NinjaTrader Algorithmic Automated Trading Systems

An automated trading system (ATS) is a computer program that creates orders and automatically submits them to a market center or exchange.Automated trading systems are often used with electronic trading in automated market centers, including electronic communication networks, “dark pools”, and automated exchanges.[1] Automated trading systems and electronic trading platforms can execute repetitive tasks at speeds with orders of magnitude greater than any human equivalent. Traditional risk controls and safeguards that relied on human judgment and manual speeds that were appropriate to manual and/or floor-based trading environments, must now be automated to evaluate and control automated trading.[2]Automated trading – also known as algorithmic trading – is the use of algorithms for making trade orders.If you want to set up automated trading, you will need an automated trading system. You can then set up the rules that you want the automated trading system to follow, based on common variables like price and volume or on technical indicators like moving averages or Bollinger bands. The trading strategy you set up can be as simple or as complicated as you want, but truly advanced strategies can require learning the programming language associated with your automated trading system.

Why Mechanical Trading with NinjaTrader Automated Trading Systems

Most successful traders use a mechanical trading system. This is no coincidence.

A good mechanical trading system automates the entire process of trading. The system provides answers for each of the decisions a trader must make while trading. The system makes it easier for a trader to trade consistently because there is a set of rules which specifically define exactly what should be done. The mechanics of trading are not left up to the judgment of the trader…

The Components of NinjaTrader Automated Algorithmic Trading Systems

NinjaTrader Automated Trading Systems cover each of the decisions required for successful trading:

  • Markets – What to buy or sell
  • Position Sizing – How much to buy or sell
  • Entries – When to buy or sell
  • Stops – When to get out of a losing position
  • Exits – When to get out of a winning position
  • Tactics – How to buy or sell – MicroTrends offers you systems that are fully or semi automatic to suit your approach and trade plan!

Curtis Faith.. Original turtle


Why traders use NinjaTrader Automated Trading Systems

One major reason why traders utilize NinjaTrader Algorithmic Automated Trading Systems is that it removes emotion from the trading experience.

Trading strategies can be trialed before going live (a process called backtesting), and are faster in execution than traditional trading. There are numerous problems associated with removing the human element from trades that need to be avoided, however. Flaws in set up can quickly become costly, and technical failures can be problematic. NinjaTrader Automated Trading Systems need monitoring to ensure that they are performing as intended.

What Is NinjaTrader Automated Trading System?
NinjaTrader Automated Trading Systems, also referred to as mechanical trading systems, algorithmic trading, automated trading or system trading, allow traders to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer. The trade entry and exit rules can be based on simple conditions such as a moving average crossover, or can be complicated strategies that require a comprehensive understanding of the programming language specific to the user’s trading platform, or the expertise of a qualified programmer. NinjaTrader Automated Trading Systems typically require the use of software that is linked to a direct access broker, and any specific rules must be written in that platform’s proprietary language. NinjaTrader platform, utilizes the NinjaScript programming language.

Once the rules have been established, the computer can monitor the markets to find buy or sell opportunities based on the trading strategy specifications. Depending on the specific rules, as soon as a trade is entered, any orders for protective stop losses, trailing stops and profit targets will automatically be generated. In fast moving markets, this instantaneous order entry can mean the difference between a small loss and a catastrophic loss in the event the trade moves against the trader.
Traders and investors can turn precise entry, exit and money management rules into automated trading systems that allow computers to execute and monitor the trades. One of the biggest attractions of strategy NinjaTrader Automated Trading Systems is that it can take some of the emotion out of trading since trades are automatically placed once certain criteria are met. This article will introduce readers to and explain some of the advantages and disadvantages, as well as the realities, of automated trading systems.

Diversify Trading. NinjaTrader Automated Trading Systems permit the user to trade multiple accounts or various strategies at one time. This has the potential to spread risk over various instruments while creating a hedge against losing positions. What would be incredibly challenging for a human to accomplish is efficiently executed by a computer in a matter of milliseconds. The computer is able to scan for trading opportunities across a range of markets, generate orders and monitor trades.
Improved Order Entry Speed. Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met. Getting in or out of a trade a few seconds earlier can make a big difference in the trade’s outcome. As soon as a position is entered, all other orders are automatically generated, including protective stop losses and profit targets. Markets can move quickly, and it is demoralizing to have a trade reach the profit target or blow past a stop loss level – before the orders can even be entered. NinjaTrader Automated Trading Systems prevents this from happening.

There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades, including:
Minimize Emotions. NinjaTrader Automated Trading Systems minimize emotions throughout the trading process. By keeping emotions in check, traders typically have an easier time sticking to the plan. Since trade orders are executed automatically once the trade rules have been met, traders will not be able to hesitate or question the trade. In addition to helping traders who are afraid to “pull the trigger”, automated trading can curb those who are apt to overtrade – buying and selling at every perceived opportunity.
Ability to Backtest. NinjaTrader Automated Trading Systems Backtesting applies trading rules to historical market data to determine the viability of the idea. When designing a system for automated trading, all rules need to be absolute, with no room for interpretation . Traders can take these precise sets of rules and test them on historical data before risking money in live trading. Careful backtesting allows traders to evaluate and fine-tune a trading idea, and to determine the system’s expectancy – the average amount that a trader can expect to win (or lose) per unit of risk.

Preserve Discipline. Because the trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets. Discipline is often lost due to emotional factors such as fear of taking a loss, or the desire to eke out a little more profit from a trade. NinjaTrader Automated Trading Systems trading helps ensure that discipline is maintained because the trading plan will be followed exactly. In addition, pilot-error is minimized, and an order to buy 100 shares will not be incorrectly entered as an order to sell 1,000 shares.

Achieve NinjaTrader Automated Trading Systems performance Consistency. One of the biggest challenges in trading is to plan the trade and trade the plan. Even if a trading plan has the potential to be profitable, traders who ignore the rules are altering any expectancy the system would have had. There is no such thing as a trading plan that wins 100% of the time – losses are a part of the game. But losses can be psychologically traumatizing, so a trader who has two or three losing trades in a row might decide to skip the next trade. If this next trade would have been a winner, the trader has already destroyed any expectancy the system had. Automated trading systems allow traders to achieve consistency by trading the plan.

Server-Based NinjaTrader Automated Trading Systems. Traders do have the option to run their automated trading systems through a server-based trading platform such as Strategy Runner. These platforms frequently offer commercial strategies for sale, a wizard so traders can design their own systems, or the ability to host existing systems on the server-based platform. For a fee, the automated trading system can scan for, execute and monitor trades – with all orders residing on their server, resulting in potentially faster, more reliable order entries.

NinjaTrader Automated Trading Systems trading systems boast many advantages, but there are some downfalls of and realities to which traders should be aware. Mechanical failures. The theory behind NinjaTrader Automated Trading Systems makes it seem simple: set up the software, program the rules and watch it trade. In reality, however, automated trading is a sophisticated method of trading, yet not infallible. Depending on the trading platform, a trade order could reside on a computer – and not a server. What that means is that if an Internet connection is lost, an order might not be sent to the market. There could also be a discrepancy between the “theoretical trades” generated by the strategy and the order entry platform component that turns them into real trades. Most traders should expect a learning curve when using automated trading systems, and it is generally a good idea to start with small trade sizes while the process is refined.
Monitoring. Although it would be great to turn on the computer and leave for the day, automated trading systems do require monitoring. This is due do the potential for mechanical failures, such as connectivity issues, power losses or computer crashes, and to system quirks. It is possible for an automated trading system to experience anomalies that could result in errant orders, missing orders, or duplicate orders. If the system is monitored, these events can be identified and resolved quickly.
Over-optimization. Though not specific to NinjaTrader Automated Trading Systems, traders who employ backtesting techniques can create systems that look great on paper and perform terribly in a live market. Over-optimization refers to excessive curve-fitting that produces a trading plan that is unreliable in live trading. It is possible, for example, to tweak a strategy to achieve exceptional results on the historical data on which it was tested. Traders sometimes incorrectly assume that a trading plan should have close to 100% profitable trades or should never experience a drawdown to be a viable plan. As such, parameters can be adjusted to create a “near perfect” plan – that completely fails as soon as it is applied to a live market.


GET STARTED Trading for FREE – Learn to trade Futures, Forex, CFDs, Stocks & ETFs risk free Sim/Demo Trading, NinjaTrader Free Trade Platform

NinjaTrader Free Download & Data Trial

Download NinjaTrader the FREE leading trading platform

NinjaTrader is a FREE trade platform for advanced charting, market analytics, development & simulation. FREE trading platform, free demo account, free real time data, no risk, no funds required!
1. GET STARTED CLICK HERE TO GET YOUR FREE NINJATRADER PLATFORM & FREE REALTIME DATA


qtq80-wqwPyA

 Professional NinjaTrader Algorithmic Trading Systems Development & Consultancy

Institutional trading system developers from 1995, 2006/2009 NinjaTrader Consultants, providing Specialist NinjaScript consultancy & NinjaTrader Automated trading algorithmic systems development for retail & commercial traders
2. GET STARTED CLICK HERE TO GET YOUR NINJATRADER DEVELOPMENT PROJECT QUOTE



Disclaimer, Terms & Risk Disclosure

  1. In using any MicroTrends websites, services & products you agree to our Terms and Conditions, errors and omissions excluded
  2. You are responsible to read the Full Risk Disclosure & Disclaimers related to trading

Trading and investment carry a high level of risk, and MicroTrends Ltd does not make any recommendations for buying or selling any financial instruments. We offer educational information on ways to use our sophisticated MicroTrends trading tools, but it is up to our customers and other readers to make their own trading and investment decisions or to consult with a registered investment advisor.

Disclaimer Trading & investment carry a high level of risk & MicroTrends® does not make any recommendations for buying or selling any financial instruments. We do not offer trading or investment advice. We are a software company & we only offer educational information on ways to use our sophisticated MicroTrends trading tools. It is up to our customers & other readers to make their own trading & investment decisions or to consult with a registered investment advisor.

Risk Disclosure Futures, CFDs & forex trading contains substantial risk & 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 ones’ financial security or life style. Only risk capital should be used for trading & only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Please read the full risk disclosure here.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results & the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, & no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. 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 & all which can adversely affect trading results.

Testimonials appearing on this website may not be representative of other clients or customers & is not a guarantee of future performance or success.

NinjaTrader® is a registered trademark of NinjaTrader Group,LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.

MicroTrends® is a registered trademark of MicroTrends Ltd.
MICROTRENDS LIMITED is a company registered in England & Wales. Registered number: 5704475.
Registered office: Kemp House, 152 – 160 City Road, London, EC1V 2NX, England, UK.
VAT Registration No: 879467255