Brief Summary
This video provides a detailed guide on using the chart trader in NinjaTrader, focusing on order types, reversals, and the importance of using OCO (One Cancels the Other) orders. It also covers ATM (Automated Trading Management) strategies, adjusting targets based on support and resistance, and the significance of charting skills.
- Explains different order types like buy market, buy bid, and buy ask.
- Warns against over-trading reversals.
- Highlights the importance of using OCO orders to manage risk.
- Demonstrates how to apply and adjust ATM strategies.
- Emphasises the role of charting skills in making informed trading decisions.
Introduction to Chart Trader
The video introduces the chart trader feature in NinjaTrader, explaining how to enable it and adjust its size. The chart trader allows users to execute various order types directly from the chart. The presenter sets up a market replay to demonstrate the functionality and speed up the process for testing purposes.
Understanding Order Types
The presenter explains the different order types available in the chart trader, including buy market, buy ask, buy bid, reverse, sell market, sell ask, sell bid, and close. A buy market order executes immediately at the current ask price, while a buy bid places a bid at a specified price. The presenter warns that buying at market can sometimes result in paying more than expected due to price fluctuations.
Reversal Orders
The presenter demonstrates how a reversal order works, which closes the existing position and opens a new position in the opposite direction. He cautions against using reversal orders frequently, as it can lead to over-trading and losses. The presenter personally avoids trading reversals due to the high risk of accumulating losses.
Closing Positions and Using Limit Orders
The presenter explains that hitting "close" flattens the position at the best available price. He then demonstrates how to use limit orders to sell at a higher price. By right-clicking on the chart, a sell limit order can be placed, but this doesn't include a stop-loss order. To manage risk, a sell market stop order can be added, but this requires manual cancellation if the limit order is filled.
OCO Orders: One Cancels the Other
The presenter introduces OCO (One Cancels the Other) orders, which automatically cancel one order when the other is filled. By enabling the OCO feature, traders can place both a sell limit order and a sell stop order simultaneously. If either order is triggered, the other is automatically cancelled, preventing unwanted positions. The presenter emphasises the importance of activating the OCO function to ensure the orders cancel each other.
Practical Example of OCO Orders
The presenter illustrates what happens if OCO is not enabled, showing that both the limit and stop orders remain active, potentially leading to unintended positions. He stresses that forgetting to enable OCO can result in being caught in another buy without any stop or profit target. The presenter then demonstrates the correct way to use OCO orders, ensuring that only one order is active at a time.
Applying ATM Strategies After Entering a Trade
The presenter explains how to apply an ATM (Automated Trading Management) strategy after already entering a trade without one. By right-clicking on the position in the positions tab, an ATM strategy can be applied, adding pre-set profit targets and stop-loss orders. The presenter notes that he often forgets to turn on his ATM and has to add it after the trade has begun.
Adjusting ATM Strategies and Using the Price Line Tool
The presenter demonstrates how to adjust ATM strategies based on support and resistance levels. He also introduces the price line tool, which displays the current price level on the chart, aiding in identifying potential support and resistance areas. The presenter explains how to add the price line indicator to the chart.
Analysing Market Conditions and Breakout Strategies
The presenter discusses the importance of analysing market conditions and using drawing tools to identify potential breakout opportunities. He advises caution when trading in ranging markets and demonstrates how to use the rectangle tool to identify zone areas. The presenter explains that breaking out of a zone can signal a continuation of the trend.
Managing Targets and Stop Losses
The presenter explains how to manage targets and stop losses based on resistance points. He emphasises that setting an ATM strategy is just a guideline and that traders should adjust their targets based on market conditions. The presenter demonstrates how to move targets according to resistance points and highlights the importance of charting skills in making informed trading decisions.
Live Trading Example: Breakout and Target Adjustment
The presenter provides a live trading example, demonstrating how to enter a trade on a breakout and adjust targets based on support and resistance levels. He explains his reasoning for entering the trade and adjusting the ATM strategy accordingly. The presenter highlights the importance of continuous analysis and adaptation in trading.
Importance of Support and Resistance
The presenter reiterates the importance of identifying support and resistance lines, using them to set targets and manage risk. He notes that the market often revisits and fills gaps, providing potential trading opportunities. The presenter stresses that trading involves looking at everything at the same time and that ATM strategies are essential for quick execution.
Benefits of ATM Strategies and Platform Recommendation
The presenter concludes by emphasising the benefits of using ATM strategies, particularly for setting profit targets and managing risk in fast-moving markets. He recommends NinjaTrader as a platform and highlights the importance of having the proper tools and skills for successful trading. The presenter also mentions that he teaches these skills in his courses.
