Autoufos™ For: Autoufos™ - User Guide (Ts10.X - V9)

reach@tradewithufos.com AutoUFOs™ – User Guide [ TS10.
x | v9 ]
AutoUFOs™ for
Version 10.0
Analysis Technique
User Guide
** Copyright © 2018 traddictiv pte. ltd. All rights reserved. ** [Terms of Use] [Privacy Policy]
The names traddictiv, tradewithufos, AutoUFOs and their corresponding associated logos and imageries 1 | 20
are trademarks and/or copyrighted material of traddictiv pte. ltd. Singapore. All rights reserved.
reach@tradewithufos.com AutoUFOs™ – User Guide [ TS10.x | v9 ]
Legal Considerations
Disclaimer:
When using this App you understand and acknowledge that the risk of trading can be substantial and
that each investor and/or trader must personally consider whether this is a suitable investment. Past
performance, whether actual, or indicated by simulated historical tests of indicators, is not indicative
and in no way a guarantee of future results. Your actual trading may result in profits or losses as no
trading system is, or can be, guaranteed.
By using this app, you accept full responsibility for your actions, the trades taken and any profits and
losses made. You also agree not to hold the developer of this app responsible for any outcome
arising out of your use of this app.
No Service Guarantee:
You understand and agree that the developer of this app makes no representation, warranty or
condition that:
(a) the TradeStation® indicators and services will be uninterrupted, timely, secure, reliable, accurate
or error-free;
(b) the indicators and services will meet your requirements;
(c) the market data obtained through the services taken will meet your expectations, be suitable for
any purpose, be accurate, complete, reliable, current, timely, adequate, or error-free. The developer
of this app cannot be held liable for the use or interpretation of the market data. You understand
and accept that the market data may be delayed, inaccurate, contain errors or omissions and the
developer of this app will have no liability with respect thereto. You further acknowledge that the
developer of this app does not endorse nor is responsible for the market data of any third party
supplier.
To summarise: the TradeStation® indicator could malfunction, the data that is provided may contain
errors and the developer of this app cannot guarantee error-free usage at all times.
Calibration:
You understand and agree that the user of this app is responsible for the calibration of the indicator
and that different calibration parameters input by the user could produce completely different
outcomes. The default calibration parameter is set at ’0.50’ on the first installation of this app.
However, this is simply a default calibration and the setting does not imply that this is a valid input
for its use. As previously stated above, the user is solely responsible to adjust the calibration input to
meet their requirements hence the user will be liable for the ultimate results obtained when using
this app for any application.
Testimonials:
The testimonials we have received are the purely subjective opinions of the people who have given
the testimonials. User experiences have not been verified by our company or independently verified
through any other organisation. These results may not be typical and individual results will vary and
may not be representative of the experience of other clients.
What does this app do?
This app aims to plot Price regions in a chart where potential BUY and/or SELL Orders are in a
pending state. Those potential Orders are expected to be in waiting mode and could be executed
once that market revisits or returns to those Price regions.
The above concept is the reason for the name of this indicator: Un-Filled Orders (UFOs).
Once those potential Un-Filled Orders are filled, a bounce or movement is likely to happen and
therefore those UFO areas could be selected for Entries and/or Exits for any type of trade or
investment. This may include but is not limited to long-term, intermediate-term, short-term or
hedging.
The desired trade duration (position, swing or intraday trades) would depend on the time interval
(time frame) selected when applying the indicator. For example; by applying the indicator to a chart
selected with a daily time interval this is likely to produce trades that could potentially last multiple
days or applying it using a 60 minute time interval would likely produce trades that could last a few
hours and so on.
Note: Those Price regions identified are referred to as UFOs and are automatically plotted in the
form of oval shapes in the charts which are also known as “Flying Saucers”.
Note: This app can be applied to any time interval based on Time (Second, Minute, Daily, Weekly
and Monthly Bars), Volume (Share Bars) and Activity (Ticks Bars).
The following visual example displays Green and Red UFO Price areas in a chart where Green would
suggest that BUY Un-Filled orders may be waiting and Red would suggest that SELL Un-Filled orders
may be waiting to be filled. A trader could decide to buy when Price enters the Green UFO and sell
when Price enters the Red UFO.
Based on that concept, those coloured UFOs could be selected to plan trades where a trader,
investor or a hedger;
- is planning to catch and ride a Market move and profit from it (Directional Strategies: Enter
or Exit Long or Short Positions). They are expecting that the market will move in a certain
direction after hitting and reacting to those Un-Filled Orders (coloured areas in the chart)
and later reach a certain Exit Price.
- is planning to profit from selling Out of The Money (OTM) options and collect time decay as
these traders are hoping that they will expire OTM (Non-Directional Options Strategies such
as Iron Condors, Credit Spreads, Strangles, Straddles, etc.: Profit from time passing while a
Market trades within a Range or sideways). They are expecting that a market will not reach a
certain point in the chart before a certain date and sell or write options to collect premium
waiting for their expiration date while price stays within certain limits without surpassing the
Strike Price of the Options sold.
Red UFOs =
Red Flying
Saucers
Green UFOs =
Green Flying
Saucers
Screenshot produced using TradeStation®
How to subscribe to this app?
- Step 1a.: Within TradeStation® launch the TradingApp® Store by hovering your mouse cursor
over the “Apps” bar, and once it expands, by clicking on “TradingApp® Store” button
“Apps” bar
“TradingApp®
Store” button
- or Step 1b.: Connect with the TradeStation® TradingApp® Store via a web browser such as
Google Chrome, Safari, Microsoft Internet Explorer, Microsoft Edge or Firefox Mozilla, etc.:
https://tradestation.tradingappstore.com
- Step 2: Use the Search box (normally located on the top of the webpage) and type
“autoufos” and then press “Enter” or click on the search button
- Step 3: Select the AutoUFOs™ app and click “Subscribe”
Note: Once the subscription process has been completed, TradeStation® will automatically
download the indicator and make it available within TradeStation® for the user to insert in a
chart.
How to make sure that your TradeStation® is ready for the app?
- Step 1: Make sure that you are logging in by using the same username and password you
used when you subscribed to the app and allow TradeStation® to download the TradingApp®
Store products
- Step 2: To be performed on the first use of this indicator. To be skipped otherwise.
Locate the toolbar within the Chart window where you plan to insert this indicator. Click on
Settings and Select Preferences. Click on the Symbol Tab and ensure “Show empty daily
trading periods for traditional chart types” and “Show empty intraday session periods for
traditional chart types” are unchecked in the Chart Analysis Preferences window, if not,
Uncheck the two options and click “OK”. #1:
Click on
Settings
#2:
Select
#4:
Preferences
Click “OK” as
#3: these two
Select options are
Symbol unchecked
Screenshots produced using TradeStation®
How to launch a ready-to-use workspace with the app in it?
- Step 1: Within TradeStation® launch the TradingApp® Store Dashboard by hovering your
mouse cursor over the “Apps” bar, and once it expands, by clicking on “TradingApp® Store
Updates” button
“Apps” bar
“TradingApp®
Store Updates”
button
- Step 2: Click on the “launch” button and enjoy the “AutoUFOs” workspace
Click on the
“launch” button
Note: The “AutoUFOs” workspace allows you to easily use 2 different charts with the app
active in them as well as a Matrix to be able to execute trades easily. This workspace can be
customized and saved by the user as well as the app can be inserted in other charts located
in other workspaces or other desktops. Check the next section to learn how to do that.
Charts Matrix
Screenshot produced using TradeStation® UFO Bands and

Flying Saucers
How to manually insert this indicator into a TradeStation® chart?
- Step 1: Locate the toolbar within the Chart window where you plan to insert this indicator,
Click on Studies and Click on Add Study
#1:
Click on
Studies #2:
Click on
Add Study
- Step 2: Look at the Tabs on the left for the Option named “Indicator”
Make sure
you are
looking at
this Tab
- Step 3: Look and find “AutoUFOs”
Option to
be selected
- Step 4: Select “AutoUFOs” by left-clicking on it and the then click “OK”
Click “OK”
º as the right
option is
highlighted
Note: If “Prompt for Editing” was selected you will be provided with an additional settings
screen. Ignore it for now by clicking “OK” and refer to the Section on Settings to understand
your options in more detail.
Note: Once this app is inserted in a chart it then needs to be calibrated. Please refer to the
Section on Calibration to understand how to perform this process.
Which components are displayed?
The example illustrates the various components available when using AutoUFOs™:
Flying Saucers
UFO Efficiency Stats
Flying Saucers
Screenshots produced
using TradeStation®
Darker
UFO
UFO
Price
UFO Labels
Lighter
Bands
UFO
UFO Bands
Are a visual representation of Price regions in a chart where BUY and/or SELL Orders are potentially
still in a pending state: Un-Filled Orders (UFOs).
Darker/Lighter UFOs
Green UFOs would suggest that BUY Un-Filled Orders may be available and Red UFOs would suggest
that SELL Un-Filled Orders may be available and waiting to be filled. The app assumes that the
darker the colour the greater the potential for a larger amount of Un-Filled Orders.
Flying Saucers
The round Flying Saucers have the very same height as the UFO Bands but add an additional inner
circle. The app highlights where the greatest concentration of Un-Filled Orders is potentially found
by plotting inner circles.
Flying
Saucers
Inner
Circles
Screenshots produced
using TradeStation®
UFO Price Labels

The two figures displayed have a different meaning depending on the UFO colour: In the case of a
Green UFO, the figures point at the upper part of the inner circle within the Flying Saucer and the
lower part of the UFO Band; in the case of a Red UFO, the figures point at the lower part of the inner
circle within the Flying Saucer and the upper part of the UFO Band.
UFO Efficiency Stats

Are a statistical measurement showing how often (percentage-wise) the Market chosen by the user
bounces from UFO to UFO (Green-to-Red or Red-to-Green) in a selected time interval. This
measurement can vary greatly depending on the Calibration Inputs and the amount of data loaded.
Which settings are available?
There are two types of settings available to customise this app:
- Settings that impact the calibration of this app

- Settings that vary the way on how the information is displayed on the screen
Accessing the Settings Menu

To access the settings menu after the indicator has been inserted into a chart we need to:
- Step 1: Locate the toolbar within the Chart window, Click on Studies and on Edit Studies
#2:
Click on
#1: Edit Studies
Click on
Studies
- Step 2: Select “AutoUFOs” by left-clicking on it and then click “Customize”

Click “Customize” as the right
option is highlighted
- Step 3: Select the “Inputs” Tab to show all customizable parameters for user inputs
Note: The two upper input fields are related to calibrating this app. Remember that this app
must be calibrated. These calibration-related inputs will be covered in the Section on
Calibration…
Calibration
parameters
Display
parameters
Once the settings menu has been accessed we can act on the following 5 different display
parameters. Notice the visual difference when using different inputs below…
- ShowFlyingSaucers
- ShowUFOBands
- HideHitUFOs
- ShowLabels
- FontSize
ShowFlyingSaucers
This input can be set as “True” or “False”; then click “OK”
True False
ShowUFOBands
True False
HideHitUFOs
True False
ShowLabels
True False
FontSize
This input changes the size of the fonts within this indicator. It can be set as any number where the
greater the number the greater the size of the font and vice versa; then click “OK”
Important Additional Window Settings

This app needs some space on the right side of the chart to be able to plot and display written data.
Access the Chart Window settings and set the Chart Properties with the suggested values displayed
below by:
- Step 1: Locate the toolbar within the Chart window, Click on Settings and on Window
#2: #1:
Click on Click on
Window Settings
- Step 2: Locate the “Chart Properties” section, input the desired values and then click “OK”
How to calibrate this app?
Calibration is a key process in defining how the analysis is carried out and will impact the potential
results obtained by the user using this app. The calibration input is down to the user’s personal
judgement and is at their own risk.
To calibrate first access the settings menu and then follow the series of steps as described below:
Accessing the Settings Menu

To access the settings menu after the indicator has been inserted into a chart we need to:
- Step 1: Locate the toolbar within the Chart window, Click on Studies and on Edit Studies
#2:
Click on
#1: Edit Studies
Click on Click
Studies “Customize” as
the right option
is highlighted
- Step 2: Select “AutoUFOs” by left-clicking on it and then click “Customize”
- Step 3: Select the “Inputs” Tab to show all customizable parameters for user inputs. In this
section we will exclusively focus on the two upper input fields.
Calibration
parameters
Performing the calibration process
- Step 1: Locate “ShowUFOStats” from the list, type “True” and then click “OK”
Note: This setting will make the app display the current Stats on a specific market based on
the Calibration value, the chosen time interval and the Data Range selected
“True” input
Stats
- Step 2: Re-access the settings menu (as described above) and change the Calibration input
to a different desired value (between 0 and 1) and then click “OK”
Note: Notice how the resulting Stats change as different parameters are input
Type the desired

calibration input here
- Step 3: Repeat Step 2 until the Stats are satisfactory to the user of this app
Note: Once the app is calibrated according to the user preferences, the UFO Efficiency Stats
could optionally be turned off by re-accessing the settings menu (as described above) and
changing the “ShowUFOStats” parameter to “False” and then clicking “OK”
Note: Continuous Contract Ticker Symbols using the ‘@’ should work better when calibrating
Futures Markets (for example: “@es” instead of “esu18” or “@cl” instead of “clu18”)
Examples on how to use this app?

The following examples describe two different ways on how a trader, investor or a hedger could use
this app. There probably are many other ways to make this app useful and we would love to receive
your suggestions and know more about your experiences as well. Please treat the following
examples for demonstration purposes and feel free to use reach@tradewithufos.com to connect
with us and share your experiences and ideas.
Going Long (by Buying Low and Selling High in order to profit from a rising market)
or Going Short (by Selling High and Buying Low in order to profit from a falling market)
The thought behind Going Long or Going Short is to enter a market ready to catch and ride a market
move in a given direction and profit from it: Going Long would profit from an upwards move, where
Going Short would profit from a downwards move.
In order to do so, the opening and closing time of the trade is critical since entering or exiting too
soon or too late would end up in a problematic situation. The Un-Filled Orders (UFOs) concept
behind the AutoUFOs™ app could certainly be useful when aiming to identify the best moment to
initiate a trade and when to finalise it and collect any profit that may have been produced.
Going Long Example: Buy within a Green UFO (to initiate) and Sell within a Red UFO (to finalise)
Step 2:
Selling
Price
where to
realise
profits
Pre-Planning the Trade
Available Price Step 2:

The End Result
(Not the right Sold at

time to BUY yet)
183.24
Step 1:
Step 1: Bought at
Buying 157.99
Price if the
market
reaches
this UFO
Going Short Example: Sell within a Red UFO (to initiate) and Buy within a Green UFO (to finalise)
Step 1:
Selling
Price if the
market Step 1:
reaches Sold at
this UFO 2685.25
The End Result

Available Price
(Not the right
time to SELL yet)
Step 2:
Buying
Price
where to Step 2:
realise Bought at
profits 2667.25
Selling Options and keep the Premium collected
The thought behind Selling Options and keep the Premium collected is based on identifying certain
places on a price chart that are not likely to be reached and Sell Options with strike prices beyond
those places.
The Options contracts sold would be Out of the Money (OTM) and they would remain OTM until
their expiration date as long as the Market price does not reach the Strike price of the Options sold
within that given period of time.
If all of the above was true, the trader would have collected the Premium for selling those Options
that would expire worthless, allowing the trader to keep that previously collected Premium.
The Un-Filled Orders (UFOs) concept behind the AutoUFOs™ app could be useful to theoretically
identify certain places on a chart that are likely or unlikely to be reached anytime soon.
Keeping in mind the concept that when a market enters a UFO the expectation would be to see a
reaction or a bounce from that price region adding duration to a trade. Think of a case where those
UFOs are quite far from the current available price or cases where there are multiple UFOs upon
UFOs. In this instance it would be reasonable to expect that a market with these characteristics is
unlikely to surpass any of those UFOs anytime soon and therefore an Options trader could capitalise
on a setup like this by Selling Options where price is unlikely to reach.
In addition to this, time passing would lead to a decay of the Options Premiums helping this type of
trade to accumulate profitability little by little, keeping in mind that nothing stops time from passing.
Furthermore, think in terms of probability and ask yourself the following question: what is of a
higher probability? To determine with precision where a market is going to turn and where it is
headed to, or to determine where a market is not likely to go within a certain amount of time?
If you would rather choose the second case you may be interested in observing the following
illustration that shows an advanced Options Strategy commonly known as Iron Condor where a
profit would be produced from time passing while a Market trades within a Range or sideways. In
other words while a Market remains trading within a Range defined by Red UFOs and Green UFOs
causing its price to remain range bound during a given period of time as a consequence of the
potential bounces produced when its price travels from UFO to UFO (Green-to-Red or Red-to-
Green).
Non-Directional Options Trade Example
Not
likely to Price
reach travelled
this within the

place expected
The End Result
on the range
chart Step 1: staying
Entered a between
anytime
Non-Directional
soon UFOs
Options Strategy
Step 2:
Allowed
Options to
expire
worthless
Note: In all cases described in this user guide, it would be advisable to have a contingency plan on
what to do in case a market moves against the trader, investor or the hedger. The use of Stop
Market Orders, Protective Long Options Contracts or any other type of risk management technique
could be useful. These sort of decisions are to be taken by the user of this app.

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reach@tradewithufos.com AutoUFOs™ – User Guide [ TS10.

What does this app do?

Screenshot produced using TradeStation®

How to subscribe to this app?

Screenshot produced using TradeStation®

- Step 3: Select the AutoUFOs™ app and click “Subscribe”

Screenshots produced using TradeStation®

How to launch a ready-to-use workspace with the app in it?

Screenshot produced using TradeStation®

Screenshot produced using TradeStation® UFO Bands and

How to manually insert this indicator into a TradeStation® chart?

Screenshots produced using TradeStation®

- Step 3: Look and find “AutoUFOs”

Screenshot produced using TradeStation®

- Step 4: Select “AutoUFOs” by left-clicking on it and the then click “OK”

Screenshot produced using TradeStation®

Which components are displayed?

UFO Efficiency Stats

UFO Price Labels

UFO Efficiency Stats

Which settings are available?

There are two types of settings available to customise this app:

- Settings that impact the calibration of this app

Accessing the Settings Menu

Screenshots produced using TradeStation®

- Step 2: Select “AutoUFOs” by left-clicking on it and then click “Customize”

Screenshot produced using TradeStation®

Screenshot produced using TradeStation®

Screenshots produced using TradeStation®

Screenshots produced using TradeStation®

Screenshots produced using TradeStation®

Important Additional Window Settings

Screenshots produced using TradeStation®

Screenshot produced using TradeStation®

How to calibrate this app?

Accessing the Settings Menu

Screenshots produced using TradeStation®

- Step 2: Select “AutoUFOs” by left-clicking on it and then click “Customize”

Screenshot produced using TradeStation®

Screenshot produced using TradeStation®

Performing the calibration process

Screenshot produced using TradeStation®

Screenshot produced using TradeStation®

Type the desired

Examples on how to use this app?

Available Price Step 2:

(Not the right Sold at

Screenshots produced using TradeStation®

this UFO 2685.25

The End Result

Screenshots produced using TradeStation®

Selling Options and keep the Premium collected

Non-Directional Options Trade Example

this within the

Screenshots produced using TradeStation®

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