Darvas (Bi-Directional)

Package: Bi-Directional Darvas Method

By popular demand, a complete, flexible implementation of Darvas-style trading that operates in both directions.

What It Is

A complete new package with function, indicators, and strategy written from the ground up to apply the Darvas trading concepts to both long and short trading.

Trading in both directions is a departure from the specifics that Darvas himself presented in his most famous book 'How I Made $2,000,000 in the Stock Market', but the idea of charting a sequence of Darvas boxes in both ascending and descending markets and trading in accord with them is one that seems naturally intuitive to many.

However, the notion is trickier than it seems!

At issue in such a scheme is how to decide when to be looking for ascending boxes and when to be looking for descending boxes. We can't appeal to Darvas for algorithmic cannon here, since this is not how he traded. In fact, there is definitely more than one way to do it - and my package is coded with several alternatives, as well as giving you a very clear code structure into which you can plug alternatives of your own.

What You Get

A flexible and accurate Bi-Directional Darvas Box indicator, for charting the Darvas boxes.
A Bi-Directional Darvas Channel indicator, specially designed for Chart or RadarScreen use.
A complete Bi-Directional Darvas strategy that will backtest, report, and trade upon any symbol or any timeframe according to the Darvas principles.*
A set of TradeStation workspaces to help you "load and go", incl. specific workspaces for stocks, futures, and forex.
Daily and weekly RadarScreen workspaces, and RadarScreen template file

The Darvas Package is delivered as full source code, so you can see exactly how it is done and customize it for yourself in the future if you should ever feel the desire to do so.

The Bi-Directional Darvas Package works with stocks, futures, and forex on weekly, daily and intraday charts, with TradeStation® 8.1, Build 3162 or later. Also works on tick/share/volume charts, subject only to the visual limitation** imposed by lack of sub-minute timestamps.

And, of course, you get Customer Support as needed to get it all running.

What It Looks Like

Here's a picture showing two alternative Bi-Directional Darvas interpretations near a daily turning point for ER2:

See the difference? It's a matter of under what conditions you start to accept boxes in the new direction.

Notice the green and red dots in the center of the bars on the upper charts. These represent the current "bias". Along with the built-in (optional) display of pivots and the confirmation "C" you are able to see exactly when and why your choice of algorithm draws a new box. 3 different algorithms are built in, and you can easily add your own with all the display confirmation "automagically" happening for you.

All the underlying mechanics are implemented in a function, and so are identically available to the indicators and to the included strategy. Here's a picture of the Bi-Directional Darvas strategy in action on a 200 tick chart:

With this package, you will be able to research Bi-Directional Darvas-style trading in a fully comprehensive way, for all your markets of choice on all your timeframes of choice.

Here's a picture showing a daily Darvas RadarScreen. The RadarScreen shows the top and bottom prices of the last box, the latest close, and where that close lies as a percentage distance towards the breakout direction of the last box. The color coding makes it a snap to sort and isolate stocks in full breakout mode up or down (green or red LBPct) , stocks poised for breakout in their box (white LBPct), and stocks of no current interest (gray LBPct).

Innovations

In addition to bread-and-butter Darvas-style breakout trading, this strategy offers flexibility and innovation:

Choose to enter above or below the box-top breakout level by a variable percentage of the box height
Add-on size (or not) to an open trade as unbroken boxes progress upwards
Variable lot size, and max lots allowed
Choose to chase the market or not when a new box confirms after price has already broken out
Time of Day filters and Daily profit/loss targets for intraday use.
Variable base pivot strength (default of 3, but the choice is yours!)
An optional custom internal stop-loss based upon a percentage of the strategy's winnings to date, along with a kick-in floor (great for preserving the gains of pyramiding)
Test serial number stamping of report output

What It Costs

$350 gets you the most powerful, flexible, professionally coded Bi-Directional Darvas Package available available to the public anywhere.

How You Get It

This package will be emailed to you after your PayPal payment is processed. Please be aware of the caveats before you order.

Notes:

* The Darvas Strategy produces comprehensive report output (ready to load in Excel), including performance data and strategy input settings for each symbol upon which you run the strategy. The Darvas Strategy is also designed for and ready to interact with our Macro Express symbol list driver macro, allowing you to run the strategy across any list of symbols to generate comprehensive multi-market test results.

** A sequence of tick bars may all have the same date/timestamp. Boxes whose termination is triggered by later bars in such a sequence will be displayed as terminating on the first bar of the sequence. This is a visual effect only, and will not affect strategy entries and exits.