We’ve had many people request a video on how to use NinjaTrader 8’s ATM Strategy area, so here you go…
Keep watching – at the end, you’ll see recent Trade Scalper signals!
Let’s take a step back for a moment and think of the game of golf. If you’ve ever played golf (not the miniature kind), then you probably noticed there are seven or so clubs that you use for various conditions on the golf course. With experience, you’ll know which club to use to hit the ball out of a sand pit and which one you need to use to send the ball the furthest distance. We can apply this concept to trading. Current market conditions require different approaches. Some times, you will want to go for a bigger profit. Other times, market conditions require a more conserved approach.
This is where a NinjaTrader feature called ATM Strategy is useful. You can pre-configure a variety of profit target and stop loss values. Based on current market conditions, you can “reach” for the most appropriate ATM Strategy. This way, you don’t have to anxiously fiddle with a SuperDOM window or Chart Trader during a sensitive trading moment. Therefore, an ATM Strategy simplifies, speeds up, and reduces the possibility for human error for profit target and stop loss placement.
Therefore, it makes sense to configure a few ATM Strategies for the most common profit target and stop losses you use. This may differ depending on the type of trading or methods you are doing. For example, if you tend to scalp for one point most of the time, your primary ATM Strategy will be the one configured with a profit target of four ticks. (Remember, when it comes to the E-mini S&P 500, four ticks equals one point). If you have seen recent scalping profit target potential exceeded one point, you may want to set up a profit target for 1.5 points (6 ticks) and so on. Let the rules and recent price activity dictate what ATM Strategies you need to define. Once you have configure your top, go-to ATM Strategies, you can easily select the best one for current market conditions.