Overview:
The ARC_VABO Algo is an automated trading solution for Ninjatrader which combines Volume Profile analysis and Range Breakout strategy setups. When looking at a Volume Profile for a given time window, the Point of Control (POC) represents the “most accepted” price level over that time span. Likewise, the Value Area (VA) tells us the range of prices within which the bulk of volume occurs. Because market participants seek out liquidity to do business, it is common to see prices remain within high volume areas for a period of time. However, when price breaks out of those high-volume areas, we often see significant price movement as market participants seek out new areas of accepted prices. It is this dynamic which the VABO Algo is designed to exploit, making it an excellent solution for momentum breakout day traders who rely on volume profile analysis for superior trade setups.Purpose:
Traders need the VABO Algo software because, while volume profile analysis is critically important, it is nearly impossible to manually track real time changes in key profile anchor points when trading breakout strategies. These anchor points can change at any moment and any lag in identifying last minute changes could mean that you are entering in the wrong place or time. The VABO Algo automatically identifies the correct levels so you can rest assured that you can avoid the common mistakes made by breakout traders. By applying this strategy as an autotrader you can rely on accurate setups and easily track performance.Elements:
- Autotrade superior breakout setups based on real time volume profile analysis
- Leverage dynamic real time profile anchor points to find the best entry locations
- Control the timeframe and frequency of profile resets to instantly adjust to changes in market activity
- Take advantage of dynamic stop sizing based on current volume and price action
- Utilize dynamic trade sizing to control Dollar Risk per trade
- Fully automated trade plans with stop placement and up to 3 targets
- R-multiple target placement
- Comprehensive trend, momentum, and market structure directional filters
- AutoTrail and Breakeven strategies
- Time filters, Day of Week filters, Holiday filters, and money management function
- Built in trade signals, execution markers, stop/target graphics, realtime P&L
- Built In Backtesting and Optimization capability
Functions:
The VABO Algo is best used by focusing first on the profile reset frequency to control how many trade signals are generated per day to match your trading style. Then make use of the built in backtesting and optimization functionality to fine tune the remaining Signal logic settings. From there it is important to forward-test your strategy settings by deploying the algo in live markets on a Sim account. This gives you an opportunity to fine tune your strategy before you risk trading capital. When you have achieved consistency in Sim, you can deploy the algo on your live trading account. The automated trading system will follow the signal rules and pre-defined trade plan exactly as configured, so you don’t have to worry about execution and can focus on testing and improving the strategy as well as periodically adjusting to changing market conditions.Problem Solved:
- Stops traders from missing out on key volume anchor breakout points
- Stops traders from having to wait all day for a good setup
- Stops traders from failing to know when to engage and when to wait
- Stops traders from sabotaging their trading due to indecision and fear
- Stops traders from dealing with the stress of manual trading
- Stops traders from failing to identify the best days and times to trade
- Stops traders from failing to adjust to market conditions
- Stops traders from trading against momentum, market structure, and directional bias
- Stops traders from trading with a plan and without the benefit of comprehensive performance statistics
- Stops traders from failing to manage risk properly
