SRS Strategy for NinjaTrader Webinar Recording

This is a Ninjatrader Webinar recording about the SRS ( Small Range Setup ) 

YouTube Webinar Recording

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

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  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

TIS_MultiTrail Indicator for Ninjatrader

TIS_MultiTrail Indicator for NinjaTrader
... a Tool to Manage Trailing Stops

Once we have cashed out the First Target of our trade, one of the most difficult tasks to achieve is optimizing the performance of our runners.

I call runners to those positions without a defined target, where we keep moving the stop trying to stay in the market the most part of the trend.

Placing our stop a few ticks from the previous bar extreme is one of the most usual methods, but not the best ; we usually get stopped out at a small retracement, and then the market keeps going on the same direction...without us !

The Multitrail indicator uses a combination of ATR ( Average True Range ) and HMA ( Hull Moving Average ) to get the fastest move according to the current volatility :

Click on the Chart to Zoom

If you look at the chart with detail, you will see that there are several instances where price touches the line, without changing the trend ; this is because the indicator requires a breach to consider a reversal.

We can change the settings making  the trailing more aggressive, so if we have multiple runners, we can have different settings for each one, as on the following example :

Click on Chart to Zoom

This trailing stop method is used on the PM_Impulse Strategy

You can find this Indicator for NinjaTrader on the Following Link

If you have any question please post your comments here or send me an email.

Good Trading !

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

Week Trades using Indicators for Ninjatrader from The Indicator Store

Hello ! We will describe the trades we could execute this past week using the Indicators for Ninjatrader designed by The Indicator Store ; TIS_Small_Range and TIS_Impulse_Trader.

Impulse Strategy

On the following charts, we can see the entries of the Impulse Setup on the British Pound  ( Forex : GBPUSD ) and a comparison of its entries to the futures version ( 6B )

As we can see on the next chart, this system is valid on Forex and futures, showing the same entries on both

The only difference is the tick value ( $6.25 ) vs GBPUSD pip value.

The British Pound (6B)(GBPUSD) has been moving very well this week, making this strategy very profitable.

The Timeframe used is Range 6 and the parameters are :
Slow Moving Average Period =
Channel Size = 8 ticks/pips
Fast Moving Average = 8
Entry = -3 ticks/pips from Slow moving Average

On the following Chart, we see the same Strategy applied to the euro-dolar pair (EURUSD).
As we already explained, this is also valid for Euro Future ( 6E ).

 On this example, we had 3 sell signals today ; 1st got the initial target, 2nd was a loser and last short got 1st and 2nd target ( or exited at trailing stop )

For the Euro Setup We replace the fixed envelope by a Bollinger ;
Bollinger Period = 50 , Standard Dev = 0.5
Fast Moving Average = 8
Channel Size = 5 ticks ( around Fast Moving average)
Entry = Slow Bollinger Band with Standard Deviation = 0.8

Small Range Setup

This chart shows the Small Range Setup applied to Gold using a 9 Range Timeframe.

Today , Gold was mostly on sideways mode, without allowing to get bigger targets than usual.
We had a long with a target 1 winner and runner out at breakeven. Then a short winner, again, with runners out at breakeven, and finally a short loser.

Have a Great Long Weekeend !

Pablo Maglio
www.TheIndicatorStore.com

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Small Range and Impulse Indicator Alignment

On the following chart, we can see the use of the Impulse Indicator and Small Range Indicator for NinjaTrader showing the first short signal of the week on Crude Oil.

Luckily, both signals of both uncorrelated systems are triggering on same Price Area

The implied risk of both trades are similar and in the range of usd 150, while the possible target is bigger than usd 500 using trailing stop.

First Sell Trade of the Week using Small Range Setup

First Sell Trade of the Week using the Impulse Strategy

As you can guess, nothing better for a strategy, to have another uncorrelated setup aligned on same Price Area

For those who follow these Setups, knowing the fact of confluence increases the probability of success.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Trade Setup for Impulsive Markets

The most profitable markets are those with Impulsive Movements.

A Market leaves the Trend mode and switches to Impulse Mode when there are no more pullbacks big enough to get into the trade, and when it finally happens the move is finished leaving just a small winner or even a loser.

On volatile markets, the switch from sideways to Impulse is so fast that we dont even get an entry on the first trending pullback. This is why it is so important to define when the Impulse Mode is starting so we can use an early entry.

The most volatile markets are crude oil, gold, silver, nat gas ( CL, GC, SI, NG ).

Cash Index Markets like S&P ( ES ) are mostly on sideways or trending mode. Some of these trend moves may sometimes change to Impulse Mode, allowing to the trend entries increase their profits.

We have several ways combining classic Indicators, to define when the market is Impulsing.

The most used ways to trigger an Impulse Signal are :

1)      A Fast Moving Average crossing outside a Slow Band

2)      A Fast Band crossing all outside a Slow Band ( similar to previous method but with an extra security margin)

In the following Charts we can see both Methods ; ( The vertical Red Line shows where the Impulse Mode Starts on each example )

     

 The Band can be a Bollinger Band, a Keltner Channel or a Fixed Envelope ( like on the examples shown )

We have to take into account that if we use Range Charts, all Bars will have same height, so volatility ( and ATR ) will be constant, turning Keltner Channels into Fixed Envelopes.

Now we have different ways to define the Impulse Mode Signals, now we just need to define the entry.

In a trend system, we use the slow EMA ( like on the PM_EMA setup ), but on Impulsive Moves, the Markets never come back to the EMA.

The entry can be defined again using an envelope ( Bollinger, Keltner, Fixed ) of lower size than the signal envelope ;

An entry for example 1 can be the lower slow band ( green) 

An entry for example 2 can be a 50% of upper fast band ( blue )

As shown, using EMAs and Envelopes to define signals and entries, we can get a big number of different setups. We just need to find the best combination for each Instrument.

Having all these rules automated is a big Help that let us backtest, optimize and even trade any configuration. We at The Indicator Store have a Strategy Pack called PM_Impulse, that contains several individual strategies following different combinations of the explained setups.

If you like this article please leave your comments and share with your firneds

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Best Indicator for NinjaTrader

Several people asked me about which is the best indicator to use...

In my humble opinion it is not related to a specific indicator but to a group of indicators, and the most important is to choose the correct ones and how to set them all together to find an edge.

In the following example I will show you how the Small Range Setup uses a different group of indicators to filter a setup from different scopes ;

The following is a GOLD ( GC 02-13 ) Chart of today ( Dec 20, 2012 ) 

On this setup I use a trendline ( blue exponential moving average )

an envelope ( gold envelope of 8 ticks size around a 17 moving average )

and Donchian Channel of 13 bars.

When the envelope is all below the trendline we are in sell mode...

A bar can trigger a signal, only if it is making equal or higher high for a short, so we check that the high of bar must be touching the Donchian Channel.

If all of these conditions align, then we place a sell stop 2 ticks below the signal bar...

If price continues against our entry we don't get a fill, just another bar with better entry, until the envelope touches the trendline again and the trade is discarded.

On this example, we keep moving our entry up for several bars until we get a fill at 1659.4

The stop must be placed 2 ticks above the high of the entry bar ; 1660.8 so we are risking 1.4 points = $140 per contract.

We usually should go for 1.5 to 2 times the range of the chart as first target ( 15 to 20 ticks ). On this example the move was enough to get 6 points ( $600 ) per contract.

I created a dedicated indicator to follow this setup that does all the calculations, paint the bars, show the indicators used and also places a diamond where you need to place the order... Really easy... More info Here

On instruments like gold or crude oil we should always take into account the option of using trailing stops, because these markets offer great potential.

There are several ways to manage a trailing stop, and that may be one of my next posts...

Regards,

Pablo Maglio

www.TheIndicatorStore.com

Small Range Setup

New Setup : Small Range

link to big picture

This is an old setup focused to trade trending and/or impulsing markets in the direction of the trend.

The Entry Type uses Stop Orders as it is intended for fast volatile never returning markets like crude oil or gold.

This setup uses the following Tools :

• A slow Moving Average to define the Trend (blue line)
• An envelope around a fast moving average to define the trade / no-trade condition
• A channel to verify that the entry bar is making an extreme of the move
• A tool to calculate the range of the bar ( not used on range bars)

When the blue line is all outside the envelope, the setup has a trend. Otherwise it is in neutral state ; gray bars = do nothing.

If we have red bars and current bar is touching the upper channel, then we have a possible short entry.

When not using range bars we can add another condition ; signal bar must be of small range ;

The short entry is a Sell Stop some ticks below signal bar ( usually 2 to 3 ticks ).

If at next bar we have a better entry we move the order to new place, like on example above.

Once the entry is filled, the stop should be placed some ticks above the signal bar.

Using range chart is easy for this setup because the stop is a fixed value ; the range of bar + 2 times the offset. On a 9 range CL chart using 3 ticks as offset, the stop is 15 ( 9 + 2 x 3 )

I have a developed a special indicator for this setup on www.theindicatormarket.com

This is the link :