Marko Nikolic Investment Research
Marko Nikolic
Investment Research

TradeBuilder Core 2017 Edition introduces DeMarker Technical Indicator to its arsenal of technical analysis tools, increasing the total number of compoundable indicators to 14. DeMarker Indicator is a momentum-based oscillator that excels in scalping and trend-following strategies.

Featured market: Aussie/Dollar (AUD/USD) 5-minute chart. Signals based on TradeBuilder Core strategy compounding: DeMarker Technical Indicator, Heikin Ashi, Force Index, and OsMA

New Integrated Indicator: DeMarker Technical Indicator

DeMarker Technical Indicator is a momentum-based oscillator developed by the popular technical analyst, Tom DeMark, aimed at analyzing price trend by comparing intra-period highs and lows. In a nutshell, DeMarker’s formula consists of dividing a delta of price highs by a delta of price lows, over a user-specified period value. DeMarker has been compared to RSI (Relative Strength Index – another momentum seeking oscillator) but in practice, it is far more sensitive to changes in trend, even with higher Period values. In fact, for trend following, we do recommend that you set the Period value to 21 or higher. If you’d like to trade contra-trend (sell at extreme oscillator highs; buy at lows) you may wish to consider Core’s bigger sister, TradeBuilder Classic and its Global OB/OS mode.

In trend-following applications, DeMarker is most useful with its Period set to a double or triple digit values - don't be afraid to set it as high as 100 and beyond. This is due to its highly responsive nature. Alternatively, you may reduce the Period value to under 21 (as featured in AUD/USD M5 strategy below), but increase the gap between UpLimit and DownLimit values, effectively filtering consolidating price action. Do not set it to less than 8 unless your strategy involves some form of scalping.

Trading rules: long (buy) signal issued when DeMarker oscillator line moves above UpLimit parameter value. Short (sell) signal issued when DeMarker moves below DownLimit parameter value. Default "trend pulse" level is 0.5, with values above indicating bullish sentiment and values below indicting bearish. If you're using lower Period values, you can avoid a lot of false signals by creating some distance between UpLimit and DownLimit levels.

New TradeBuilder Core Parameters

IndDM: activates DeMarker Technical Indicator and makes it available for compounding with Core's other 13 integrated indicators.

Period: the number of historic periods (such as bars) the oscillator will consider in its calculations. Higher values yield smoother oscillator lines and are hence recommended for trend-following strategies, while lower values produce a much more responsive but volatile oscillator - ideal for scalping strategies based on momentum play (overbought/oversold levels).

UpLimit: Level that oscillator needs to cross (from below) in order to qualify for a buy signal. Range: 0 to 1.0.

DownLimit: Level that oscillator line needs to cross (from above) in order to qualify for a sell signal. Range: 0 to 1.0.

The following trend-following strategy demonstrates TradeBuilder Core 2017's DeMarker Technical Indicator in real world applications. The first screenshot shows the signals generated solely by DeMarker (Period @ 12, UpLimit @ 0.8; DownLimit @ 0.2) with no other indicators active.

TradeBuilder Core on Aussie/Dollar (AUD/USD) 5-minute chart with only DeMarker active

The signals are pretty good on their own but we can do better by compounding some of Core's other 13 indicators with DeMarker. Like any other technical analysis strategy, you want to consider several analysis tools of different classes that track unique dimensions of price movement. The following screenshot features the same setup as above, but with additional Core indicators active, including: Force Index (validates price and volume), Heikin Ashi (short term trend filter), and Oscillator of Moving Average also known as OsMA (medium term trend filter).

TradeBuilder Core on Aussie/Dollar (AUD/USD) 5-minute chart with DeMarker, OsMA, Force Index, Heikin Ashi active

Below are two more examples of TradeBuilder Core in action, making use of DeMarker on higher time frames:

TradeBuilder Core on Euro/Dollar (EUR/USD) 1-hour chart, compounding DeMarker, Double MA Cross, Money Flow Index, Force Index, Heikin Ashi

TradeBuilder Core on Pound/Swiss (GBP/CHF) 1-hour chart, compounding DeMarker, Double MA Cross, Money Flow Index, Force Index, Heikin Ashi

Is there an Expert Advisor (EA)?

TradeBuilder Core is an indicator (not an EA) that issues real-time signals on your chart and to your email address as well as smartphone (iOS, Android). You may have noticed that our other indicators such as MarketScalper PRO, TrendSuite, and TradeBuilder Classic now include optional Expert Advisor add-ons for auto-trading, back-testing, and optimizing strategies based on their algorithm. So why is there no EA for TradeBuilder Core? The answer is in its positioning. TradeBuilder Core is our lowest-priced, entry-level trading framework and we feel that offering an EA add-on that costs as much as the indicator itself would take away from its position as a value product. If you still need an EA for a TradeBuilder Core strategy then we suggest you consider upgrading to TradeBuilder - Classic Edition. Classic version comes with 3 times as many integrated indicators as Core and includes an optional EA add-on. For a limited time, we are offering all Core clients an upgrade to Classic (with a lifetime upgrade license) and the Classic EA for $500 (normally the EA alone is $450). Contact us if interested.

Getting the new version

TradeBuilder Core 2017 Edition can either be upgraded to or purchased.

Upgrading: Existing Customers

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

  1. Customers who purchased TradeBuilder Core Edition on or after March 18, 2013 qualify for a free upgrade via their licensed software portal.
Download 2017 Edition
  1. Customers who purchased older versions of TradeBuilder Core qualify for a discounted upgrade fee of $150. Includes all future versions.
Upgrade now for $150

Please note: if you are satisfied with an older version of Core, you do not need to upgrade. All versions (old and new) will continue operating normally, and will never bother you to upgrade. Marko Nikolic Investment Research supports, fully and indefinitely, all versions of its software, regardless of age or version number.

Purchasing: New Customers

TradeBuilder Core 2017 Edition is available for sale at the official Marko Nikolic Investment Research store. The current, promotional price is $350.

Purchase TradeBuilder Core

Marko Nikolic
President and Chief Developer
May 6, 2017, Toronto, Canada

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