Onetimeframing against Initial Balance is one of my favorite intraday trading strategy with a fairly decent win rate(60-70%). Concept is adopted from market profile to trade against majority of the weak intraday players. Initial Balance is nothing but the first 1 hour high and low range. Whenever price started one timeframing against the Initial Balance direction it shows the presence and confidence of day timeframe players.
To Measure the overall IB direction first three bars of 30min is taken in this case and the direction is measured relative to day open.
Timeframe to Practice : 30min Strategy
Buy – When Initial Balance direction is up (First Three Bars turns green) and price starts one timeframing down (consecutive 4 or 5 bars (30min) making consecutive lower high then look for a potential target towards the test of day high.
Short – When Initial Balance direction is down (First three bars turns red) and price starts one timeframing up (consecutive 4 or 5 bars (30min) making consecutive higher lows then look for a potential target towards the test of day low.
Amibroker AFL Code to implement the rules. However the trading system implmented in Amibroker is semi systematic as mostly stoploss is decided based on market profile charts (mostly adopting structural stops rather than a conventional stops).
Trades will be initiated only post 12:45p.m. so one have really learn to wait to trade this trading system.
What are the other stop loss rules can be praticed : One can adopt ATR based stops. However trailing stops might not work towards the trading strategy
Does the code looks into the future : Yes it looks into the future bars as it is required part of the coding
Does the code repaints the signals : No the code does not repaint the signals. Signal comes ones the new bar opens and the condition satisfies in the previous bar setups.
Amibroker Database Settings
Amibroker Database setting is essentially required to set the time of the first candle to set from 9:15-945a.m to align with market profile trade setups
Goto File->Database Settings->Intraday Settings and set the time settings as shown below
Amibroker Preference Settings
Goto Tools->Preferences ->Intraday and select the check box Start time of the Interval (recommended)
Amibroker AFL Code
Download Onetimeframing Against Initial Balance – Intraday Trading Strategy – Amibroker AFL Code