Trading Automatically with Ninjatrader: Indicators to Watch
Indicators can be key in automated trading/trading systems. While there are many to choose from, we’ll focus on three that are particularly important for Ninjatrader traders. These indicators can help you determine when to enter or exit a trade and can make your automated trading strategy more successful. So, what are these indicators and how do they help you trade? Keep reading to find out!
Table of Contents
1. What is Ninjatrader and what can it do for you as a trader?
2. The basics of using technical indicators to make informed trading decisions
3. Some of the most popular free indicators used by traders, with explanations of how they work
4. What do I have to take into account when using indicators in my strategies?
1. What is Ninjatrader and what can it do for you as a trader?
Ninjatrader trading platform is a powerful tool that gives you the ability to trade futures mainly. When you trade automatically, your trades are executed by a computer program according to pre-determined rules that you have set.
Some of the most important indicators for automatic trading are:
- Moving Average
- Relative Strength Index
- Stochastic Oscillator
Each of these indicators can be used to generate buy and sell signals. When you combine multiple indicators, you can create a more robust trading program that is less likely to produce false signals and achieve profits.
2. The basics of using technical indicators to make informed trading decisions
In order to make informed trading decisions, you need to understand how technical indicators work. Technical indicators are mathematical calculations that are based on historical price data.
There are many different types of technical indicators, but they all fall into two main categories: trend-following indicators and oscillators.
Trend-following indicators are designed to identify the direction of the market. Oscillators, on the other hand, are used to identify overbought and oversold conditions.
When you’re using technical indicators, it’s important to remember that they are based on historical price data. This means that they can’t predict the future, but they can give you an idea of where the market is headed.
It’s also important to use multiple technical indicators in order to confirm each other’s signals. For example, if you’re using a trend-following indicator and an oscillator, you can confirm each other’s signals.
3. Some of the most popular free indicators used by traders, with explanations of how they work
Now that we’ve covered the basics of technical indicators, let’s take a look at some of the most popular free indicators used by traders.
The moving average
It is one of the most popular technical indicators. It is used to smooth out price data and identify trends. The moving average is calculated by taking the average of a certain number of past prices.
The moving average can be used to generate buy and sell signals. For example, if the price is above the moving average, it may be a good time to buy. Conversely, if the price is below the moving average, it may be a good time to sell.
The relative strength index (RSI)
It is another popular technical indicator. It is used to identify overbought and oversold conditions. The RSI is calculated by taking the average of the past 14 days’ closing prices and comparing it to the current price.
If the RSI is above 70, it may be a good time to sell. If the RSI is below 30, it may be a good time to buy.
The stochastic oscillator
It is used to identify overbought and oversold conditions. The stochastic oscillator is calculated by taking the difference between the current price and the past 14 days’ low, and dividing it by the difference between the past 14 days’ high and the past 14 days’ low.
If the stochastic oscillator is above 80, it may be a good time to sell. If the stochastic oscillator is below 20, it may be a good time to buy.
These are just a few of the many technical indicators that you can use when trading automatically with Ninjatrader. By combining multiple indicators, you can create a more robust trading program that is less likely to produce false signals and achieve profits. Of course there are hundreds of market factors that can affect your trading and that can be picked up with some more specific indicators.
4. What do I have to take into account when using indicators in my strategies?
The first thing is that past performance does not ensure future results. Therefore, although we have to look at the past performance to obtain a hypothetical trading record, we have to take into account that the actual trading results may be different. Trading results can involve financial risk.
On the other hand, we will have to define a risk capital.
Risk capital is money in your trading system
Capital should consider trading, it is the amount of money that we are willing to lose in your actual trading. So it is a financial risk that measure the potentially lose of the trading results. Remember that future trading contains substantial risk and is not for every investor. Only those with sufficient risk capital should consider trading. An investor could potentially lose all or more than the initial investment. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading.
The initial investment is part of the risk capital as we need sufficient risk capital initial independent of the potential achieve profit.
Factors related
Factors related to actual performance record is certain market factors such as liquidity, volatility, and slippage that can affect our trading.
We must not forget the human factor.
Human factor
We are the ones who have designed and created the program, and we are also the ones who will be running it.
We must take into account our own emotions, such as greed or fear, which can lead us to violate our rules and make bad decisions.
Conclusion
Technical indicators are a valuable tool for trading strategies. By using multiple indicators, you can create a more robust trading program that is less likely to produce false signals. However, it is important to remember that past performance does not ensure future results, also that trading involve financial risk and you should always use a simulator or demo account before a live trading account to test how your program behaves in different market conditions. Finally, don’t forget your risk capital and the human factor. Thanks for reading!
Please leave a comment below if you have any questions or would like to share your own experiences.
Happy trading!
Trading Automatically with Ninjatrader: Indicators to Watch
Indicators can be key in automated trading/trading systems. While there are many to choose from, we’ll focus on three that are particularly important for Ninjatrader traders. These indicators can help you determine when to enter or exit a trade and can make your automated trading strategy more successful. So, what are these indicators and how do they help you trade? Keep reading to find out!
Table of Contents
1. What is Ninjatrader and what can it do for you as a trader?
2. The basics of using technical indicators to make informed trading decisions
3. Some of the most popular free indicators used by traders, with explanations of how they work
4. What do I have to take into account when using indicators in my strategies?
1. What is Ninjatrader and what can it do for you as a trader?
Ninjatrader trading platform is a powerful tool that gives you the ability to trade futures mainly. When you trade automatically, your trades are executed by a computer program according to pre-determined rules that you have set.
Some of the most important indicators for automatic trading are:
- Moving Average
- Relative Strength Index
- Stochastic Oscillator
Each of these indicators can be used to generate buy and sell signals. When you combine multiple indicators, you can create a more robust trading program that is less likely to produce false signals and achieve profits.
2. The basics of using technical indicators to make informed trading decisions
In order to make informed trading decisions, you need to understand how technical indicators work. Technical indicators are mathematical calculations that are based on historical price data.
There are many different types of technical indicators, but they all fall into two main categories: trend-following indicators and oscillators.
Trend-following indicators are designed to identify the direction of the market. Oscillators, on the other hand, are used to identify overbought and oversold conditions.
When you’re using technical indicators, it’s important to remember that they are based on historical price data. This means that they can’t predict the future, but they can give you an idea of where the market is headed.
It’s also important to use multiple technical indicators in order to confirm each other’s signals. For example, if you’re using a trend-following indicator and an oscillator, you can confirm each other’s signals.
3. Some of the most popular free indicators used by traders, with explanations of how they work
Now that we’ve covered the basics of technical indicators, let’s take a look at some of the most popular free indicators used by traders.
The moving average
It is one of the most popular technical indicators. It is used to smooth out price data and identify trends. The moving average is calculated by taking the average of a certain number of past prices.
The moving average can be used to generate buy and sell signals. For example, if the price is above the moving average, it may be a good time to buy. Conversely, if the price is below the moving average, it may be a good time to sell.
The relative strength index (RSI)
It is another popular technical indicator. It is used to identify overbought and oversold conditions. The RSI is calculated by taking the average of the past 14 days’ closing prices and comparing it to the current price.
If the RSI is above 70, it may be a good time to sell. If the RSI is below 30, it may be a good time to buy.
The stochastic oscillator
It is used to identify overbought and oversold conditions. The stochastic oscillator is calculated by taking the difference between the current price and the past 14 days’ low, and dividing it by the difference between the past 14 days’ high and the past 14 days’ low.
If the stochastic oscillator is above 80, it may be a good time to sell. If the stochastic oscillator is below 20, it may be a good time to buy.
These are just a few of the many technical indicators that you can use when trading automatically with Ninjatrader. By combining multiple indicators, you can create a more robust trading program that is less likely to produce false signals and achieve profits. Of course there are hundreds of market factors that can affect your trading and that can be picked up with some more specific indicators.
4. What do I have to take into account when using indicators in my strategies?
The first thing is that past performance does not ensure future results. Therefore, although we have to look at the past performance to obtain a hypothetical trading record, we have to take into account that the actual trading results may be different. Trading results can involve financial risk.
On the other hand, we will have to define a risk capital.
Risk capital is money in your trading system
Capital should consider trading, it is the amount of money that we are willing to lose in your actual trading. So it is a financial risk that measure the potentially lose of the trading results. Remember that future trading contains substantial risk and is not for every investor. Only those with sufficient risk capital should consider trading. An investor could potentially lose all or more than the initial investment. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading.
The initial investment is part of the risk capital as we need sufficient risk capital initial independent of the potential achieve profit.
Factors related
Factors related to actual performance record is certain market factors such as liquidity, volatility, and slippage that can affect our trading.
We must not forget the human factor.
Human factor
We are the ones who have designed and created the program, and we are also the ones who will be running it.
We must take into account our own emotions, such as greed or fear, which can lead us to violate our rules and make bad decisions.
Conclusion
Technical indicators are a valuable tool for trading strategies. By using multiple indicators, you can create a more robust trading program that is less likely to produce false signals. However, it is important to remember that past performance does not ensure future results, also that trading involve financial risk and you should always use a simulator or demo account before a live trading account to test how your program behaves in different market conditions. Finally, don’t forget your risk capital and the human factor. Thanks for reading!
Please leave a comment below if you have any questions or would like to share your own experiences.
Happy trading!
