Trade Setup for Impulsive Markets

The most profitable markets are those with Impulsive Movements.

A Market leaves the Trend mode and switches to Impulse Mode when there are no more pullbacks big enough to get into the trade, and when it finally happens the move is finished leaving just a small winner or even a loser.

On volatile markets, the switch from sideways to Impulse is so fast that we dont even get an entry on the first trending pullback. This is why it is so important to define when the Impulse Mode is starting so we can use an early entry.

The most volatile markets are crude oil, gold, silver, nat gas ( CL, GC, SI, NG ).

Cash Index Markets like S&P ( ES ) are mostly on sideways or trending mode. Some of these trend moves may sometimes change to Impulse Mode, allowing to the trend entries increase their profits.

We have several ways combining classic Indicators, to define when the market is Impulsing.

The most used ways to trigger an Impulse Signal are :

1)      A Fast Moving Average crossing outside a Slow Band

2)      A Fast Band crossing all outside a Slow Band ( similar to previous method but with an extra security margin)

In the following Charts we can see both Methods ; ( The vertical Red Line shows where the Impulse Mode Starts on each example )

     

 The Band can be a Bollinger Band, a Keltner Channel or a Fixed Envelope ( like on the examples shown )

We have to take into account that if we use Range Charts, all Bars will have same height, so volatility ( and ATR ) will be constant, turning Keltner Channels into Fixed Envelopes.

Now we have different ways to define the Impulse Mode Signals, now we just need to define the entry.

In a trend system, we use the slow EMA ( like on the PM_EMA setup ), but on Impulsive Moves, the Markets never come back to the EMA.

The entry can be defined again using an envelope ( Bollinger, Keltner, Fixed ) of lower size than the signal envelope ;

An entry for example 1 can be the lower slow band ( green) 

An entry for example 2 can be a 50% of upper fast band ( blue )

As shown, using EMAs and Envelopes to define signals and entries, we can get a big number of different setups. We just need to find the best combination for each Instrument.

Having all these rules automated is a big Help that let us backtest, optimize and even trade any configuration. We at The Indicator Store have a Strategy Pack called PM_Impulse, that contains several individual strategies following different combinations of the explained setups.

If you like this article please leave your comments and share with your firneds

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Impulse Trades of the Week

These are the Last Trades of the Impulse Setup, as we explained the last week

British Pound Futures ( 6B ) and Forex ( GBPUSD)

The chart has overlapped the entry markers of the Indicator TIS_Impulse_Indicator and the entries executed by the PM_Impulse Strategy.

As we see there is only 1 entry missed due the time filter used on the strategy.

Euro Futures ( 6E ) and Forex ( EURUSD)

This chart shows the same setup executed on Euro Futures ( or EUR-USD Currency Pair on Forex ).

We are missing one trade again, because the start time adjustment of the strategy.

As we already explained, the Impulse Setup Logic is SIMPLE;

When a Fast Band is above a Small Band, We are in Long mode.

When a Fast Band is below a Small Band, We are in Short mode.

..on old versions ( PM_Impulse_v2), Fast Band was just a moving average. This behavior can be emulated on this last version using a null width.

Once We are in Long/Short Mode, the system Entry on all prior versions was related to the Slow Band.

On this new release, we can take more aggressive entries by referring the Entry to a different Band. I suggest using the Fast, but any Period can be selected.

On the following example, we are using the same Impulse Setup on Euro but changing the Entry to the Fast Band :

We are proud to announce that the new version of the Impulse Strategy ; PM_Impulse_V6 is ready and will be delivered to all current owners of PM_Impulse.

It can trade all setups covered by prior versions and all combinations available on the TIS_Impulse Indicator, so the combinations of different setups is huge.

Impulse V6 has the Donchian Channel Filter introduced on V5, Trend Filter, AutoBreakeven , and Trailing Stop using the TIS_Multitrail Indicator.

Input Parameters of PM_Impulse_V6

Please post any questions or suggestions or send me an email.

Regards,

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

Week Trades using Indicators for Ninjatrader from The Indicator Store

Hello ! We will describe the trades we could execute this past week using the Indicators for Ninjatrader designed by The Indicator Store ; TIS_Small_Range and TIS_Impulse_Trader.

Impulse Strategy

On the following charts, we can see the entries of the Impulse Setup on the British Pound  ( Forex : GBPUSD ) and a comparison of its entries to the futures version ( 6B )

As we can see on the next chart, this system is valid on Forex and futures, showing the same entries on both

The only difference is the tick value ( $6.25 ) vs GBPUSD pip value.

The British Pound (6B)(GBPUSD) has been moving very well this week, making this strategy very profitable.

The Timeframe used is Range 6 and the parameters are :
Slow Moving Average Period =
Channel Size = 8 ticks/pips
Fast Moving Average = 8
Entry = -3 ticks/pips from Slow moving Average

On the following Chart, we see the same Strategy applied to the euro-dolar pair (EURUSD).
As we already explained, this is also valid for Euro Future ( 6E ).

 On this example, we had 3 sell signals today ; 1st got the initial target, 2nd was a loser and last short got 1st and 2nd target ( or exited at trailing stop )

For the Euro Setup We replace the fixed envelope by a Bollinger ;
Bollinger Period = 50 , Standard Dev = 0.5
Fast Moving Average = 8
Channel Size = 5 ticks ( around Fast Moving average)
Entry = Slow Bollinger Band with Standard Deviation = 0.8

Small Range Setup

This chart shows the Small Range Setup applied to Gold using a 9 Range Timeframe.

Today , Gold was mostly on sideways mode, without allowing to get bigger targets than usual.
We had a long with a target 1 winner and runner out at breakeven. Then a short winner, again, with runners out at breakeven, and finally a short loser.

Have a Great Long Weekeend !

Pablo Maglio
www.TheIndicatorStore.com

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Impulse Mode Setup

Impulse Mode

As we all know, one of the most profitable types of Market is the Impulse Mode.

Once the impulse mode is established, there are lower than average or not pullbacks at all, so it is very difficult to enter the market until the move is finished.

This is the reason why it is so important to determine when the market is ready to start an impulsive move and get into the last pullback.

The definition of this rule is critical to avoid to take a lot of fakes moves, but even taking several failures, the profit potential is so big that compensates taking several loses before the final winner.

The rule I use to define when a market is about to start a trending mode is the Bollinger Crossover and it works as follows ;

We need a fast moving average and a slow Bollinger Band. And the the settings we must find are those that make the fast moving average to stay inside of he Bollinger on sideways and even slow trending markets.

When we get a Bollinger crossover ( Fast moving average crossing outside of the Bollinger Band) , then the setup is trade ready in the direction of the crossover, and the entry is a limit order at the middle of the band

See attached picture :

I created a set of Indicators to trade this setup :
PM_Bollinger_XO : It draws vertical lines and triggers audible and text alerts at crossovers. It is possible to filter only the first signal on each direction ( like on the picture )
PM_Trend : It paints bar colors according to the setup

For those who like doing research ( like me ) or auto trading a setup, I also created the strategy PM_Impulse_v2 :

I will post my research on different markets here and if you want to share any setting, info , comment or suggestion, please feel free to do it...

Regards,
Pablo Maglio
www.TheIndicatorStore.com

Impulse Setup on EURUSD and AAPL

Hello, Welcome !
On this new Article we continue analyzing the Impulse Setup. Now the question is ; Is this useful for Forex or Stocks ? .... YES ! !
On this publication I will share with you examples of application of the Impulse Setup On Forex and also on Stocks ( AAPL ).

The following chart is a 15 Minutes EURUSD with the Impulse Setup Indicator applied.

We can see several shorts happened last week, and today we had the first long ( currently a nice winner )

And now an example on Stocks, for example a 15 minute AAPL chart :

The number of trades is much lower on stocks than Forex, and the number of signals on Forex is even much lower than Futures. But the system works anywhere.

Please remember that on previous posts I have much more detailed information about this Setup.

The Indicator Store has dedicated Indicators and Strategies for this setup, to visualize, identify, backtest and optimize its settings. 

If you liked this article please share and post any comments.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Small Range and Impulse Indicator Alignment

On the following chart, we can see the use of the Impulse Indicator and Small Range Indicator for NinjaTrader showing the first short signal of the week on Crude Oil.

Luckily, both signals of both uncorrelated systems are triggering on same Price Area

The implied risk of both trades are similar and in the range of usd 150, while the possible target is bigger than usd 500 using trailing stop.

First Sell Trade of the Week using Small Range Setup

First Sell Trade of the Week using the Impulse Strategy

As you can guess, nothing better for a strategy, to have another uncorrelated setup aligned on same Price Area

For those who follow these Setups, knowing the fact of confluence increases the probability of success.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Impulse Setup on Gold

As a continuation of yesterday's Post where We explained the Impulse Setup, today We had an excellent example of this Setup on Gold ( GC )

In the attached chart we can see how after the Employment Report at 8:30 ET, the Gold Market had some quick moves almost impossible to trade ( take a look at the  TIS_Bar_Time indicator at the bottom of the Chart showing several bars with time duration close to zero ).

After Maket calmed from the Report reaction, the Bar duration returned to an average of 30 seconds and We had 2 signals ; 

A Short, with only target 1 available ( 10 to 15 ticks ). Rest of position out at break even.

A Long, with first and second targets, and also a possible runner with trailing stop

 If you liked this setup or have any questions and suggestions please post and share !

 Regards,

Pablo Maglio
www.TheIndicatorStore.com

Trade Log 2013-07-15 using TIS Ninjatrader Indicators

This is the Trade List using TIS Setups :

ATR_BarColor on Crude Oil ( CL )


SRS Setup on YM


SRS Setup is Long on CL from the Lows



SRS Long Signals on GOLD



First Impulse Signal on British Pound ( GBPUSD / 6B )


Ichimoku followers ? Here is a CL with the Cloud ( Kumo ) as Support

Markers Plus 4 for Ninjatrader - Creating our own Trade Setup

Markers Plus 4 for Ninjatrader
Creating our own Trade Setup

Versión en Castellano

Hello Traders

As we know, a trade setup consists on set of rules that define when to Enter the Market and in which Side, Long or Short. 
It can be just that, or can include also a rule set to define when to close a position.

As we saw on previous posts, Markers Plus 4 include tools to create Signals.
Those Signals can be used to either enter the Market or Exit the Market.

Lets review the most important included tools :

1. Universal Slope Tool
2. Universal Crossover Tool

Universal Crossover Tool

With this Tool we can identify the Cross between any pair of lines. Those lines can be drawn by any indicator installed on the platform.

Example :

These pair of Red and Blue Lines are an example of 2 things ;

1. We can define the trend by the relative position
   When Red Line is above Blue Line, the trend is Up
   So, we only take Longs
2. We can also paint a signal on the crosses ;
   When Red cross above the Blue, we have a Buy Signal
   ( or an Exit Short Signal )

Both items can be done with the Crossover Tool

Example applying the Crossover Indicator :

We get Up and Down Arrows painted in user defined Colors, so they can be used by Markers to initiate or exit a Position.

We also get a histogram with the difference between both lines, positive when red line is above the blue. Negative when below.

We can use this difference as a filter condition on Markers.

Example ; Taking only longs when histogram >0 ( or a threshold )

Take only shorts when histogram < 0 ( or a threshold )

This tool is really powerful to research and backtest new setups as we can see the results in real time on the historical data ( as seen on the chart )
We can change the settings of the indicator or the indicators itself that generate those lines and have the result at the instant.
Remember that those lines can be any plot of any indicator on your platform.
No need to Market Replay.
No need to create a Strategy.
Just create your logic, watch it on your chart, and put it to auto trade with Markers.

Some examples : 

• Fast EMA vs Slow EMA ( this is a classic )
• EMA crossing above an upper Donchian ( long signal )
  ...crossing below the Lower Donchian ( short signal )
• SMA crossing above a Bollinger Upper Line ( long impulse signal )

Universal Slope Tool

With this Tool we can calculate the Slope of any line painted by any Indicator installed on our platform.
The slope is calculated by the difference of the indicator's line current value and N bars ago

This indicator draws a histogram with the slope and also paint signals when there is a slope directional change :

As we can see, with these 2 Tools, almost all possible Trade Setups can be recreated and Executed on Full Automatic, Semiautomatic or Manual Mode with Markers.

• This is the Link to Markers Plus 4 on our Website

Feel free to ask for a demonstration if you want to see it working.

Best Regards,

Pablo Maglio

Pablo Maglio | The Indicator StorePablo@TheIndicatorStore.Com  Skype id : pmaglio

Automated Strategies for Ninjatrader

Hello Traders !

On this article we are going to review all our trade setups that have a Strategy for Ninjatrader fully automated and can be back tested, optimized and traded live.

This is a list of all those ordered in function of its low complexity ;

1. EMA ( it trades an Exponential Moving Average ; Read More )
2. Bouncer ( it is an anti EMA ; as it trades against it )
3. Vwap ( it trades the Volume Weighted Average Price )
4. SRS ( Custom Setup ; Read More )
5. ATR_BarColor
6. Impulse
7. High Low Crossover

1) PM_EMA_TraderV52

On this setup we only need to optimize a pair of parameters ;

• The period of a Moving Average
• The size of an envelope

The size of the envelope is slightly lower than the stop we are planning to use, so we can focus on finding the Period

This is an example using the Optimizer to scan Moving Averages on ES, looking for a 1.5 points of target against 2 points of Stop :

Depending on the level of the commisions, then we have a few areas with good moving averages to trade with.

This is an example of the equity curve using an EMA(166) :

Now we can optimize all other settings trying to obtain a better shaped equity curve ;

2) PM_EMA_Bouncer

This systems trades agains the PM_EMA, so we can use the same PnL vs Period Chart, and trade the worst performing moving averages. It works better on non trending, but more volatile markets like Crude Oil or Gold

3) PM_VWAP

Similar logic used by PM_EMA, but replacing the moving average by the vwap.

Something interesting about the vwap is that it produces the same result on any timeframe, so this setup is almost not related to time frame. The only impact changing the time frame is the possibility of taking more trades over same entry.

4) PM_SRS_Trader

This is a system that uses an envelope, a moving average and a donchian channel to define the trend and entry logic.

It can be configured with or against the trend. (Read More)

This is an optimized report example on CL using a Range 9 Bar Chart taking into account last 2 months ( Dec 2013 and January 2014 )

5)PM_ATR_BarColor

UNDER CONSTRUCTION

Best Regards,

Pablo

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com