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Tuesday, April 2, 2013

SRS Indicator for Ninjatrader for Trend and Counter Trend Setups

SRS Indicator ( Small Range Setup ) for NinjaTrader

This Setup, and its associated Indicator and Strategy, were designed to Trade in the direction of the trend ;

A Fast Period for the Envelope, a Slow Period for the Moving Average is the classic Setup that shows Red Bars when trending down, with orange diamonds indicating Sell Stop Entries at each small pullback ;

I have used this configuration for years. But just a few weeks ago, after the automation of the Indicator and the release of the SRS Strategy and its use with the Strategy Analyzer allowed us to find New and really Interesting Configurations....

What if we make the Envelope Period slower than the Moving Average ?

Now we get counter trend Signals ! ... 

....but does it work ?

Well, the first thing we do with a strategy is Optimizing its Settings 
And when we set the limits of the periods to scan on the optimizer, there is no option on Ninja to specify something like "scan all envelope periods and all moving average periods while envelope period be higher than moving average"...
No, it will just test all combinations...
But my logic was; it doesnt matters ! the optimizer will just discard those undesired scenarios because of being unprofitable...

But the surprise was that for some particular Instruments like Gold or Crude Oil , the best Configuration are Counter Trend Setups !...

Both current versions of Indicator and Strategy are prepared to trade counter trend setups, but we have to take into account that counter trend entries are really fast. Using the Indicator is useful to identify setups but may be too fast for some people to place and adjust the entry orders.

The last version of the indicator has audio alerts and we can use the alert window where we can see all signals and entry price together ( if we have the SRS indicator loaded on several charts at same time ) :

The Strategy can be used on Trend and Counter Trend Setups, with single position management :

It can be configured to take multiple ( user defines the maximum position size ) entries :

Each entry is individual and has its own user defined stop an target...

And it can also be configured to take multiple entries managing the whole position as a single trade averaging the whole trade into a unique averaged entry with its user defined stop and target :

Hope this post has been useful and let you expand your trading opportunities...
Let me know if you have any question posting here or sending me an email.


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