Trade Simulation using Woody on TVIX

[Chris White]

I have been getting a lot of questions about running a trade simulation using the Woody for TVIX indicator. For example 'buy when Woody <=0'.

Here's how you can do that:

First of all, there is a built in indicator called 'Woody' that has a calculation line named 'BxBW'. When that indicator is added to a chart it will calculate %B x Bandwidth and plot it for the currently selected chart symbol:

%BxBW for currently selected symbol (AAPL)

BxBW_AAPL.png (23.76 KiB) Viewed 8293 times

But the trick is to get an entry or exit signal generated for any symbol when this indicator is <=0 for the TVIX. To fix a script to the TVIX rather than changing based on chart symbol, the following script can be used:

Code: Select all

MyCalc: FML('TVIX', 'Woody[BxBW]');

And here it is added to a chart:

%B x BW for TVIX added to the chart

woody_tvix.png (28.91 KiB) Viewed 8293 times

Note that this is still an indicator but it is showing the calculation for TVIX.
Note also that TVIX must be in the currently chosen symbol list for this to work.

To turn this into a scan for when the value <= 0, you can use the following:

Code: Select all

MyCalc:= FML('TVIX', 'Woody[BxBW]');
event: MyCalc <= 0;

Which produces the following signals:

Signals when %B x BW for TVIX <= 0

woody_tvix_scan.png (28.69 KiB) Viewed 8293 times

Once the scan has been created it can be used in trade simulation by adding it to the entries and exits.