Small Range Setup

New Setup : Small Range

link to big picture

This is an old setup focused to trade trending and/or impulsing markets in the direction of the trend.

The Entry Type uses Stop Orders as it is intended for fast volatile never returning markets like crude oil or gold.

This setup uses the following Tools :

• A slow Moving Average to define the Trend (blue line)
• An envelope around a fast moving average to define the trade / no-trade condition
• A channel to verify that the entry bar is making an extreme of the move
• A tool to calculate the range of the bar ( not used on range bars)

When the blue line is all outside the envelope, the setup has a trend. Otherwise it is in neutral state ; gray bars = do nothing.

If we have red bars and current bar is touching the upper channel, then we have a possible short entry.

When not using range bars we can add another condition ; signal bar must be of small range ;

The short entry is a Sell Stop some ticks below signal bar ( usually 2 to 3 ticks ).

If at next bar we have a better entry we move the order to new place, like on example above.

Once the entry is filled, the stop should be placed some ticks above the signal bar.

Using range chart is easy for this setup because the stop is a fixed value ; the range of bar + 2 times the offset. On a 9 range CL chart using 3 ticks as offset, the stop is 15 ( 9 + 2 x 3 )

I have a developed a special indicator for this setup on www.theindicatormarket.com

This is the link :

Small Range Strategy for Ninjatrader

The Small Range Indicator for Ninjatrader has been finally Automated !

If you like the Small Range Setup, one of the most easy to configure and follow, with the best results, then you will love this automated version :

The PM_Small_Range_Trader strategy will trade the Small Range Setup Signals ( as explained on previous post of this blog ) with the following enhancements :

• We can specify 3 different Time Windows where to place orders, and also define if positions must be held outside those windows
• When we have a signal, the system will place a stop entry order and keep adjusting its value until we get a fill or the signal is gone.
• When the signal is gone without a fill, We can also define the number of bars to keep the order alive. Sometimes, on manual trading I leave the order by just one bar until I cancel it.

Now we can backtest and get the optimal results; on Gold and Crude Oil I found that using 1 bar ( instead of zero ) is the best option.

On the following picture we can see both ; the indicator and the strategy on a trade setup where the usual cancel at next gray bar is outperformed by the strategy by waiting one extra bar before cancelling the order :

This video shows how I manual place orders on 4 different markets ( Crude Oil, Gold, Euro and British Pound ) using the TIS_Small_Range Indicator :

....and on this new video, I show how to auto trade the same 4 Instruments :

Please post any question or comments here !

Good Trading !

​​	Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

Week Trades using Indicators for Ninjatrader from The Indicator Store

Hello ! We will describe the trades we could execute this past week using the Indicators for Ninjatrader designed by The Indicator Store ; TIS_Small_Range and TIS_Impulse_Trader.

Impulse Strategy

On the following charts, we can see the entries of the Impulse Setup on the British Pound  ( Forex : GBPUSD ) and a comparison of its entries to the futures version ( 6B )

As we can see on the next chart, this system is valid on Forex and futures, showing the same entries on both

The only difference is the tick value ( $6.25 ) vs GBPUSD pip value.

The British Pound (6B)(GBPUSD) has been moving very well this week, making this strategy very profitable.

The Timeframe used is Range 6 and the parameters are :
Slow Moving Average Period =
Channel Size = 8 ticks/pips
Fast Moving Average = 8
Entry = -3 ticks/pips from Slow moving Average

On the following Chart, we see the same Strategy applied to the euro-dolar pair (EURUSD).
As we already explained, this is also valid for Euro Future ( 6E ).

 On this example, we had 3 sell signals today ; 1st got the initial target, 2nd was a loser and last short got 1st and 2nd target ( or exited at trailing stop )

For the Euro Setup We replace the fixed envelope by a Bollinger ;
Bollinger Period = 50 , Standard Dev = 0.5
Fast Moving Average = 8
Channel Size = 5 ticks ( around Fast Moving average)
Entry = Slow Bollinger Band with Standard Deviation = 0.8

Small Range Setup

This chart shows the Small Range Setup applied to Gold using a 9 Range Timeframe.

Today , Gold was mostly on sideways mode, without allowing to get bigger targets than usual.
We had a long with a target 1 winner and runner out at breakeven. Then a short winner, again, with runners out at breakeven, and finally a short loser.

Have a Great Long Weekeend !

Pablo Maglio
www.TheIndicatorStore.com

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Small Range and Impulse Indicator Alignment

On the following chart, we can see the use of the Impulse Indicator and Small Range Indicator for NinjaTrader showing the first short signal of the week on Crude Oil.

Luckily, both signals of both uncorrelated systems are triggering on same Price Area

The implied risk of both trades are similar and in the range of usd 150, while the possible target is bigger than usd 500 using trailing stop.

First Sell Trade of the Week using Small Range Setup

First Sell Trade of the Week using the Impulse Strategy

As you can guess, nothing better for a strategy, to have another uncorrelated setup aligned on same Price Area

For those who follow these Setups, knowing the fact of confluence increases the probability of success.

Regards,

Pablo Maglio
www.TheIndicatorStore.com

Ninjatrader Indicators - The Indicator Store - Trade Log 2013-07-24

SRS Setup on Crude Oil ; All Longs, 4 Winners and 1 Loser

SRS on EUR-USD Future ; 4 Shorts all Winners

SRS Setup on Gold ; all Longs, 3 Big Winners, 3 small winners or BE and 2 losers

No trades on Ichimoku Setup ; only one short ( winner ) but too late during lunch

Dont forget to use the search tool on the blog to find information about each setup (PM_EMA, ATR_BarColor, SRS, Small Range, Ichimoku, etc )

Please subscribe or update your preferences on  this link 

Regards,
Pablo

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

    

Best Indicator for NinjaTrader

Several people asked me about which is the best indicator to use...

In my humble opinion it is not related to a specific indicator but to a group of indicators, and the most important is to choose the correct ones and how to set them all together to find an edge.

In the following example I will show you how the Small Range Setup uses a different group of indicators to filter a setup from different scopes ;

The following is a GOLD ( GC 02-13 ) Chart of today ( Dec 20, 2012 ) 

On this setup I use a trendline ( blue exponential moving average )

an envelope ( gold envelope of 8 ticks size around a 17 moving average )

and Donchian Channel of 13 bars.

When the envelope is all below the trendline we are in sell mode...

A bar can trigger a signal, only if it is making equal or higher high for a short, so we check that the high of bar must be touching the Donchian Channel.

If all of these conditions align, then we place a sell stop 2 ticks below the signal bar...

If price continues against our entry we don't get a fill, just another bar with better entry, until the envelope touches the trendline again and the trade is discarded.

On this example, we keep moving our entry up for several bars until we get a fill at 1659.4

The stop must be placed 2 ticks above the high of the entry bar ; 1660.8 so we are risking 1.4 points = $140 per contract.

We usually should go for 1.5 to 2 times the range of the chart as first target ( 15 to 20 ticks ). On this example the move was enough to get 6 points ( $600 ) per contract.

I created a dedicated indicator to follow this setup that does all the calculations, paint the bars, show the indicators used and also places a diamond where you need to place the order... Really easy... More info Here

On instruments like gold or crude oil we should always take into account the option of using trailing stops, because these markets offer great potential.

There are several ways to manage a trailing stop, and that may be one of my next posts...

Regards,

Pablo Maglio

www.TheIndicatorStore.com

Most Successful Strategies for Ninjatrader

Most Successful Strategies for Ninjatrader

Our Most Useful and Flexible Setups are :

• EMA ( trending setup )
  
• SRS ( trend and counter trend setup )
• Reversal ( counter trend setup ) ...currently available only on semi automatic mode

The SRS Setup is covered on these links :

On this link you will learn How it Works : The Indicator Store: Small Range Setup

( on this early version it was used as a trending system )

Later I explained how to use it on counter trend mode : SRS for Trend and Counter Trend Setups

This video is about the Semi Automatic Indicator ( PMS_SRS ) 

...that allows to trade the Setup from Chart Trader using ATM Orders : PMS_SRS_v6 - YouTube

And this is my last Ninja Webinar were I explains the basics of the Setup : NinjaTrader Partner Presentations - 3/20/2013 - YouTube

Powerpoint used in the Ninja Webinar : Link

The Reversal Setup is covered on these links :

It is an overbought/oversold indicator that uses stochastics to predict possible Market Reversals

The logic is explained on this Post : Selling Tops and Buying Lows on Ninjatrader

The Automated version is shown on this Post : PMS_Reversal System for Ninjatrader Upgrade

This link has a video about the PMS version ( semi/full automatic )

This is the link to the powerpoint used on the Ninja Webinar Ninja Webinar Link

The EMA Setup is covered on these links :

The EMA setup uses 2 indicators ; 

• EMA ( included on Ninja )
• Envelope ( can get it free at TIS_EMA_Envelope_Free)

You can find info about this setup on the following posts :

• Trading a Moving Average
• PM_EMA
• PM_EMA Strategy for NinjaTrader - Setup Review
• New PMS_EMA Semi Automatic Strategy

If you feel comfortable with this Trending Setup, you can choose one of our dedicated packages ;

• TIS_EMA_Trader
• PMS_EMA_System
• PM_EMA_TraderV52

With TIS_EMA you can do visual backtests, and also get real time alert and entry price indications

With PM_EMA you can automate the setup, generate backtests and optimizations.

With PMS_EMA it is possible to auto trade the setup with user control of the trade ; we can allow/avoid next trade and also move the orders. The system enters the market using our preferred ATM Order Management andthe releases the control to us.

Don't forget to follow me on G+ and check my trades : 

Some examples on last trades :

• This is a Reversal ( Green Dot ) overlapping an SRS ( Cyan Diamond ) Long : LINK
  
• This Short is an SRS Signal ( Orange Diamond ) : LINK
  
• This is an EMA entry ( Red dotted line ) Short : LINK
  
• We can see 2 short reversal signals ( red dots ) and 2 long reversal signals ( green dots ) : LINK
  

Let me know if you have any question...

Best Regards,

Pablo

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com

      

Ninjatrader Indicators - The Indicator Store - Trade Log 2013-07-25

Dow Jones ( YM ) 5 SRS Trades and one PM_EMA Short in confluence with SRS
4 SRS winners + 1 PM_EMA winner + 1 SRS loser

SRS on Crude Oil ; 5 longs all Winners

SRS on Gold ; 1 Long over global support ( big winner ) and 2 shorts both winners.
Last short was a very fast move, almost impossible to trade manually ( I tried it live on the trade room )

Dont forget to use the search tool on the blog to find information about each setup (PM_EMA, ATR_BarColor, SRS, Small Range, Ichimoku, etc )

Please subscribe or update your preferences on  this link 

Regards,
Pablo

Pablo Maglio , The Indicator Store  Pablo@TheIndicatorStore.com www.TheIndicatorStore.com