Zen Trading Tech

Intro

• Research consecutive bars (CSC) for spike trades, second legs and swings
• Free indicator for TradingView
• Free strategy for TradingView
• Some interesting summary results!

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Indicator

Indicator: 3 Consecutive Bars

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Strategy

Link here: https://www.tradingview.com/script/WEXwahbE-Zen-CSC-Bar-Strategy-v2/

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5 Consecutive bars, 5min RTH, ES

• For the 4 kinds of reward (0.5R, 1R, 1.5R, 2R)
• Only 1 trade allowed at a time – fill or kill
• Buy the close of 5th bull bar, sell the close 5th bear bar
• Close trades at close of the session
• Last 12 months

1/2R Reward

1R Reward

1.5R Reward

2R Reward

Notes

• Swing outperforms
• Idea could be to add filters
  • Maybe MA filter so only triggers if BUY is ABOVE MA, etc
  • Trail stop to breakeven at 1R or close 1/2 at 1R?

Idea: Timeframe as a filter – Try on 2min Chart

• Everything worse!

Idea: MA as a filter – BUY ABOVE MA, etc

• Made all of them worse except for the 1R – so interesting!
• What about the opposite – only SELL above MA and only BUY below MA – for reversal idea

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Idea: ES mostly goes up, so just take longs?

0.5R

1R

1.5R

2R

Summary

• Doesn’t beat our original settings of trading both ways but still a reasonable strategy

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Idea: MA as a filter – REVERSALS – Sell if CSC Bears bars ABOVE MA, etc

• Signal frequency issue – but good results

1/2R

1R

1.5R

2R

Summary

• 2nd leg trading superior hit rate, 0.5-1R expectation

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4 Consecutive bars, 5min RTH, ES

• Now what about 4 consecutive bars, long/short, above/below MA

1/2R

1R

1.5R

2R

Summary

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4 CSC Reversals

1/2R

1R

1.5R

2R

Summary – 4 CSC Reversals

Summary – 4 CSC vs 5 CSC Reversals

• 4 CSC vs 5 CSC Reversals
  • High probability % scalp 1/2 – 1R
  • Best performance was 1 – 1.5R

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Summary of All Results in Post

• Best performer was 5 CSC swinging
• Highest hit rates
  • 4-5 CSC Reversal
• 4 CSC vs 5 CSC Reversals
  • High probability % scalp 1/2 – 1R
  • Best performance was 1 – 1.5R
• Highest frequency trade – 4 CSC for a scalp

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Conclusion

• I hope you enjoyed this post as a way to inspire and encourage you to research statements you hear when you are learning trading.
• With ChatGPT and your charting package it is practical to review and refine your strategies.

Thanks, Tim F