ATM Stop Strategies - Simple Stop - Auto Trail Stop - Auto Breakeven Plus Trail - NinjaTrader 8

Summary

This video demonstrates three automated trading strategies in NinjaTrader 8 for setting stop orders: a simple stop loss, an auto trailing stop, and a combination of auto break-even with auto trailing. The video explains how to create and save these strategies as templates for future use. It covers step-by-step instructions on setting stop-loss values, customizing trailing stops, and adjusting orders as the trade progresses. Viewers learn how to manage risk and protect profits using these automated tools, ideal for enhancing trading efficiency and reducing manual intervention.

Takeaways

• 😀 A simple stop loss strategy can be created in NinjaTrader 8 by setting a fixed stop loss in ticks (e.g., 12 ticks).
• 😀 Auto trailing stop loss can be set to follow the price once it moves a predetermined number of ticks in the trader's favor.
• 😀 The auto trailing stop strategy adjusts the stop loss dynamically as the price moves, locking in profits and reducing risk.
• 😀 You can save custom ATM strategies as templates in NinjaTrader 8 for easy reuse in future trades.
• 😀 The 'Auto Break Even' strategy moves the stop to break even (or a small profit) once the price moves a predefined number of ticks in the trader's favor.
• 😀 The combination of 'Auto Break Even' and 'Auto Trailing Stop' strategies allows traders to lock in profits while still allowing for further price movement in their favor.
• 😀 When using Auto Break Even, the stop can be moved to cover commissions by adjusting the stop to one tick in profit once the price reaches a certain point.
• 😀 You can adjust the trailing stop strategy to follow the price tick by tick, ensuring the stop loss always stays a set number of ticks behind the market price.
• 😀 The tutorial walks through both manual and automatic methods for trailing a trade, with visual demonstrations on NinjaTrader 8.
• 😀 Traders can automate multiple stages of their exit strategy by setting multiple stop loss orders, such as a fixed stop, break-even, and trailing stop, all within one routine.

Q & A

What is an ATM strategy in NinjaTrader 8?

ATM (Automated Trade Management) strategies in NinjaTrader 8 are predefined templates that help automate various aspects of trade management, such as stop-losses, profit targets, and trailing stops. These strategies make it easier to manage trades without manual intervention during execution.

How do you create a simple stop loss in NinjaTrader 8?

To create a simple stop loss, you first open the 'ChartTrader' section, then navigate to the 'ATM Strategy' dropdown, select 'Custom,' and set the stop loss value in ticks. After clicking 'OK,' the stop loss will be placed at the specified tick distance from the entry price.

What does the exclamation mark next to 'ATM Strategy' indicate?

The exclamation mark next to 'ATM Strategy' signifies that the ATM strategy is active and has been successfully applied to the trade. This alert helps traders verify that their automated strategy is active and ready to manage the trade.

What is the purpose of a trailing stop in the video’s example?

A trailing stop automatically adjusts the stop-loss level as the price moves in favor of the trade. This allows for locking in profits while giving the trade room to continue moving in the desired direction, effectively 'trailing' the price to secure gains.

How do you set up an auto trailing stop in NinjaTrader 8?

To set up an auto trailing stop, go to 'ATM Strategy,' select 'Custom,' set the initial stop loss value (e.g., 20 ticks), then enable the 'Auto Trail' option. After a predefined number of ticks into the trade, the stop loss will automatically adjust to trail the price.

What happens when the price reaches the specified number of ticks into profit for the auto trailing stop?

Once the price reaches the defined number of ticks into profit (e.g., 16 ticks), the system will trigger the trailing stop, adjusting the stop loss from a wider value (e.g., 20 ticks) to a tighter one (e.g., 12 ticks). The stop loss then moves in tandem with the price, adjusting tick by tick.

What is the role of break-even plus one tick in the 'Auto Break Even' strategy?

The 'Auto Break Even' strategy automatically moves the stop loss to break even (the entry price) once the price has moved a specified number of ticks in the trader's favor. Additionally, it adds one tick beyond break even to cover commissions and ensure no loss on the trade.

Can you manually adjust the stop loss once an ATM strategy is active?

Yes, you can manually adjust the stop loss even when an ATM strategy is active. By clicking and dragging the stop on the chart, you can move it to your desired level. This allows flexibility in trade management while using automated strategies.

What is the main difference between the 'Simple Stop Loss' and 'Auto Break Even + Auto Trailing' strategies?

The main difference is that the 'Auto Break Even + Auto Trailing' strategy adds two layers of automation. First, it moves the stop loss to break even plus one tick after the price moves in your favor by a defined amount. Second, once the price reaches a further threshold, it starts trailing the stop loss tick by tick to lock in profits as the trade continues.

Why is the example in the video labeled as a 'bad strategy' for the MNQ market?

The video creator labels the example strategy as 'bad' for the MNQ market because the stop loss and trailing parameters (e.g., 4 ticks) are too tight for this market. In real-world trading, such a small stop loss can result in frequent stop-outs, making it unsuitable for certain markets like the MNQ, which tends to have more volatility.