Overview:
The ARC_Megabar Algo is an automated trading solution for Ninjatrader that scans for momentum breakout patterns which occur when an extended range candle appears in the price action. An Extended Range Candle (ERC) is essentially a large candlestick (“Megabar”) which is substantially larger than the average size of the bars printing at any given time. A Megabar signifies a strong move that occurs quickly and with strong momentum. When this occurs in the direction of the overall trend, there can be substantial follow through leading to potential profits. The Megabar tells a story of strong directional energy so it makes sense to participate in the move when the conditions are right. The software allows you to completely customize what defines a valid Megabar and this includes the ability to make the criteria dependent on current price action. Trading with this precision is difficult to do manually which makes deploying this strategy as an automated system so beneficial. The statistical performance of the strategy can be generated for any given set of signal generator settings thereby making it easy to find the most profitable settings for any instrument in the current trading environment. The built in backtesting and optimization functionality can be used to find the best instruments and timeframes, making the Megabar Algo an excellent choice for any trader that wants to autotrade momentum breakouts.Purpose:
Traders need the ARC_Megabar 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. When a large candle appears, how do you know if it is the right time to jump on board the price move? With the Megabar Algo software, you don’t have to worry about that split second decision because you have already optimized the settings and the software immediately takes action when a signal is generated, much faster than you can do manually. The Megabar Algo software provides what every trader needs: a systematic way to parameterize the setups so you can measure the performance and let the system determine when to engage and when to wait. Once you have optimized your settings, you can then let the software do all the work for you.Elements:
- Autotrade Extended Range Candle momentum setups on any timeframe
- Engage in both reversals and trend trades by customizing the signal definitions
- Fine tune the exact requirements for a valid Megabar based on optimized performance statistics
- Control the level of confirmation required by defining a breakout buffer distance
- Automatically adjust stop sizes to price action patterns, thereby adjusting risk on the fly to the immediate trading environment
- 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 Megabar Algo is best used by focusing on the instruments, timeframes, and trading style that you are most comfortable with. The main component of deploying the strategy is to set limits of what is considered a valid Extended Range Candle (“Megabar”), how much confirmation is needed to enter a trade, and to tune the signals for trends or reversals. At first it is best to perform preliminary backtests and view the chart signals to narrow down the settings. Then move on to the optimization of all the relevant parameters. Once you have done that it is best to forward test those optimized settings in live trading (in Sim) to validate performance. It is always best to test your strategy before risking your actual 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 failing to recognize key momentum breakouts
- Stops traders from entering at the wrong time or place
- Stops traders from getting in too early or too late
- Stops traders from failing to adjust to market conditions
- Stops traders from trading in the wrong direction
- Stops traders from failing to adjust their strategy to each instrument
- Stops traders from trading without any data-driven optimization of strategy settings
- Stops traders from dealing with the stress of manual trading
- Stops traders from sabotaging their trading due to indecision and fear
- Stops traders from failing to identify the best days and times to trade
- Stops traders from failing to manage risk properly
- Stops traders from trading against momentum, market structure, and directional bias
- Stops traders from trading without a good and easy way to compare performance of different strategies
