The WL Vola Open strategy

Description

The WL Vola Open strategy designed by trader Wim Lievens is based on two observations:

  1. Market volatility is high when the market opens.
  2. The market price tends to make a significant move after the market open.

Although the strategy can be used for market indices, the focus is really on trading volatile stocks which have small spreads.


Trader Wim Lievens WL Vola Break-out.

Suitable for : Market indices (DAX, CAC, DOW...)
: Stocks (high liquidity, low spread)
Instruments : Futures and CFD
Trading type : Day trading
Trading tempo : 1 to 4 signals per day
Using NanoTrader Full : Manual and (semi-)automated

Apple stock volatility.
This example shows an hourly volatility histogram of Apple. The market opens at 15h30.

The stock is clearly at its most volatile in the first two hour ranges (15h00-16h00 and 16h00-17h00) after the market open!


This store package contains:

  • The WL Vola Open trading strategy.
  • The WL Bars.
  • The WL Triade stop loss.
  • Ready to use set-up for the 50 most volatile stocks!
  • Ready to use set-up for the 4 market indices.
  • One hour online coaching by Wim Lievens.
  • Two hours video teaching in French, German or Dutch.
  • Unlimited telephone access to the support desk.
  • AND: A reduction from $ 7 to $ 4 (-43%) on the order minimum for CFD on US stocks!

Click here to buy the WL Vola Open package in the store.

 

The strategy in detail

The WL Vola Open strategy has been designed for the NanoTrader Full and uses several functionalities, which are unique to the NanoTrader trading platform.

 

When to open a position

The strategy determines an opening range. To determine the opening range the proprietary WL Range Bars -unique in NanoTrader- are calculated. The WL Range Bars combine the advantages of Heikin Ashi candles, traditional range bars and renko bars. The strategy uses the first four WL Range Bars after 9h00 to determine the opening range for European indices and stocks, and the first four WL Range Bars after 15h30 to determine the opening range for US indices and stocks. On top of the opening range, the strategy immediately calculates two additional trading ranges. These ranges are used as profit targets.

The WL Vola Open strategy for stock trading.

This example shows the opening range (1) based on the WL Bars and the target ranges (2 and 3).


A vertical green line in the chart background appears if a WL Range Bar closes above the opening range. This is a buy signal. A position is bought at the market price when the next WL Range Bar appears.

A vertical red line in the chart background appears if a WL Range Bar closes below the opening range. This is a short sell signal. A position is sold short at the market price when the next WL Range Bar appears.

The WL Vola Open trading strategy.
This example shows first a short sell signal. The short sell position is converted into a long position when the stop is reached. The long position is a success and reaches both the first and the second profit target.

The number of signals is limited to four signals (two long and two short) per instrument per day. Wim Lievens strongly recommends traders use the AutoOrder setting in NanoTrader to open positions. Opening positions manually is too slow for this strategy.


When to close a position

The WL Vola Open strategy has two profit targets and one stop.

If the trader activates the TradeGuard, the platform will automatically place the two target orders at the correct price level. The platform automatically splits the position into 1/3 to be sold at the first profit target and 2/3 to be sold at the second profit target. When trading market indices, the trader must therefore buy at least 3 CFDs or 3 futures.

The stop used by the WL Vola Open strategy is the proprietary WL Triaden stop. This unique stop is also automatically placed and managed by the platform. The stop level is initially at the bottom (top) of the opening range.

The WL Vola Open strategy also contains an entry and an exit filter. The filters block new trading signals from 17h00 (European markets) or 21h30 (U.S. markets) onwards. The filters also close any remaining open positions at 17h15 or 21h45.

 

Settings

The trader needs to set the span of the WL Range Bars to the instrument he trades. In the store package the spans have already been correctly set-up for 50 US stocks (Facebook, Alphabet, Oracle, Exxon, Amazon, Apple...) and four indices. If the price of a stock or a market index has gone up or down significantly over time, it is advisable to change the span slightly up or down.

Just select the stocks or an index and the chart is ready.

Practical implementation

Select the strategy and an instrument in the WHS Store > Wim Lievens > WL Vola Open strategy folder.

Activate either TradeGuard+AutoOrder (manual open and automated close) or AutoOrder (automated open and close) in the chart. Wim Lievens strongly recommends traders use the AutoOrder setting in NanoTrader to open positions. Opening positions manually is too slow for this strategy.

Please allow 24 hours after your purchase, for our team to implement the minimum commission change.

This store package contains:

  • The WL Vola Open trading strategy.
  • The WL Bars.
  • The WL Triade stop loss.
  • Ready to use set-up for the 50 most volatile stocks!
  • Ready to use set-up for the 4 market indices.
  • One hour online coaching by Wim Lievens.
  • Two hours video teaching in French, German or Dutch.
  • Unlimited telephone access to the support desk.
  • AND: A reduction from $ 7 to $ 4 (-43%) on the order minimum for CFD on US stocks!

Click here to buy the WL Vola Open package in the store.