Boomerang Trader

Using Ninja trader to research day trading methods | Futures trading in simulation

Posted on 12. Feb, 2012 by Mohan in Boomerang Currency Trader, Boomerang Scalp Trader

Greetings Traders. One of the most important element of futures trading is learning how to research day trading systems and how to use the trade simulator or Market Replay to test strategies.

On Ninja trader we have a great advantage as this excellent software has made research and trading in simulation as simple as possible.

I focus a lot  my trading work and development of day trading software in being able to  use quick and easy methods to test a price or indicator reaction to a particular trading environment.  Here are the simple methods I use.

First, I always use a “Crosshair” cursor.  This gives you the advantage of correlating your prices and indicator reaction just by moving the cursor.  To set to Crosshair right click on your Ninja chart>Cursor> select Crosshair.

If a price is starting to rise you want to be able to see how quick the reaction is in your specific indicator you are testing.  If there is too much lag in the indicator perhaps you can change the parameters to tighten up the reaction to the price.  There is a fine art to discovering just the right “tweak” of the indicator in not making it too reactive to price yet not too lagging in response.

If an indicator reaction to price is too tight you may find that you will get too many trade signals or that price whipsaw will have the indicator flying in all directions and confuse your trade analysis.  If the indicator reaction is too slow then you may get in a trade too late and get stopped out on a reflex reversal after price has moved. Or you may miss the trade entirely.  This is why research is so important.

Below is an example of a 1 minute ES (Emini S&P500 futures) chart with an 8 period Simple Moving Average applied in a dark violet color using a dot line configuration.   Notice how the 8 period tends to follow the price closely on the 1 minute chart.  An 8 period SMA is widely used by floor traders and technicians in the professional side of the industry.

After you apply a specific indicator you can then use Ninja Trader to replay a specifc trading session or portion thereoff by running the chart in trade simulation or what is called Market Replay by Ninja.

You do this by going to:  File> Disconnect> click on your data source (you first have to disconnect your current data feed source)

Next:  Go to  File> Connect>  Market Replay connection>  this will give you the option of setting the date of the replay you wish to research

Use this link below to go directly to the full Ninja Trader Youtube video library on Market Replay to create the right settings.  I hope you have found this brief tutorial to be valuable.

Always feel free to email me with any questions you may have at Mohan@boomerangtrader.com

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?video_library.htm

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Tags: boomerang scalp trader, day trading training, ninja trader indicators, webinars