Chart Trading Systems and Systematic Trading Systems

Chart trading systems combine technical indicators, structured trading rules and visual decision-support tools to help traders analyse markets, identify opportunities and manage positions consistently.

These systems may be used for discretionary, systematic or hybrid trading. The trader can retain control of trade selection and entry while using chart-based signals, filters, alerts and automated trade management to support the trading process.

What Is a Discretionary Chart Trading System?

A discretionary trading system—also known as a manual trading system—allows the trader to interpret chart indicators and decide whether to enter, manage or exit a trade.

The trading plan may define specific entry, filter and exit rules, while still allowing the trader to consider additional market information such as:

• Price action and market structure
• Technical indicators and confirmation signals
• Economic news and scheduled events
• Market timing and trading sessions
• Seasonal tendencies and market cycles
• Fundamental and intermarket conditions
• Current volatility and risk conditions

The trader manually submits the entry order after reviewing the available information. Once the position is filled, it may be managed manually or protected using automated trade management with predefined stop-loss, profit-target and trailing-stop instructions.

NinjaTrader Indicators

Chart-based trading indicators can be displayed directly on a NinjaTrader chart or used through tools such as the NinjaTrader Market Analyzer. Indicators may also be incorporated into NinjaTrader strategies as systematic entry, filter, trade-management and exit components.

• Buy systematic and chart trading systems online
• Learn more about NinjaTrader indicators

Using Charts as a Window into the Markets

Charts are a trader’s window into the financial markets. Modern trading platforms can display substantial amounts of real-time and historical information, but more information does not automatically produce better decisions.

A well-designed chart should make important market information easier to identify and interpret. The choice of data, indicators and trading tools has the greatest effect on the analysis, while the overall chart layout can improve situational awareness, response time and trading precision.

Even when the correct information is available, an opportunity may be lost if the trader cannot find and interpret it quickly. Technical chart indicators can simplify this process by presenting:

• Visual entry and exit signals
• Trend and market-condition filters
• Support, resistance and price levels
• Alerts and chart annotations
• Audio or voice notifications
• Risk and trade-management information

Indicators may be displayed as overlays drawn directly over the price bars or within separate chart panels. Overlay signals can remain visually aligned with the relevant price, bar and point in the chart’s time series.

System-Based Trading vs. Discretionary Trading

A systematic trading method defines how the trader or software should respond when a specific combination of market conditions occurs. This structure can make it easier to follow a consistent process and reduce impulsive decision-making.

However, a systematic approach only remains systematic when its rules are followed consistently. Repeatedly overriding or selectively applying the rules changes the approach from systematic to discretionary trading.

Discretionary traders also operate with rules. The difference is that they apply those rules using their own interpretation of current market conditions. The implementation of the trading plan may therefore differ from one trade to another.

Discretion does not remove the need for discipline. Because the final decision remains with the trader, risk controls, preparation and consistency become especially important.

Combining Discretionary and Systematic Trading

A hybrid trading approach combines trader judgment with systematic signals and automated tools.

For example, a trader may use systematic indicators to identify potential entries but retain discretion over which signals to accept. After entering a position, the trader may use automated stop-loss, profit-target, break-even and trailing-stop management.

This approach allows the technology to support consistency and execution while the trader remains responsible for market context, trade selection and risk.

Traders interested in more advanced hybrid and automated capabilities can learn about AlgoFuturesTrader for NinjaTrader 8.

Why Choose MicroTrends Chart Trading Systems?

MicroTrends founder Tom Leeson is an experienced trader and developer who has been involved with algorithmic trading, technical analysis and trading-system development since 1995, beginning in London’s professional trading environment.

Since 2006, MicroTrends has specialised in NinjaTrader indicators, NinjaScript strategies, automated trading systems and commercial trading technology. MicroTrends joined the NinjaTrader ecosystem in 2009 and has developed solutions for software vendors, independent traders, professional traders, proprietary trading operations and investment businesses.

Development experience includes:

• Proprietary and modified technical indicators
• Chart-based discretionary trading systems
• Hybrid and automated NinjaTrader strategies
• Real-time trading controls and dashboards
• Trade-entry and trade-management tools
• Commercial multi-asset and portfolio systems
• Microsoft enterprise technology integrations
• FIX API and external trading-system integrations

MicroTrends develops proprietary and adapted indicators that can provide entry signals, market filters, trade-management information and exit signals. Solutions may be designed for futures, forex, equities and other supported markets.

Learn more about MicroTrends or visit our NinjaTrader Indicators page.

Setting Realistic Trading Expectations

How much money can I make?

This is one of the first questions many traders ask, but it cannot be answered reliably. Trading outcomes depend on numerous variables, and inexperienced traders may not yet have enough evidence to establish realistic performance expectations.

A more constructive question is:

How can I formulate realistic expectations and manage risk responsibly?

Factors to consider include:

• Your trading knowledge and experience
• The markets and instruments being traded
• Your trading style and intended holding period
• The size of your trading account
• Commissions, data fees and operational expenses
• Your personal risk tolerance
• The amount of leverage being used
• Market liquidity and volatility
• Whether you trade part-time or full-time
• Your ability to follow the trading and risk-management plan

No indicator, strategy or trading system can eliminate risk or guarantee profitability. Chart trading technology should be treated as a decision-support and execution tool within a properly tested trading and risk-management process.