two different strategies in one futures contract

[kapa1]

Hi. Just to be clear on running two different strategies in one futures contract with no over night position.(Day trading) Do I need to to anything on start behavior? From what I understood, the strategies will trade it's own logic and if they conflict, It will get even out buy account position(IE if one says buy1 and other says sell 2, they will both have strategy positions on its own but in account, it will only show net 1 long) Thank you and any tips on running seperate strategies on one future would be greatly appreciated.

Thank you.

I have visited below links.

https://ninjatrader.com/support/helpGuides/nt8/en-us/?strategy_position_vs_account_p.htm

https://ninjatrader.com/support/helpGuides/nt8/en-us/?syncing_account_positions.htm

[NinjaTrader_PaulH]

Hello kapa1,

Thanks for your post.

You have referenced the relevant helpguide sections so beyond that we would suggest using the simulation account and testing the various start behaviors to see what suits your needs as well as observing the strategy performance when you are and are not in sync with your account position.

By default, the start behavior will be "Wait until Flat".

[kapa1]

question

Thank you. Let me ask you another question.

Starting the day, all system are flat. I will have strategy A and B on ES future. A few min later A shoot out buy order at 2700.00, stop at 2695, target at 2705 and gets filled. 10 min after, while in position, system B shoot out Sell short 2 at 2701.00, stop at 2705.00, target at 2795.00 and gets filled. Then my account position is at -1 ES at 2701 and strategy position at long 1 ES at 2700 plus short 2 ES at 2701.

Then what happens to account position if ES goes to 2695. I will have system A stops out and System B out with profit. So in strategy, that is 3 sell to cover. but account is only holding 1 net short.

What happens to account position if ES move up to 2705? Hitting system A's target and B's stop loss point. again, net account position is 1 Short.

I have re-read those link above but I apologies, it is not clear to me which "Start Behavior" needs to be checked on to have both strategy work in same time with real account.

Thank you.

[NinjaTrader_PaulH]

Hello kapa1,

Thanks for your reply.

The strategy start behavior does not really relate to the way the strategies are working in your example. The strategies are going to develop their own virtual positions and will issue account orders based on those virtual positions. If you are running both strategies on the same instrument and same account then each strategy will impact the account position of the other strategy. A critical concept to understand here is Strategies are not aware of other strategies and will continue performing their functions regardless of the account position.

For example, Strategy A and B on the same account, same instrument, both started at the same time and assume they wait until flat.

If Strat A enters 1 long, the account position is 1 long and the strategy A virtual position is 1 long. If strategy B next goes 1 short, the account position would now be flat, strategy A would be virtually long and strategy B would be virtually short. As each strategy reached either a profit or a stop loss it will continue placing live orders to close those virtual positions but would end up changing the account position which is currently flat.

[kapa1]

Thank you for replying and understanding. I appreciate it.

"If Strat A enters 1 long, the account position is 1 long and the strategy A virtual position is 1 long. If strategy B next goes 1 short, the account position would now be flat, strategy A would be virtually long and strategy B would be virtually short. As each strategy reached either a profit or a stop loss it will continue placing live orders to close those virtual positions but would end up changing the account position which is currently flat."

So if A enter 1 long and B enter 2 short. I understand each strategy trades it's own virtual system but as this example, account will be net short 1. If short side gets stop out and A out with target, That is A to sell profit target and B buy to cover 2. In this case, buy orders coming in from A and B totaling 3 contracts. However, the real account, there will be just 1 live order to cover leaving account flat. Did I understand correctly?

[NinjaTrader_PaulH]

Thank you for replying and understanding. I appreciate it.

"If Strat A enters 1 long, the account position is 1 long and the strategy A virtual position is 1 long. If strategy B next goes 1 short, the account position would now be flat, strategy A would be virtually long and strategy B would be virtually short. As each strategy reached either a profit or a stop loss it will continue placing live orders to close those virtual positions but would end up changing the account position which is currently flat."

So if A enter 1 long and B enter 2 short. I understand each strategy trades it's own virtual system but as this example, account will be net short 1. If short side gets stop out and A out with target, That is A to sell profit target and B buy to cover 2. In this case, buy orders coming in from A and B totaling 3 contracts. However, the real account, there will be just 1 live order to cover leaving account flat. Did I understand correctly?

This can easily get confusing, however, starting with the account being 1 short:
Strategy B, 2 short virtually hits a stop, issues 2 buy orders to close virtual short position and 2 live short order, 1 would make the account flat the other would leave the account 1 long.
Strategy A is 1 long virtually, hits a profit target and issues 1 sell order to close the virtual position and 1 live sell order which would leave the account flat.

As previously mentioned you can test this out using the simulation account.

Alternatively, you can open a 2nd account and run both strategies on the same instrument but on separate accounts and they will not interfere with each other's account position. You can test this as well by adding another simulation account.