SPX Trading Strategy for ThinkorSwim

[mtntempo]

sometimes you have to change indicators all together. You need to tweak to your comfort and add and remove indicators until you feel confident. Its hard to tell anyone the exact method.

I also like to trade SPX, I was curious what strategy and indicators you are finding successful currently? Thanks for your time!

 

[MerryDay]

I also like to trade SPX, I was curious what strategy and indicators you are finding successful currently? Thanks for your time!

https://usethinkscript.com/threads/spx-trading-strategy-for-thinkorswim.5087/page-56#post-73864

 

[charlie2598]

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.

where is the code

 

[MerryDay]

where is the code

Add the indicators mentioned in the 1st post to your chart. Read through the 57pages for additional charting variations

 

[michalg95]

This one works perfectly with a 1 minute chart for entry. 10 min for confirmation. Amazing setup!!

 

[Lukhy11]

This one works perfectly with a 1 minute chart for entry. 10 min for confirmation. Amazing setup!!

Hi, Michalg95 do you have a share link for your chart that I can use to setup my chart like yours? Thx.

 

[michalg95]

Hi, Michalg95 do you have a share link for your chart that I can use to setup my chart like yours? Thx.

Here ya go!

https://tos.mx/tJZOLS4

Always trade with the 10 minute trend. Make an entry on the 1 min chart when the price is on the fib levels. Make the price come to you.

 

[mailbagman2000]

@QUIKTDR1 This is how you set it up:

Make sure to choose between "crosses above" or "crosses below"

Just tried it and got some great hits. Thanks

 

[prap4stocks]

This one works perfectly with a 1 minute chart for entry. 10 min for confirmation. Amazing setup!!

Hi @michalg95 thanks for sharing this, can you explain what do you mean by fiblevel in 1 min.
Thanks in advance

 

[MerryDay]

Hi @michalg95 thanks for sharing this, can you explain what do you mean by fiblevel in 1 min.
Thanks in advance

How to scalp using Fibonacci is beyond the scope of this particular thread.

A quick synopsis:
Open your one minute chart. Load one of the many Fib indicators:
https://usethinkscript.com/threads/list-of-all-the-fibonacci.8101/
Trade your levels:

The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback.

Google search:
https://www.google.com/search?q=sca...7j0i22i30.16962j0j15&sourceid=chrome&ie=UTF-8

 

[prap4stocks]

I'm copying and pasting my instructions from the post:
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.

Hi @Hypoluxa , are you still using this strategy ,if not any reasons not using this ?
Thanks in advance

 

[MerryDay]

Hi @Hypoluxa , are you still using this strategy ,if not any reasons not using this ?
Thanks in advance

https://usethinkscript.com/threads/spx-trading-strategy-for-thinkorswim.5087/page-56#post-65937

 

[MerryDay]

⚠ This thread has exhausted its substantive discussion of this indicator so it has been locked ⚠
This thread is still available for reading.
If looking for specific information in this thread,
here is a great hack for searching many-paged threads.​