Here’s a reader request for an upper study that plots Fisher Transform signals on the price bars.
Fisher Transform Signals
# FisherTransformSignals # http://www.thinkscripter.com # thinkscripter@gmail.com # Last Update 20 June 2010 input signalOffsetFactor = 0.20; input length = 10; input threshold = 2.0; def signalOffset = AvgTrueRange(high,close,low,10)*signalOffsetFactor; def maxHigh = Highest(high, length); def minLow = Lowest(low, length); rec value = if maxHigh - minLow == 0 then 0 else 0.66 * ((close - minLow) / (maxHigh - minLow) - 0.5) + 0.67 * value[1]; def truncValue = if value > 0.99 then 0.999 else if value < -0.99 then -0.999 else value; rec FT = 0.5 * (log((1 + truncValue) / (1 - truncValue)) + FT[1]); def trendDown = if FT < FT[1] and FT[1] > FT[2] and FT[1] >= threshold then 1 else 0; def trendUp = if FT > FT[1] and FT[1] < FT[2] and FT[1] <= -threshold then 1 else 0; def cSignal = if trendUp then low-signalOffset else if trendDown then high+signalOffset else double.nan; plot signalHighlight = cSignal; signalHighlight.AssignValueColor(if trendUp then color.green else color.red); signalHighlight.setLineWeight(1); signalHighlight.setStyle(curve.points); signalHighlight.setpaintingStrategy(paintingStrategy.LINE_VS_TRIANGLES); plot signal = cSignal; signal.setDefaultColor(color.white); signal.setLineWeight(4); signal.setStyle(curve.points); signal.setpaintingStrategy(paintingStrategy.LINE_VS_SQUARES); #alert(trendup or trendDown, if trendUp then "Long" else "Short", Alert.bar, sound.bell);
Long live the Fish!! An already Great study mixed and refurbished by a great study creator equals Awesome!
Great Study, Eric and thanks..
You do not cease to amaze me, your charts are incredible!
Brad,
Thanks. Hold on to your hat because I have a few in the pipeline which are far more ambitious and have been in development for weeks. I won’t release them until I’m satisfied they meet my standards.
-TS
Brilliant! I have been using the Fish for several months and it’s the only lower-level indicator I have on my charts right now. This is a handy addition to my “toolkit” and I doff my hat in your honor for being a great TosScripter!!
Question – is there an easy condition in Thinkscript to only show Fish Signals above or below a certain threshold? IE, only show long/short if the cross occurs above or below +2/-2? IMHO that is where the Fish truly shines as a signal to exit or enter a trade as appropriate.
I’d think it’d be a simple IF-THEN condition in ThinkScript, but I’m still learning my way around it.
How easy is it to insert a sound alert each time a signal is given?
Very….You’ll need to use the alert() function. A great writeup on its use is on Prospectus’ site.
-Eric
Today 19.06.10 Thinkorsvim it was updated to version 1667 and green and red signals were gone – there were only white squares!!! Help to restore green and red Fish Signals!
Yes…I see. Fix forthcoming.
-Eric
20.06.10 Thinkorsvim it was updated to version 1668
could only make Fish Signals green and red circles with white squares
settings signalHidhlight
It’s not working for me as it did before the update. I don’t see the signal at all. The last signal I am seeing is on Thursday’s chart and nothing after that…
Strange. Did anyone have the same issue?
Thanks.
Joe,
Please note that the new version also includes a filter to hide Fisher crosses below a certain threshold. It is defaulted to 2.0. To see all the signals, change your threshold value back to 0.
Eric
I found one error when using this code. In the line that begins “def trendDown = if FTFT[2]” , FTFT should have a “<" between them so as to read FT < FT. Otherwise works fine. Thanks.
Yep…Wordpress ate a < sign. It’s been fixed. Thank you,
Eric
def trendDown = if FTFT[2] and FT[1]>=threshold then 1 else 0;
error in the formula – a sign put FT FT [2]?
Yes – WordPress loves to eat greater than and less than signs! The code has been fixed. Thank you,
Eric
changes in the code the new version – which is better
ver1.was
def trendDown = if FT=threshold then 1 else 0;
def trendUp = if FT>FT[1] and FT[1]<= -threshold then 1 else 0;
ver2.now
def trendDown = if FTFT[2] and FT[1]>=threshold then 1 else 0;
def trendUp = if FT>FT[1] and FT[1]<FT[2] and FT[1]<= -threshold then 1 else 0;
for 5min and the significance threshold =(-2) ver. 1 shows better ….
sorry ..Wordpress correctly pointed def trendDown
Can someone tell me where I can find an explanation of how the lower study works and how the buy and sell signals are generated. Thank you in advance for your help.
Steve,
That is just a combination study I built to allow trading on a small screen. It is a combination of a CCI, Stochastic, Keltner Squeeze, and Volatility measurement. You trade it the same way you would any of these individually. It’s really just a space saver.
-Eric
Eric,
Where do I find the most current code for this study. I have not downloaded the entire study package yet there is so much stuff still weeding through it all to see what works for me. I daytrade/scalp crude Oil Futures(/CL) do you think this is a good study for that(if you have any recommendation they would be greatly appreciated) and do I need to change the default settings for this to work in different time setting. I typically use a 133 tick,1 ,3,5,15 minute charts as I trade for entry and exit points.
Thanks
Eric
This is the most current code and should be the same as the zip file.
Firstly,
I don’t daytrade/scalp with TOS. I trade options on it so take my advice with a grain of salt. In general, TOS is about the worst platform I have found for scalping. It is just not set up properly for it. There is no automated order management strategies etc.
In general, the idea that there are “correct” settings for any indicator is a fallacy. I suggest playing with the settings until you capture the basic swings you are looking for on your instrument and chosen timeframe and then leave it alone. Positive returns are not the result of indicators or their settings but rather a sound trading plan, money management, and discipline. You can craft a successful plan using just about any set of non-correlated indicators. Most fail not because of the indicators but the lack of a plan for what to do when given a signal or what to do when the signal was wrong.
-Eric
Eric,
I hear you. I do trade with a plan and have settled on a number of studies/indicators that are working for me like you said when you get comfortable in what you are seeing stay with them. I was just looking to see if there are other indicators to add. I am always tweeking what I am looking at. I use the Active Trader module to trade with and with the recent upgrades it is getting better. I have been successful and getting better after working at this for a year and a half. I will tell you this after trading paper for months and months and months till I was able to work out my trading style and plan and what worked for me and what did not and started have a winning 85% of trades before I traded a single dollar of real $$$ money. I will tell everyone that trades trade with a stop or do not trade at all. I have my rules and I live by them and my plan as well as money mangement. I am always working on my disapline and emotions and controlling my greed and I agree there is not one study/indicator that is perfect or will work so you do not have to do the work. I give you credit trading options are over my head and very compilicated so I have not traded options but I am watching them and I have friends who do trade options and am trying to learn a little about them but I am focusing at being successfull at one thing at a time then I will look into them.
What do you think is the best platform just curious? I have friends using pretty much all of the key one from TOS,IB,Trade Station,Real Tick and Lightspeed and Zaner for futures and everyone has their opinion they love theirs and hate all the others ha I have looked at lots of them and there is no perfect platform yet either still looking but i really like TOS and am working around it to make it work for me.
Thanks
Eric
Hi Eric,
I also trade Crude futures full time on TOS. Will like to share trading ideas as I have not found anyone who trades crude. My email is hdf1998@hotmail.com
Tariq Malik
Boston, MA
Eric,
I like NinjaTrader for futures trading. The ATM order management is excellent. You can download and try it for free but it costs money to use it for trading.
-Eric
Eric,
Thanks I will check it out.
I like your name ha
Eric