|
This is the first add-on I want to share. We all know about the idea and concept to watch multiple timeframes. But you have to watch a lot of different charts and different indicators at once. So wouldn't it be nice to just look at our trading timeframe chart and have all other timeframes and indicators visually prepared on one screen?
Before I will explain the technical features, let's start from the traders perspective and lets have a look at todays trading action on the day I am writing this for the 4min ES June contract.
I have highlighted two interesting trading opportunities on April 22 at 12:50 and 14:38 ( Eastern ) on the 4 min timeframe. These trade setups have not just shown up on the 4min chart by themselves. You would have been able to "see" these big opportunities if you had had the ability to study 6 different timeframes on the ES, and during the same time you had the ability to analyze the condition of the VIX. The charts are not enough, you would have had to study 8 different indicators combinations on each of these seven charts.
Well, I won’t say it’s impossible, but it would take you so long to do this, that by the time you finished, the whole dynamic of the market on the 4min chart will have changed several times over, and all your work will be worthless.
The 4D Trading Desk offers the solution to this problem! Now you are able to watch multi-symbols, multi-timframes and multi-indicators with your own interpretation rules on one screen in realtime! These two good trading situations would have been jumped into your eyes with the 4D screen. No cherry-picking here - just what showed up on the 4D screen today. (see below for fast forward)
The 4D Trading Desk allows you to enter the trade with lower risk. Have you ever entered a trade and gotten Stopped Out because a larger, or smaller time frame was predominant ? You can see the bigger picture now. The 4D Trading Desk can also be used for End-Of-Day or intermarket analysis.
The Concept…
To realize this idea, we need something like a radarscreen over different timeframes, symbols and indicators with some rules to visualize the market conditions very easy. Perhaps you will know the radarscreen from Tradestation. But this solution was not flexible enough for me and I wanted to push the limits.
The concept is to use our great Wave59 platform with all the nice proprietary indicators and extend the QScript functions that we can pass data real-time to other tools for monitoring market condition. For the radar mechanism I decided to use Excel. The reason: Excel has a lot of capabilities to visualize data in different forms, you can individualize the spreadsheets very easy and everyone will have the full flexibility to build whatever he wants.
I call it the 4D Trading Desk because now you can monitor the market real-time all at once:
• 1st dimension: Price
• 2nd dimension: Time
• 3rd dimension: Multi Indicators and Symbols
• 4th dimension: Multi-Timeframes
The Solution…
The solution can be descript as follows: Wave59 acts now as a local real-time data server on your computer that can push every data you like into an Excel spreadsheet. You only need to add 2 lines of code to your favorite QScripts or indicators and then the rest is fully automated. You just build the Excel spreadsheet with your favorite indicators, symbols and timeframe combos and after that you just have to watch all flowing when new data comes in.
The example 4D Trading Desk on April 22 at the times shown above...
To get back to todays chart. Lets have a look how the ready-made 4D Trading Desk example delivered with the technical solution looked like. Here is how the 4D Trading Desk monitor at 12:50 looked like:
Here is the same screen in realtime at
14:38:
These are the only two situations today where we had a clear "green" or "red" screen. All other times the screen was a mixture of red and green cells - so do not trade. But at these two times the 4D Trading Desk signals high probability trading setups!
However this is not ment as a trading strategy - this is just to show what is possible. With the 4D Trading Desk Toolkit you can build your own trading desks now with your own favorite timeframes, symbols, indicators and rules all on one screen at once - updating automatically in realtime.
|
