The post Thinkorswim Relative Volume Paintbars Indicator Update v2.6 appeared first on Easycators Thinkorswim Downloads.

]]>I’ve recently been adding several new functions and features to the Thinkorswim Relative Volume paintbars indicator package including:

- New volume sources
- Range by itself
- New range types added

- Open Interest
- Implied Volatility
- Many new combinations of all the types

- Range by itself
- New BLENDED average mode — weight both the Time Based Average and Moving Average of your volume source according to whatever percentages you want
- New automatic or manually set time based mode
- New columns and scans for each type of volume source
- New labels indicator showing relative overnight volume, premarket volume, aftermarket volume, opening range volume, and regular hours volume
- New bonus columns for relative and absolute overnight, premarket, and aftermarket ticks/trade count and share volume

As always, if you purchased the indicator before, all updates are free. Just log back in and go to My Account > Orders > View and the new links should be there.

If you haven’t yet gotten your hands on it, check out the video and my playlists of trades on Youtube, and then purchase the set here:

Get the Relative Volume Indicators Here

The post Thinkorswim Relative Volume Paintbars Indicator Update v2.6 appeared first on Easycators Thinkorswim Downloads.

]]>The post Trade Expectancy Formula: How to Make Consistent Profits appeared first on Easycators Thinkorswim Downloads.

]]>**Probability = how likely it is that your trade will be correct (Example: 50% as in a coin toss)**

**Risk/Reward = what you risk on the trade divided by what you stand to gain on the trade (Example: risk $1 to make $2 = R/R of 1/2)**

Together, these two forces form the “trader’s equation” which is the trade expectancy formula:

**(Potential Reward x Win Probability) – (Potential Loss x Loss Probability)**

This formula can be used to analyze both individual trades you’re considering taking, and the performance of trading systems in general. The trading system version looks like this:

**(Average Win x Win Rate) – (Average Loss x Loss Rate)**

In either case, if this number is positive, it’s good. If not, it’s bad.

So in order to take *objectively rational* trades, you need to make sure every trade you take makes sense in terms of this formula. And you need to occasionally review the ongoing performance of your system by making sure your expectancy remains positive as new trades are added to your trading journal.

In most trading situations you will find the probability of the stock going in your direction hovers around 50%. Author and price action trader Al Brooks says that you should never expect the probability to be any more than 60% or less than 40%, otherwise nobody will be willing to take the other side of the trade. So you should assume the probabilities don’t vary a whole lot in most circumstances.

So what you *should* actually focus on is looking for asymmetric risk/reward situations. In other words, make sure that you stay out of trades that have a bad risk/reward ratio, and only consider placing trades that have an attractive risk:reward ratio to their potential target.

For instance, if you always look for pullback trades that have at least a 1:2 risk-reward ratio to the prior high, and assume a 50% probability of success, then your trade expectancy formula will look like this:

**(2 x 50%) – (1 x 50%)**

**= 1 – 0.5**

**= 0.5 expectancy**

If you assume a 60% probability, and a 1:2 risk/reward:

**(2 x 60%) – (1 x 40%)**

**= 1.2 – 0.4**

**= 0.8 expectancy**

So higher probability definitely helps. However, if you keep the probability the same as in the first example, and just increase your reward/risk ratio to 3:

**(3 x 50%) – (1 x 50%)**

**= 1.5 – 0.5**

**= 1.0 expectancy**

So risk/reward plays a big role. Also note what the trade expectancy formula looks like for losing system at 40% and 1:1 risk/reward:

**(1 x 40%) – (1 x 60%)**

**= 0.4 – 0.6**

**= -$0.2 expectancy**

The higher the probability of trades you take, the better. But the primary thing you have control over is lowering your risk/reward (or increasing your reward/risk). This can take several forms, but most practically speaking it probably means ** cutting your losses** and

In dollar terms that you would probably be trading, here’s what it would look like risking $500 on each trade with the aim of making $1000 in profit at a 50% probability of success:

**($1000 x 50%) – ($500 x 50%)**

**= $500 – $250**

**= $250 expectancy**

So in closing, here is a quick reference graph showing which kinds of systems can work and which can’t work based on the trade expectancy formula:

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]]>The post Updates to Percent Change from Open appeared first on Easycators Thinkorswim Downloads.

]]>Now it includes several other bonus scripts that weren’t there before:

- All new indicator showing percent change, dollar change, and ATR-multiple change from open (or any other starting price)
- Max % gained column
- Max % lost column
- Max % Gained or Lost column (based on closing direction)
- Column showing % of today’s bar closes that were above a chosen moving average (to sort a watchlist by relative intraday trend strength)

This is what the new indicator looks like:

Changes take effect immediately, and as always, prior purchasers get all updates for free in their My Account > Orders > View Order Details screen.

Love you guys, thanks!

-Josiah

The post Updates to Percent Change from Open appeared first on Easycators Thinkorswim Downloads.

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