In the previous post, I shared two trading strategies built around two familiar components: trend and zone in combination with Flex TPO. But in this version, the approach is slightly different: Flex TPO is no longer used as a zone tool, but as a signal tool, specifically through its Initial Balance breakout signal.
However, once combined with Imbalance Volume Sensor, the setup is no longer as straightforward as the usual “one indicator for trend, one indicator for signal” model.
Flex TPO provides the breakout signal
Imbalance Volume Sensor provides the zone
Imbalance Volume Sensor also comes with multiple signal types
This makes it harder for traders to choose the right signal logic when building an automated strategy
That is why the real challenge is not whether these two indicators are effective, but how to combine them in a way that is simple enough to execute while still powerful enough for real trading.
So in this post, I am going to introduce a very simple combination of Flex TPO, Imbalance Volume Sensor, and Infinity Algo Engine$.
With Imbalance Volume Sensor, we will use the Volume Delta candle. Why this candle?
Because it reflects an imbalance between delta and price action — for example, a bullish candle with negative delta, or a bearish candle with positive delta. Precisely because of that mismatch, it reveals that one side has failed to maintain control of price, while the opposing side has taken over.
Therefore, we will use this Volume Delta candlestick to create a "hit bar" candlestick when building an automated trading strategy with Infinity Algo Engine$.
With Flex TPO, we will use the Break signal to execute trades, because this is a strong signal, so I need the price to move in one direction when the break signal appears.
How to build an automated trading strategy with Infinity Algo Engine$?
Now let's test the effectiveness of this strategy by backtesting on GC over the last 100 days.
Victor Dan / Trader at ninZa.co
