Tradestation Trend Quality Indicator, proprietary

This auction is for a proprietary Trend Quality Indicator for TradeStation 8.x and 2000i.  This indicator was designed to make it easy for a trader to trade only in and with the trend, and get out capturing most of the move. 

Markets spend a lot of time in sideways choppy phases.  Within these phases are many small moves that appear to be breakouts but quickly fail and reverse.  These periods are dangerous for anyone trading long or short and should be avoided.  If the trader has the tools, patience and discipline to stay out during these periods there will come a time when the market trends strongly. 

This indicator is designed to clearly and unambiguously inform the trader of the underlying state of the market in the following three ways:

Choppy period, random dangerous price action

The indicator will be a thin red line (stop) below the user adjustable threshold which defines possible trending action.  I have found 3 to be a good value here.  Do not trade in these conditions. 

Trending market

The indicator will color green (go) and be over the threshold.  Values between 3 to 4 are possible trends, values greater than 5 are strong trends.  This is when the trader should be in the market.

End of the trend

The indicator will reset from a green value greater than the threshold to 0 in one bar.  This is a good point to exit.  Hindsight is perfect of course but trading in real time there is no way to capture 100 percent of a move except for luck, which is not repeatable.  Entering under the above conditions and exiting when the indicator resets to zero will generally capture 70 to 80 percent of the move.  It will also keep you from giving back your gains as frequently, especially on short term charts, the market will turn around and trend strongly in the opposite direction.

As there is a clear signal when the indicator considers the trend over it is a lot easier to resist the temptation to “take profits” during the trending period.  Trading in real time the reality is you have no way of knowing when a trend will occur, and more importantly when it will end.  This indicator will help you wait out the periods when nothing is going on, get in when your market is moving and keep most of the gains from the trade. 

This indicator will be emailed in both .ELD file and source code, along with full instructions for importing and configuring these tools and suggestions and observations on their usage.

I have gotten tremendously positive response from previous buyers on this indicator, some of them have been using it with great success for 3 years now!

Please email with any questions and please see my feedback.