Try this NQ Strategy + Code for ThinkorSwim

[samoya]

Sorry for my late reply. Its a busy and extraordinary time at the moment.

Let me come back with a feedback from my side.
Using a 1m timeframe is far too fast for me personally and using only a EMA20 crossover to buy and sell is far too inconsistant for me.
But the idea to develop clear setup, that is easy to use, is great.

So I tried some things out and came over the "floating levels" from the member "Mladen
https://usethinkscript.com/threads/averages-with-floating-levels-for-thinkorswim.3526/
Its a great tool and I think its worth to dig deeper into it, although I use it in a slightly different way.

My settings:
NQ 3m chart (1m is too fast)
Floating Levels indicator, lenght 34, HL2
RSI50 with EMA200 (based on the RSI, not price)

Go Long:
Price crosses above the upper green line AND RSI is above its EMA

Go Short:
Price crosses below the lower red loine AND RSI is below its EMA

Contract size:
Enter with 2 Lots (thats crucial)
Exit 1 Lot with 10 points profit (and move SL for the 2. Lot to breakeven)
Most of the time 10 points are hit even in choppy markets.
Let the 2. Lot move in your direction with a 20 points trailing stop

Stoploss:
hard stop at the opposite line
Maybe the commuinity can improve the SL and profit levels

I attached 2 charts.
The first is a choppy chart.
Red rectangles are the short trades
Green rectangles are the long trades.
White rectangle: look how the RSI _MA protects from long trades.
The second is a trending chart.


1. chart:

2. chart:
There are also nice trending times.

Would be great to get a feedback.
Thanks.

 

[scalper81]

@BenTen Is the RSI EMA indicator available in the UseThinkScript site? Thanks!

 

[BenTen]

@scalper81 This? https://usethinkscript.com/threads/moving-average-crossover-rsi-indicator-for-thinkorswim.185/

 

[scalper81]

@scalper81 This? https://usethinkscript.com/threads/moving-average-crossover-rsi-indicator-for-thinkorswim.185/

Thanks! I will try this one.

 

[JoeSD]

@samoya - very nice clean chart that looks to capture some decent moves. Any chance you could post a link to this TOS Grid or Workspace? Thanks as Id like to try it out. Joe

 

[samoya]

@samoya - very nice clean chart that looks to capture some decent moves. Any chance you could post a link to this TOS Grid or Workspace? Thanks as Id like to try it out. Joe

Sure: http://tos.mx/i54QbL1

 

[hinkognito]

Sorry for my late reply. Its a busy and extraordinary time at the moment.

Let me come back with a feedback from my side.
Using a 1m timeframe is far too fast for me personally and using only a EMA20 crossover to buy and sell is far too inconsistant for me.
But the idea to develop clear setup, that is easy to use, is great.

So I tried some things out and came over the "floating levels" from the member "Mladen
https://usethinkscript.com/threads/averages-with-floating-levels-for-thinkorswim.3526/
Its a great tool and I think its worth to dig deeper into it, although I use it in a slightly different way.

My settings:
NQ 3m chart (1m is too fast)
Floating Levels indicator, lenght 34, HL2
RSI50 with EMA200 (based on the RSI, not price)

Go Long:
Price crosses above the upper green line AND RSI is above its EMA

Go Short:
Price crosses below the lower red loine AND RSI is below its EMA

Contract size:
Enter with 2 Lots (thats crucial)
Exit 1 Lot with 10 points profit (and move SL for the 2. Lot to breakeven)
Most of the time 10 points are hit even in choppy markets.
Let the 2. Lot move in your direction with a 20 points trailing stop

Stoploss:
hard stop at the opposite line
Maybe the commuinity can improve the SL and profit levels

I attached 2 charts.
The first is a choppy chart.
Red rectangles are the short trades
Green rectangles are the long trades.
White rectangle: look how the RSI _MA protects from long trades.
The second is a trending chart.


1. chart:

2. chart:
There are also nice trending times.

Would be great to get a feedback.
Thanks.

This is brilliant.

 

[bp1957]

Sorry for my late reply. Its a busy and extraordinary time at the moment.

Let me come back with a feedback from my side.
Using a 1m timeframe is far too fast for me personally and using only a EMA20 crossover to buy and sell is far too inconsistant for me.
But the idea to develop clear setup, that is easy to use, is great.

So I tried some things out and came over the "floating levels" from the member "Mladen
https://usethinkscript.com/threads/averages-with-floating-levels-for-thinkorswim.3526/
Its a great tool and I think its worth to dig deeper into it, although I use it in a slightly different way.

My settings:
NQ 3m chart (1m is too fast)
Floating Levels indicator, lenght 34, HL2
RSI50 with EMA200 (based on the RSI, not price)

Go Long:
Price crosses above the upper green line AND RSI is above its EMA

Go Short:
Price crosses below the lower red loine AND RSI is below its EMA

Contract size:
Enter with 2 Lots (thats crucial)
Exit 1 Lot with 10 points profit (and move SL for the 2. Lot to breakeven)
Most of the time 10 points are hit even in choppy markets.
Let the 2. Lot move in your direction with a 20 points trailing stop

Stoploss:
hard stop at the opposite line
Maybe the commuinity can improve the SL and profit levels

I attached 2 charts.
The first is a choppy chart.
Red rectangles are the short trades
Green rectangles are the long trades.
White rectangle: look how the RSI _MA protects from long trades.
The second is a trending chart.


1. chart:

2. chart:
There are also nice trending times.

Would be great to get a feedback.
Thanks.

Thank you for sharing. Your intro said your using RSI 50 with a 200EMA. Looks like its a 150 EMA in the script. Do you use both?

 

[rad14733]

@bp1957 Many members use settings other than a scripts defaults... Some trade instruments work better with refined settings...

 

[samoya]

Thank you for sharing. Your intro said your using RSI 50 with a 200EMA. Looks like its a 150 EMA in the script. Do you use both?

Yes, sorry for that.
You can try some settings and finetune

 

[Schminga]

Sure: http://tos.mx/i54QbL1

samoya: I dropped in a 2sma overlaid on top of your RSI lower study and noticed that you can catch the spike ups as your RSI crosses the 2sma. Looks like a potentially better way to get out early instead of waiting. Bonus also is you get out at a high that may never reappear in the day.

https://imgur.com/ddC5dTV

 

[samoya]

samoya: I dropped in a 2sma overlaid on top of your RSI lower study and noticed that you can catch the spike ups as your RSI crosses the 2sma. Looks like a potentially better way to get out early instead of waiting. Bonus also is you get out at a high that may never reappear in the day.

https://imgur.com/ddC5dTV

I think its a 2SMA based on price your are using, not on RSI?

 

[rad14733]

I think its a 2SMA based on price your are using, not on RSI?

It appears to be the 2 SMA of the RSI, the light green line on top of the RSI cloud...

 

[iAskQs]

@zee2881 Thanks and no problem!

@Fedegrosso A limit order is what I use. In TOS it would be a "stoplimit" (sell for short, buy for long) since you are getting in on the breakout/breakdown. The key is to watch the color of the line turn from red to green and visa versa. There is no guessing where to get in because you instantly have your high or low price of the candle where it changes and you can simply place your stop entry order a tick above/below that candle. i.e. Above for long positions, below for short positions. Because you are placing a buy limit to go in that direction above price, it is called a stoplimit. (TOS coders can correct me)

Also @Fedegrosso and @zwarriortrader (and anyone else wanting to give this a go)

As far as the code, try this sequence:

1. Open a notepad doc.
2. Scroll up to the post that contains the code and copy and paste it into your doc. We'll come back to this in step 7 and 8.
3. In TOS, open any chart. I like the NQ using a 1 minute time frame.
4. Right click, hover over "studies" and select "edit studies" (you can also get there by clicking on the test tube looking icon at the top right of your chart).
5. Then click "Create".
6. This will open a work space you can paste the code into. Before you do that, delete the default line of code in there "plot Data = close;".
7. Go back to your notepad doc and highlight and copy the code.
8. Paste it into that work space.
9. At the very top you can name it whatever you want. The default is "NewStudy0". So just delete that and name this something you can remember.
10. Then click "ok" and go back to your chart and add it like you would any other indicator.

Let me know if that does the trick or if you have any other questions.

Thanks for discussing this simple yet powerful strat. A couple of questions for you:
1. In TOS, how do you enter with a stoplimit order in time with the market moving so fast? In active trader, setting a stop order makes it a stop market order.
2. Do you think this strat still works in today's NQ market? On some days it seems amazing (with 200+ points per day) and on others, like today (04/1/21), it was miserable because we were mostly in a range. So there were many trade signals today all losers if one insisted on a 100point PT.

 

[kabira]

@madeinnyc: I am using a 1 minute chart.
@zee2881: Thanks for the info. I will dig into that further.
@stockminion: I created this video for you and anyone else interested in learning how to do this.
@BenTen: Still learning how to use this site. Sorry for the improper post tags, etc.

/NQ trading video: https://www.dropbox.com/s/liql6pl1vmrcd53/NQ_Strategy.mp4?dl=0

Thanks and looks easy to follow. How do I apply this to the TOS charts. ? I want to use it for the stocks. what are the settings in TOS to get this.

 

[kabira]

Thanks and looks easy to follow. How do I apply this to the TOS charts. ? I want to use it for the stocks. what are the settings in TOS to get this.

I found the code in the above post and added to TOS. Also the lines are not showing for all the stocks. It sHows for some and not for others. what am i doing wrong?

 

[iAskQs]

I found the code in the above post and added to TOS. Also the lines are not showing for all the stocks. It sHows for some and not for others. what am i doing wrong?

The indicator is literally just a 20ema that changes colors when price closes above or below the ema. You can just use the regular ema study in TOS and follow the simple instructions in the first post.

 

[rad14733]

1. In TOS, how do you enter with a stoplimit order in time with the market moving so fast? In active trader, setting a stop order makes it a stop market order.

You should have order templates pre-set for placing orders in Active Trader... I have several common templates set up and use one of them for every trade I make... Learn how to implement them and your life will be a lot less hectic... You'll also be more profitable almost immediately... I have a few set up with Limit and Stoploss based on Risk:Reward ratio's as well as others for TrailingStopLoss... It is beyond the scope of this topic to explain how to go about setting templates up but it is covered in the Thinkorswim Learning Center, or do a Google search... You can also set these up so you can right-click on your chart to select a saved template...

 

[iAskQs]

You should have order templates pre-set for placing orders in Active Trader... I have several common templates set up and use one of them for every trade I make... Learn how to implement them and your life will be a lot less hectic... You'll also be more profitable almost immediately... I have a few set up with Limit and Stoploss based on Risk:Reward ratio's as well as others for TrailingStopLoss... It is beyond the scope of this topic to explain how to go about setting templates up but it is covered in the Thinkorswim Learning Center, or do a Google search... You can also set these up so you can right-click on your chart to select a saved template...

Thanks. I have several templates setup for active trader, but active trader does not provide an option for stop limit buy orders to open a trade. I've researched this extensively and discussed it with TD support who confirmed I can't setup a stop limit order in active trader. If you know a way to do so, please let me know.

 

[rad14733]

Thanks. I have several templates setup for active trader, but active trader does not provide an option for stop limit buy orders to open a trade. I've researched this extensively and discussed it with TD support who confirmed I can't setup a stop limit order in active trader. If you know a way to do so, please let me know.

For that functionality you would need to use Conditional Orders... They can be coded with just about any conditional criteria, including referencing Studies... The downside to that is you would need to determine a way to have Stop Limit coded into your Conditional Order... Or have order templates setup for that purpose... You could also have a OCO Conditional Order setup with Stop Limit for the Entry and the Exit... A bit slower than autosend in Active Trader, but doable...