The ability to track your favorite indicator in different time frames on the same chart is a major advantage to the trader!
Tick Charts have special features in their own right, but to be able to add multiple timeframes of data to the same chart is even better. You now have that ability with this new Suite of Tick Trading Tools offered for TradeStation.
Tick Tool Suite Overview
”For over 18 years, I have heard traders talk about the benefits of using multiple time frames to trade. It is one of the most important features in the arsenal of successful traders because you need to be flexible and adjust to volatility. A $100 stop loss might work well in a low volatility situation and be totally inadequate 10 minutes later when volatility spikes up. Traders dreamed of using charts that automatically adjusted the bar interval based on volatility. Their dreams were answered with tick charts.
A tick is one trade of any size volume. A tick chart is formed of bars using the same number of ticks. When markets are slow, the bars form slowly and when activity picks up, the bars can form very quickly. This allows the indicators to update according to activity. If it takes all night for one tick bar to form, then the indicator updates only once but if you get 200 tick bars in a minute, the indicators update 200 times. This is exactly what traders need to adjust to different volatility conditions quickly and efficiently.
However, there always was a penalty with TradeStation if you used tick bars. You were not allowed to use multiple time frames on the same chart. Sophisticated traders have used multiple time frames for years. The longer time frame is used to compute a trend direction and the shorter is used to trigger trade entry and exits. So traders were then in a dilemma because if they used tick bars they lost the ability to compute a trend (or anything else) on a higher time frame.
The Tick Tool Trader Suite solves the problem by allowing traders to plot multiple time frames on a tick chart. The trick is to use some advanced programming features in TradeStation to synthetically compute the higher time frame tick bars from the bars plotted on the chart. However, this needs to be done for each indicator that you want plotted. No other data is required; no DLL’s and no global variables.
The Suite is a package of common indicators and functions that can be applied only to tick charts. Each indicator has a TickBarMultiple that specifies the higher time frame bar interval you want to use. If you are using a 500 tick bar chart and the input is set to 10, the indicator will plot based the 5000 tick bar interval. If you set it to 5, the indicator will plot based on the 2500 bar interval.
You can have the same or different indicators running on the same chart, all using different tick bar multiples if you wish. There is almost no restriction on this other than the limits of the TradeStation chart capability. At last traders can have multiple time frame capability using tick charts and so can you. If you are still not convinced about the advantage you will have with the Suite, download the free instruction manual and see examples of how to trade with this package.”
-William Brower, CTA
Why Tick Charts?
Tick charts have distinct advantages over time charts. To summarize please review these distinctions:
Tick charts are not disrupted with gaps in trading. Often the gaps can throw your indicators off course creating a discontinuity in the flow of the charting display.
Tick charts incorporate both time and price in their bars. This provides a more compressed consistent presentation of the chart patterns currently in formation.
This time and price combination allows for a more valid display of momentum when breakouts are about to occur giving an advantage over just time charts.
And tick charts allow for a smoother presentation of the key indicators you choose to use in your trading
For an illustration of these points, watch this new video by Bill Brower showing these distinctions by comparing a tick chart with a time based chart display.
Overview of These New Multiple TimeFrame Indicators For Tick Charts
This new set of indicators is called the Tick Suite of Indicators. They have been designed for the TradeStation Software. They will display all the major indicators in multiple time frames on ONE chart. This gives you the distinct advantage of being able to trading using the economy of geography on your trading screen along with the full power of tick charts!
Here are the Indicators in the Suite:
Average True Range
Commodity Channel Index
Chande Momentum Oscillator
Linear Reg Curve
Simple Moving Average
Pivots Swing High and Low
Rate of Change
Relative Strength Index
Stochastic Slow D(simply smoothing)
These tools are all engineered to function on one chart in multiple time frames of your choice! You may also plot multiple indicators as well. A prominent feature is how easy these tools are to install in a simple turn key fashion!
To view an illustration of How They Work on the chart, see this video:
Build Your Favorite Trading Strategy Around These Multiple Time Frames
Professional traders almost always use multiple time frames for trading. The longer time frame is used to establish the trend while rules for triggering trades are computed based on shorter time frames. While Tradestation featured multi-data minute based charts, multi-data tick charts were not allowed. The advantages of multi-data charts were lost when using tick charts and if you used minute based charts, you lost all the advantages of tick charts. Now there is a solution. The Suite allows you to generate multiple time frame plots in a tick chart! Now you can combine the powerful advantage of using a higher time frame with the responsiveness, agility and smoothness of shorter time frames on tick charts!
For examples of how this may work for you, Bill Brower now presents sample illustrations of specific trade set-ups utilizing some of the indicators in multiple time-frames. Watch the video below...
Who Is William Brower?
William Brower, CTA, is a TradeStation expert skilled in design and development of trading systems. He understands the needs of traders and provides solutions in TradeStation. He specializes in custom Easylanguage programming services for TradeStation clients. Much of this involves training users on the use and limitations of the software. This includes one-on-one telephone guided training sessions on how to maximize the use of the software. Working on behalf of a global clientele he has provided full time training and programming support services for the TradeStation community since 1992. In addition, he has programmed trading strategies for commodity futures, equities, options, and Forex including trend following, high frequency, spread trading, market neutral, pattern recognitions and various other kinds of trading systems. He also assists clients in evaluating and analyzing the reward-to-risk characteristics of their trading strategies and complete portfolios. He also developed and markets software for risk control and portfolio rebalancing and is currently managing a small portfolio of global futures contracts.
He began working with TradeStation software in 1992. From January of 1994 to December of 1999, he published TS Express, a bi-monthly “Journal for Informed Users of TradeStation” providing a forum for trading research related to risk control, trading methods, day trading, short term versus long term strategies, trade selection, entry filtering, volatility based trading, position sizing, and event trading for futures, options, stock and Forex markets.
TradeStation Securities (formerly Omega Research) chose him to be their EasyLanguage columnist and Contributing Editor for their quarterly Journal. He has been a frequent speaker at the Futures and OmegaWorld conferences and appeared on CNBC with John Murphy. He has written articles for both TASC and Futures magazines. Mr. Brower has written and published two books on how to design and build trading systems and learn Easylanguage. He was the first to develop and offer commercial software to perform Monte Carlo Simulation for a portfolio using reward-to-risk analysis specifically tailored to the needs of TradeStation savvy hedge funds and traders. Mr. Brower currently resides in Connecticut where he works from his home providing full time trading and programming consulting services to a world wide clientele. Mr. Brower holds degrees in Electrical Engineering and MBA, Finance.
What others have to say about William Brower:
“I have been using and writing systems for TradeStation since Day One, (I have Block No.1); When I need help on code there are only two people I call: Mark Mills at TradeStation or William Brower at www.InsideEdgeSystems.com”
"Your module one is excellent. So very much new to think about and how to develop different trading strategies. Your tool trader strategies PDF is very good, but please keep me informed if you develop or add any new ideas."
Disclosure Regarding the Risk of Trading
Note: All sales final and with the understanding that you have read and understand the following disclosure regarding the risks of trading. Please read carefully before purchasing any of my tools or systems.
Disclaimer Regarding the Illustrations in and/ or any Simulation Reports:
Disclaimer Regarding the Many Illustrations of Systems and Performance:
Results in This Publication:
There is a significant risk of loss in futures trading. The use of stop orders does not guarantee limited loss. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will, or is likely to, achieve profits or losses similar to those shown.
The performance summaries provided above are provided to inform persons considering these tools. The illustrated performance assumes one contract of the security traded and $0 round turn for brokerage commission and $0 per contract for slippage. Mr.Brower does not manage accounts for clients and never has had power of attorney over accounts trading these systems. Mr. Brower is not advising or soliciting anyone to trade or use any indicator, tool, or system illustrated in this article. These are educational examples of the art of system writing and development that he wants to share with you. This information is not to be construed as an offer to buy or sell futures. This information does not purport to be a complete statement of all material facts relating to futures.
We gratefully acknowledge TradeStation, Securities, Inc for permitting reproduction of the above results produced by TradeStation Software. TradeStation Securities, Inc is in no way associated with or responsible for these results.