Strategy based on price/volume?

[trader54]

Hello friends,

I have tried many strategies you have posted on this site based on different moving averages and different indicators.
If we back test any of those strategies based on any indicator it works great. However in live trading those are not giving good results. and this is because indicators and averages keep changing in live trading. But in back testing those indicator values are fixed because of the past data. It won't work on live data.

So i am looking for a simple strategy that only uses price/volume. because price/volume can not be changed once they reflect on TOS. but indicators may change based on the future candles data.

So i am looking for a strategy that gives signal based on the price. for example, if price crosses previous high/low, or price crosses the price actions or fibonacci levels. Does anyone ever came across this kind of strategy? any references? Thanks in advance for your help.

Thanks.

 

[BenTen]

Which indicator or strategy did you test? If the indicator is repainting (example here would be the trend reversal) or lagging behind a few bars (example here would be the TTM_Scalper) then they would not work at all. It's important to know what you are using and how they work before proceeding for actual trading.

 

[JabronLames]

Hi,

I have limited experience, but I enjoy using the RelativeVolumeStDev study on TOS on intraDay trades. I wrote this crude script below that I placed in my watchlist. I aggregate it on the 2 minute chart. It adds the RelativeVolumeStDev of the last 3 closed candles and highlights the cell in the watchlist if there is a significant increase in volume, and plots the number.

# Rel Volume Watchlist Column

# By Dan Dude
# Copyright forever

def RelVolume = reference RelativeVolumeStDev();
def RelVolume1 = reference RelativeVolumeStDev()[1];
def RelVolume2 = reference RelativeVolumeStDev()[2];

def RelVolumeSum = (RelVolume + RelVolume1 + RelVolume2);

AssignBackgroundColor(if RelVolumeSum > 1 then color.dark_green else color.current);

AddLabel(yes, AsText((if RelVolumeSum > 0 then RelVolumeSum else 0),NumberFormat.TWO_DECIMAL_PLACES));
[/CODE}

Hopefully this helps!

*This works best for trades that are NOT in the first or last hour of trading, since the relative volume at that time is abnormally high anyways.

 

[trader54]

Which indicator or strategy did you test? If the indicator is repainting (example here would be the trend reversal) or lagging behind a few bars (example here would be the TTM_Scalper) then they would not work at all. It's important to know what you are using and how they work before proceeding for actual trading.

Hi @BenTen , I tried to use many indicators. For example, i want to trade using 1min/5min chart. In that i want to decide whether to go short/long. For that i tried using hull moving average (HMA) on 15min chart. Based on the HMA on 15min chart (whether its green or red), i decide whether to go long/short in 1min/5min chart. Here 1min chart will have 15 candles corresponding to 1 candle in 15min chart. Similarly 5min chart will have 3 candles corresponding to 1 candle in 15min chart.

Now lets say for one candle in 1min chart the corresponding HMA in 15min chart is green/bullish and in 1min chart i am getting other signal to go long (e.g. MACD rising). So i will go long in 1min chart. But that HMA green signal in 15min chart can change any time over 15 candles in 1min chart right? In case the candle in 15min chart reverses, it will negate the long position we already opened. But in backtesting these kind of situation will never arise. because everything is fixed while backtesting. Means candles are never going to fluctuate in historical data.

From some research on other websites, i got to know that, these kind of strategies are repainting strategies. and to overcome this issue, you have to use the signal from the previous completed candles so that signal never gets re-painted. I tried that also, but in that case strategies are not giving any profit.

so anyone has came across any kind of non-repainting strategy which is giving good profit in backtesting?

Thanks.

 

[ithinkscript]

Hi @trader54

When you said this:

Similarly 5min chart will have 5 candles corresponding to 1 candle in 15min chart.

Did you mean: Similarly 5min chart will have 3 candles corresponding to 1 candle in 15min chart ?

 

[trader54]

Hi @trader54

When you said this:
Did you mean: Similarly 5min chart will have 3 candles corresponding to 1 candle in 15min chart ?

I corrected this in initial post.

 

[ithinkscript]

@trader54 kemcho. Try EhlersSimpleDecycler. It will still repaint (all MA types will), but it claims to have the least lag.

 

[trader54]

@trader54 kemcho. Try EhlersSimpleDecycler. It will still repaint (all MA types will), but it claims to have the least lag.

Hi @ithinkscript, what is "kemcho"? thanks for information about "EhlersSimpleDecycler" study.

 

[StockT8er]

Hi @trader54 I have researched several strategies and until lately had not found one that worked most of the time one day you win the next you lose. Well this would not be good if you automated them. unless you watch them l all the time. I first went to TradeStation because they had automated trading, however every time I wrote a strategy that made money in back testing they flopped in real time trading. that's mostly because a strategy is written for a specific stock and time period. and as we all know that rarely repeats itself. therefore coming up with a strategy that would change and adapt to the market conditions has not been easy. I do not know how to re-write it to EasyLaunguage, that and I Very Much like the ThinkorSwim platform even tho they only go down to 1 min time frame that there strategies will work with. I have found different time frames can make or break a strategy. I do know TD AmeriaTrade is considering automation. I think to compete with others. However I would prefer not have to wait because it is very tedious to sit and enter trades manually. I am live testing my strategy this Fri as it is my day off and can spend the time. So far in my few mins trading with it I can get up to 50% of what its report shows. It has for the past 20 day not had a losing day. However I do like TSLA it is hard to lose with that right now. Would love to Test your Auto Bot

 

[StockT8er]

@trader54 Follow up does this look like it has paint issues