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Can I fix this obstacle to successful scalping?

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    Can I fix this obstacle to successful scalping?

    I have created what on the chart appears to be a successful scalping technique. I know someone who trades very profitably using a similar method in other markets, so I am eager to test my version and, if successful, get it up and running.

    Entries come either at market turns or at continuation signals. In either case, the market is moving fast when I want to get in. So I click on Buy Market or Sell Market, and an ATM strategy opens the trade and sets a stop-loss and a profit target. Much more often than not, the move carries far enough to deliver a profitable exit. Then the market either gives a continuation signal or turns around, usually triggering another entry.

    At least, that is what should happen. Most of the time, the first two or three ticks--or more--pass by while I reassure NinjaTrader that I am neither stupid nor clumsy. This leads to one of three options:

    1. The move carries several ticks beyond my intended exit and gives a profit in spite of the delay. Because the technique attempts to exploit many transient moves as well as longer ones, this occurs in no more than half the trades. Even when the profit target is hit, the delay often prevents taking a continuation signal that should have triggered a second entry. That potential profit is missed while I wait for the first trade to close.

    2. The move does not quite reach my target. It then turns around without giving an entry signal. With a bit of luck, I see that the trade is failing and close it at the loss of a few ticks, rather than letting it continue losing until the stop-loss fires. Sometimes the move is so quick that an earlier exit is not possible. Sometimes the cat claims to be hungry.

    3. The move turns around almost immediately and generates an entry signal in the other direction. Because hitting Rev does not require confirmation, the second trade usually makes the expected profit. A minor loss on the first trade would be insignificant over a day's trading if my entries worked as they are supposed to.

    But they don't. This turns what should be a winning strategy into one that breaks even at best.

    Worse, this is sim trading. With other programs, sim often appears more successful than real trading will be. I doubt NinjaTrader avoids this trap.

    So: Can I tell NinjaTrader 7 to do its job instead of waiting for confirmation?

    My acquaintance has used Bloodhound to automate his scalping, and I intend to do the same. However, I don't feel like buying a $600 add-on and learning to program it without knowing that this strategy is worth the investment.

    Second question: There are times when it would help to cancel my profit target and stay in the trade for the entire move. Is this possible?

    Thanks.

    PBreen

    #2
    From what I can tell, your first question boils down to "Can i disable order confirmation?", If so, yes - go to the Control Center > Tools > Options > Disable 'Confirm order placement'. If I have misunderstood the several paragraphs of your post, please elaborate concisely on what your root question is.

    You can cancel your profit target, however, this would also cancel your stop loss since ATM orders are submitted as an OCO pair. An alternative would be to modify the profit target order very far away to effectively create a scenario in which there is no profit target order.
    Patrick G.NinjaTrader Customer Service

    Comment


      #3
      Yeah, I was kind of long-winded about that, wasn't I? Sorry. Many thanks for your help. That was exactly what I needed.

      Comment

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