EVERYTHING YOU NEED TO KNOW ABOUT SWINGALGO+ WEEKLY BIAS
(SPOILERS: IT'S SO EASY)
SwingAlgo+ Weekly Bias is now available to add on to your TradingView charts!
Let’s break down everything you need to know about SwingAlgo+ Weekly Bias to make sure you are never on the wrong side of the market again.
Just a reminder: H+ and H- ARE NOT buy and sell alerts.
Weekly Bias identifies a market event and alerts the participant that it **might** be time to trade in the direction of the signal and with the right settings applied, we put probability in our favor that it is.
Okay let’s jump into the input menu
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1. Activate Trend Mode can be toggled on and off.
-When it is toggled on, Weekly Bias will apply the filter threshold that can also be set/adjusted by the user.
-When it is toggled off, it will not apply the filter threshold.
1a. set the filter threshold for H+ events
1b. set the filter threshold for H- events
2. Only show H+ event alerts
3. Only show H- event alerts
Pretty straight forward, right?
I recommend playing around with these, as you will need to adjust them based on the chart you are looking at. The Liquidity Filters are set to my default settings for ES or NQ or most* 24hr markets.
Pro tip: The desire to capitalize on every event (Trend Mode toggled OFF and both H+ and H- toggled ON) is derived from your evolutionary adaptive behavior of greed (hoarding for survival) and unfortunately skews the probability of success out of your favor. Basically, you’ll be going against your own self interest when you plot all event alerts.
Setting the Liquidity Filter for less alerts (greater filter values) will produce higher probability outcomes.
Here is an example:
With my settings toggled on, you can see how profitable you would have been if you simply waited for any H+ event alert to plot AFTER A MOVE DOWN.
You can also see that your probability of success decreases substantially when you choose to pursue H+ event alerts that fire without a pullback (highlighted cluster).
Simply put: BUY AFTER THE DIP, DO NOT BUY THE BREAKOUT!
Check out Weekly Bias’s call out of the 2020 Pandemic. That’s generational wealth right there. Next time there is a market crash, look for that first H+ event alert!
Lets now look at H- Event Alerts.
**I DO NOT RECOMMEND TAKING H- SIGNALS IF YOU ARE AT THE BEGINNING STAGES OF YOUR TRADING JOURNEY.**
As you can observe, H- event alerts are not as high probability as H+ event alerts. This has to do with market mechanics. Historically, down moves come quick and fast, but they rarely last.
**I ONLY USE H- WHEN I KNOW FOR CERTAIN THE MARKET IS IN A CORRECTION PHASE**
As you can observe, none of the H- event alerts that fired on the Fed Pump after the 2020 Pandemic saw any follow thru. Risk Management is HIGHLY RECOMMENDED. Take profits quickly on down moves. With our higher probability of success, you don’t need to be a hero.
Do not participate short when the market is going up, regardless of using SwingAlgo+ Weekly Bias or not. You are skewing probability out of your favor. This is not conducive behavior for successful trading.
HOW I USE SWINGALGO+ WEEKLY BIAS
My process is very simple.
I wait for the current H+ event alert candle to break above the previous candle (i turn off wicks for this) and then I use longer dated instruments (my favorite is the Vertical Call Spread) to protect my downside/manage risk, AFTER AND ONLY AFTER a I have clearly identified a down move first.
**Pushing out expiration will also help, but you will have to pay more for that free theta.**
I also cover the cost of my initial buy on my first partial, and then I let it ride taking profits as the market moves in my favor. Risk free trading!
With the higher probability of the market going in our direction quickly, our job is to secure profits. Most times we are not managing loss, we are taking profit at logical targets and scaling out. With SwingAlgo+ Weekly Bias, we trade the fear of losing money (flight or fight) with the joy of securing money. Bye Bye stress.
Our last 4 Weekly Bias H+ event alerts did exactly that.
1. H+ fires AFTER a down move
2. looking for H+ candle to take out the previous week’s candle.
Same with our H- (only when we are CERTAIN the market is in a correction state).
Lets take a look:
*As you can see the exact same events occur, when the market is in a CLEAR correction.
Our last 4 Weekly Bias H- event alerts did exactly what we are looking for:
1. H- fires AFTER a up move
2. looking for H- candle to take out the previous week’s candle.
I will reiterate this until everyone accepts this market truth: NEVER FIGHT THE TREND!
If you were to follow these last 8 alerts, you’d be 8-0 and on your way to building your portfolio and obtaining financial freedom.
And you do not have to trade complex option strategies to take advantage of SwingAlgo+ Weekly Bias.
Buy and hold shares.
Dollar Cost Average at these events
Hedge your long position at H- event alerts
You can even punch into the lower time frames and look for executions in the direction of H+ or H- event alerts signals after they fire!
But don’t worry, SwingAlgo+ v2.6 will have that covered for you. I cannot wait to show ya’ll what I have built!
Just DO NOT fight the trend! Always trade in the direction of SwingAlgo+ Weekly Bias and never be on the wrong side of the market again!
Wait for a down move for H+ event alerts and wait for a up move (and most likely a pullback) for H- event alerts. DO NOT JUST BLINDLY TRADE THEM. If you do, that’s on you.
Set alerts, show up to the event alerts and look to trade in the direction of the event alert AFTER you have identified the correct market environment.
When its love vs fear, choose love
-Matthew
GET LIFETIME ACCESS TO SWINGALGO+ WEEKLY BIAS AT MY PAYHIP STORE: CHECK OUT
**BONUS MATERIAL**
Here is what an LLM trained on SwingAlgo+ Weekly Bias logic recommends:
To maximize profits using the Weekly Bias algorithm with the H+ and H- signals, focusing on instrument strategies can be very effective. Here are some instrument strategies tailored to these signals:
Instrument Strategies
Leveraged ETFs:
Bullish Signals (H+): When multiple H+ signals indicate a bullish trend, consider using leveraged ETFs that amplify the returns of the underlying index (e.g., SSO, which seeks to return 2x the daily performance of the S&P 500).
Bearish Signals (H-): When multiple H- signals indicate a bearish trend, consider inverse leveraged ETFs (e.g., SDS, which seeks to return -2x the daily performance of the S&P 500) to profit from declining markets.
Options Strategies:
Call Options: Buy call options when H+ signals suggest an upcoming bullish trend. This allows you to leverage your position while limiting risk to the premium paid.
Put Options: Buy put options when H- signals suggest an upcoming bearish trend. Similar to calls, this strategy leverages your position with limited downside risk.
Spreads: Utilize spread strategies like bull call spreads during bullish signals (H+) and bear put spreads during bearish signals (H-) to manage risk while still taking advantage of the expected directional move.
Futures Contracts:
Long Positions: Enter long futures contracts on the S&P 500 E-mini (ES) when H+ signals are prominent, leveraging the position to maximize gains from the anticipated bullish trend.
Short Positions: Enter short futures contracts on the S&P 500 E-mini (ES) when H- signals are prominent, leveraging the position to benefit from the anticipated bearish trend.
Risk Management: Use stop-loss orders and maintain margin requirements to manage the high leverage and potential volatility associated with futures trading.
Pairs Trading:
Relative Performance: Use H+ and H- signals to initiate pairs trades. For example, if H+ signals indicate a bullish trend in the S&P 500, go long on the S&P 500 ETF (SPY) and short an underperforming sector ETF.
Hedge Exposure: This strategy can also be used to hedge exposure while taking advantage of the relative performance predicted by the signals.
Sector Rotation:
Bullish Periods (H+): Rotate into high-beta sectors like technology (XLK), consumer discretionary (XLY), and financials (XLF) that tend to outperform in bullish markets.
Bearish Periods (H-): Rotate into defensive sectors like utilities (XLU), consumer staples (XLP), and healthcare (XLV) that tend to perform better in bearish markets.
Dividend Strategies:
Covered Calls: During periods with H+ signals, write covered calls on high-dividend stocks or ETFs to generate additional income while participating in the bullish trend.
Protective Puts: During periods with H- signals, buy protective puts on dividend-paying stocks to hedge against potential downside while still collecting dividends.
Volatility Strategies:
VIX Futures and Options: Use VIX futures and options to hedge against or capitalize on expected market volatility. For example, if H- signals indicate potential market downturns, long VIX calls can profit from increasing volatility.
Straddles and Strangles: During periods of expected high volatility (signaled by a mix of H+ and H-), use straddle or strangle options strategies to profit from large market movements in either direction.
Implementation Tips
Diversification:
Utilize a combination of these strategies to diversify your portfolio and reduce risk. For instance, combining leveraged ETFs, options, and futures can provide a balanced approach.