Auto Trade Strategy

Auto Trade Strategy

ZoneTraderPro has developed auto trade strategy that will be able to be used for the ES Tick Divergence trade and the ZN 10 year bond that has been talked about in previous posts.  The auto trade strategy is in its final stages of development, with almost all of the features now added.

One huge advantage of the auto trade strategy is its ability to always have your orders in the queue and ready to trade.  It does not matter where the price currently is, ZoneTraderPro knows where the blue counter trend zones are at all times.  Because of that you will always have pending orders, so that your orders have a greater chance of being filled.

In the SuperDom pictured below, you notice that the Stop Market order is 13 ticks away from the price.  This is because the strategy is using the NinjaTrader Simulated Stop, which you do not see in the SuperDom, but is seen on the chart.  The order in the SuperDom is a hard stop in case you lose internet connectivity and the simulated stop can not be triggered.

SuperDom with Orders
SuperDom with Orders
Short Bond Trade
Short Bond Trade

 

The pink lines on the chart represent the resting orders.  When the pink line starts to print, that’s the bar where your order was in place.

Then when you are filled, ZoneTraderPro can set automatically set a target at the intermediate zone, or at a specific profit target.  In this trade, because of the adverse excursion, the green intermediate support zone painted just 4 ticks from your entry.  If you have a profit target of 5 or more, you were not filled.  5 was the original profit target, but when the adverse excursion occurred the profit target adjusted to 4.  You can see this in the dark blue line.  The dark blue line moves from 129.145 to 129.150 and you have a successful trade.  This also works if the intermediate zone is 6-7 ticks away.

Exit from Short Trade
Exit from Short Trade

 

 

The auto trade  also has the ability to adjust target and stops based on what the pattern is telling you.

You have the ability to move a stop to breakeven (and offset it) when you have favorable excursion.  In addition the NinjaTrader simulated stop has also been programmed as an option to the auto trade strategy.  Here we have a trade that went 4 ticks favorable but stopped at breakeven -1.

Auto Trade Strategy Breakeven Logic
Auto Trade Strategy Breakeven Logic

 

If you have adverse excursion you can exit at either breakeven, or at minor support/resistance.  In this trade we have the adverse excursion set to 6 and to exit at minor support.  The reason for this is that in a strong trend, as defined as the market trading at the pink strong trend resistance zone, we expect a small amount of profit taking and a retracement to minor support.  If you had set this function to exit at breakeven, that was the wrong answer.  This illustrates how important it is to completely understand the ZoneTraderPro strategy and how important it is to do your homework before using real money.

 

News Events – Known and Unknown

If there is a known news event, you can program the auto trade strategy to turn off and exit your position. However the auto trade strategy has logic to exit your position in case of an unknown news event.  Here we have an illiquidity (and a loss) due to a news event.

 

Here is that same trade using illiquidity filter.  The pink lines stop printing on the bar where the illiquidity alarm was triggered.

Bond Chart from News Events
Bond Chart from News Events

 

I have preset the filter so that if liquidity droops below 1500 contracts on either the bid or the ask, all orders are cancelled.  The logic will then prevent any orders from being placed for the time that you prescribe, in this case 5 minutes.  I have also the email function so that if the liquidity alert is triggered you can get either a email or a text message sent to your phone.  I have set up mine to send the alert immediately to my cell phone.  If the illiquidity continues while the auto trade strategy is in timeout, the 5 minute clock resets.

Auto Trade Strategy Illiquidity Trigger
Auto Trade Strategy Illiquidity Trigger

 

The 1348 contracts on the bid sets off the trigger when the price was at 129.035 and the intermediate zone had not even printed yet.

Illiquidity Trigger Chart
Illiquidity Trigger Chart

 

The software also features 3 buttons on the top of the chart to give you even more control.

Software Buttons
Software Buttons

 

The 1st button, Trade (Enabled) allows you to temporarily close open orders without killing the strategy and doing a re-start.  The reason you would use this is that if you are listening to the news, and you hear that the Fed Chairman is set to give a speech in 20 minutes, that you did not know about at the beginning of the day.  You can click the button and wait until after the news event is over.

The green Adjust Target button moves the target to the intermediate zone.  You could use this if you had set a profit target at 5, but intermediate draws at 2-3.

The red Close All closes everything and disables the strategy.

Purchasing the Auto Trade Strategy

The auto trade strategy will be available as a monthly lease.  There will only be a limited number of licenses available that will be able to trade the ZN.  Those ZN licenses will also be able to trade the ES also.  The reason is that we will be in direct competition to get our orders filled on the ZN, which is a very liquid market to begin with.  The ES strategy only for the TICK Divergence trade will be priced less.  The strategy was very expensive to develop and pricing will be based upon the final costs.  You will be given two free weeks with the purchase in order to test your specific strategy in the SIM and replay mode.  You have to have purchased a NinjaTrader Lifetime License to be eligible for the Auto Trade Strategy license.

What you should be doing now

You should be downloading the ES and ZN replay data every day.  This is found under the File-Utilities menu of the Control Center.  Then you should be building a database of all of the trades which includes a screen shot picture of the trade.  This database needs to account for all of the trade handling abilities of the auto trade strategy.  These abilities will be published in a future post.  In the meantime, contact me and I will show you the strategy and its features.

NinjaTrader Web Event

On Wednesday April 22 I will be hosting a NinjaTrader Ecosystem web event at 1100 AM EST.  I will be showing some additional examples of the Auto Trader Strategy and the real time indicators I use.  If you would like to attend here is a link to sign up.

https://ninjatrader.omnovia.com/register/30461429302765

If you are not a current ZoneTraderPro customer, there will be a special discount pricing of $500 which will be available for just 48 hours.