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Thursday, November 12, 2015

Markers Plus 4 for Ninjatrader - Creating our own Trade Setup

Markers Plus 4 for Ninjatrader
Creating our own Trade Setup

Hello Traders

As we know, a trade setup consists on set of rules that define when to Enter the Market and in which Side, Long or Short. 
It can be just that, or can include also a rule set to define when to close a position.

As we saw on previous posts, Markers Plus 4 include tools to create Signals.
Those Signals can be used to either enter the Market or Exit the Market.

Lets review the most important included tools :

  1. Universal Slope Tool
  2. Universal Crossover Tool

Universal Crossover Tool

With this Tool we can identify the Cross between any pair of lines. Those lines can be drawn by any indicator installed on the platform.

Example :

These pair of Red and Blue Lines are an example of 2 things ;

  1. We can define the trend by the relative position
    When Red Line is above Blue Line, the trend is Up
    So, we only take Longs
  2. We can also paint a signal on the crosses ;
    When Red cross above the Blue, we have a Buy Signal
    ( or an Exit Short Signal )
Both items can be done with the Crossover Tool

Example applying the Crossover Indicator :

We get Up and Down Arrows painted in user defined Colors, so they can be used by Markers to initiate or exit a Position.
We also get a histogram with the difference between both lines, positive when red line is above the blue. Negative when below.
We can use this difference as a filter condition on Markers.
Example ; Taking only longs when histogram >0 ( or a threshold )
Take only shorts when histogram < 0 ( or a threshold )

This tool is really powerful to research and backtest new setups as we can see the results in real time on the historical data ( as seen on the chart )
We can change the settings of the indicator or the indicators itself that generate those lines and have the result at the instant.
Remember that those lines can be any plot of any indicator on your platform.
No need to Market Replay.
No need to create a Strategy.
Just create your logic, watch it on your chart, and put it to auto trade with Markers.

Some examples : 

  • Fast EMA vs Slow EMA ( this is a classic )
  • EMA crossing above an upper Donchian ( long signal )
    ...crossing below the Lower Donchian ( short signal )
  • SMA crossing above a Bollinger Upper Line ( long impulse signal )

Universal Slope Tool

With this Tool we can calculate the Slope of any line painted by any Indicator installed on our platform.
The slope is calculated by the difference of the indicator's line current value and N bars ago

This indicator draws a histogram with the slope and also paint signals when there is a slope directional change :

As we can see, with these 2 Tools, almost all possible Trade Setups can be recreated and Executed on Full Automatic, Semiautomatic or Manual Mode with Markers.

Feel free to ask for a demonstration if you want to see it working.

Best Regards,
Pablo Maglio

Skype Skype id : pmaglio