SPX Trading Strategy for ThinkorSwim

Hypoluxa

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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.

 
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securedabag23

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@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.
 

VJET

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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

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@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.
 

mdtn

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You mentioned of
  • MACD Bollinger Bands (the one Ben has posted on here a while back) 8,16,36 and uncheck "show plot" on the BB upper, BB lower and BB mid line. You will only be using the zero line, MACD dots and MACD Line for entry purposes. The inputs of "b length" and "bb num dev" are irrelevant here since you will remove the the plots that I mentioned.
  • ErgodicOsc 2,10,36 (changed the default negative to red)
What do you mean by 8,16,36? Is it mac dfast length 8, mac dslow 16 and macd length 36? Thanks!!

Hello everyone and Happy New year! I've come across another strategy that I wanted to share with you guys for SPX only.

Setup:
  • 10 Min chart
  • Heikin Ashi candles
  • SMA 3/9
  • MACD Bollinger Bands (the one Ben has posted on here a while back) 8,16,36 and uncheck "show plot" on the BB upper, BB lower and BB mid line. You will only be using the zero line, MACD dots and MACD Line for entry purposes. The inputs of "b length" and "bb num dev" are irrelevant here since you will remove the the plots that I mentioned.
  • ErgodicOsc 2,10,36 (changed the default negative to red)

Option call logic:
1. The SMA's have to cross first.
2. For a call opportunity, you will then wait to see if the MACD dots cross above the MACD zero line. Its critical here to wait until one dot has cleared the zero line...you MUST see a gap....never enter with the dot on the line. Dots must be consistent as well...if its going up...then they must all be white...if a red dot populates between the time a white dot hits the zero line and the time one crosses clear....don't enter. I have a screenshot below showing this example - 13:00 a red dot appears.
3. The ErgodicOsc HAS to be green when the MACD dot crosses above the zero line. You can hold the trade most of the time until this turns from green to red....but I always set a sell limit just in case it whips back in the opposite direction.

Option put logic:
Obviously its the complete opposite of what I've described above for a call. BUT - the SMA's still have to cross first.

I backtested this 90 days and it came back with 95 opportunities. 75 were positive and 20 were breakeven or didn't move more than $1-$2 on the next candle before it changed to the opposite color candle.

For the positives, SPX only needs to move a minimum of $3 for the option premium to move to quick and decent profit. I generally buy 10 contracts with a delta of at least .35 or higher. So there were 75 times the past 90 days that SPX moved $3 or more (up or down) to be claimed a positive for me.

FYI - Since SPX doesn't begin trading until the opening bell, make sure you have your chart set to at least 1 day/10 mins. The 1 day will allow you to get a clear view of the chart and indicators, otherwise it will fill your entire screen if you use current day.

There's 2 opportunities on the attached screenshot: a put at 11:20 and a call at 14:10.

I hope those of you that trade SPX have the same success and feel free to ask questions regarding this strategy.

 

Hypoluxa

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@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.
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.
 

Hypoluxa

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You mentioned of
  • MACD Bollinger Bands (the one Ben has posted on here a while back) 8,16,36 and uncheck "show plot" on the BB upper, BB lower and BB mid line. You will only be using the zero line, MACD dots and MACD Line for entry purposes. The inputs of "b length" and "bb num dev" are irrelevant here since you will remove the the plots that I mentioned.
  • ErgodicOsc 2,10,36 (changed the default negative to red)
What do you mean by 8,16,36? Is it mac dfast length 8, mac dslow 16 and macd length 36? Thanks!!
that's correct.
 

securedabag23

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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.
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 :LOL:
 

Hypoluxa

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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 :LOL:
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.
 
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mdtn

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@Hypoluxa
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
@Hypoluxa[/USER]
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.
Thanks
 

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