick scalp... The WaveTrend_Indicator can be used for super-early entries for those comfortable with the added risk... It will take some observation time to determine whether either of these additional indicators is worthwhile in this setup...

Hi can you share the above charts with thinkorswim share link? Thx

 

[rad14733]

Hi can you share the above charts with thinkorswim share link? Thx

Here you go... Just turn off or delete what you don't want to use...

http://tos.mx/sAvltAd

 

[Hypoluxa]

Tested AMZN live today after much backtesting with it - it works! Made $1848 on a put.

 

[Chence27]

@Hypoluxa Do you use a scanner or do you monitor certain stocks?

 

[Hypoluxa]

Do you use a scanner or do you monitor certain stocks?

I only watch SPX and AMZN

 

[Chence27]

I only watch SPX and AMZN

Why do you use the zero line? Is it arbitrary or is there logic to only taking trades at this value?

 

[ALV]

I only watch SPX and AMZN

First, thanks for sharing this strategy. Seems to be very effective. Tested it today in SPX with positive results. Question- are you using the same settings from Post #4 for your AMZN trade? Thanks.

@Hypoluxa- never mind, thank you. Saw the AMZN settings in your message above. Will test it. Again, thank you.

 

[Hypoluxa]

Why do you use the zero line? Is it arbitrary or is there logic to only taking trades at this value?

Go to my original post...post #1...even tho I originally speak of SPX...the logic applies to AMZN....or any stock you tweak this to.
But the zero line and SMA’s crossing is critical and the main logic.