This publish is predicated on a technique out there to college students of TradeStation’s Master Class course, hosted by our instructional affiliate YouCanTrade.
Most merchants need to catch moments when the market modifications route. Do you know TradeStation may be programmed to detect and place orders when these turns happen?
The platform contains performance for automated buying and selling methods overlaying a variety of standards and philosophies. Immediately’s technique makes use of “Kase Key Reversals.”
This method makes use of Kase worth bars, that are based mostly on worth vary somewhat than time intervals. Kase bars are drawn after worth strikes a sure variety of ticks or factors. It doesn’t matter if it takes an hour or 5 minutes. This helps see motion and pattern clearly, passing over giant intervals of time with out a lot exercise.
Say worth is trending greater and a Kase bar makes a brand new excessive, however then closes beneath the earlier bar’s final worth. The technique would view that as a bearish reversal and probably create a promote order.
The identical can be true if costs are falling and aren’t in a position to maintain a brand new low. The Kase Key Reversal would detect an enormous drop adopted by a better shut and probably create a purchase order.
Taking Income, Setting Stops
The technique on this chart is known as “@MC_Key Reversal LE SE.” It generates each lengthy entries (LE) and quick entries (SE).
Totally different inputs can change its conduct. Probably the most vital is the “Lookback interval” for lows and highs. For instance, if it’s set to 13, the technique will search for the very best or lowest worth within the final 13 bars to find out when a brand new excessive or low is made.
TradeStation contains different automated methods to spherical out the capabilities. For instance, the chart pictured additionally makes use of:
- Revenue goal: Lets customers program an exit as soon as a place has made a sure amount of cash.
- Cease loss: Lets customers program an exit as soon as a place has misplaced a sure amount of cash.
- Time Exit : Lets customers program an exit as soon as a sure variety of bars have handed.
In conclusion, many merchants analyze candlestick patterns in the hunt for reversal patterns. Kase bars might help this course of by passing over giant intervals of time with out motion, and spotlight spots had been important turns happen. TradeStation’s superior expertise can then automate orders to go lengthy or quick based mostly on these indicators.