How to Make Money with ATM Strategies in Ninjatrader
Do you want to make money with your real trading? If so, you need to know the atm strategy. This is a trading method to automatically place your exit points. In this blog post, we will discuss how the atm strategy works and show you how to use it in your own trading ventures!
Table of Contents
What is ATM strategies in NinjaTrader?
When creating an ATM strategy, it is important to first define your overall trading goals. What are you trying to accomplish with your trading? Do you want to capture a certain percentage of the market’s move? Or, are you looking to take profits at fixed price points?
Once you have a general idea of what you want to achieve, you can begin to develop your strategy. In NinjaTrader, an ATM strategy is a collection of orders that represent your entries, exits, stops and targets, along with sub-strategies (Auto Breakeven, Auto Chase, Auto Trail, etc.) that govern how these orders are managed.
By pre-defining your personal trading strategy in NinjaTrader, you have the freedom to focus on trading and not on order and position management. NinjaTrader does it all for you automatically.
Who should use ATM strategies?
Those who want automated trading because they are likely not always there but still want certain actions defined automatically. Always test your NinjaTrader 8 strategy first for a complete understanding of what actions will take place.
While the ATM strategy is designed for use with NinjaTrader, any trader can use it. New traders may find it helpful to have a set of orders that they can use to enter and exit a trade. Experienced traders may find it helpful to have a set of orders that manage their financial risk.
Remember that only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
How do you make ATM strategy NinjaTrader?
The first thing you need to do is determine your trading goals. What are you trying to achieve? Are you looking for long-term capital gains, or are you more interested in short-term profits? How much is your trading losses? Once you know your goals, you can develop a strategy that will help you achieve them.
- Go to a Chart and open Chart Trader
- Look for ATM Strategies and click on “None”
- Click on “Custom”
In this box are all the options you will have to configure your strategy. Now we are going to explain one by one:
How many contracts or shares you want to buy or sell in your atm strategies?
The time in force, or TIF
It is the duration you want your trade order to remain active before it is executed. This can be an important factor to consider when placing an order, as you can specify how long an order remains open before it is filled or expires.
Sets the type of parameter used to define where the profit and loss target will be located (Currency, Ticks, Points…)
First target set in which you can define the number of contracts involved, as well as the stop and profit for them. Remember that you can add as many sets as you have defined in your strategy objectives.
What is a Stop Strategy in ATM Strategies?
If your strategy needs a custom stop (Auto Breakeven, Auto Trail or Simulated Stop) then you will need to enter the following menu.
Auto Breakeven for ATM Strategy
Sets a trailing stop that will move your stop to breakeven once the trade is profitable by a certain amount (profit Trigger). You can use the plus to move the stop in your favor.
Example of atm strategy
- Profit Trigger: 10 ticks
- Plus: 2 ticks
If Average Entry is 10200 Short (DOW Emini contract) as soon as the market trades at 10190 (Average Entry – Profit Trigger = 10200 – 10 ticks = 10190) NinjaTrader will move the Stop Loss order to 10,198 (Average Entry – Plus = 10200 – 2 ticks = 10198).
Auto Trail for ATM Strategy
Sets a trailing stop that will move with the market price as it moves in your favor.
There are 3 steps available for Auto Trail parameters. Each step can have unique parameters that give you the flexibility to adjust your Stop Loss automatically as your profits increase.
The settings in the image below reading:
- “Once our trade has 4 ticks in profit…”.
- “… move our Stop Loss back 6 ticks…”
- “… and also move it up for every additional 2 ticks in profit”.
- “Then, once our trade has 10 ticks in profit …
- “… squeeze and move our Stop Loss 3 ticks…”
- “…”… and increase the speed at which the Stop Loss is adjusted and increase it for each additional 1 tick in profit”.
Example of atm strategy
If the Average Entry is 1000 long (SP Emini contract) and the market moves to 1001 and the Auto Trail is triggered(Average Entry Gain Trigger = 1000 4 ticks = 1001)and the Stop Loss is set to 999.50(1001 – Stop Loss = 1001 – 6 ticks = 999.50).
For each additional 2 ticks (Frequency of 2 ticks),the Stop Loss will be adjusted by 2 ticks (same as in Example #1). Then, the market moves to 1002.50 and the second step of the Auto Trail strategy is activated and the Stop Loss is adjusted to 1001.75 and moves up by 1 tick with each additional tick in profits.
Simulated Stop for ATM Strategy
A simulated stop order is a type of local conditional order (simulated by PC) that allows you to execute a market or limit order once the market reaches the price of your order and satisfies a user-defined volume trigger.
What is auto break?
Auto break is the same as Auto BreakEven.
How do you set up ATM in NinjaTrader 8?
Go to Chart and open the Chart Trader option, then look for ATM Strategy in the sidebar.
How do you use ATM strategy in NinjaTrader 8?
Once you have followed the steps explained in this blog, make sure you have it selected in the side panel in the ATM Strategy section.
What does ATM stand for in stocks/futures?
In NinjaTrader, an ATM strategy is a collection of orders representing your entries, exits, stops and targets, along with sub-strategies (Auto Breakeven, Auto Chase, Auto Trail, etc.) that govern how these orders are handled.
Please remember that past performance is not necessarily indicative of future results. Hypothetical or Simulated performance results have certain limitations and does not involve financial risk, unlike an actual performance record, simulated results do not represent actual trading.
Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle.
Only risk capital should be used for trading and only those with sufficient risk capital. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.