TQQQ Beast

This is a trading algo built specifically to trade NASDAQ:TQQQ on the 1h chart; long trades only. TQQQ is 3x bull NASDAQ:QQQ ETF. It may work on other ETFs and large indexes, but it probably won't work well at all on individual stocks or other instruments.

The motivation for building this system was seeing volume increases during market panic driven sell-offs, and attempting to buy TQQQ after the drops, after the panic. This indicator evolved over time into something a little different, but that's the gist.

I recommend setting this chart to follow price action only. To do this right click the right bar on the chart showing the price scale, and select "Scale price chart only".

The indicator has 2 parts that act together to initiate opening a trade. The volume histogram must come down while the orange price trend line comes up on the same bar.

The histogram shows difference in short term volume vs long term volume. The histogram will scale so 1 is always the maximum. 1 shows the maximum increase of volume seen over the last 1000 periods. With TQQQ in particular, when the histogram is heading up quickly, it's frequently telling you there is a market sell off. Panic moves quicker than greed.

I've added a price direction indicator with the orange line. A buy signal is generated when the histogram is falling and the price direction is rising. That opens the trade.

The trade will close with a 3.5% stoploss initially, but we will add a trailing stoploss if the trade goes up just 2.75%. From that point on the trade will close with a stoploss 5% below the highest high since the trade was opened.

The green line above the price on the price chart shows highest price high which resets when a trade is opened. The filled stepline below the price shows the current stoploss when a trade is open. The fill color of the stoploss level will start red which blends to blue then green as the trade stoploss rises above the level the trade was opened at.

When a trade closes, some details from the trade will appear on the chart. 1) trade gains or losses. 2) maximum run-up of the trade while it was open. 3) maximum drawdown of the trade while it was open. 4) how many bars the trade was open. You can toggle this off in inputs if desired.

If the volume histogram ever rises above 0.94 out of 1, I've added a "crash protection" so no trades can be opened during this event. The background in the section below the price chart will change to a red when this happens, indicating danger. Staying out of the market during these times protects against really bad drawdowns. It's best to sit out and wait for things to cool off.

There are tables with a smattering of stats on the bottom part of the page. On mobile devices they may obstruct too much of your screen so you can toggle these off in the settings.

The edge here is in waiting for those 80th percentile trades where it's possible to make 10% or more on a trade. Those very large trades that run up a lot make up for having more losing trades than winners.

Because TQQQ frequently gaps down on market open, stoplosses might not be hit during after hours sessions. That can lead to bigger losses than what the stoplosses can guard against. If the drawdown is too big for your risk tolerance, you can simply adjust your trade size to be smaller.

I am currently trading this algorithm on TQQQ with the default inputs, and I trust this system. I also have a high appetite for risk. This might be above your risk tolerance. Please remember hot looking backtests and past results do not guarantee future results. Mind your own risk. You are of course free to change to the inputs to your own liking. This is high risk trading.

There is an alert message coded for when to open trades. This should happen on an hourly bar close. In addition you can set alerts to simply show when trades are opened and closed. There is not alert coded for closing a trade. I just manually adjust the stoploss level as price rises. I have the alerts set to show "Order fills and alert() functions" just in case there's a wild wick down and I need to be notified to close the trade NOW.

Good luck out there!

For access head here:
whop.com/jomy-s-market-indicators/tqqq-beast