 X traders, and we are going to cover the education strategy video for thinkorswim. What it means is we are going to be creating a script that is called a strategy script, and we will test this trading strategy to see how well it performs. So in this case, let's switch over to the tools tab and take a look at our X trades education strategy script. We saw a small part of this script when we did the SMA crossover plotting video. So it was a video where we learned how to plot a particular indicator that we were interested in creating, and these are the lines that we actually looked at. We created a fast and a slow moving average length, which was 9 and 21, and of course we actually made both of those average type exponential instead of simple, and we were basically going to carry out these bottom three lines here, which are, we are going to plot the fast SMA, and that fast SMA is going to be the moving average of exponential type, because we define that up here, with the closing price of past closing 9 candles, because this is the fast one, and we are going to use, of course, that input, which is 9, right, and then we are also going to plot the slow MA, which is going to be also a moving average of type exponential, and it's going to use the closing prices as well for the past length of 21 days or hours or whatever your time frame is at that particular moment. Okay, so that's pretty simple, and this actually resulted in the plotting of these indicators on a particular chart, and because we made them input type, we could modify the 9 and the 21 to whatever value we wanted, and we could also change the average type for the moving average. Okay, so we are going to be adding these two lines up here, and these two, these are the important lines down here, so let's go ahead, what we're doing, particularly what we're doing here, we're defining two more variables called longs and shorts, okay, and we're defining them input type, because we're going to, we want to be able to switch, not trade, but switch between yes and no on both longs and shorts, so basically a variable that's called longs, which we are setting initially to yes, and another variable called shorts, which we are setting initially to no, so just to get an idea of how this is going to work out in the beginning, we're saying, we're saying that we don't want to look at shorts, so to speak, and we do want to look at longs, right, and if we want to go the other direction, then we just go in there and modify that indicator or study, as it is called in thinkorswim, and change these values. So now let's move over to these two lines, which are the ones that actually create the strategy for us. So what we're doing here is we're going to add an order, okay, and again, just refresh your memory, if you right click on this and you go down to info, you can actually see what that is, and what it does is it adds an order of a specified size and position for the next bar when the condition is true, okay, so what is the order type that we are placing, buy to open, which means that we are going long, right, we're buying to open a position, longs, of course, because that is the condition if longs is true, and if the fast MA crosses above the slow MA, right, sort of the golden cross, if you will. Remember when the fast MA, which is the 50 crosses above the slow MA, which is the 200, that's the golden cross, well, we're doing the same, but with on a smaller time frame, so it's the 921, and we're basing that off of the close price, and we're doing it for a lot of 100 shares, which is the typical lot. Again, if you come in here in the info, it'll tell you, if you go, if you want more details, it'll take you to the education tab, as we saw before, and it'll tell you all of the variables, including the trade size in this case, which is the number of contracts traded. Okay, so let's go back to our script, and we will also add an order of type sell to close whenever the fast SMA crosses below the slow MA, so the death cross, if you will, right? So that is how you make money, making money from longs, buy low, sell high. And here is the opposite, which is making money from shorts, buy high, sell, oops, sorry about that, sell high, buy low, about to make a disaster. Okay, there we go. Okay, and in this case, you add the order of type sell to open because you sell high, expecting it to go down whenever shorts is activated, and whenever the fast MA crosses below the slow MA, right? The death cross, so it's gonna go down. So you bought high, and you expect to go down. And once it does go down, then you buy to close, you buy back to close once that fast SMA has recovered and crossed above the slow, right? And the same parameters apply here on the closing price and size lot 100. Okay, so once we save this, and again, this is just, you know, you create a new script just by clicking on here, you know, and this time we did type strategy, and then we save, right? And once you save it, it shows up in a tab and it also shows up in the strategies section because this was a strategy, not a study. Okay, so how do we use it? I'm over here to charts and apply it and you add it just like any other study. And as you can see, it has been added, oops, right here, education strategy. Okay, and important that you come down here to global strategy settings, click on that. And you allow up to one entry order in the same direction, right? So you won't do repetitive orders if it keeps going up or even if it keeps going down. And you want to display the floating PNL study with each strategy, okay, and the default size, you can change that if you want there. Okay, so let's go ahead. And we don't have to hit apply because I already applied this. Now, here, on the price action, it is set whenever you enter a strategy, which is here, right, and whenever you exit that strategy. Now, remember, we have longs activated. Remember that come over here, and you can click on the little scroll and quickly look at what this is doing, longs is activated. Okay, so it's doing this part up here, it's buying high and selling, sorry, buying low and selling high. Okay, so that is what it is supposed to do, right? So as you can see here, and we can zoom in right here, let's see if we can zoom in right here. Okay, and there it is. So as you can see here, the fast MA, which was which is the teal one, right, the blue one, crossed above the slow MA. Again, how do we know that the teal is the fast one? Well, you can come over here to the studies and the settings, and you can see right here in plots, the fast MA is the teal, and the slow is the pink or whatever. Alright, so you can clearly see the fast crossing above the slow, right? And so the strategy says that whenever that happens, and longs is set to yes, go ahead and fire an order. So it bought 100 contracts. Okay, of course, that's supposed to be a bullish sign. But as we all know, one indicator is not enough to make an informed trading decision, precisely because of situations like this, one indicator might fail, you know, more indicators, less likely to fail, confirming that with price action and volume and other things might help even more. But indicators might still fail, and they do fail. So what it ended up doing was that it rode all the way, rode the trade all the way until the fast MA, which is the blue one, crossed under the pinkish one, which is the slow, and it exited the strategy. So it followed your command, it did what you wanted to, this is kind of like an algorithm, algorithm trading system, right? And it did what you wanted. Unfortunately, it ended up going from 36.9 down to 35.65, right? So it ended up losing about a little bit less than a dollar, right? A little bit less than a dollar. And as you can see down here from this PNL, well, the PNL turns red, and it tells you you know what, you're losing money, you know, how much well you're losing 50 bucks, you know, and that keeps growing because it keeps going down and now you're losing 76 bucks, and it keeps going down and now you're losing 128 bucks, right? And then this is where it exits, right? So then after this point, it just, you know, it drags on, it drags on telling you that you have lost $128. And that is the cool thing about the strategy, because you can, you can look at this floating PNL at on different timelines and see what would have happened had you followed that trading strategy. It seems like that trading strategy is not a very good one, of course, because it's a very simple one for illustrative purposes. But the more indicators or not necessarily the more indicators, because we can add a lot of them. And actually, you get to a point where too much information is precisely too much information, right? But there are certain market conditions where certain indicators work best. And this was definitely not one of them. Let's go ahead and take a look at something like Tesla, for example. Okay, and in this case, we see that it entered a trade here, and it exited that trade right here. And in that case, it seems to have made some money, so some $1,700. And then it entered another trade here, but it exited over here. So then it lost quite a bit of money. So some $3,000. So you're actually down about $3,000 at this point in time. And the cool thing about this is that you can test, you know, based on trial and error, you can test these trading strategies on longer timeframes, for example, on Tesla, right? And this seems to be a little bit more greenish. All right, let's go ahead and look at Pfizer, which I believe we're looking at, on a longer time frame is still down. So Pfizer, of course, has been on an incredible downtrend. As you can clearly see, you can go to the yearly one, you can see just how bad this stock has been hammered after the COVID reopening or whatever. And it clearly was not going to work on a stock that has taken such a beating. But on a stock that has had a more positive last few years, is definitely a very profitable strategy, just basing it off, basing your trades off of the fast over the slow MA. All right, so I hope you guys enjoyed this video. And if you have any more ideas that you would like to try out on Thinkorswim, go ahead and drop me a comment in the section below. And I'll see you guys in the next one. There's a reason why Xtrades is currently the fastest growing application on the market for sharing financial ideas. With over $2.5 million paid in the last two years to contributors, users are flocking to see what trades the top traders on the leaderboard are sharing in real time. If you're looking to grow your reputation as a trader on the internet or discuss your trading ideas with other reputable investors, click the link below and get connected with a trading mentor today completely free of charge.