Hubert Senters’ Squeeze Play Strategy & Tradestation Code by Hubert Senters

Hubert Senters’ Squeeze Play Strategy & TradeStation Code by Hubert Senters: A Comprehensive Review

In today’s fast-paced trading environment, strategies that can reliably spot major price shifts are invaluable. One approach that has gained recognition is Hubert Senters’ Squeeze Play Strategy, known for its systematic way of targeting breakout trades. This review breaks down the strategy’s core mechanics, its technical basis, and how traders can put it into practice using TradeStation’s EasyLanguage. Whether you’re an experienced market participant or just starting, learning this method can strengthen your trading arsenal and potentially improve results.

Understanding Hubert Senters’ Squeeze Play Strategy

Hubert Senters’ Squeeze Play Strategy is designed to identify likely breakout scenarios by detecting market compression phases. At its foundation, it uses specific technical tools to track low-volatility periods that often precede substantial price surges. Recognizing these moments enables traders to enter positions ahead of volatility-driven moves.

The method combines Bollinger Bands with Keltner Channels. Together, they act as volatility filters: when the Bollinger Bands narrow and fit inside the Keltner Channels, it signals a “squeeze” — a sign the market may soon break out sharply in either direction.

Key Components of the Strategy

• Bollinger Bands: Measure volatility expansion and contraction. Tight bands suggest an upcoming squeeze.

• Keltner Channels: Define a volatility envelope during sideways trading periods.

• Volatility Indicators: Gauge the magnitude of price changes, helping assess breakout potential.

• Momentum Indicators: Help determine breakout direction and timing.

Technical Indicators: Bollinger Bands and Keltner Channels

The strategy’s precision relies on how these indicators work both individually and in unison.

Bollinger Bands – Created by John Bollinger, these bands surround a moving average and expand/contract depending on volatility:

• Expansion means increased market activity and possible breakouts.

• Contraction signals a consolidation period.

Keltner Channels – Developed by Chester Keltner, they use the Average True Range (ATR) to determine channel width, making them less reactive to sudden spikes and more stable during quiet periods.

Combined Use – A squeeze happens when Bollinger Bands contract inside Keltner Channels, alerting traders to potential breakout zones.

Implementing the Squeeze Indicator

Applying the squeeze indicator involves spotting the setup and interpreting what follows:

Identifying the Squeeze

1. Look for Bollinger Bands inside Keltner Channels.

2. Confirm reduced volatility through band contraction.

3. Wait for a volatility surge — bands moving outside the channels — to confirm breakout initiation.

Breakout Confirmation

• Determine if the price is breaking upward or downward.

• Use volume analysis to strengthen the signal.

Example: A stock trades tightly for weeks. Bollinger Bands compress inside Keltner Channels, then expand sharply with a price surge above resistance and increased volume — a classic upward breakout setup.

 

Combining Momentum Indicators with the Squeeze

Pairing the squeeze setup with momentum tools helps filter out false signals and confirm direction:

• Momentum Histogram: Shows bullish or bearish energy behind a move.

• RSI: Highlights overbought/oversold conditions for added confirmation.

Usage:

• Bullish momentum + squeeze firing = potential long entry.

• Bearish momentum + squeeze firing = potential short setup.

Hubert Senters’ Trading Philosophy

Known for his no-nonsense style, Senters focuses on risk control and swing trading over short-term noise.

Core Values:

• Protecting capital above all.

• Capturing medium-term price swings.

• Adapting strategies by integrating additional tools like the Ichimoku Cloud.

Ichimoku Cloud Integration: Helps refine trade entries by confirming trend strength, support, and resistance.

Implementing the Strategy on TradeStation

TradeStation’s EasyLanguage enables traders to build, automate, and test the squeeze strategy.

Steps:

1. Program Bollinger Bands and Keltner Channels.

2. Define squeeze detection logic.

3. Add momentum confirmation.

4. Automate signals or alerts.

Coding the Strategy in TradeStation

A basic EasyLanguage script for the squeeze might include:

• Setting input parameters.

• Calculating Bollinger Bands and Keltner Channels.

• Detecting squeezes.

• Determining breakout direction with momentum.

• Triggering buy/sell signals accordingly.

(Example code remains the same as provided.)

Advantages and Potential Challenges

Advantages:

• Clear, rule-based entry triggers.

• Built-in risk control by avoiding uncertain periods.

• Works across multiple markets and instruments.

• Easy to automate and backtest.

Challenges:

• False breakouts can still occur.

• May miss moves not flagged by indicators.

• Performs best in markets that alternate between quiet and volatile phases.

Real-World Applications and Success Stories

Traders using this approach often see:

• Better timing on entries.

• Stronger risk-reward setups.

• Improved trading discipline.

Example: A trader spots a squeeze, confirms bullish momentum, enters a long trade, and profits as the market rallies — showcasing the strategy’s potential.

Conclusion

Hubert Senters’ Squeeze Play Strategy offers a structured path to capitalize on breakouts from market consolidations. By merging Bollinger Bands, Keltner Channels, and momentum analysis — and automating the process in TradeStation — traders can enhance precision and consistency. As always, disciplined execution and continuous improvement remain key to success.