There are 9 levels that can be defined: Daily levels (solid), Weekly Levels (dotted) and 3 other additional levels (blue dotted).
The concept of the levels are based on Layup Futures trading room owner @Oblique (layuptrades.com)
Bias = Pivot Point , Bullish above, bearish below
Up-clue = Clue for more upside, last resort for bears
Down-clue = Clue for more downside, last resort for bulls
Each level can be selected for long or short plays, as well as a trail profit or fix profit taking strategy.
Trades are also executed in the specified timeframe (indicated by green arrows on the chart).
Additional rules can be configured:
- trade size
- profit targets
- stop loss
- No of tests to be played on each level
- Level distance control: Execution control is done via 30min closes (blue line) to avoid chop, trades are taken only if the prior 30min bar closes X points above or below a level (default is 2).
The current default settings are based on the daily plan from June 8th 2021 from Layup Futures that Oblique posts each morning before the open.
I personally use a 1min bar chart for back-testing and trade execution, but the script also works on 5min. Higher timeframes than 5min are not recommended.
There are two use cases how the levelTrader logic can be used:
- Backtesting of levels, how well long / short setups would have worked and how certain levels behave
- Auto Trading (I personally use the Trading View alert engine to trigger autotrades through the Oanda Broker API , when I am not able to trade at my PC).
The idea is basically to read the daily plan, decide which setups to take and then let the levelTrader execute all trades that I want.