Services

INTRODUCTION

This webpage provides guidance for using Sierra Chart, AutomaticTrader, Scanner, Data Tester Part 1 & 2.

Sierra Chart Suite - Integrated Standard Sierra Chart (Service Package 10)

In order to use Denali Exchange Data Feed NASDAQ TotalView Exchange (Includes most NASDAQ & NYSE Stocks Real-Time Data) and/or other Exchanges you frequently trade, you must sign all necessary agreements and make a payment.

Higher and Lower Volume Chart Bars

Generally, higher volume bars such as the 1,000,000v on the intraday setting are more reliable than lower volume bars at trend prediction because they have fewer setups and more volume is placed on each one. Higher volume bars are used to analyze longer-term trends and get a sense of the market’s direction and sentiment. Lower volume bars such as 1000v or 20,000v manually could be used to time entries, manage risk, and take profit. For example, a 20,000v might be used as a guide throughout the day, while the 1,000,000v might be used to assess the overall trend.

Directional Bias

Directional bias is a trader’s belief that the market will move in a certain direction as a result of specific events. While using the AutomaticTrader, this is determined by the Trend Line directional bias. Traders study higher chart bars, support and resistance levels, price action and the overall market trajectory to develop a greater understanding of where to enter and exit their trades.

Orderflow

Orderflow is simply reading the supply and demand side of the market. It is a technique used to anticipate changes in price by observing the flow of constantly changing orders of various sizes and the aggressive trades to view their impact on the market price. Order flow analysis allows traders to see what type of orders are being placed at a certain time in the market. It’s important to use volume bar charts because volume accurately measures this supply and demand.

Volume

We use volume bars to isolate the amount of volume transacted to equal the same as all the other bars in the chart to effectively create structure in the market. This is not only beneficial for indicating direction, but also for determining the strength of a movement. For example, absorption indicates a weakening movement, shown by a volume bar that is narrow between high and low values. Expansion indicates a strong movement, shown by a volume bar that has a wide range between high and low values. Lower volume bar sizes increase precision while larger volume bar sizes increase confirmation. You may want to use a fraction (e.g. 50/175th) of the average daily volume for better performance and always check the Data Tester Part 2 value for measuring accuracy.

Risk Management/Trading Procedures

One of the most effective techniques for longer-term dedicated swing traders is to use smaller share sizes (40 to 100) spread over multiple stocks. Verify your computer can handle automatic trading of multiple stocks. If using windows, open task manager and check CPU usage is maintained at 12% or less (Sierra Chart recommendation). Also, check your computer's available memory is not completely full (under 100% utilized). Additionally, you may want to have 30-40% capital set aside to cover any potential drawdowns.

When you are ready to begin trading, use the following procedures to practice good risk management techniques.

A strong buy rating from analysts indicates that they believe a stock will drastically move above its current level in short- to mid-term. It may also suggest that the stock has the potential to outperform similar stocks in the same industry, sector, or market. In summary, you should critically evaluate analyst ratings and consider performing your own research to verify their analyst rating is unbiased and true. Please see Adding Associated Watchlist From CSV File Using Microsoft Notepad for more information on analyst rating search.
Verify you are attempting to trade a stock that has enough volume and trades so that you may easily place money in and out (high liquidity). Practical example: Use Scanner by entering a minimum amount of 250,000+ Average Volume using the 1 day chart bar period.
Verify you are attempting to trade a stock that is moving to avoid losses. The Automatic Trader utilizes a trend following strategy and requires a good amount of distance to take profit. Practical example: Set Scanners’ minimum Average True Range(ATR) to 1($).
Verify Data Tester Part 2 (DTP2) is at the recommended 90+% reading.
Check your internet connection (recommend 300+mbps). Direct ethernet connection is preferred and wireless is acceptable with a strong signal.
Verify you are connected to your integrated broker API or internal service for submitting orders.
Ensure that your Send order to trade service for Automatic Trader is set to Yes.
Enter a reasonable Order Quantity, usually under 2500 shares.
Verify Sim On/Off is set to Off.
Verify Auto Trading Enabled - Global and Auto Trading Enabled - Chart are set to On.

After completing the above steps, your AutomaticTrader will enter as a new trend begins to form and reverse as the opposing trend forms.

CHART DISPLAY AND SETTINGS

For most of the custom studies to work as intended, set the chart settings as follows:

Chart >> Chart Settings

Symbol:HON-NQTV

This is the stock ticker symbol followed by -NQTV for accessing NASDAQ TotalView real time data.

Trade and Current Quote Symbol:HON-STK-SMART-USD

This is the stock ticker symbol followed by your broker specified trading symbol -STK-SMART-USD for Interactive Brokers.

Days To Load for Intraday Chart Data Type should be set to approximately 8 Days to avoid too many calculations for multiple stocks opened at same time.

Bar Period Type:Volume Per Bar or Delta Volume Per Bar

Bar Period Value: Usually a fraction of Average Daily Volume(examples: 250000v, 1000000v, 3000000v, etc.) Use DTP2 to help find a suitable volume bar size.

For example, New York Time Zone Start Session time for NASDAQ Exchange would be 00:00:00 (Midnight Open) Session end time would be 11:59:59 (Noon).

Session Start Time:00:00:00

Session End Time:11:59:59

Use Evening Session:No

Weekend Data:Do Not Load Weekend Data

New Bar At Session Start:No

Time Zone:New York (-5 EST/-4 EDT)

Chart >> Chart Settings >> Display

Chart Update Interval In Milliseconds (0=Use Global):50

Adding Multiple Charts

Right Click, Select Duplicate Chart, Change Bar Period and Verify Session Times

Adding Custom Control Bar Buttons

Right Click near existing control bar buttons and select Customize Control Bar 1.
Scroll to Trade on left hand side and add the following:

- Trade Simulation Mode On/Off

- Auto Trading On/Off - Global

- Auto Trading On/Off- Chart

Select Properties and change Color.

Adding Custom Studies

In order to add these custom studies, make sure the Safe Mode box (lower left) is unchecked on the Sierra Chart log in window & you have provided your Account Name/ Username (Help >> About) to J S Deckard Software Consulting.

Open any chartbook & right click to select Studies (highlighted in blue).

Click on Add Custom Study (highlighted in yellow)

Select from the Available Custom Studies

Adding Associated Watchlist from CSV File Using Microsoft Notepad

This should be similar to how your Associated Watchlist should look at the end of the below steps.

Download a CSV file from your Exchange Stock Screener. In this case, NASDAQ exchange with Strong Buy Analyst Rating.

Open this File in your Word Processor of Choice (Notepad, Microsoft Word, etc.)

Cut out all information except Ticker Symbol & Add -NQTV in the case of using NASDAQ TotalView Data.

You will want to save this file to C:\SierraChart\Data & Optionally Create a Folder
Import this file to Associated Watchlist. Note: Ticker symbols must be stacked on top of one another vertically to properly work. How often you update this list is up to you.

SCANNER

Symbol:????

Days To Load for Intraday Chart Data Type could be set to either a small number such as 20 to avoid historic data load times or 60+ for an overview of the market direction.

Bar Period Type: Days-Mins-Secs-Milliseconds Per Bar

Bar Period Value: 1-0-0

Session Start Time: 00:00:00

Session End Time: 11:59:59

Use Evening Session: No

New Bar At Session Start: No

Time Zone: New York (-5 EST/-4 EDT)

User Inputs

Price Min: Enter the minimum price amount to filter.

Price Max: Enter the maximum price amount to filter.

Average Volume Min: Enter the minimum amount of volume(shares).

Average Volume Max: Enter the maximum amount of volume(shares).

ATR Min: Enter minimum average true range ($) amount based on the past 20 bars.

ATR Max: Enter maximum average true range ($) amount based on the past 20 bars.

When all conditions are true, there will be a lightning bolt ⚡ displayed below the last bar to the right.

DATA TESTER PART 1 (DTP1)

Enter the comparisons you want to make. In the case of using the AutomaticTrader, we want to compare the data (example:OHLC Avg) with the Trend Line. You may experiment with different data values such as HL Avg or Last to find the best fit for the Trend Line.

DATA TESTER PART 2 (DTP2)

Enter in the Based On field: DATA TESTER PART 1 and reference DTP1 for values. Note: all back tests conducted and posted on the website were based on most current DTP2 values. Also, the more data (historic bars to load) the more accurate this percentage will be.

AUTOMATIC TRADER

Top (SG4) represents an overbought level and Bottom (SG5) represents an oversold level. This can give us a sense of increased market volatility with greater distances between Top and Bottom compared to previous distance between Top and Bottoms.

Using the Study/Price Overlay study, we can view inside the larger bars.

Summary

As with all strategies, simply use the Scanner to verify the stock is in your price range, is moving (ATR), and has enough participants (Average Volume). Use Data Tester Part 1 & 2 to check the ending DTP2 reading is above 90+% to choose an appropriate volume bar size.

Automatic Trader - enters & reverses when there's a change in directional bias as indicated by the trendline - completely automated when trading procedures have been done.

ADDITIONAL RESOURCES

This information may be used to analyze current and past market sentiment, strength of stock/ or security, etc.

Insider Buying

U.S. securities laws prohibit insider trading, and so the SEC keeps track of how much stock of their companies' certain insiders own. After the SEC knows about the insider and receives an initial statement of the insider's holdings, the insider must report changes in the beneficial ownership of such securities on Form 4. As the SEC states, the primary purpose for the form is to provide information about transactions involving directors, officers, and beneficial owners of stock amounting to 10% or more of outstanding shares in companies that are registered with the regulatory body.

Insiders have two business days following the transaction in question to report it using Form 4. Most insiders have to file Form 4 electronically using the Electronic Data Gathering Analysis and Retrieval System, also known as EDGAR. Those who've received a hardship exception from electronic filing requirements can file Form 4 on paper.

The form includes spaces for the reporting person's name and address, the company name and ticker, the date of the transaction, and the relationship of the reporting person to the company.

The reporting person must include the specific type of security traded, the date of the transaction, a code reflecting the exact type of transaction, and the number of shares or units bought or sold and their price. The reporting person must also say how many shares or units remain in possession of the reporting person after the transaction.

Reporting persons must file Form 4 even if they hold shares indirectly through a trust or retirement account. In that case, they must report the ownership form as indirect and then provide details on the exact nature of the entity that owns the shares and what role the reporting person plays in it. For derivatives, additional information is required, including the conversion or exercise date and the type and amount of underlying securities in the company that are covered under the derivative.

Form 4 Search Link -SEC.gov | Search Filings

Politician Buying

Politicians disclose their investments through personal financial disclosures. These disclosures are required by laws like the Ethics in Government Act of 1978 and the STOCK Act (Stop Trading on Congressional Knowledge Act). Here's a brief overview of how it works:

Annual Reports: Politicians must file annual reports detailing their personal finances. This includes income, assets, liabilities, and transactions.
Income Disclosure: They must report sources and amounts of outside income exceeding certain thresholds. Government salaries are typically public record but not included in these disclosures.
Asset Disclosure: Assets worth more than a certain amount (e.g., $1,000) must be reported. This includes securities, real estate (excluding primary residence unless it generates income), bank accounts, and loans.
Non-Governmental Positions: Positions held with non-governmental organizations must be disclosed, excluding certain honorary or social positions.
Insider Trading Rules: The STOCK Act requires timely disclosure of stock trades over $1,000 and prohibits trading based on non-public information.

These disclosures are overseen by ethics committees and the U.S. Office of Government Ethics to ensure transparency and accountability.

US Politician Stock Trade Tracker

Stock Search

NASDAQ as of this writing allows csv file downloads of selected stock results. These can then be transferred to a Notepad, Microsoft Word or other similar word processor to cut off the excess descriptions so that you are left with just the stock ticker symbol plus additional Realtime data identifiers (-NQTV). You may also want to check other exchanges' websites to find similar stock scanners and/or listings.

NASDAQ Stock Search Link - Stock Market Data with Stock Price Feeds | Nasdaq

Yahoo Finance - Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape'

News

Brokers provided or other news services provide delayed information, however, still may give an overall market sentiment. Legal action, lawsuits, company merging, failed drug trials, earnings reports, geopolitical events, etc.

Yahoo Finance - See above link.

CNN - Stock Market Data - US Markets, World Markets, and Stock Quotes | CNN

Initial Public Offerings

Access IPOs - Upcoming IPOs 2025: 70+ Startups in the IPO Pipeline

Verify IPOs Dates (NASDAQ) -IPO Listings | Nasdaq

GLOSSARY

Volume - The total number of contracts or shares traded during the chart bar period.

Volatility - Change rapidly and unpredictably.

Liquidity - The ease with which an asset can be bought or sold without significantly affecting its price.

Risk Management - The process of identifying, assessing, and prioritizing risks followed by multiple efforts to minimize, monitor, and control the probability and/or impact of financial loss.

Slippage - The difference between the expected price of a trade and the price at which the trade is executed.

Latency - The time delay between the initiation of a trading order and its execution.