PM_EMA_Bouncer Strategy for Ninjatrader

New Setup : PM_EMA_Bouncer Strategy for Ninjatrader

Hello everyone, we have a new setup to share with you.

It is very easy to follow and can be considered as an "alternate version" of the PM_EMA.

The PM_EMA is a trending setup. On this blog you will find several posts about it.

We follow an EMA ( Exponential Moving Average ) and when price is far enough from it we are in Trade Ready condition. To measure the distance between price and EMA we use an envelope. The entry is a bounce at the EMA :

The indicator painting the bars on these pictures is the TIS_EMA_Trader_Indicator, so it paints bars according to the trend, while PM_EMA_Bouncers trade against it. So; 

• Blue Bars = Sell Stop at EMA+Offset
• Red Bars = Buy Stop at EMA-Offset

The PM_EMA_Bouncer Setup uses the exact same logic to trigger the trade ready condition but early and in opposite direction, so by definition it is a Counter Trend System

We can use an early entry that allows to take a profit at the EMA. A value near the half of the envelope looks like working very well. And the envelope needs to be a higher than on PM_EMA setups. On CL a value of 30 is fine, allowing a minimum target of 15 ticks.

The example ( Range 6 CL Chart ) is using a 20 ticks target with an early entry of 10 ticks. The envelope is 30 ticks

This way, when we have a PM_EMA Long signal, we can take a PM_EMA_Bouncer Short and take profits near the Long Entry.

On some other more volatile Markets like Crude Oil or Gold, where EMAs can not offer good support we can use a bigger target all the way through the EMA.

With the PM_EMA strategy using the correct offset entry, is possible to calculate the PM_EMA_Bouncer performance by switching profit with loss.

Unfortunately, it is not possible to optimize the settings, because it will find the best profitable values, and we are looking for the worst values on PM_EMA.

Executing an Optimization of PM_EMA testing a wide range of moving averages periods, we can export the results to excel and create a chart of PnL vs Period.

This way we can choose the worst Period and use it on the PM_EMA_Bouncer Setup.

On this video you will find a brief description of how to do such thing :

As I found this setup very useful and sometimes it is a good replacement for PM_EMA when we find a good losing setup on PM_EMA it is a good winner on PM_EMA_Bouncer, I decided to create a dedicated strategy to backtest, optimize and trade this setup.

The strategy PM_EMA_Bouncer can be found on The Indicator Store Market and is the perfect companion for the PM_EMA_Trader

Regards,

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

    

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

    

Internal Fibs Indicator for Ninjatrader

The Internal Fibs Ratios provide very important information that we can use to define New Trade Setups

Today we are going to cover the definitions of Internal Fibs and explain two very easy to follow setups :

Definition : Given a Time Interval ( it may be a number of bars into the past, or today's price action ), we take the High, the Low, and then we calculate a percentage inside that range.

If for example we are using the 78.6 % fib ratio, we have 2 levels :

• The 78.6% of the High
• The 78.6% of the Low ( or 100-78.6 = 21.4% of the High)

The most useful values to follow are the 50% ( the middle of the range ) and the 78.8%

One setup we can try is the 50-Vwap Trade ;

It consists on looking at the confluence of the Vwap ( Volume Weighted Price Average ) and the 50% retracement of today's Range.

This is a very easy to follow setup, we just need a fib tool and a Vwap.

If we want to have a dedicated indicator to keep adjusted the high and low of the session and plot the real time 50%, we can use the indicator TIS_Int_Fibs

Another setup, called ITS and designed to be used on 1 Min Index Futures ( like ES ) is as follows :

We plot the 78.6% Internal Fib and count bars above the upper line or below the lower line.

When we have N bars in row outside the fib line, we have a signal ; if we are above the upper fib line, we have a long signal. If we are below the lower fib line we have a short signal.

The Entry ? ....I use a previous low pivot, for that purpose I plot a Donchian channel to follow the last pivot....but each one can use its own ideas...

On this picture we can see an example of the ITS Trade Setup on YM ( Dow Jones )

On this example we have the trade setup detection when the count of bars below the lower 786 reaches 8. Then on the zoomed portion of the screen we can see how to trade the setup shorting a previous low pivot.

Please post your questions, ideas or suggestions here

Best wishes !

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

    

New Setup using TIS_ATR_BarColor Indicator for NinjaTrader

Using the Multitrail Indicator for Ninjatrader logic to define a New Trade Setup ; we present the TIS_ATR_BarColor

Some time ago we discussed how to use the TIS_Multitrail Indicator and today We are going to describe how to use it to define a New Trade Setup.

As we know, the Multitrail uses ATR and HMA ( Hull Moving Average ) to have the best price following effect and proportional to the current Volatility. This give us the best tool for trailing stops....

...but how can we use it to define a Trade Setup ?

For that purpose we just need 2 events :

• Multitrail level has been broken ( if we were trailing a runner we are flat now )
• If going to reverse, we require a pivot to be formed first

Look at the following example :

Bars are Red and Multitrail is on Downside Mode until price breaks above it, taking out the trailing stop ( if we were short ) and generating a possible Entry on this New Setup :

• To trade a continuation we only need to break the multitrail upside blue dots.
• To trade a reversal we need to create a pivot as confirmation and then go long at its breakout.

While the market doesn't breaks the pivot or the multitrail, the setup is on neutral state and the Indicator paint the bars in Yellow.

On the following example we can see a Continuation Entry :

On this example, the trend is UP, mutlitrail line is broken and a pivot is generated ( gray line ) but the pivot is never broken, so there is no short trade.

Market continues going up and the multitrail line is broken to the upside, so we have a Long Continuation Entry.

This new TIS_ATR_BarColor Indicator not only follows the TIS_Multitrail lines and the described Setup ( with all the Bar Coloring, Pivot detecting, and entry breakout entries ) but also has an acceleration Input parameter that avoids to keep an horizontal movement ( not moving the trail stop ) when the market is starting to reverse. Leaving this input parameter to zero has same effect than the classic Mutilitrail.

On the following chart we can see the effect of using the "acceleration" setting :

As we see, we can use TIS_ATR_BarColor for Trailing purposes with same functionality as TIS_MultiTrail adding the acceleration enhancement, AND we can also add a New Trade Setup to our ToolBox.

Hope this info be useful for your trading.

Please post any question or send me an email

Regards,

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

    

Impulse Trades of the Week

These are the Last Trades of the Impulse Setup, as we explained the last week

British Pound Futures ( 6B ) and Forex ( GBPUSD)

The chart has overlapped the entry markers of the Indicator TIS_Impulse_Indicator and the entries executed by the PM_Impulse Strategy.

As we see there is only 1 entry missed due the time filter used on the strategy.

Euro Futures ( 6E ) and Forex ( EURUSD)

This chart shows the same setup executed on Euro Futures ( or EUR-USD Currency Pair on Forex ).

We are missing one trade again, because the start time adjustment of the strategy.

As we already explained, the Impulse Setup Logic is SIMPLE;

When a Fast Band is above a Small Band, We are in Long mode.

When a Fast Band is below a Small Band, We are in Short mode.

..on old versions ( PM_Impulse_v2), Fast Band was just a moving average. This behavior can be emulated on this last version using a null width.

Once We are in Long/Short Mode, the system Entry on all prior versions was related to the Slow Band.

On this new release, we can take more aggressive entries by referring the Entry to a different Band. I suggest using the Fast, but any Period can be selected.

On the following example, we are using the same Impulse Setup on Euro but changing the Entry to the Fast Band :

We are proud to announce that the new version of the Impulse Strategy ; PM_Impulse_V6 is ready and will be delivered to all current owners of PM_Impulse.

It can trade all setups covered by prior versions and all combinations available on the TIS_Impulse Indicator, so the combinations of different setups is huge.

Impulse V6 has the Donchian Channel Filter introduced on V5, Trend Filter, AutoBreakeven , and Trailing Stop using the TIS_Multitrail Indicator.

Input Parameters of PM_Impulse_V6

Please post any questions or suggestions or send me an email.

Regards,

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

    

TIS_MultiTrail Indicator for Ninjatrader

TIS_MultiTrail Indicator for NinjaTrader
... a Tool to Manage Trailing Stops

Once we have cashed out the First Target of our trade, one of the most difficult tasks to achieve is optimizing the performance of our runners.

I call runners to those positions without a defined target, where we keep moving the stop trying to stay in the market the most part of the trend.

Placing our stop a few ticks from the previous bar extreme is one of the most usual methods, but not the best ; we usually get stopped out at a small retracement, and then the market keeps going on the same direction...without us !

The Multitrail indicator uses a combination of ATR ( Average True Range ) and HMA ( Hull Moving Average ) to get the fastest move according to the current volatility :

Click on the Chart to Zoom

If you look at the chart with detail, you will see that there are several instances where price touches the line, without changing the trend ; this is because the indicator requires a breach to consider a reversal.

We can change the settings making  the trailing more aggressive, so if we have multiple runners, we can have different settings for each one, as on the following example :

Click on Chart to Zoom

This trailing stop method is used on the PM_Impulse Strategy

You can find this Indicator for NinjaTrader on the Following Link

If you have any question please post your comments here or send me an email.

Good Trading !

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