Marko Nikolic Investment Research
Marko Nikolic
Investment Research

TradeBuilder Classic 2017 Edition has officially been released and is now available for download (existing users) and purchase. TradeBuilder Classic 2017 Edition introduces Bulls Power - a brand-new indicator with applications for, both, trend-following and scalping strategies. Bulls Power (an oscillator) brings Classic's total number of integrated indicators to 34, offering hundreds of thousands strategy combinations and permutations. With the 2017 expansion of the framework, TradeBuilder Classic continues to solidify its position as market technician's ultimate strategy building toolbox.

Featured market: Euro/Dollar (EUR/USD) 15-minute chart, trend following setup: Bulls Power, Money Flow Index, Bollinger Bands, MACD, Average True Range.

New integrated indicator: Bulls Power

Developed by Alexander Elder, a reputable trader and technical analyst, Bulls Power is a momentum-driven oscillator designed to measure buying and selling pressure, the net of which indicates either prevalence of Bulls or Bears in the market. The formula behind the Bulls Power oscillator tracks the difference between a price High and an Exponential Moving Average (EMA) via user-set period value (Elder’s default is 13). If oscillator is above 0 and rising in value, Bullish trend is present. If oscillator is above 0 and falling in value, Bullish trend is weakening. If oscillator is below 0 and falling in value, Bearish trend is prevailing. If oscillator is below 0 and rising in value, Bearish trend is weakening.

Application in Trend Following Strategies

The Dollar/Yen (USD/JPY) 4-hour chart below demonstrates the potential of the Bulls Power oscillator. Since the oscillator has low lag and sometimes leading properties it is very reactive to changes in price action and produces more signals than some of the other (higher lag) oscillators like the Relative Strength Index (RSI). If you're following longer term trend and rely on fewer but higher quality signals, it is recommended to compound Bulls Power with some of Classic's other integrated indicators. We usually recommend a combination of trend-following, momentum (oscillator), statistical, and volume indicators in a technical analysis strategy in order to validate signals across multiple technical "dimensions". The USD/JPY strategy below uses Bulls Power as its momentum-measuring oscillator, Close/Exponential Moving Average Cross as trend-following, Standard Deviation as statistical, and Volume + Force Index as volume indicators.

New Parameters

IndBullsPower: Setting this parameter to true activates Bulls Power
PeriodBullsPower: Averaging period for the Bulls Power oscillator. Default is 13. Higher values (100+) are recommended for detecting longer term trend.
PriceBullsPower: Price type used in oscillator calculation.
UpLimitBullsPower: 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.
DownLimitBullsPower: 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.

Bulls 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, Bulls Power always covers wider ranges on its vertical axis, since higher TFs contain more price information. For example, Bulls 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 Bulls 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). The following Dollar/Swissy (USD/CHF) 5-minute chart demonstrates what happens when we change Bulls Power's Period from 60 (targeting short term trend) to 1200 (targeting long term trend). Aside from Bulls Power, the strategy also compounds Ichimoku Kinkō Hyō, Envelopes, and Volume

USD/CHF M5 Bulls Power strategy with a low Period value (set to 60), targeting short-term trend

USD/CHF M5 Bulls Power strategy with a high Period value (set to 1200), targeting long-term trend

Application in Scalping Strategies

Being a momentum-driven oscillator, Bulls Power is also compatible with TradeBuilder Classic’s Global Overbought/Oversold (OB/OS) mode. When active, this mode allows select oscillators like Stochastic, RSI, CCI, Force Index, and Bulls Power to be used for momentum trading (trading contra trend at momentum extremes, e.g. thrusts). Bulls 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 Bull Power is under -0.01 set UpLimit to -0.01; to sell when Bull Power is over 0.01 set DownLimit to 0.01. Examples below demonstrate Bulls Power in scalping applications. It is a good idea to use Volume when scalping with oscillator extremes to confirm momentum.

Dollar/Loonie (USD/CAD) 1-minute chart, Bulls Power, Period @ 25, Uplimit @ -0.0002, Downlimit @ 0.0002.

Pound/Yen (GBP/JPY) 5-minute chart, Bulls Power, Period @ 75, Uplimit @ -0.05, Downlimit @ 0.05.

Aussie/Yen (AUD/JPY) 1-minute chart, Bulls Power, Period @ 55, Uplimit @ -0.03, Downlimit @ 0.03.

Expanded User Manual

The manual, now 47 pages in length, has been revised to cover Bulls Power integrated indicator and its features - see section 4.3.30.

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 2017 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 31, 2017, Toronto, Canada

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