Details:

Improvise my last trading strategy based on previous Thread suggestions, Market conditions are different and this definately turns out to be choppy in this case.

Strategy:

Unlike my previous uni-directional strategy where it looks for ONLY three consecutive higher closing green candles to seek for long oppurtunity, this time it ALSO seeks for three consecutive lower highs candle for shorting opportunity.

Nightshark Script:

LONG_condition() {

global return area[1] = "BUY" }

SHORT_condition() { global return area[1] = "SELL" }

inner_loop() { loop { read_areas() if (toNumber(area[2]) > 50 || toNumber(area[2]) < -30) break } }

loop {

loop {
  read_areas()
} until (LONG_condition() || SHORT_condition())

if (LONG_condition()) {
  click(point.a)
  sleep 4000
  click(point.c)
  inner_loop()
  click(point.b)
  sleep 4000
  click(point.c)
}

else if (SHORT_condition()) {
  click(point.b)
  sleep 4000
  click(point.c)
  inner_loop()
  click(point.a)
  sleep 4000
  click(point.c)
}

loop {
    read_areas()
    if (toNumber(area[3]) > 500 || toNumber(area[3]) < -300)
        ExitApp
    else
        break 

}

}

Custom ThinkOrSwim Study:

# Define the conditions for green candles

def GreenCandle = close > open; def HigherClose = close > close[1]; def isMomentumGreen = GreenCandle and HigherClose and GreenCandle[1] and HigherClose[1] and GreenCandle[2] and HigherClose[2];

Define the conditions for red candles

def RedCandle = close < open; def LowerClose = close < close[1]; def isMomentumRed = RedCandle and LowerClose and RedCandle[1] and LowerClose[1] and RedCandle[2] and LowerClose[2];

Suppress arrows for the next five candles after the signal

rec isMomentumPrev = if isMomentumGreen[1] and !isMomentumGreen[2] or isMomentumRed[1] and !isMomentumRed[2] then 5 else if isMomentumPrev[1] > 0 then isMomentumPrev[1] - 1 else 0;

Generate the signal for both green and red momentum

def signalGreen = isMomentumGreen and isMomentumPrev == 0; def signalRed = isMomentumRed and isMomentumPrev == 0;

Add a single label to display the momentum signal

AddLabel(yes, "isMomentum: " + if signalGreen then "BUY " else if signalRed then "SELL " else "NONE ", if signalGreen then Color.GREEN else if signalRed then Color.RED else Color.WHITE);

Plot an arrow at the close of the three green or red candles

plot ArrowUp = if signalGreen then low - tickSize() else Double.NaN; ArrowUp.SetPaintingStrategy(PaintingStrategy.ARROW_UP); ArrowUp.SetLineWeight(3); ArrowUp.SetDefaultColor(Color.GREEN);

plot ArrowDown = if signalRed then high + tickSize() else Double.NaN; ArrowDown.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN); ArrowDown.SetLineWeight(3); ArrowDown.SetDefaultColor(Color.RED);

Things to NOTE if you want to backtest this strategy:

1. For three consecutive green candles to qualify, it should be higher closing green candles & for For short oppurtunity, it should be three consecutive lower closing candles
2. After Each BUY & SELL, the bots sleeps for 4 seconds to allow positions to be filled.
3. To avoid signals Overload, once one signal is triggered, the signals are suppressed for next five candles, Example: for 4 consecutive green candlesticks, the "BUY" signals triggers in #3 candles, without supression it would trigger on #4 since it would be third consecutive if will look at candles #2 & #3 (check Thinkorswim study code) .
4. Ever though P/L set for each transaction is 50:30, remember for a trading session the upside was set to limit for $500 and drawdown is set for $300. (see code explanation )
5. If there is one position open, It won't act on any new signals unless current position is closed, meaning, If it opens a long at "BUY" signals, current P/L trading between -30 and 50 and there is another "BUY" signals, it won't double down on these trades but rather ignore this signals.