SPX Trading Strategy for ThinkorSwim

[rad14733]

would it be Axis Hours?

"After Hours", another expression for "Extended Hours"...

 

[Hypoluxa]

I'm pretty sure this is a dumb question, but I will ask anyway......what are AH's

Never a dumb question when you’re learning this stuff - AH is after hours trading. You’ll also see people use PM for pre-market trading.

 

[malone1020]

Anyone have luck finding earlier entries into this strategy? Lots of good setups are just missed waiting for the MACD_BB dots to cross above zero...

 

[Hypoluxa]

Anyone have luck finding earlier entries into this strategy? Lots of good setups are just missed waiting for the MACD_BB dots to cross above zero...

For SPX only - There is one thing I'm noticing with all the double and triple backtesting, as well as live:
If the red dots come down (above the zero line coming down to the zero line) and actually touch the zero line...but doesn't cross (basically "bounces" off of it) a call opportunity has shown itself, as it always has a tendency to reverse. The same applies for a put...if the white dots are coming up to the zero line (coming from bottom to top) and it bounces off the bottom of the zero line....a put opportunity is there. Take a look at this screenshot I have attached for an example from this morning...SPX went up $6 once that white dot appeared. I've seen a lot of these same type scenarios. Backtest it to feel good about it tho.

 

[securedabag23]

@Hypoluxa What were you adjusting to fine-tune your settings on SPX? I'm attempting to use this on MES and I am noticing when the MAs cross, it'll take 5-6 dots before it goes above or below the zero line. On SPX, it appears to be within a couple of dots after the MAs cross.

 

[VJET]

For SPX only - There is one thing I'm noticing with all the double and triple backtesting, as well as live:
If the red dots come down (above the zero line coming down to the zero line) and actually touch the zero line...but doesn't cross (basically "bounces" off of it) a call opportunity has shown itself, as it always has a tendency to reverse. The same applies for a put...if the white dots are coming up to the zero line (coming from bottom to top) and it bounces off the bottom of the zero line....a put opportunity is there. Take a look at this screenshot I have attached for an example from this morning...SPX went up $6 once that white dot appeared. I've seen a lot of these same type scenarios. Backtest it to feel good about it tho.

can we get the code ?

 

[Hypoluxa]

@Hypoluxa What were you adjusting to fine-tune your settings on SPX? I'm attempting to use this on MES and I am noticing when the MAs cross, it'll tale 5-6 dots for before it goes above or below the zero line. On SPX, it appears to be within a couple of dots after the MAs cross.

I tweak the MACD bollinger band settings for each stock symbol. For mine - AMZN is slightly different than SPX. What I look for the most, are trying to adjust it to NOT have only one or two dots cross the zero line. Once I fill comfortable with one day that I pick to adjust to...I’ll go back 30-90 days to see how many times it’s successful....but most importantly, counting the minimal (hopefully minimal) times it’s a short run. You’ll never find perfection...but you will find minimal short crossings.

 

[malone1020]

@Hypoluxa Hi - wondering if you wouldn't mind sharing your rationale for such a significantly different MACD length (36) than the standard value (5). Thanks.

 

[securedabag23]

Thank @Hypoluxa If I could one ask more question: On the MACD settings, are you tweaking all the settings are just one or two?

 

[mdtn]

@Hypoluxa What do you mean by 8,16,36? Is it mac dfast length 8, mac dslow 16 and macd length 36? Thanks!!

 

[Hypoluxa]

@malone1020 to be completely honest with you...I have no idea what 36 is suppose to change. I've changed it from 1 to 100 and nothing changes from what I can tell.

@mdtn that's correct.

Thank @Hypoluxa If I could one ask more question: On the MACD settings, are you tweaking all the settings are just one or two?

you're welcome. And I only tweak the "mac dfast length" and mac dslow length" until I'm comfortable. I move them either up or down 2 points at the time.

 

[securedabag23]

Thanks again. Are you using a backtesting code, if possible can you share? Other than that, I like the strat. I can't mess with SPX till I grow my account

 

[Hypoluxa]

Thanks again. Are you using a backtesting code, if possible can you share? Other than that, I like the strat. I can't mess with SPX till I grow my account

I'm not sure what you mean by a back backtesting code, but I use TOS and go back 30-90 days to look at the charts and indicators. I also use the "OnDemand" feature in TOS to test the profit and loss once I get the indicator dialed in and then adjust as needed.

 

[mdtn]

@Hypoluxa Thanks. Another question, you said you have tested 90 days. Would you mind sharing how to test? What do I have to do? I would like to test other stock such as TSLA.

You answered the same question to @securedabag23. Some people do backtesting tool and able to export result to Excel spreadsheet, I believe. Not sure how, that's why I ask. Thanks again

 

[rad14733]

@mdtn I don't think @Hypoluxa uses a strategy to do backtesting, he simply reviews 90 days of trades to see how many good entry signals he finds... I do the same most of the time simply because it's quicker than trying to code fuzzy logic into a strategy...

 

[mdtn]

Yes, I think you are right. Cheers

@mdtn I don't think @Hypoluxa uses a strategy to do backtesting, he simply reviews 90 days of trades to see how many good entry signals he finds... I do the same most of the time simply because it's quicker than trying to code fuzzy logic into a strategy...

 

[Hypoluxa]

@rad14733 and @mdtn correct...i just set the timeframe for 90 days 10 mins and look back at the movement for each day to see how the settings reacted to each respective day.

 

[San777]

@Hypoluxa, this very interesting, been keeping close eye on it, Do you wait till second white or red dot appear above or below line for entry ?

 

[Hypoluxa]

@Hypoluxa, this very interesting, been keeping close eye on it, Do you wait till second white or red dot appear above or below line for entry ?

yes, because that shows a good, clear, gap.

 

[QUIKTDR1]

AHHHH...ok that makes better sense. There is a hyperlink in the post that takes you to what BenTen built. But here it is again:
https://usethinkscript.com/threads/macd-with-bollinger-bands-bb-indicator-for-thinkorswim.287/

Thank you!