Scripting Studies on thinkorswim | Ken Rose, CMT | 10-1-19


. Hello investors and welcome. Hen using thinkScripting so last . Sting in the stock market particular we can use think scripting as a backtesting tool will be using. Looking at applying that was some some of the Fang stocks here today just a little bit of a technical issue going on here but we’ll have that wrestled right here there we go okay great.. A. Dete suitability of any security strategy or course of action for you through your use of our trading tools. Any investment decision you make in your self directed account is set at G. for that matter as well money software application here that we use is for educational purposes only successful. Virtual. All data. Results presented are hypothetical they did not actually occur and they may not take into considerations there would actually think scripting we identify a goal we did that in a previous session we do ask ourselves can thinkScripting meet the goal we address that.. What. Steps of strategy in our last session. So if you’re if you feel comfortable the concept. Tt feel free to continue to join us here today I do try to call and right now we’re doing is we’re applying the thinkScript tools and that’s what we’re looking at today is primarily applying these tools he’s. Back testing tools. Don’t worry you do you don’t need to know think script in order to in order to use a study like this fact what I’ll do is. A link A towards the end of our session so if you like the on balance form is this black line right here course you can you can choose whatever whatever color you like to for these it takes. Balance. Says we have the on balance fine line then we have a ten period moving average of on balance volume. We have a twenty period moving average of on balance volume we just said that when the when the shorter to movie moving average of on balance volume crosses above. Hs and so this is it this is the strategy. Down here that we have what’s what’s coming up well it’s called our profit proximity ation of the profitability of the strategy that you that you’re currently using.. Mount of an investment did you take when you when you enter the stock and the. Amount that set for this strategy is just ten thousand dollars so why like like right here we bought forty five shares right here we bought sixty five shares here’s fifty two forty nine forty seven but. But rather than invest your new greater male we’re just going back to ten thousand dollars so it tends to be it. When you’re in an uptrending stock and things are showing profitability tense line so looking at our first example here it with apple. Notice again we’re talking about basically setting. Your chart okay. So if we’re going to rough approximation what do we say OK were just. We set aside ten thousand dollars to move in and out of the stock that gives it that gives us a 20% return again a theoretical return a forecast . So for this one year period with. a offer today with regards to our agenda right now we’re we’re running the on balance volume cross strategy. In. Versus refinement. Okay so in in looking. And we can see what’s going on but we also want to look at different times I’m going to click on Google right here in Google we got we got two hundred ninety four dollars and fifty nine cents cents a very small. We got it we got two point 9% return. So if we just purchased Google. Year ago but it would have a point eight to loading P. and L. right here is to look at look at look I would look at you look at your drawdown the type of draw. Experiencing. So about break even if we’re going to do if we come over here look at Amazon Amazon just is not profitable. Here Amazon we lost six hundred eight dollars last year would actually have a 13% loss a little bit better than that puts a lost none the less Facebook. Could. In the health phase we were bought it here and held it would have return of about of about eight point 23% So in this situation again outside of transformers doesn’t look pretty does it. Ouch. So if we bought and held Netflix right here . Has A maintains that ten thousand dollar investment it may understate the loss. In any case it doesn’t look like this strategy put could make some adjustments I can make some adjustments with regards to our on balance volume indicator . But if I make it so s profitable for Netflix. Guess what’s going to happen to Facebook. Over here and guess what so that’s that’s that’s what we’re talking about when we’re talking about data mining we’re talking about going in and. Charlie different time frames and also look at different stocks that’s why we have different stocks over here.. You know we are and on on the situation like Netflix we came down we move sideways but the sideways movement is just you just. Thant worry too much about the complexity of this when you see this again you don’t need to know how. Scripting in order to get some benefit from our webcast here today for the going into the coat. Let’s just make a little adjustment here they’ll- gonna. Come in here and. We two moving averages. Again don’t worry too much about this part this should. Too long I’m just going to. See what we got I’ve got a. Eight trend moving average right here is that I have an SMA. Trend. I’m going to make it. Let’s try twenty days. But I’m going to add a condition his stuff okay it is looking under the hood here for just a second and we should be done with this . The td moving average. To go and in scripting so you probably work period moving average a changer to twenty be will be more responsive we won the twenty period moving average to be moving to the upside. Hey let’s pull this down yeah that looks a little bit better we’ll say apply here and we’ll say OK. See already that we cut off some things that we still took cost and a bit gave us a one thousand loss here so now we’re that 10% loss first as a So we’re 215% gain verses were looking at earlier which was I believe about a. Google here probably need to maybe look at something else in order to catch go have a look at all of all totally on Google big. Ag during earnings with regards to Google how about apple house apple do so again. Less trading here with apple notice that we don’t catch a bite maybe I want to shorten that moving average line up to it ten instead of a twenty. To catch this . Twenty what’s with e ten now what I’m showing here is an example of data mining this is what you. Do without comparing it to everything else the is it. That was not good trend. Right here and yeah. Data mining in its purest in its purest form we sure that up to get. Facebook lg profitability kind of dig it up a little bit Amazon. Actually helped on Amazon quite a bit did to. Talk without taking into consideration other so other stocks the stocks do have a tendency to move somewhat. Une get some stocks from from from different industry that then we’ll call a good with regards to strategies but- I want to come up here and let’s get our on balance fall you here I’m just going. Click on this. Bring this up here there we go here I’m gonna make this big enough. So that. For this strategy down here okay also want to give you the link for offer are are . So we want to share that yep let’s say Sherrod. Properties we’ll make this nice and big. All right everybody so. This is the study is basically allows you to bring up on bounce one with two moving averages and you can set the time. On the moving average is a K. you go ahead take a screenshot those if you like ten days two U. S. platform demo that’s at five thirty PM with Connie hill also following our little. Here today you have. Question area. See what we got here can we see the indexes. You know because the challenge you have with regard also has volume so kind of think about that a little bit I’d actually like to just . To be archived as soon as possible just think about that think about something that represents an index. Volume attached to it and you can use those as well as long as have symbol click on set up. Click on open shared item paste the link in here click on preview click on open you’ll have a. Tor strategies in order to find that that is a great question. Already everybody. Tools any int decision you make in your self directed account is solely your responsibility also if you like to follow me. Look under that everybody best of success your investing I hope you have a fantastic rest of your week

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