ucsgears

UCS_S_Steve Primo - Strategy 4

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From Now, i will list strategies as UCS _S_ & Indicators will be UCS_I_

This is a short term Pullback / Bounce Strategy. Recommend using this on Daily Chart . Option strategies that work the best are (weekly options credit spread).
Further advanced traders can take advantages with Gamma Scalping on low IV.

Few more revision are planned
Rev 1. Add stoploss and target signals
Rev 2. Conservative Trade Entries.
Rev 3. Customized Settings for trading short and long term, with signals only plotted on daily chart .

For further understanding - https://www.youtube.com/watch?v=6tvigvpNJdI

This revision is from 2011. There are more information and hints on the recent versions, it seems. I do not own this strategy. I did not create this strategy. For further information and the current version -

http://www.protraderstrategies.com/stock-strategies/stock-momentum-trader-strategy-course/

Myself and tradearcher will keep this upto date. As he has volunteered to help with the track record of Steve primo strategies.
https://docs.google.com/spreadsheets/d/1I-BLZGJl612g3a8UoWhtRhdF1ECgM49djVbf5TQIHsM/edit?usp=sharing


Version 2 -
UCS_S_Steve Primo - Strategy 4 - Version 2

UCS_S_Steve Primo - Strategy 4 - Version 2
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// Created by ucsgears
// Currently Setup and Triggers are coded. 
// This is a veryshort term trading strategy Last for 5 days. 
// Stoploss is Low or high of the Setup bar
// Target is the 100% Price Projection from the Trigger, Trigger is 2 ticks above / below for the setup bar. 

study(title = "UCS_S_Steve Primo - Strategy 4", overlay = true)

basisma = sma(close,50)
upper = basisma + (0.382 * stdev(close, 20))
lower = basisma - (0.382 * stdev(close, 20))
plot (basisma)
trendup = close > upper
trenddn = close < lower


// Pullback & Bounce Criteria
lowest = lowest(low,5)
highest = highest(high,5)
plot (lowest)
plot (highest)
pullback = (low == lowest) or (low[1] == lowest[1]) ? 1 : 0
bounce = (high == highest) or (high[1] == highest[1]) ? 1 : 0


// Top 25% Close 
hilowidth = high - low
// Long Setup
longcandle = close > low+hilowidth*.75 ? 1:0
// Short Setup
shortcandle = close < low+hilowidth*.25 ? 1:0

//Setups
setuplong = trendup == 1 and pullback == 1 and longcandle == 1 ? 1:0
setupshort = trenddn == 1 and bounce == 1 and shortcandle == 1 ? 1:0
plotchar(setuplong, title="Long Setup Bar", char='⇑', location=location.belowbar, color=green, transp=0)
plotchar(setupshort, title="Short Setup Bar", char='⇓', location=location.abovebar, color=red, transp=0)


// Trade Trigger
tiggerlongcandle = (setuplong[1] == 1) and (high > high[1]) ? 1 : 0
tiggershortcandle = (setupshort[1] == 1) and (low < low[1]) ? 1 : 0
//bgcolor (tiggerlongcandle)
//bgcolor (tiggershortcandle)

plotshape(tiggerlongcandle ? tiggerlongcandle : na, title="Triggered Long",style=shape.triangleup, location=location.belowbar, color=green, transp=0, offset=0)
plotshape(tiggershortcandle ? tiggershortcandle : na, title="Triggered Short",style=shape.triangledown, location=location.abovebar, color=red, transp=0, offset=0)
TASAVANT
2 years ago
Great stuff
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ucsgears PRO
2 years ago
This is 1:1 Risk to reward strategy. Active Trade Management is advised.
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IvanLabrie TOP ucsgears
2 years ago
This works great, I use something like this all the time.
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ChartArt
2 years ago
If you bought Bitcoin at the top at $950. Don't feel bad about it. Even Steve Primo would have done it with his strategy number 4:

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ChartArt ChartArt
2 years ago
This is definitely a scalp and day trading strategy and should not be used to invest in larger swing for longer time periods than 1-3 days.
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ucsgears PRO ChartArt
2 years ago
I have already mentioned this in my code. Thanks for reinforcing the statement.
+1 Reply
ucsgears PRO ChartArt
2 years ago
The Point is active management, nothing is 100%. So expect getting stopped out, leaving money on the table.
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ChartArt ucsgears
2 years ago
It looks to be very useful for short-term option strategies as you wrote.
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IvanLabrie TOP ChartArt
2 years ago
This can be extremely profitable is filtered correctly. Not sure about the strategy itself, I'd have to read the code to see how he does it.
Tim West uses a similar method, among others.
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ChartArt IvanLabrie
2 years ago
I agree, the magic is in a filter here. What I like about this strategy is that it most of the time finds price areas where a lot of volatility and fast price changes happen as e.g. shown in my Bitcoin chart above.
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IvanLabrie TOP ChartArt
2 years ago
You'd make money by buying that pullback and selling at X pips up. You can trail stops, move stop to break even after covering 70% at X pips up. (I like doing that, using ATR)
+1 Reply
Genius!!! Strait Genius
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ucsgears PRO ChrisMoody
2 years ago
Thanks
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glennjoy1 PRO
2 years ago
Hi ucsgears, As per your usual standard eye candy for the trader...Ever since I saw Steve Primo's Youtube video 'The Right Way To Trade Tops And Bottoms Steven Primo.mp4' I have using a simplified version that I saw on Tradingview...basically a 9 to 15 period ema...I couldn't tell if it was identical or even similar to Steve's version as I did not have that to compare. Anyway it will be interesting to compare the simple ema version I have to this one you have created and see how they compare. I have attached my current strategy that I use on the E-Mini seems to work ok..I only we could have a back testing feature in Tradeview.
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ucsgears PRO glennjoy1
2 years ago
When looking for divergences i would recommend having a good level for swings. The best divergence strategies can be found "https://www.youtube.com/watch?v=vlM61Sr5uhQ" "https://www.youtube.com/watch?v=bH58iEq9F7s" . There are some interesting concept on divergences in the paid version, Seems to be a better.
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glennjoy1 PRO ucsgears
2 years ago
Thanks for your comment will have a look at the videos
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Algyros PRO glennjoy1
2 years ago
Wonderful system. Thanks for posting.
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ucsgears PRO Algyros
2 years ago
Thanks to Steve Primo for not hiring a good website programmer. lol, Who did not do the job of locking the strategy worth .
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glennjoy1 PRO
2 years ago
Hi ucsgears, I When I plotted the UCS_S_Steve Primo - Strategy 4 the scale of the chart changed from showing all the bars filling the screen vertically to a narrow range. (ie the scale changed) This was only affected when either of the following inputs was ticked. (Long setup bar, Short Setup bar, Triggered Long, Triggered Short). Am I doing something wrong?
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ucsgears PRO glennjoy1
2 years ago
if its a scale change, change your settings to "Scale Series Only"
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glennjoy1 PRO ucsgears
2 years ago
Thanks ucsgears, Now off to do some UCS_S_Steve Primo - Strategy 4 back testing...
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Algyros PRO glennjoy1
2 years ago
Some backtesting would be very interesting. Thanks.
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ucsgears PRO
2 years ago
YY - Setup Friday, Triggered. If you want to practice the rules.
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Algyros PRO ucsgears
2 years ago
Again, thanks for this wonderful indicator. I look forward to stops and targets.
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ucsgears PRO Algyros
2 years ago
I am planning to do a version with alerts. One combo indicator for entire system. Scan for the setup - add trigger alerts, once in the trade, add stoploss and target alerts. That will be an entire system. will post them, after testing it live for atleast two weeks or 15 setups with triggers.
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Algyros PRO ucsgears
2 years ago
Many thanks.
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Algyros PRO ucsgears
2 years ago
Do you plan to do your version on a daily chart? I ask because Primo says that this strategy works on all time frames.
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ucsgears PRO Algyros
2 years ago
This works on all time frame. The code does not care what time frame you are using, to be honest. I recommend Daily / Weekly time frames.
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ucsgears PRO ucsgears
2 years ago
Ok, Such short term trade. One of my personal rule is not to sit in this trade, for more than 5 days, if not stopped or hit target. If someone took the trade. Close it tomorrow.
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ucsgears PRO
2 years ago
Guys, Version 2 - working through Glitches with the Target signals, Found during back testing.. Thanks for being Patience
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Algyros PRO ucsgears
2 years ago
As always, thanks for your generosity.

I've watched a lot of Primo's videos, and the problem I have with them is that they invariably highlight cherry picked trades. I can show a slew of successful trades even if my strategy is flipping a coin.

So, does anyone have any experience actually trading Primo's strategies? Or, failing that, are there any backtests available for #4, the engulfing candle strategy, with or without Pet-D, etc.?

Thanks,
Alex
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ucsgears PRO Algyros
2 years ago
Well, He has Targets , Entry, Advanced Target and Entry, Stoplosses #1#2#3 - Again He manages risk on every pick. So should you. Find what you like and use.
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IvanLabrie TOP ucsgears
2 years ago
That's 90% of the game plan...:)
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ucsgears PRO IvanLabrie
2 years ago
10% for Charting & Strategy - 90% is Risk Management (Trade Management). When I was starting in the stock market - I spent 2 years in Charting & Strategy, never paid attention to risk management, until i convinced myself to look into it. Things started to fall in line once i understood that. You can have a 70% probability strategy and still lose money without risk management.
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Algyros PRO ucsgears
2 years ago
I'm curious about how you understand risk management. I ask because every backtest I've ever seen suggests that stop losses and profit targets actually reduce the profitability of robust strategies that have built in exits (for example, a super simple strategy such as buy X when it's above its 200 ma and sell when it's below). Instead of this, do you mean risk management as in what percentage of one's portfolio is invested in a given strategy?
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ucsgears PRO Algyros
2 years ago
First Question is How aggressive you want to trade in the market? 1-10% risk on Entire account. 100k Account 10k max risk on all the trades. Then divide the risk amount to diversify. $2k on 5 trades. with a good statistically successful strategy - 2/3 hits stoploss and 3/2 hits target. Based on the Risk you are taking, you can evaluate if you can afford to take the or not. Meaning, if you risk 2k to make 2k on a 50% statistical success - Then I would skip that. or if you risk 2k to make 6k with 50% statistical success, It makes sense to enter. Again, work out a plan - master this. I used a simple excel spreadsheet when i was learning how to take risk.
+2 Reply
IvanLabrie TOP ucsgears
2 years ago
If you have one, you could share it here...;)
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ucsgears PRO IvanLabrie
2 years ago
I have to dig through the stock market dump. Let me see if i have any success finding it. I have one spreadsheet to quickly do some math on option pricing / risk management. Simple - OTM options - 100% risk ATM - 60% risk on Time + Delta * Projected Stoploss - ITM (Evaluate Time Risk) + (Delta Risk). There are times when I will buy OTM and there are times when I won't. Solely to take advantage of Greeks.
+2 Reply
IvanLabrie TOP ucsgears
2 years ago
I'm 99% newb on that subject...FX trader first and foremost, but interesting to learn more.
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ucsgears PRO Algyros
2 years ago
https://www.youtube.com/watch?v=6tvigvpNJdI as a reply to your question - confirmation with Pet-D is something Steve Follows.
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ucsgears PRO
2 years ago
Next Strategy -
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ucsgears PRO
2 years ago
Upon Scrolling through watching his videos - He has about 8 Strategies for Emini - 2 for Stocks and i guess 3 for Forex. That makes 13 strategies for Swing scalping. Mostly cherry picked. It would be better to wait for Trading view to issue the strategies - with back testing ability. We can throw a probability number and risk methods.
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ucsgears PRO
2 years ago
Here is another recent winner, And 2 setups never triggered. 3 stoploss hit.
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ucsgears PRO ucsgears
2 years ago
I meant, different tickers different setups.
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ucsgears PRO
2 years ago
For those Curious guys / girls, Based on his Setups and Strategies - There are atleast 100 stocks Generated for this setup, when i ran a scan. Will update this in near future for a better closer to actual version. Till then............
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Algyros PRO ucsgears
2 years ago
The question in my mind is whether this is a strategy with a genuine edge. I've never seen a backtest, nor has Primo ever mentioned one. His examples are compelling, but they appear to be cherry picked. Ucsgears, do you have any sense of whether this strategy offers a real edge?
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ucsgears PRO Algyros
2 years ago
I just built a scan for this. I haven't added filters. Will be done with the scan tonight. Back test will begin this month. Would appreciate some help.
+1 Reply
ucsgears PRO
2 years ago
All 4 Strategies (Steve Primo) Coded.
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sanaga ucsgears
a year ago
UCSgears, Thanks for your great help. I am having an error when compiling this. It is probably some silly mistake but thanks for helping out.
Below is the error message:
Processing script...
Variable `length` is already assigned.
Script 'SPStrategy#4' has been saved
----
Below is the full script as loaded:
//
// @author LazyBear
// List of all my indicators:
// https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
// v2 - fixed a typo, where BB multipler was always stuck at 1.5.
//
study(shorttitle = "SQZMOM_LB", title="Squeeze Momentum Indicator ", overlay=false)

length = input(20, title="BB Length")
mult = input(2.0,title="BB MultFactor")
lengthKC=input(20, title="KC Length")
multKC = input(1.5, title="KC MultFactor")

useTrueRange = input(true, title="Use TrueRange (KC)", type=bool)

// Calculate BB
source = close
basis = sma(source, length)
dev = mult * stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev

//
// @author LazyBear
// List of all my indicators:
// https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
// v2 - fixed a typo, where BB multipler was always stuck at 1.5.
//
study(shorttitle = "SQZMOM_LB", title="Squeeze Momentum Indicator ", overlay=false)

length = input(20, title="BB Length")
mult = input(2.0,title="BB MultFactor")
lengthKC=input(20, title="KC Length")
multKC = input(1.5, title="KC MultFactor")

useTrueRange = input(true, title="Use TrueRange (KC)", type=bool)

// Calculate BB
source = close
basis = sma(source, length)
dev = mult * stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev

// Calculate KC
ma = sma(source, lengthKC)
range = useTrueRange ? tr : (high - low)
rangema = sma(range, lengthKC)
upperKC = ma + rangema * multKC
lowerKC = ma - rangema * multKC

sqzOn = (lowerBB > lowerKC) and (upperBB < upperKC)
sqzOff = (lowerBB < lowerKC) and (upperBB > upperKC)
noSqz = (sqzOn == false) and (sqzOff == false)

val = linreg(source - avg(avg(highest(high, lengthKC), lowest(low, lengthKC)),sma(close,lengthKC)),
lengthKC,0)

bcolor = iff( val > 0,
iff( val > nz(val), lime, green),
iff( val < nz(val), red, maroon))
scolor = noSqz ? blue : sqzOn ? black : gray
plot(val, color=bcolor, style=histogram, linewidth=4)
plot(0, color=scolor, style=cross, linewidth=2)
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sanaga sanaga
a year ago
Never mind. I found my own mistake. Copy BB part twice when trying to fix the KC 1.5 issue.
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dougl1965 PRO
2 years ago
ucsgears, do you have a version of this indicator with the alerts built in? That would help me a great deal. thanks!
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ucsgears PRO dougl1965
2 years ago
You don't need a special indicator to set alerts. You can use the same indicator. Select the indicator, then from the dropdown, select trigger. Value > 0. That will be your alert Settings.

Select what you want in the alert.
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dougl1965 PRO ucsgears
2 years ago
ok, cool. nice. I found a video on youtube and seems like the guy is referring to something very similar? ex. "Buy Green Daily Triangle." I'll let you know how it goes?
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ucsgears PRO
a year ago
Version 2 = Can be found in the below link

UCS_S_Steve Primo - Strategy 4 - Version 2


UCS_S_Steve Primo - Strategy 4 - Version 2
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dheerajsood ucsgears
4 months ago
I am unable to find this strategy in the list of indicators Sir. How do I get the same?
Is there an equivalent to the same? Thanks and Kind Regards To you.
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ucsgears PRO dheerajsood
4 months ago
Its under indicators, Not under strategies
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gottimhimmel
a year ago
I am confused about something, does the setup bar have to touch the bottom or top band on a pullback in order to generate a signal? Also, what kind of price channels are these with what kind of lookback period? Thanks.

I appreciate you coding the strategy, I would still like to fully understand it and be able to see what it is I'm looking at
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ucsgears PRO gottimhimmel
a year ago
Watch Steve's Youtube free videos
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gottimhimmel ucsgears
a year ago
I've watched them...they start repeating because he always posts nearly the exact same video

Thanks for all the work you do (that is NOT sarcasm)
Reply
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