Darvas AddOn Standard

BRIEF DESCRIPTION DARVAS ADD-ON

WARNING! Dear customers, before you start working with the Darvas workspace and indicators, we ask that you read these instructions thoroughly before modifying any settings. The Darvas Add-On is an advanced tool that contains a large number of settings and parameters – incorrect settings made due to “curiosity” may lead to undesired behavior.
IMPORTANT! You can carry out any changes you want in the indicator settings; however, we strongly recommend that you only touch the parameters with which you are familiar. The Darvas Add-On is designed for End-of-Day trading since the original trading strategy was not developed for intraday trading. You can use the trading signals in every timeframe, but you must be aware that the trading strategy is not optimized for this. Wishing you much success in trading with the Darvas Add-On

INSTRUCTIONS PACKAGE INSTALLATION

I. After making your purchase, you will receive the following file sent to you by email: • DarvasStandardPackage.txpack / DarvasProfessionalPackage.txpack: this file is the actual package including all components contained within.
ATTENTION! If you are using Internet Explorer or Microsoft Edge, the .txpack file may automatically be renamed as a zip file by your browser. After downloading, therefore, you need to rename the DarvasStandardPackage.zip /DarvasProfessionalPackage.zip to DarvasStandardPackage.txpack / DarvasProfessionalPackage.txpack!
II. Save the .txpack file on your hard drive.
III. Now you still need to enter your license for the package in TradersYard X. To do so, click on the symbol with the question mark, select About -> Enter the activation key, then navigate to “DarvasStandardPackage” / “DarvasProfessionalPackage” and enter your activation key, which you received via email. Click on “Activate”. Once you see the message that your license has been successfully activated, close this window.
IV. Open Tools->Packages->Import package, read the subsequent backup information and, if you have already carried out a backup, click on OK. In the next window, navigate to the storage location of the DarvasStandardPackage.txpack file, click on it and then select “Open”. Confirm the request to restart TradersYard X by clicking on “OK”.
V. After restarting, the first step is to establish a connection to the data feed.
VI. Once you have established a connection to your data feed, select Main -> Workspace -> DarvasStandard / DarvasProfessional to load the Darvas workspace. As soon as all charts are fully loaded, the DarvasStandardPackage is completely ready for use.

DARVAS STANDARD ADD-ON

The DarvasStandardAddOn offers great support if you wish to implement Nicolas Darvas’ famous signals semi or fully automatically. However, in order to enable pre-filtering of the values according to Darvas’ logic as well as for the PotentialDarvasBreakout signal, which predicts when a Darvas boundary will be broken through, you do need the DarvasProfessionalAddOn.

Indicators

DarvasPro

This indicator is the evolution of the DarvasBox indicator that is contained in TradersYard X by default. What has been improved is the underlying calculation, which has also been equipped with further data series so as to ensure optimal calculation of the signals. Furthermore, we have developed background coloring within the boxes in order to provide a better graphic display of the Darvas boxes. This background color is also the only parameter you can set in the DarvasPro.

ScriptedConditions

DarvasBreakout

The classic Darvas breakout signal arises when either the upper boundary of the Darvas box is broken in an upward direction (= long signal) or the lower boundary is broken in a downward direction (= short signal). In addition, the breakout must also have an above-average volume, which suggests a strong movement and enough strength for a breakthrough with high momentum.
The parameters that you are able to set for these scripted conditions are the arrow colors of the signal markings, the arrow size, and the basic display of the arrows.

Stops

DarvasInitialStop

Darvas’ strategy is based on the fact that a successful signal should immediately be followed by a strong movement. This is why it is possible to place the initial stop very close with this strategy.
The DarvasInitialStop is placed at a distance of exactly 0.5 x ATR(14) from the upper or lower Darvas boundary. This enables very good risk management since trade is quickly stopped out if the idea is not successful, meaning that the margin is rapidly freed up and you can immediately look for the next trade.
On the other hand, a tight initial stop means that with a successful trade idea, you very quickly generate profit in your account, and targets are rapidly reached.

DarvasStop

Just as in the original strategy by Nicolas Darvas, the DarvasStop is always trailed at the high/low of the current, confirmed (!) box.
For a short trade, it is always the current, most recently confirmed upper boundary of the Darvas box that is used.
For a long trade, vice versa; the lower boundary is used as a stop price.

DarvasGhostStop

With the DarvasGhostStop, the stop is trailed at so-called ghost boxes, which are a development from Daryl Guppy. This further development of the usual Darvas stop is intended to enable fast, tight trailing of the stop when it comes to market movements with great momentum.
A ghost box is formed when the price breaks through a box boundary and the subsequent movement are so fast that for several bars, no new box can be generated. As soon as the price has run the length of the last box above the upper boundary (for long trades) or below the lower boundary (for short trades), the first ghost box is formed, which has exactly the same height as the last active and valid Darvas box.
The stop is now trailed at the low (for long trades) or the high (for short trades) of the ghost box, making it possible to place the stop closer to the market. An unlimited number of ghost boxes can form one after the other; the stop is always trailed at the respective high/low of the ghost box, either until the trade is stopped out or a new, valid Darvas box is formed – then the stop is trailed at the high/low of the valid Darvas box.

Workspace

DarvasStandard

In this workspace, Darvas breakout signals are searched for on a 1Day and 1Week basis; the SP500 stock list is loaded by default. So as not to miss out on any notifications of breakout signals, the daily chart is screened for new signals every 5 minutes, and the weekly chart is screened every hour. Therefore, as soon as the market makes a breakout on a daily or weekly basis, the signal is immediately displayed and you can trade it!
Only long signals are searched for in the DarvasLong LCG and only short signals in the DarvasShort LCG.

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Outline
BRIEF DESCRIPTION DARVAS ADD-ON
INSTRUCTIONS PACKAGE INSTALLATION
DARVAS STANDARD ADD-ON
Indicators
ScriptedConditions
Stops
Workspace