VBands Algo

Overview:

The ARC VBands Algo is an automated trading solution for Ninjatrader that capitalizes on the oscillating structure of price action in both trending and sideways markets. Even within a strong trend, price moves in a series of impulses and pullbacks. A Channel or Volatility Band constructed around price action can be used for reversal setups near the boundaries. Price always returns to the mean without exception so there will always be mean reversion trades. The only challenge is to find the best way to construct the Channel for the most profits. With four customizable Band styles and five available Entry Patterns, the VBands Algo provides all the tools needed to both optimize and autotrade the best configuration for each market.

Purpose:

Traders need the ARC VBands Algo because its hard to know which type of Volatility Band to use and as well as how to set the width and lookback. On top of that, you need to know whether to enter immediately or wait for confirmation and what is the best trigger for entering a trade. These questions are solved with the VBands Algo because you can use the actual market data to tell you how best to configure the system. Why not take the guesswork out of it and put a powerful tool to work improving your performance as a trader.

Elements:

1. Autotrade reversals at the boundaries of your customizable Channel
2. Choose from four different Volatility Bands with custom settings
3. Select from five different Entry Patterns from conservative to aggressive
4. Use custom filtering to prevent overtrading
5. Manage risk with volatility based stops
6. Tune the system for any timeframe from scalp to swing
7. Utilize optimization functionality for the best performance
8. Apply fully automated trade plans with stop placement and up to 3 targets
9. Utilize R-multiple target placement
10. Protect profits using AutoTrail and Breakeven strategies
11. Take advantage of dynamic trade sizing to control Dollar Risk per trade
12. Improve signal quality with comprehensive trend, momentum, and market structure directional filters
13. Make the best use of Time filters, Day of Week filters, Holiday filters, and Money Management functionality
14. View built in trade signal graphics, execution markers, stop/target graphics, realtime P&L

Functions:

The VBands Algo is best used by first understanding that the market always fluctuates and this kind of tool really provides everything you need to find the best configurations for your favorite instruments. You may already have a favorite channel indicator or you can let the software help you pick. You have a variety of Entry Patterns from aggressive to conservative. Once you have settled on those, you can use the rest of the core algo engine functionality to do everything from setup your trade plan and exit strategies to finding the best trend and momentum filters and even finding the best times of the day or week to trade. You have powerful backtesting and optimization modes to make sure you are getting the most out of this tool. Be sure to forward test in sim before putting capital at risk. It is always advisable to re-optimize periodically to stay in tune with changing conditions.

Problem Solved:

• Stops traders from missing out on recurring mean reversion setups
• Stops traders from ignoring statistical data that can help improve performance
• Stops traders from guessing when the market will reverse
• Stops traders from ignoring volatility for timing and location
• Stops traders from getting in too early or too late
• Stops traders from bad stop placement in volatile markets
• Stops traders from not allowing the data analysis to select the best markets to trade
• Stops traders from setting their stop size either too small or too large
• Stops traders from sabotaging their trading due to indecision and fear
• Stops traders from trading without a well defined trade plan
• Stops traders from failing to adjust to market conditions
• Stops traders from failing to identify the best days and times to trade
• Stops traders from lacking the proper tools for managing risk appropriately
• Stops traders from lacking the ability to objectively compare the performance of different strategies