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How to build a trade-ideas window which shows you stocks that are breaking out above the 8 Period Simple Moving Average on a 5 minute chart. This may sound complicated but it is actually very easy to do, so let us show you what it looks like first, and then we will show you how we set it all up. This window right here at the lower right hand corner of the screen is only titled "Stocks Crossing The 8 Period SMA On A 5 minute Chart". You would have to basically name this window yourself, but as I scroll through the stocks and here you can see the 8 Period 5 Minute SMA and to do against the background you can see that every stock that comes across it will be just above that moving average. It may sound complicated, but it is pretty easy to do, so right now, I am going to show you how to set this up. Today, in this lesson we are using the Trade-ideas that is embedded inside the MedVed Quotetracker application. You can use Trade-ideas stand alone to get the exact same results. I right click and I select the Trade-idea configure option, this brings up the Configure Alerts menu and you can see the current settings, so let's go right to the filters where the power of Trade-Ideas reside, we will show you how we set this up. I right click on the Filters in the previous menu that take me right through once selected. We have a Minimum Price of $5 and a Maximum Price of a $150, that is not relevant for the scans, but we just try to keep it so that people can relate it to the general filter setting that they may have. We do not have any spread for that bad print filters because we are now using it as a trading system. We have a minimum volume today of a 100,000 just that we can see some results and then we are going to scroll right down to where the information is. I am going to scroll through various Filters that Trade-Ideas has to show you that there is a lot of combination that can be used to create almost any type of situation that you are looking for and what we are doing today is we are using the filters that deal with Simple Moving Averages for different time frames and it should be coming up very shortly. Okay, here they are, as I am scrolling to above the last 10 to 15% of the filters, notice that we have one that scrolled Min up from 8 Period SMA and there is options for it: 2 minute, 5 minute and a 15 minute. So, this is very easy again. What this basically says is how much does the stock has to be up above 8 minute period SMA on a 5 minute chart. I said it has to be very close to it just to have 0.01% and then to make sure that it is tight and not too far away, I then go to the Maximum counterpart, that is just flowing down a little bit. For every Filter we have a Minimum and a Maximum. So the Minimum up from a 8 period SMA on a 5 minute chart is 0.01% and the Maximum for the 8 Period SMA on a 5 minute chart is 0.05% that is one one hundred of a minimum and a five one hundred percent maximum. That just means there is very very close to the 8 Period Smooth Moving Average on a 5 minute chart. Now let's take a look at what Alert we were using to show you the thrust up. I go to the Strategy tab using so you can tell here you can see in #1 all of the settings for the window, but notice this Alert it is called the Running up Alert and this basically shows you all stocks that are making decent move on a 1 minute chart. So, this is the trigger, the alert Running up, so the stock is Running up and the filters tell you the exactly what it is doing. So it is running up right through the 8 Period Moving Average on a 5 Minute Chart. I am going to close this window and now let us take a look, a couple of new ones have come across since we have done it, MFLX, I click and with a single click both the charts update and here again you can see it is right there an RGA. Once again the idea is that Trade-Ideas help you to find these situations so that they do not happen continuously either write formulas or scan yourself to figure out where is the exact move that you are looking for. We are just trying to off load the heavy duty quantitative processing so that you can focus more on the trade and using filters and alerts it is very easy to model almost any situation using Trade-Ideas. This concludes today’s lesson on how to make a window showing stock crossing above the 8 Period SMA on a 5 Minute Chart.
Today we are learning another lesson on how to use alerts to find when 8 Period Simple Moving Average crosses the 20 Period Simple Moving Average on a 5 minute chart. We had a previous lesson today where we showed you how a single stock can be found crossing any intraday moving average using the filters but today we are going to cover how to do this two moving average crosses with alerts. It’s very simple to do and all you need to do is right click and select Configure and you notice that the alert for this event is already pre-selected but it highlights a very important part of getting the most out of Trade- Ideas software. To get the most out of Trade-Ideas customers need to explore the different alert option that are available and the filters which are actually the most powerful element of the software. If I right click on this alert icon it takes me right to where the alert is located and the alert is made and again you can see that this event is checked the 8 period SMA crossed above 20 period SMA on a 5 minute chart. It’s that simple if I didn’t want it I could uncheck it but I want so I am gonna leave it checked. I hit okay and I hit ok and now I can see here is the stock DRE right at the close the 8 period is right above the 20. If you look at this chart the 8 period is in orange while the 20 period is in blue and so you can clearly see that the 8 period is right above the 20. Let’s say I want to take a look in what events took place today just to make sure this data is coming in correctly. I can right click and select history and uncheck real time and all of sudden all the events throughout the day are available to me. I can then double click on any one of them and double check to make sure that right at the time of the alert the 8 period was breaking right above the 20. This is partly done to help people validate the softwares so that you see that we are crunching the data correctly but also to make sure that everything else that you are looking at is setup the way you wanted it to be. You can customize this search for specific times of day if that is something that is interesting to you but again just for this lesson we want to make sure that you know that history is a great way to build systems when the market is closed because all the information is still available for you throughout the day. Now that we know how to build this event and I am gonna go back to real time. The question of course always is what do I do with this information, is this just something interesting to see or can I use this information in another way to find a trading system out of it. Lets figure this out. Right now I am going to use the backtesting tool called the OddsMaker which is located at the bottom of every alerts window to see if this particular event and the filters that are associated with it are any kind of strategy that can be traded. Lets find out. I pressed the backtest button. So what we gonna do is we gonna see what happens if we go long when we see this event and we gonna start it at the open and trade it all day long and we gonna hold the start at 30 minutes before the close so we are going long on this moving average breakout and holding it to the close. These fields which have numbers and are not selected so we don’t need to worry about it right now. We are just looking at the event and we are not running any profit targets or Stop Losses which could be available and would look like this if we are running them. So let’s hit ok. So if I run through a long strategy where we buy the stock we can see that we are only successful 41% of the time but we lose 77 points. So this is a losing strategy to go long which maybe a little bit counter intuitive considering that you are looking at a event where a shorter period moving average is breaking out above the longer period moving average. So right away this number in red tells me that despite what I may believe the direction for this trade certainly does not seem to be up but more likely down. So let’s take a look and see what happens. I am going to press backtest again and now I am going to switch direction to the short side from up to down. I am going to hit ok. I am going to run the odds and sure enough they invoke 53% success 77.9 point average winner 43 cents average loser of 32 cents. So right away using Trade-Ideas and the OddsMaker you quickly are able to discern what to do with the information that you are seeing in real time. This is a critical advantage that our users have over other traders in the market because again the market is different all the time and we help you by showing you that in the last near term over the last 15 days this event particularly which maybe intuitively thought of as a long entry is actually good as a fade short entry. So again using the backtesting tool it is very easy for us to figure out how to take just a basic event and turn it into a full trading strategy. This concludes the lesson on how to build the system using alerts that show you when a 8 Period Moving Average crosses above the 20 period moving average on a 5 minute chart.
