CodeForTraders

...writing great code so you don't have to

How Markets Really Work

Package: How Markets Really Work

Insprired by the book 'How Markets Really Work', by Larry Connors and Connor Sen*, this strategy is a comprehensive laboratory, designed to test Buying Weakness & Selling Strength (BWSS), or Buying Strength & Selling Weakness (BSSW).

What It Is

A pre-written strategy (full source code), offering 8 different built-in ways to define weakness and strength.  This strategy will enable you to do research to answer the question: 

"Historically speaking, would I have been better off  to buy on market strength, or buy on market weakness?". 

Of course, you can ask and answer the question on the sell-side as well.

This strategy may be applied to stocks, futures, bonds, or any other instrument.   You may apply it to any timeframe. 

Weakness and Strength

8 Definitions of Weakness are offered, along with 8 complementary definitions of Strength.

d1("--- 1 N-Day Highs & Lows ---"),
d2("--- 2 Higher Highs, Lower Lows ---"),
d3("--- 3 Up/Down Days in a Row ---"),
d4("--- 4 Adv/Decl Days in a Row ---"),
d5("--- 5 Mkt Breadth Ratio (MBR) ---"),
d6("--- 6 N-Day High/Low Volume ---"),
d7("--- 7 Large Move % ---"),
d8("--- 8 Put/Call Extreme ---"),

Also, the structure of the code makes it very straightforward to add your own definitions to those provided.

What You Get

The package is designed to provide visual feedback so you can see on a chart any of the built-in notions of weakness or strength.  Custom indicators are provided to assist.   Here's what's included:

  • Strategy:   #P_HMRW_01 - the strategy itself
  • Indicator:  ADU Breadth Plot
  • Indicator:  ADU Breadth Consec(utive)
  • Indicator:  ADU Breadth Ratio
  • Indicator:  ADU %-tile 2-Lines
  • Indicator:  ADU Plot Sym OHLCV
  • Indicator:  Strat Equity Color
  • Indicator:  #P_PctMoveClose
  • Indicator:  #P_NBarHiLoChan
  • Paintbar:   #P_UpDownBars
  • Workspace:  HMRW_ADE_SaveInfo  -  contains charts set up to save OHLCV data for the advance/decline and put/call
  • Workspace:  HMRW_01 - 2 charts with the strategy and multiple indicators applied, showing comparison between buying 5-day Lows and buying 5-day Highs
  • Workspace:  HMRW_02 - 2 charts with the 'ADU %-tile 2-Lines' indicator applied, showing comparison between buying low Put/Call Ratio and buying High Put/Call ratio.
  • Workspace:  #P_GV_GlobalSetup_01 - allows you to reset global variables used to control report header output in strategy reports.
  • Desktop:  HMRW_01 - Pre-made to open all of the above workspaces.

Strategy Features

  • Time of Day, Day of Week, Day of Month trade filters
  • ShaveTicks parameter for limit trades
  • Test Serial Number generation in report output
  • Tester ID parameter (for cooperative testing efforts)
  • Pre-wired for (optional) Money Management function
  • Section separators for input list
  • Time-of-day exit  (separate from trade time filters)

This strategy is also designed for and ready to interact with the Macro Express symbol list driver macro .

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

What It Looks Like

Here's a picture of the workspace HMRW_01:

img

and here's a picture of the workspace HMRW_02:

img

What It Costs

This package is for the advanced user. The analysis paradigm represented, as well as the many specific techniques implemented in code, constitute an extensive tutorial in both a powerful technique of market analysis and beyond-the-basics EasyLanguage coding. You are getting the result of dozens of hours of coding time for the cost of just 4 custom hours.  For the amount of code included, and the very flexible research framework it provides, this package is a bargain at $500.

How Markets Really Work for TradeStation -   $500  

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.