Welcome to the third episode of “How to Thinkscript”. We are TOSIndicators.com, home of the Volatility Box, the most robust ThinkOrSwim indicator based on statistical models built for large institutions and hedge funds.

Today’s video is going to be in response to several user requests to try and understand the updated version of John Carter’s TTM_Squeeze Pro.

JC invented the squeeze and it has since become quite popular. Recently, he came out with a new version of this famous indicator, with updated settings that have new bells & whistles, among which includes updated settings for more accurate and more frequent signals.

In this tutorial, we try and build a lite-backtester, in which a user can tweak the user settings of the TTM_Squeeze to discover what settings work best for particular tickers. For example, on AAPL, we notice that that the TTM_Squeeze settings with an nBB factor of 1.5 outperformed the default 2.0 factor by almost 3x.

AAPL Backtest Results
  1. TTM_Squeeze Default ( Close , 20, 1.5, 2.0) — Total P/L $1,281.99
  2. TTM_Squeeze Modified ( Close , 20, 2.0, 2.0) — Total P/L $562.72
  3.   TTM_Squeeze Modified (Close, 20, 2.0, 1.5) — Total P/L $1,689.74  

If you’d like to skip the tutorial and start playing with the indicator right away, it’s available to download for free below.

Click the button below to download the TTM_Squeeze Backtester