Repaints Trend Reversal for ThinkorSwim

[BenTen]

@David45 Find the following in your script:

AddChartBubble((barnumber and U1), if isUp then low else high, if showarrows and signal > 0 and signal[1] <= 0 then "Reversal:" + low else "" , if Colorbars == 3 then Color.PLUM else Color.UPTICK, no);
AddChartBubble((barnumber and D1), if isUp then low else high, if showarrows and signal < 0 and signal[1] >= 0 then "Reversal:" + high else "" , if Colorbars == 3 then Color.PLUM else Color.DOWNTICK, yes);

replace with:

AddChartBubble((barnumber and U1), if isUp then low else high, if showarrows and signal > 0 and signal[1] <= 0 then "Long:" + low else "" , if Colorbars == 3 then Color.PLUM else Color.UPTICK, no);

AddChartBubble((barnumber and D1), if isUp then low else high, if showarrows and signal < 0 and signal[1] >= 0 then "Short:" + high else "" , if Colorbars == 3 then Color.PLUM else Color.DOWNTICK, yes);

 

[David45]

@BenTen Awesome! Thank you so much. Can you assist with the second tweak I would like to make?

- Instead of a stop loss line, a stop loss bubble that would say Stop and the stop price would also be in the bubble.

 

[alexR]

Hi Ben, is it possible to convert the trend reversal indicator as strategy?
thanks
AR

 

[BenTen]

@alexR Take a look at this comment.

 

[evanevans]

I ran the original Trend Reversal strategy, as a backtest in OnDemand, and in realtime, the BUY and SELL long/short entries and exits MOVE! I recorded a video to show you. It shows how it will give a reverse signal (sell in this case), then when that trade starts going against it, the original sell signal DISAPPEARS! and a few minutes later a NEW SELL signal appears in a new location and the BUY line that connects between the BUY and the SELL signal reconnects and acts like it was STILL IN THE BUY TRADE all this time! And the PL graph shows it making a profit during that time, even though it actually lost money, and then erased the original sell signal (like a cover up, haha), decided not to account for any loss, and just continue on it's merry way as if it never sold.

VIDEO:

The moment in question is from around 1:20 to 1:47

 

[BenTen]

@evanevans That is correct, as mentioned in the original post, this is a repainting indicator. In other words, if the signal is wrong, it will disappear.

 

[evanevans]

Mmm ok. How do you use an indicator which gives false signals? I guess what I'm asking is, what do people use this indicator for, if it is "wrong" 4 out of 5 signals? Sorry, I'm new here and new to ThinkScripting.

 

[dmillz]

Mmm ok. How do you use an indicator which gives false signals? I guess what I'm asking is, what do people use this indicator for, if it is wrong 4 out of 5 signals?

Use it on a longer Time Chart, 1 minute doesn't work as well as the 5 minute +

 

[BenTen]

@evanevans I don't use it for obvious reasons, but some have been able to take advantage of it to find their entry. If you have time, you can go through this entire thread. It's mostly filled with questions about the scanner, alerts, and repainting factor. But there are some nuggets in there if you want to understand how people are using it.

 

[evanevans]

@evanevans I don't use it for obvious reasons, but some have been able to take advantage of it to find their entry. If you have time, you can go through this entire thread. It's mostly filled with questions about the scanner, alerts, and repainting factor. But there are some nuggets in there if you want to understand how people are using it.

I just thought in one post you said it was "100% profitable". Maybe you spoke too soon, or?

 

[BenTen]

@evanevans Yup, I did say that, but not in that context. Here is the comment you were referring to.

 

[evanevans]

@evanevans Yup, I did say that, but not in that context. Here is the comment you were referring to.

Oh yeah, it's hard to discern your context there. You're saying that it's a useless indicator for a trading strategy because it repaints, and also simultaneously saying it has a 100% win rate?

 

[BenTen]

@evanevans Above that comment of mine is a question/request by @2sureshk. Since you didn't bother to read it or at least try to understand the context, I can help give you a quick rundown.

@2sureshk wanted to create a backtesting strategy to see the historical result (P/L report) of this indicator. I responded by saying, "You can create a strategy for this, however, the indicator repaint so it's pretty useless. I can tell you right now that you will get 100% win rate across all timeframes."

Since this is a repainting indicator, all the false signals will disappear. In other words, only the right signals will be presented on the chart. When you create a backtesting strategy out of it, the win rate would be 100%.

 

[Daniel]

Hi
i am new here , any script for additional sound alert for above trend reversal reversal indicator?

https://tos.mx/vlVadom
This link for scan of trend reversal indicator does not work with think or swim.
Share items does not let me O.K it.
Anybody know way?

Thank you !!!

Daniel.

 

[evanevans]

@evanevans Above that comment of mine is a question/request by @2sureshk. Since you didn't bother to read it or at least try to understand the context, I can help give you a quick rundown.

Well don't go presuming that. It wasn't that I "didn't bother", nor that I didn't "try to understand the context", it literally was hard to understand the context. I don't read backwards, I started at the beginning of the thread, read everything in context forward, and when I got to the part where you said "it has a 100% win rate", well, that is pretty much how I understood it. I also at that time, did not know what "repainting" meant (I thought it meant it changes the color of the candlesticks). So this could easily be misunderstood by people. I did. You'd have to be an expert just to understand your context. I did not. I'm not an expert yet. Many people probably aren't. Alright? You make it sound like I was being a problem person who doesn't bother and doesn't try and understand things. I was trying. I was trying to understand what you said.

Now, of course, based on how well you just explained the repainting issue causing it to give a false 100% win rate, now I do understand. In fact, if I understand correctly, maybe it could be a good idea for you to go back and edit that comment for anyone else who doesn't understand, editing it to say that is has a "false" 100% win rate.

Anyhoo Ben, I hope you're having an awesome Sunday. I have to do some other chores, but I am so excited about the markets, and thinkscripting, and all my trading and current open swing trades, I can't wait. I imagine you feel the same! Happy trading, and keep up the great work on the site!

 

[rad14733]

@evanevans, @BenTen was fairly accurate with regards to his comment on backtesting having a 100% win rate... I've done enough backtesting to know that there are some Studies/Strategies that NEVER show a losing trade, and this particular one falls into that category... I've tested for an entire evening and never had a losing trade backtesting weeks of data... Not one loss...!!! But try during the trading day and there will be losing trades and they can be costly if you don't have a stoploss in place... Don't ask how I know that...

Run this study using OnDemand and you'll quickly see exactly what I mean... With using a backtesting strategy all of the bad entries get erased and replaced by good entries that play out as winning trades... Watching trade action, whether realtime or as OnDemand playback you can watch all of this happen...

If you haven't already done so, take an evening or two to research repainting indicators and you'll learn a lot about them as well as those indicators that don't and those that can have the repainting reduced... One thing that reduces repainting is to use HL2 in place of Close... That's why my Renko Bar Based Trading System has most all indicators set to HL2 for the price...

Sorry you misunderstood but BenTen was just trying to be helpful... Now, all that being said, some backtesting strategies will end up showing more losses than wins... Test, test, and test some more... I get really scared when newer members try using conditional orders to mimic autotrading with less than ideal indicators because they can lose a lot of money fast... Luckily TOS doesn't allow fully automated trading or traders would be wiping out their trade accounts due to repainting/recalculating...

Hope this helps... We don't need ****ing matches here... I've been in enough forums where things get way out of hand and members either get warnings or are outright banned...

 

[evanevans]

@evanevans, @BenTen was fairly accurate with regards to his comment on backtesting having a 100% win rate... I've done enough backtesting to know that there are some Studies/Strategies that NEVER show a losing trade, and this particular one falls into that category... I've tested for an entire evening and never had a losing trade backtesting weeks of data... Not one loss...!!! But try during the trading day and there will be losing trades and they can be costly if you don't have a stoploss in place... Don't ask how I know that...

Haha

Run this study using OnDemand and you'll quickly see exactly what I mean... With using a backtesting strategy all of the bad entries get erased and replaced by good entries that play out as winning trades... Watching trade action, whether realtime or as OnDemand playback you can watch all of this happen...

Yeah totally. That's what I did, and what my video post was showing. I didn't understand that people had already said as much. I thought the "repainting" term, was about how ThinkScript can re-color candlesticks.

If you haven't already done so, take an evening or two to research repainting indicators and you'll learn a lot about them as well as those indicators that don't and those that can have the repainting reduced... One thing that reduces repainting is to use HL2 in place of Close... That's why my Renko Bar Based Trading System has most all indicators set to HL2 for the price...

Awesome. Thanks.

Sorry you misunderstood but BenTen was just trying to be helpful...

Oh completely, yeah @BenTen is awesome.

Now, all that being said, some backtesting strategies will end up showing more losses than wins... Test, test, and test some more... I get really scared when newer members try using conditional orders to mimic autotrading with less than ideal indicators because they can lose a lot of money fast... Luckily TOS doesn't allow fully automated trading or traders would be wiping out their trade accounts due to repainting/recalculating...

100%. That is very worrying Many thanks!

 

[tem2005]

I won't lie to you, looking at all three for a reversal roughly around the same time is about to give me aneurysm lol. I think I'm going to stick with just the TR and the TMO, using the second strategy I back tested where I found the RR to be 1 to 2.2 and success rate of 53%. I'm going to try this strategy live on account taking 1-2 shares per trade (less risk involved) and get back to you with the results.

Gabriel, loving your testing results post. Any good updates you come up with yet?

 

[surajpalwe]

Hi @BenTen , is this indicator available for Tradingview also?

 

[BenTen]

@surajpalwe I don't think so, but the code is there, all you have to do is get a developer from TradingView platform to port it over