Can Your Day Trading Strategy Do This?
We like when at least two day trading strategies provide similar signals. We consider this confirmation of expected market direction. That’s what happened today, Aug. 1, 2018 with the ATO 2 and Atlas Line trading systems from DayTradeToWin.com. The trade in the video was actually taken as a result of the Atlas Line signal at 10:20 a.m. EDT when the E-mini’s price reached 2822.75 on bar close. This two-point E-mini winner was worth $100 (before any broker or exchange fees) when trading with one contract. Most pro traders use two or more contracts, which would have at least doubled the profit. Keep in mind that losses do and will occur, so only trade with money set aside for high-risk investments.
A market buy order was used. That’s probably the most simple type of order a trader can place. It says “get me in long now” to the trading platform. The actual fill price can differ a bit because of timing. Remember, markets are almost always fluctuating. By default, NinjaTrader bases its markets off of the last price, not the bid or ask price.
What are those red and green lines? That’s the profit target and stop loss. The profit target says to the market, “Close out the trade if this price is reached. I would like this much profit.” Similarly, the stop loss says, “Get me out here if things turn ugly. I am okay with losing this amount on this trade.” Of course, if you want to get out of a trade early with a smaller profit, loss, or exit at breakeven, you can do that, too. That’s what the close button is for. Also, be sure to turn on Chart Trader on the chart to see the red and green lines.
It’s possible to change your profit target and stop loss while in a trade. Keep in mind that in doing so, you’re placing new orders (which are processed in the order they’re received). You’ll be at the back of the line, so you may not get filled as soon as you’d like.
In terms of a general day trading strategy, using the same stop loss and profit target setup all the time is probably not a good idea. We believe that it’s best to be flexible. During faster conditions, we’ll tend to use a larger profit target and stop loss. During slower conditions, we’ll user smaller profit targets and stops. If the market is too slow or too fast to trade, we won’t trade at all. We have clear rules on this that we can teach you. We think it’s best to by dynamic and follow what the price action is “saying.”
A Simple Day Trading Strategy Setup
NinjaTrader has a cool featured called “ATM Strategy” that lets you predefine profit target and stop loss values in advance. You can preconfigure a bunch of them based on what you’ll think you’ll need to use regularly. The trader in this video used one that has a profit target of 2 and a stop loss of 4, as that is pretty compatible with using the Atlas Line with the E-mini. If you were using a scalping method, you would probably use smaller values.
The ATO 2 and Atlas Line let you configure a sound to play when a signal appears. This is helpful because if your multitasking, it’s easy to hear an audio alert, go back to NinjaTrader, place a trade, monitor it, and hopefully get out with a profit, then get back to what you were doing.
NinjaTrader is free for paper trading. If you need help getting set up, send an email to [email protected]. You can request the free download and connection information via the DayTradeToWin Simulator page. The ATO 2 is almost finished for the MetaTrader platform. You can also send an email to get setup information for MetaTrader.