Automated or Algorithmic Trading uses market algorithms to find potential trend reversals. In using an automated trading system you remove emotional based decisions from your trading. No more hesitating, no more fear of pulling the trigger, no second guessing and no more missed trades.
Now I haven’t traded the 6E that much, usually each day I trade the NQ and Crude Oil futures. With the market rally here in 2018 the market is really moving nicely, and that’s what an Automated or Algorithmic trading systems likes, wider ranges and up and down moves. So were not looking to make home runs on the 6E just a few hundred dollars. The trading system does all the work, identifies the trends and reversals and makes all the trades for you. Sit back and relax and watch the Automated trading system do its job. And were using the NinjaTrader trading system to run our strategy on.
So we have been trading the 6E past few weeks, as sometimes the CL comes to crawl, and has tight ranges, and that is hard to trade. In the chart below we have an example of our algorithmic trades we did on Friday 1/19/2018. We don’t like to trade the first half hour of the market open. The first half hour can be choppy and sideways and we like to avoid that. You can run the algorithmic trading system on multiple charts and trade multiple instruments.
So on the chart were trading 3 contracts as that is what I am comfortable with, I don’t want to trade 10, or 5, that’s up to traders to decided. You can trade any amount of contracts you wish with the Algorithmic system, and make any dollar amount there are no restrictions. We set a profit goal of $400 dollars, and started the autotrader while it was in downtrend, so on trend change it would catch the next trend. The gold vertical line on the NinjaTrader chart shows were we started the autotrader.
So as the chart below shows, we start long 3 contracts by the LE print on the chart, it moves up smoothly, red hash marks under the Renko candles are the stops. On the first contract we like to take some profits off, and it does as it prints LX1_PT on the chart. Price continues to move up and we hit our max daily gain of $400 dollars, and it prints the label on the chart LX_DlyMaxGain. And then it prints a green vertical line on the chart to show that the max gain has been hit, and no more trades will be made until you reset the strategy.
Then you come back the next day and repeat the Trading 6E Futures strategy. For more info on the algorithmic trading system visit: https://trading123.net/autotrader/