Mnikolic Investment Technologies
intelligent investment technologies™
Mnikolic Investment Technologies
intelligent investment technologies™

TradeBuilder Classic 2016 Edition has officially been released and is now available for download (existing users) and purchase. The 2016 edition of the strategy building framework is a major release, featuring 2 brand-new integrated indicators (Standard Deviation and Directional Confirmation), bringing the total number of them to 33. Think of TradeBuilder as a technican's toolbox - compounding and combining effects of 33 indicators provides traders with tools to build thousands of unique, simple or sophisticated strategies for any market, risk appetite, and style of trading. Both of the new indicators are filters, aimed at improving signal quality during noisy and consolidating markets.

Featured market: Euro/Pound (EUR/GBP) 4-hour chart, trend following setup: Double HMA Cross, RSI, Money Flow Index, Stochastic, Bollinger, Standard Deviation, Force Index.

New integrated indicator: Standard Deviation

Standard Deviation is an indispensable tool in statistics which, when applied to trading, is useful in detecting and tracking price volatility. Volatility refers to deviation of current price action from its historical average. The higher the deviation, the higher the standard deviation. Most false signals come from tightly ranging price action. In the language of statistics, ranging markets typically have low standard deviation (unless Period is set to very low, e.g. under 10). That means, by applying TradeBuilder’s Standard Deviation indicator with a certain minimum (Limit) value, you are filtering any insignificant price movement that is registered below it. In summary, Standard Deviation is useful in detecting trend and filtering out some of the slower, consolidating price action.

Application in Trend Following Setups

The USD/CAD (Dollar/Loonie) 15-minute chart below demonstrates the impact that Standard Deviation can have on trend following strategies. The first screen shows a TradeBuilder strategy compounding Double HMA Cross, RSI, Parabolic SAR, Bollinger Bands integrated indicators. The second screenshot shows the filtering effects with Standard Deviation active and Up/Down Limit (see parameters below) set to 0.0006 (Period is 20).

Without Standard Deviation

With Standard Deviation (Period 20; Limits at 0.0006)

New Parameters

IndStandardDeviation: Setting this parameter to true activates Standard Deviation
PeriodStandardDeviation: Averaging period for the Standard Deviation (SDEV) oscillator. Default is 14.
ShiftStandardDeviation: How far into future (in terms of bars) the SDEV oscillator is projected. MATypeStandardDeviation: Moving average type of the SDEV oscillator (simple, exponential, smoothed, linear weighted).
PriceTypeStandardDeviation: Price type used in oscillator calculation (close, high, low, open, median, typical, weighted)
UpLimitStandardDeviation: Level that SDEV needs to cross over in order to qualify for a buy signal. Range: 0 and higher. DownLimitStandardDeviation: Level that SDEV line needs to cross over in order to qualify for a sell signal. Range: 0 and higher.

Standard Deviation is highly subjective to each chart, including time frame, market (pair), and chart type. Some markets range more and register more deviation, some range less. As time frames increase, standard deviation always increases with them, since by their nature, they contain more price information (had more time to move). For example, Standard Deviation values on a 15-minute chart will be vastly greater than those on a 1-minute chart. It is recommended practice to add Metatrader’s Standard Deviation indicator to charts before selecting minimum limits (UpLimit, DownLimit), to get an idea of what value range would be most effective. Too high of a value can overfilter, while too low will barely do any filtering. In the AUD/USD (Aussie/Dollar) H1 example below, we can see that a value of 0.0015 works pretty well at filtering out slow markets. Metatrader's Standard Deviation indicator (oscillator) was attached to chart for demonstration purposes only and is not required for operation of TradeBuilder.

Below is one more example of Standard Deviation in action - this time long term trend following, achieved chiefly via higher Up/Down Limit values. The higher the Limit, the more pronounced price filtering is - useful in avoiding times of heavy consolidation. Target market is Euro/Pound (EUR/GBP) 4-hour chart. Other active TradeBuilder indicators include double HMA cross, RSI, Money Flow Index, Stochastic Oscillator, Force Index.

New integrated indicator: Directional Confirmation

This is an automatic signal filter based on one of our proprietary algorithms. Once active (set to true), Directional Confirmation tries to evaluate each TradeBuilder signal to determine whether a direction (trend) bias is supporting the move associated with a signal. Easy to use and effective at filtering out noisy and consolidating markets. Recommended in aggressive strategies. Example below is one such strategy: EUR/USD (Euro/Dollar) M5 intraday swing trading via TradeBuilder's RSI, Stochastic, and Force Index integrated indicators. The second screenshot shows Directional Confirmation's filtering capabilities.

Without Directional Confirmation

With Directional Confirmation

Updating the TradeBuilder Brand

You probably noticed that Classic's new version designation jumped from v10 to 2016. As explained in the recently-released 2016 edition of MarketScalper, all software versioning (including TradeBuilder, MarketScalper, TrendSuite, PivotBuilder) is being rebranded to reflect the year of release rather than a simple version number - for example, what was going to be TradeBuilder Classic v11 is now 2016. Since we currently offer 5 lines of products, and each one receives a major update once a year, using the year number made a lot more sense. The year appendage instantly informs users which version of software is the most recent and prevents confusion that may arise by having each line of software at a different version number.

Expanded User Manual

The manual, now 47 pages in length, has been revised to cover Standard Deviation and Directional Confirmation - see sections 4.3.28 and 4.3.29.

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 v5.0 or higher qualify for a free upgrade.
Download latest version
  1. Customers who purchased TradeBuilder - Classic Edition v4.9 or older qualify for a discounted upgrade.
Upgrade now for $250

New Customers

TradeBuilder Classic 2016 Edition is available for sale 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
July 1, 2016, Toronto, Canada

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