Multiple Time Frame Based Strategy of the MACD
Backtesting a Multiple Time Frame indicator using Thinkorswim Strategies. The MTF MACD has been revised to
Thinkorswim Strategy Guide MTF
make it suitable for backtesting. This video includes links to download the revised MTF MACD indicator as well as it’s Strategy counterpart. In this video you will learn two methods of multiple time frame analysis. You will understand why one method is nearly impossible to backtest, while the other method is perfectly suited for backtesting.
After a brief slide show explaining the differences, you will see how to use the MTF MACD Strategy to extract theoretical trades from Thinkorswim into a spreadsheet for analysis. Thinkorswim Strategy Guide MTF is a more advanced version of previous videos published on this topic. In order to get the most out of this video you are encouraged to also view the following videos in this series:
The original Thinkorswim Strategy Guide goes into a bit more detail on how to work with strategies and extract data.
The other video to watch is Thinkorswim Strategy Analysis
The Thinkorswim Strategy Analysis video goes into great detail showing how to extract the trade data into Excel. Step by step instructions are shown for organizing the trade data into Excel, calculating the P/L and even displaying the results in a graph.
Link to strategy file: Strat_MTF_MACD_LE_v2STRATEGY.ts
For Advanced Users Only:
Take this knowledge to the next level and learn how to automate your trades on Thinkorswim
Thinkorswim Automated Round-Trip Trades
DISCLAIMER: I AM NOT A CERTIFIED FINANCIAL ADVISOR AND NOTHING IN THIS VIDEO OR TEXT IS AN ADVERTISEMENT OR RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT. NOR IS THIS VIDEO OR TEXT INTENDED TO INSTRUCT YOU ON HOW TO MAKE BUY OR SELL DECISIONS USING ANY OF THESE INDICATORS.
*Thinkorswim is a chart analysis platform offered by TD Ameritrade: www.tdameritrade.com
TD Ameritrade provides financial services including the trading of Stocks, Futures, Options and Forex.
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found simple solution, in case your readers need this. i am using 20min and 1h in this case
#——-cek only 3rd bar of ST = HT close at same time
def Day = 86400;
def Hr = 3600;
def epoch = (GetTime() / 1000);
def min = Floor(((epoch % Day) % Hr)) / 60;
def okU = min==40 or !midTermdown[3] or (close>close[1] and high>high[1] ) ; # if prior HT macd was already up
#def okD = min==40 or midTermdown[3] or (close<close[1] and low Diff[1] and midTermDn == no and longTermSignal == no;
def FirstENTRYup = if chart==AggregationPeriod.TWENTY_MIN then (entry0 and okU) crosses above 0 else entry0 crosses above 0 ;
addOrder(OrderType.BUY_AUTO, FirstENTRYup, open[-1], tickColor = GetColor(0), arrowColor = GetColor(0));
as most strategies need to look at the current HTF bar (not prior as sample here), i.e we use 1day and 3day (only use 2 charts for simplicity). As 3days = 3x daily bar, how do we only get signal of the last bar of daily close (which means 3days will close at the same time hence no repainting)
of course saying is easier than doing. i dont know how to write that condition lol.
This is way beyond the scope of something which can be solved in the comments section of a video. What you are requesting is possible. But it requires an extremely high level of proficiency in writing chart strategies.
Here is a very basic example of a signal which you can plot on a daily time frame. Which will do what you described:
plot signal = close(period = AggregationPeriod.THREE_DAYS)[1] > close(period = AggregationPeriod.THREE_DAYS)[2];
The signal will plot three consecutive candles on the daily time frame for each time it is true on the 3 day time frame. And the signal will be locked in, once the 3rd and final bar on the daily time frame has closed.
Hi Pete, do u know if multichart or multichart.net could create order in strategy base on shorter time frame bar close but intrabar of higher time frame ?
below link said yes but prefer your confirmation prior i dive into multichart https://www.elitetrader.com/et/threads/intra-bar-order-generation-on-multicharts.137863/ thanks so much
Sorry but I have zero experience using the MultiChart platform so I have no answer for you.
Never mind, I found it