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Tuesday, February 19, 2013

Small Range Strategy for Ninjatrader

The Small Range Indicator for Ninjatrader has been finally Automated !

If you like the Small Range Setup, one of the most easy to configure and follow, with the best results, then you will love this automated version :
The PM_Small_Range_Trader strategy will trade the Small Range Setup Signals ( as explained on previous post of this blog ) with the following enhancements :

  • We can specify 3 different Time Windows where to place orders, and also define if positions must be held outside those windows
  • When we have a signal, the system will place a stop entry order and keep adjusting its value until we get a fill or the signal is gone.
  • When the signal is gone without a fill, We can also define the number of bars to keep the order alive. Sometimes, on manual trading I leave the order by just one bar until I cancel it.
Now we can backtest and get the optimal results; on Gold and Crude Oil I found that using 1 bar ( instead of zero ) is the best option.

On the following picture we can see both ; the indicator and the strategy on a trade setup where the usual cancel at next gray bar is outperformed by the strategy by waiting one extra bar before cancelling the order :

This video shows how I manual place orders on 4 different markets ( Crude Oil, Gold, Euro and British Pound ) using the TIS_Small_Range Indicator :

....and on this new video, I show how to auto trade the same 4 Instruments :

Please post any question or comments here !

Good Trading !
Pablo Maglio The Indicator Store 
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Tuesday, February 12, 2013

Internal Fibs Indicator for Ninjatrader

The Internal Fibs Ratios provide very important information that we can use to define New Trade Setups

Today we are going to cover the definitions of Internal Fibs and explain two very easy to follow setups :

Definition : Given a Time Interval ( it may be a number of bars into the past, or today's price action ), we take the High, the Low, and then we calculate a percentage inside that range.

If for example we are using the 78.6 % fib ratio, we have 2 levels :
  • The 78.6% of the High
  • The 78.6% of the Low ( or 100-78.6 = 21.4% of the High)
The most useful values to follow are the 50% ( the middle of the range ) and the 78.8%

One setup we can try is the 50-Vwap Trade ;
It consists on looking at the confluence of the Vwap ( Volume Weighted Price Average ) and the 50% retracement of today's Range.

This is a very easy to follow setup, we just need a fib tool and a Vwap.

If we want to have a dedicated indicator to keep adjusted the high and low of the session and plot the real time 50%, we can use the indicator TIS_Int_Fibs

Another setup, called ITS and designed to be used on 1 Min Index Futures ( like ES ) is as follows :
We plot the 78.6% Internal Fib and count bars above the upper line or below the lower line.
When we have N bars in row outside the fib line, we have a signal ; if we are above the upper fib line, we have a long signal. If we are below the lower fib line we have a short signal.
The Entry ? ....I use a previous low pivot, for that purpose I plot a Donchian channel to follow the last pivot....but each one can use its own ideas...

On this picture we can see an example of the ITS Trade Setup on YM ( Dow Jones )

On this example we have the trade setup detection when the count of bars below the lower 786 reaches 8. Then on the zoomed portion of the screen we can see how to trade the setup shorting a previous low pivot.

Please post your questions, ideas or suggestions here
Best wishes !
logo Pablo Maglio The Indicator Store 
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Sunday, February 3, 2013

New Setup using TIS_ATR_BarColor Indicator for NinjaTrader

Using the Multitrail Indicator for Ninjatrader logic to define a New Trade Setup ; we present the TIS_ATR_BarColor

Some time ago we discussed how to use the TIS_Multitrail Indicator and today We are going to describe how to use it to define a New Trade Setup.
As we know, the Multitrail uses ATR and HMA ( Hull Moving Average ) to have the best price following effect and proportional to the current Volatility. This give us the best tool for trailing stops....
...but how can we use it to define a Trade Setup ?

For that purpose we just need 2 events :
  • Multitrail level has been broken ( if we were trailing a runner we are flat now )
  • If going to reverse, we require a pivot to be formed first
Look at the following example :

Bars are Red and Multitrail is on Downside Mode until price breaks above it, taking out the trailing stop ( if we were short ) and generating a possible Entry on this New Setup :
  • To trade a continuation we only need to break the multitrail upside blue dots.
  • To trade a reversal we need to create a pivot as confirmation and then go long at its breakout.

While the market doesn't breaks the pivot or the multitrail, the setup is on neutral state and the Indicator paint the bars in Yellow.

On the following example we can see a Continuation Entry :

On this example, the trend is UP, mutlitrail line is broken and a pivot is generated ( gray line ) but the pivot is never broken, so there is no short trade.
Market continues going up and the multitrail line is broken to the upside, so we have a Long Continuation Entry.

This new TIS_ATR_BarColor Indicator not only follows the TIS_Multitrail lines and the described Setup ( with all the Bar Coloring, Pivot detecting, and entry breakout entries ) but also has an acceleration Input parameter that avoids to keep an horizontal movement ( not moving the trail stop ) when the market is starting to reverse. Leaving this input parameter to zero has same effect than the classic Mutilitrail.
On the following chart we can see the effect of using the "acceleration" setting :

As we see, we can use TIS_ATR_BarColor for Trailing purposes with same functionality as TIS_MultiTrail adding the acceleration enhancement, AND we can also add a New Trade Setup to our ToolBox.

Hope this info be useful for your trading.
Please post any question or send me an email


logo Pablo Maglio The Indicator Store 
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