SPX Trading Strategy for ThinkorSwim

[Trader2021]

closed my short at 3930.5

Any code we can add to this script to get notified when price crosses all the needed logic. Its a bit hard to watch charts all day.

 

[Martian]

Well, well, just not my day again, lost $180 again. Alert and confirmation was there but after 3 mins; the confirmation arrow was gone and so did my money. i do not have day trade to left to play the put but i would not do it as the fear is over me again.

 

[Hypoluxa]

Well, well, just not my day again, lost $180 again. Alert and confirmation was there but after 3 mins; the confirmation arrow was gone and so did my money. i do not have day trade to left to play the put but i would not do it as the fear is over me again.

I hate to hear that. That was def a quick snap back....I waited it out since the MACDBB line was kind of going sideways.

 

[barbaros]

Well, well, just not my day again, lost $180 again. Alert and confirmation was there but after 3 mins; the confirmation arrow was gone and so did my money. i do not have day trade to left to play the put but i would not do it as the fear is over me again.

you gotta wait for candles to close before entering trades.

 

[prince]

Just posted camarilla TOS script here https://usethinkscript.com/threads/camarilla-support-and-resistance-line.6064/

 

[Gametheory]

First, thank you for sharing your script @Hypoluxa.I found this script very helpful. I'm sorry for the stupid question, does anyone know how to do a stop loss and profit-taking automatically by adopting the logic of $3 moves in SPX index = xx moves in the option contract. I'm trying to use active trading but I'm still confused about how to set the price increment to equal the price of the option contract increment and vice versa.

I hope my question makes any sense. I post the image to clarify what I'm questioning.

 

[rad14733]

@Gametheory While you "might" be able to do this with Conditional Orders, it would probably end up being time consuming to setup and implement... What I do, instead, is to setup several OCO's within Active Trader for specific Limit & Stop Loss that work for different symbols... They range from 2:1 and 3:1 P/L Ratios, percentages, and TrailingStopLoss, or a combination thereof...

 

[Gametheory]

@Gametheory While you "might" be able to do this with Conditional Orders, it would probably end up being time consuming to setup and implement... What I do, instead, is to setup several OCO's within Active Trader for specific Limit & Stop Loss that work for different symbols... They range from 2:1 and 3:1 P/L Ratios, percentages, and TrailingStopLoss, or a combination thereof...

I’m trying to figure out how to fo the 3:1 PL Ratios since I don’t have my stop fix and just lost 10k in a whipsaw. I wanted to enter a contract with a max $3 dollars move stop loss on premium and $3 dollars move profit taking. Do you know how to set this? I’m a scalper and want to take small profit in a quick times. I’ve been following you and I know you have a similar style (scalper).

thank you

 

[rad14733]

@Gametheory That sounds like an expensive lesson to learn... I'm sorry for your loss... You should be aware that you can always use manually entered Stop Loss orders as well as optional profit limits and should never trade without them... I'm not sure how long you have been using Thinkorswim but over the past two years of trading you should be well versed on the various methods of implementing Stop Loss orders, whether by dollar amount, percentage, fixed, trailing stop loss, etc... Until you are familiar with all of the different methods it wouldn't be wise to attempt to code them into a Conditional Order as that could be a recipe for further financial loss... Please take the time to do ample research in the Thinkorswim Learning Center... Once you are well versed in the various options available then we can perhaps work towards modification of any Conditional Order needed... I, personally, never walk away from an active trade but I do realize that not everyone has that option and may use longer term trading styles...

 

[Hypoluxa]

I’m trying to figure out how to fo the 3:1 PL Ratios since I don’t have my stop fix and just lost 10k in a whipsaw. I wanted to enter a contract with a max $3 dollars move stop loss on premium and $3 dollars move profit taking. Do you know how to set this? I’m a scalper and want to take small profit in a quick times. I’ve been following you and I know you have a similar style (scalper).

thank you

Do you practice setting lower buy limits? I’d incorporate that into your trading along with what @rad14733 is saying. IMO...how you get in the trade, sets the stage FIRST with how you get out of it.
It’s just like when you build or repair something....the prep work is just as important as the work itself.

 

[Trader2021]

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.

Hi Hypoloxa,
How can we use this as a scan in TOS ? Any possibility please ? I have these setting on my chart as studies, but would like to know if we can setup this as a scan code and get a trigger in our watchlist when the setup is happening. Appreciate your input.

 

[prince]

I think we can use additional indicators TMO https://usethinkscript.com/threads/true-momentum-oscillator-for-thinkorswim.15/page-23
and TRIX study for accuracy

 

[Madhu]

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.

Hi Hypoluxa,

Could you please tell me do you validate “Heikin Ashi candle”. What is the importance of this point you mentioned and how do we validate this?

Thank you

 

[Hypoluxa]

Hi Hypoluxa,

Could you please tell me do you validate “Heikin Ashi candle”. What is the importance of this point you mentioned and how do we validate this?

Thank you

How to validate heikin Ashi candles?? I have no idea what you’re asking. Can you explain better?

 

[Trader2021]

I think we can use additional indicators TMO https://usethinkscript.com/threads/true-momentum-oscillator-for-thinkorswim.15/page-23
and TRIX study for accuracy

I think we can use additional indicators TMO https://usethinkscript.com/threads/true-momentum-oscillator-for-thinkorswim.15/page-23
and TRIX study for accuracy

Thanks !

 

[Hypoluxa]

Hi Hypoloxa,
How can we use this as a scan in TOS ? Any possibility please ? I have these setting on my chart as studies, but would like to know if we can setup this as a scan code and get a trigger in our watchlist when the setup is happening. Appreciate your input.

I’m not sure how to set this up as a scan.

 

[Trader2021]

I’m not sure how to set this up as a scan.

Ok Thanks. I will try and see if it can be done.

 

[Earthian]

Interesting Strategy! Could someone clarify whether the extended hours need to be on or off as that would affect MACD_BB's results?

 

[rfb]

Interesting Strategy! Could someone clarify whether the extended hours need to be on or off as that would affect MACD_BB's results?

SPX during regular hours as far as I know.

 

[Hypoluxa]

Interesting Strategy! Could someone clarify whether the extended hours need to be on or off as that would affect MACD_BB's results?

for this strategy...I have them on. Some take them off....but thats personal preference.