Overview:
The ARC_Engulfing Algo is an automated trading solution for Ninjatrader that scans for Engulfing Bar patterns and automatically enters and manages directional trades based on a confirmed setup that meets all the criteria. Because the markets are fractal and the Engulfing Pattern applies to any timeframe, the system can be equally applied for scalping, daytrading, and intraday swing trading strategies. When a market is trending, there will always inevitably be pullbacks during the trend. However, when a pullback bar is then immediately reversed and completely engulfed by the next bar, that is an Engulfing Pattern that usually means that the counter-trend traders are overwhelmed by the prevailing directional sentiment. When this happens there is usually enough follow-through that a continuation trade in the prevailing direction will generate an opportunity for profit. The timing of entries is important, making the Engulfing Algo an excellent choice for any trader that wants to autotrade Engulfing Patterns on intraday timeframes.Purpose:
Traders need the ARC_Engulfing Algo software because in addition to providing excellent trade setups, the software includes a wide variety of customizable settings which make it easy to adapt to various instruments and changing market conditions. An Engulfing Pattern means that there is substantial directional energy to overcome the traders that are trying to reverse the market but simply knowing this does not answer the question of when to act. What you need is a systematic way to parameterize the setups so you can measure the performance and know when to engage and when to wait. You can then let the software do all the work for you. Combining the Engulfing Algo toolset with the Ninjatrader built-in performance tracking functionality allows you to find and deploy the best strategies for each given market.Elements:
- Autotrade Engulfing Patterns on any timeframe
- Automatically adjust stop sizes to price action patterns, thereby adjusting risk to immediate price action
- Control the sensitivity of signal components with measurable performance statistics
- Control the level of confirmation required by choosing between bar close and intrabar breakout entries
- Apply fully automated trade plans with stop placement and up to 3 targets
- Utilize dynamic trade sizing to control Dollar Risk per trade
- Utilize 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 signal graphics, execution markers, stop/target graphics, realtime P&L
- Built In Backtesting and Optimization capability
Functions:
The ARC_Engulfing Algo is best used by starting with the instruments and timeframes that are most familiar to you and then using the algo controls to dial in where and when to enter on each setup as well as configuring the dynamic stop placement. Then make use of the built in backtesting and optimization functionality to fine tune the settings including any signal filters. From there it is important to forward-test your strategy settings by deploying the algo in live markets on a Sim account. It is always best to test your strategy before risking your 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 improving performance as well as periodically adjusting to changing market conditions.Problem Solved:
- Stops traders from missing out on simple setups that are difficult to correctly time without automation
- Stops traders from failing to know when to enter and when to wait
- Stops traders from having to wait all day for a good trade setup
- Stops traders from hesitating and then getting in too late
- Stops traders from being too aggressive when trading pullbacks
- 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 failing to manage risk properly
- Stops traders from trading without a good and easy way to compare performance of different strategies
