The provided Free automated strategy implements the “Strategy Eagle Eye River Scalper” trading strategy, designed for NinjaTrader 8.
Core Logic:
- Trend Identification: Uses two Exponential Moving Averages (EMAs) – a slower EMA (EMA1) and a faster EMA (EMA2) – to identify the primary trend.
- Long entry is triggered when the current price closes above both EMAs, the faster EMA is above the slower EMA, and other confirming conditions are met.
- Short entry is triggered when the current price closes below both EMAs, the faster EMA is below the slower EMA, and other confirming conditions are met.
- Additional Confirmation: Employs several additional indicators to filter entries and improve trade quality:
- Chaikin Money Flow: Measures buying and selling pressure. A positive value supports long entries, and a negative value supports short entries.
- Volume Oscillator: Compares recent volume to historical volume. A rising Volume Oscillator confirms increasing volume, supporting potential entries.
- Volume: Ensures that the current volume is above its 20-period Simple Moving Average, indicating sufficient liquidity and market participation.
- RSI: Avoids entries during overbought or oversold conditions to reduce the risk of entering at unfavourable price levels.
- ATR (Average True Range): Helps avoid entering trades during periods of high volatility by measuring recent price volatility.
- Risk Management: Incorporates fixed profit targets and stop losses based on a user-defined number of ticks. It also exits all open positions at the end of the trading session.
Key Features:
- Scalping Focus: The strategy aims to capture small, quick profits from short-term price movements.
- Multiple Indicators: Combines multiple technical indicators to generate entry signals and filter trades.
- Risk Management: Includes profit targets and stop losses to manage risk on individual trades.
- Session Close Exit: Closes all open positions at the end of the trading session to avoid overnight risk.
- Customizable Parameters: Allows users to adjust profit targets, stop losses, and EMA periods to tailor the strategy to their preferences.
Hypothetical Backtesting:
- Period: January 1, 2014, to September 3, 2014
- Result: Total combined Futures profits of $40,000
Important Note:
- This is a basic description of the strategy’s logic. Actual performance may vary depending on market conditions, parameter settings, and other factors. It’s highly recommended to thoroughly backtest and optimize this strategy before using it in live trading.
- Hypothetical performance results have many inherent limitations, including the fact that they are generally prepared with the benefit of hindsight. Past performance is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.