Mnikolic Investment Research
intelligent trading algorithms™
Mnikolic Investment Research
intelligent trading algorithms™

TradeBuilder Classic 2018 Edition has officially been released and is now available for download (existing users) and purchase. The latest version adds Bear Power to its roster of technical analysis tools - a brand-new indicator with applications for trend-following and scalping strategies, giving traders the total of 35 tools with which to build and customize their trading systems. Bear Power synergizes with 2017 Edition's introduction of Bull Power to increase accuracy of signals.


Featured market: Aussie/Dollar (AUD/USD) 1-hour chart, trend following setup: Bear Power, Bull Power, CCI, ADX, Force Index, Volume, Accelerator Oscillator.


New integrated indicator: Bear Power

Originally featured in Alexander Elder’s popular book, Trading for Living, Bear Power, as suggestive by its name, was designed to track market pessimism or “bearishness”, collectively known as fear. It does this by comparing emerging market lows to moving averages, which are considered balance lines between bulls and bears. Its counterpart indicator, Bull Power, which tracks optimism or "bullishness" in the market is also part of TradeBuilder Classic (introduced in the 2017 edition). The two indicators were designed to be used together to produce a more accurate pulse of prevailing market forces (bull versus bear).


New Parameters

IndBearsPower: Setting this parameter to true activates Bulls Power
PeriodBearsPower: Averaging period for the Bear Power oscillator. Default is 14. Higher values (100+) are recommended for detecting longer term trend.
PriceBearsPower: Price type used in oscillator calculation.
UpLimitBearsPower: Level that oscillator needs to cross over in order to qualify for a buy signal. Range: negative to positive infinity – varies per pair and time frame; higher time frames have wider ranges.
DownLimitBearsPower: Level that oscillator line needs to cross over in order to qualify for a sell signal. Range: negative to positive infinity – varies per pair and time frame; higher time frames have wider ranges.


Application in Trend Following Strategies

The Euro/Dollar (EUR/USD) 5-minute chart below demonstrates performance of a strategy based purely on Bear Power and Bull Power indicators - their outputs are compounded by TradeBuilder Classic to produce either short or long signals. Long signal is issued when Bull Power and Bear Power oscillators are above their UpLimit values; short signal is issued when Bull Power and Bear Power oscillators are below their DownLimit values.


We can further clear up signals in the above EUR/USD setup by applying one or more of other indicators available within TradeBuilder Classic - in this case Bollinger Bands.



Bear Power's oscillator values (and its vertical range) are subjective to each chart, including time frame, market (pair), and chart type. Some markets range more and register higher/lower values (greater volatility), others range less. As time frames increase, Bear Power always covers wider ranges on its vertical axis, since higher time frames contain more price information. For example, Bear Power values on a 1-hour chart will have a much greater range than those on a 5-minute chart. It is recommended to add Metatrader’s Bears Power indicator to charts before selecting minimum limits (UpLimit, DownLimit), to get an idea of what value range would be most effective. The Period value is especially important depending on whether you're looking to swing-trade/scalp (Period values less than 30), trade short-term trend (30-100), or follow long-term trend (100 and higher).

Below is a showcase of additional strategies based on Bear Power + Bull Power oscillators, used in combination with other TradeBuilder Classic indicators:


Dollar/Yen (USD/JPY) 1-minute chart: Bull Power + Bear Power + Money Flow Index + Average Directional Strength (filter) + Force Index


Pound/Dollar (GBP/USD) 15-minute chart: Bull Power + Bear Power + Relative Strength Index + Bollinger Bands + Standard Deviation (filter) + Force Index


Aussie/Dollar (AUD/USD) 1-hour chart: Bull Power + Bear Power + Commodity Channel Index + Average Directional Strength (filter) + Force Index + Volume + Accelerator Oscillator



Application in Scalping Strategies

Bear Power is compatible with TradeBuilder Classic’s Global Overbought/Oversold (OB/OS) mode. When active, this mode allows select momentum-driven oscillators like Stochastic, RSI, CCI, Force Index, Bull Power, and Bear Power to be used for momentum trading - a style of trading where one tries to capitalize on bursts of momentum, and mis-valuation of price that ensues. Bear Power oscillator extremes often signify overbought conditions (when well above 0) and oversold conditions (when well below 0) - exact values vary per chart (time frame, pair, chart type). Since OB/OS mode strategy is a form of scalping and not trend following, you need to you reverse your UpLimit and DownLimit values. For example, to buy when Bear Power is under -0.01 set UpLimit to -0.01; to sell when bear Power is over 0.01 set DownLimit to 0.01. Furthermore, Yen crosses have much greater vertical range values because their price values are higher than non Yen pairs. Good rule of thumb: whichever limit values you use for non-Yen pairs, multiply by 25-50 when using Yen pairs. Few words of caution in regards to scalping: since trader is going against trend, scalping is inherently riskier than trend following - make sure you use tight stops. Examples below demonstrate Bear Power in scalping applications.


Euro/Yen (EUR/JPY) 1-minute chart, Bear Power OB/OS, Period @ 14, Uplimit @ -0.04, Downlimit @ 0.04.


Aussie/Yen (AUD/JPY) 5-minute chart, Bulls Power, Period @ 26, Uplimit @ -0.1, Downlimit @ 0.1.


Pound/Dollar (GBP/USD) 15-minute chart, Bulls Power, Period @ 26, Uplimit @ -0.001, Downlimit @ 0.001.



Expanded User Manual

The manual, now 48 pages in length, has been revised to cover Bear Power integrated indicator and its features - see section 4.3.31.


Existing Customers

If you are an existing TradeBuilder Classic customer, only one of the following two options applies:

  1. Customers who purchased TradeBuilder - Classic Edition on or after April 8, 2012 qualify for a free upgrade.
Download latest version
  1. Customers who purchased TradeBuilder - Classic Edition before April 8, 2012 qualify for a discounted upgrade.
Upgrade now for $250

New Customers

TradeBuilder Classic 2018 Edition is available for purchase at the official Marko Nikolic Investment Research store. The current, promotional price is $500. Your purchase includes all future upgrades and versions.

Purchase TradeBuilder Classic

Marko Nikolic
President and Chief Developer
March 30, 2018, Toronto, Canada

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