NinjaTrader® Automated Strategy
NinjaTrader® Automated Strategy
What is a NinjaTrader® Automated Strategy? It is a kind of Fully Automated Trading System. We'll begin with that and then explain how a NinjaTrader® Automated Strategy works.
Fully Automated Trading Systems
Automated Trading Systems are also called Mechanical Trading Systems, Algorithmic Trading, Automated Trading or Automated Trading Strategy. These systems are computer programs that implement a set of trading rules that the program follows and when the conditions of these rules are met the program automatically submits orders to buy and sell securities.
As explained in the section “How do automated trading strategies work”, strategies employ an algorithm based on price data. With a fully automated trading system the user turns the system on and the software will execute trades. No interaction is expected from the user. All of the trading rules are programmed into the computer.
How do automated trading strategies work?
Computer software programs automatically sends orders to your broker to trade for you. Usually the strategies use a market data feed and a set of algorithms that study the price action in the market data. The strategies are typically coded to look for patterns that have happened in the past in the hopes that when such patterns begin to unfold in real time that the pattern will complete as it did in the past.
For example, a strategy could employ a reversion to the mean type of trading style. In this style the strategy is looking for the price action to deviate from an average price. Once it deviates enough the strategy expects the price to return to the average. If the price action has gone below the average price enough the strategy will buy and when the price action goes above the average the strategy will sell.
All of this is done automatically. The user of the strategy need not interact with the computer except to start and stop the strategy from running as they wish.
Semi-Automated Trading Systems
With a semi-automated trading system, the user and the computer software cooperate to execute and manage trades. The software may start a trade by opening a position and then leave that position alone with the expectation that the user will close the position when they're ready.
What is a NinjaTrader® 8 Strategy?
A NinjaTrader® Strategy is a Fully Automated Trading System that runs in NinjaTrader®. NinjaTrader® automated strategies are Add-On components that users of NinjaTrader® can write themselves or import one written by a 3rd party. A NinjaTrader® 8 strategy is specifically for NinjaTrader® 8.
NinjaTrader® 8 Strategy Examples
NinjaTrader® comes with a free strategy called SampleMACrossOver. This strategy uses two moving averages, a 10 bar and a 25 bar. The 10 bar average will move up and down more quickly and will sometimes cross over the 25 bar average. When the 10 bar average crosses above the 25 bar average, the strategy goes long. When the 10 bar average crosses below the 25 bar average, the strategy goes short. This strategy is always in the market.
What does it mean to go long or go short?
When your account is long it means you’re buying first and selling later to return your account to not holding a position. This is what most people are doing when they buy stocks. Shorting a security ( a stock or a futures contract ) means that you sell first. When you short you are borrowing the shares from your broker and you need to give those shares back later.
Who Issues Futures Contracts?
The traders issue the futures contracts. The CME Group defines the contract specifications and provides the electronic exchange for the trading. But they do not issue futures certificates. Unlike stocks, there are no futures certificates. Instead, instances of the contract are created when someone goes short. Until someone goes short, no one can buy. The balance of long and short positions is always equal.
How are NinjaTrader® Strategies written?
A NinjaTrader® Strategy is written using Ninjascript®. Ninjascript® is based on Microsoft’s .NET technology. It uses the C# programming language coupled together with a code library written by NinjaTrader® to enable the strategies to interoperate with NinjaTrader®.
Who offers winning NinjaTrader® Strategies for Sale?
AutomaticTradingSignals.com offers proven winning NinjaTrader® Strategies for Sale. In some cases subscription models are offered. We offer some of the best NinjaTrader® indicators.
NinjaTrader® Indicator
A NinjaTrader® Indicator is a NinjaTrader® software component that plugs into NinjaTrader® and interoperates with NinjaTrader® usually for the purpose of enhancing the functionality or market analysis. A Simple Moving Average study is an example of a NinjaTrader® Indicator. In fact, all of the “standard” indicators that come with NinjaTrader® are NinjaTrader® Indicators. They are written using the same technology that 3rd party authors of NinjaTrader® Indicators - NinjaScript®.
There are not many free NinjaTrader® Strategies but there are many good free indicators. Some of the best NinjaTrader® Indicators can be found on the NinjaTrader® website. If you’re looking to get your hands dirty and write your own, and you’re not sure how to get started, a great way to begin is with an existing Free NinjaTrader® Script.
Is NinjaTrader® Really Free?
Yes! You don't need to buy NinjaTrader unless you want to save money on the commissions. There is no difference between the free NT and the licensed one except for commissions and also some market profiling indicators.
Is NinjaTrader® A Good Platform?
There are several advantages that NinjaTrader® has over other trading platforms. It’s fast and efficient. It’s built with the same technology used to program state of the art computer games. The design of the software internals permit 3rd party add-on developers of indicators and strategies a great deal of flexibility, power and access to multiple data feeds. The software api is well organized. Even if you’re not yourself a software developer planning to write your own NinjaScript® Indicators and Strategies, the fact that the programming interface is so well done means that you’re more likely to find high quality indicators and strategies for NinjaTrader® than any other platform.
The Chart Trader® and DOM interfaces for order entry are clean and easy to use. For a full list of features see the NinjaTrader® website.
Read our full disclaimer plus terms and conditions HERE.
RISK DISCLOSURE
Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
HYPOTHETICAL PERFORMANCE DISCLOSURE
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.