I think it might be best if I begin by describing my money management strategy that I would like to test, then maybe someone can give me some insight on how to execute it in ninjatrader.
I will use a long entry as an example and will use the RTY as test instrument. Given that each tick in the RTY is worth $5 and 10ticks = $50.00
So I enter long in the market with 3 contracts using an ATM strategy that places a stop loss 10 ticks below my entry price and a target 25 ticks above my entry price. This is what I call my first tier entry and this works fine with the ATM. My target is 2.5 times my risk (risk = $150 / reward=$375). When tier 1 hits 10 ticks in profit (equal to my risk), the ATM moves the stop to breakeven (tier one entry price. This is to keep the trade risk at about $150 when I enter the market again in tier two..
Now this is where it gets harry. My tier two entry occurs with the same number of contracts 10 ticks above my tier one entry price. My tier two entry will be driven by a different ATM with a 10 tick stop loss and a 15 tick target (1.5 times the tier two risk). When the second entry happens, the first entry is moved to break even and the second entry is establishing a trade with my original risk of $150.00. Setting a target for tier 2 at 15 ticks will make the target of tier one and tier two the same price. this will change my risk reward to a risk of $150 with a reward of $225+ $375 = $600. So, for the over all trade my target is four times my risk (risk=$150, target =$600). According to my math, as long as this works more that 20% of the time, I will be profitable.
The trick is setting the stop limit above my entry price. When I click the buy column on the superdome next to the price 10 ticks above my tier one entry, it enters the market immediately at the current market price. I set the MIT option on left click to true and it dose the same thing. When I right click on a chart near the tier two entry price I get an option for a buy stop market, no buy stop limit.
Ideally, I would like to get the ATM to add the second tier stop limit order 10 ticks above my tier one entry - but the ATM doesn't seem to allow tiered entry - only tiered exits.
I am hoping that I provided enough information to describe what I am trying to accomplish. My question is how do I put a stop limit order into the market 10 ticks in the money of an existing trade and have it managed by a second ATM?
I will use a long entry as an example and will use the RTY as test instrument. Given that each tick in the RTY is worth $5 and 10ticks = $50.00
So I enter long in the market with 3 contracts using an ATM strategy that places a stop loss 10 ticks below my entry price and a target 25 ticks above my entry price. This is what I call my first tier entry and this works fine with the ATM. My target is 2.5 times my risk (risk = $150 / reward=$375). When tier 1 hits 10 ticks in profit (equal to my risk), the ATM moves the stop to breakeven (tier one entry price. This is to keep the trade risk at about $150 when I enter the market again in tier two..
Now this is where it gets harry. My tier two entry occurs with the same number of contracts 10 ticks above my tier one entry price. My tier two entry will be driven by a different ATM with a 10 tick stop loss and a 15 tick target (1.5 times the tier two risk). When the second entry happens, the first entry is moved to break even and the second entry is establishing a trade with my original risk of $150.00. Setting a target for tier 2 at 15 ticks will make the target of tier one and tier two the same price. this will change my risk reward to a risk of $150 with a reward of $225+ $375 = $600. So, for the over all trade my target is four times my risk (risk=$150, target =$600). According to my math, as long as this works more that 20% of the time, I will be profitable.
The trick is setting the stop limit above my entry price. When I click the buy column on the superdome next to the price 10 ticks above my tier one entry, it enters the market immediately at the current market price. I set the MIT option on left click to true and it dose the same thing. When I right click on a chart near the tier two entry price I get an option for a buy stop market, no buy stop limit.
Ideally, I would like to get the ATM to add the second tier stop limit order 10 ticks above my tier one entry - but the ATM doesn't seem to allow tiered entry - only tiered exits.
I am hoping that I provided enough information to describe what I am trying to accomplish. My question is how do I put a stop limit order into the market 10 ticks in the money of an existing trade and have it managed by a second ATM?
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