About Pro Range Trading

Pro Range Trading has developed an automated futures day trading strategy for the NinjaTrader 7 Platform. Anyone who is looking to make extra money and has a minimum of  at least between $5,000 and $10,000 of Risk Capital, a PC computer and an internet connection is a candidate to utilize our program.  You don’t need to be an “expert” at trading to learn the system.  Our design is clean and simple to use.  We walk you through the entire setup to get you going as quickly as possible.

I’d like to share a cute story with you.  When I showed this system to my buddy for the first time he said to me “Wow. It can’t be this easy.”  My response was, “It wasn’t that easy for me to make money trading futures until I created this system. I spent over 2 years trying to come up with a system that would work and I finally discovered this system and then I decided to automate it. I’ve used other systems in the past, but ultimately something was missing from each of them which prevented me from making money consistently.  When I combined a few ideas together, the Pro Range Bars, the Market Symmetry  concept (explained below) and the Fibonacci projection along with the Aroon indicator and the prior wave count, I knew I  had something really special.”

 

The yellow lines in the chart above illustrate the concept of Market Symmetry which measures waves and projects the next wave distance from the prior wave distance.  Market Symmetry can be explained as the fact that the patterns you see on a price chart simply could not happen randomly. The ratios within the patterns are mathematically related to each other to form geometric shapes, which upon discovery can lead you to locating major market turns.

A wave is consecutive moves in the same direction without changing trends. (A reverse wave is the prior wave that was going in the opposite direction.)  We use Market Symmetry to determine a projection of the Wave 2 target price based upon the Wave 1’s distance. Notice how Wave 1’s distance tends to be similar to Wave 2?  Wow!!! That should be a huge revelation to most of you!!! This is the basis of the strategy.

In the chart above, we use these specially designed Range Bars called Pro Range Bars which I developed after seeing something similar.  They have a unique design from most other range bars.  Each bar starts with a user defined range and tail (or wick).  In the chart above, each bar has a 50 tick range  except there can be up to a 50 tick tail if the market moves in the opposite direction more than the 50 ticks, but only up to 100 ticks. When the market moves in the opposite direction more than 100 ticks, a new range bar is created in the opposite direction. A new bar is created by the market moving 4 ticks in the same direction or 100 ticks in the opposite direction. By definition, the tail is only formed if the market moved against the trend by more than 50 ticks but less than 100 ticks and then resumed the trend.  We call this a Continuation Pattern.

When the market creates a tail and then resumes the trend, creating a Continuation Pattern, it tends to be the midpoint between the first wave and the next wave.  Wave 2 is generally a function of the distance of Wave 1.  By measuring the distance from the prior wave retracement low/high to the current bar that has the tail, then take that distance and start your count from the current bar’s retracement low/high, we can then use the Fibonacci extension tool as a way to predict the next wave distance target price.  We measure the distance from the pivot point where the bar is created to the 76.4% Fibonacci extension projection  to increase the chances of the trade reaching a lower target.  We only want to get into a trade that has a large enough projection so as to increase the probability of a profitable trade, because otherwise it is not worth taking the risk. Unless the prior wave count has a sufficient distance, as defined by the user, the trade will  not be executed.

In addition, the Aroon Oscillator trade tends to get you into a trade at an earlier part of the reversal wave.  However, during a choppy market, the Aroon Oscillator will give the trader many bad signals.  To combat this phenomenon, we measure the number of bars of the wave moving in the opposite direction to determine whether it is likely that the move in the new direction will have enough distance for a profitable trade.

Below are the parameters settings that you can adjust to your preference in addition to the range bar settings.  Please see video below for further explanation of each setting.

ProRangeMarketAOEMA Demo Video

We just added a new signal of EMA cross over.  This is in addition to the other signals.

Program Overview 

Sample Trading NQ & 6E

Explanation of Moving Average Crossover Signal Video

 

Traders suffer from a concept called Negative Skew.  That means that since your stop loss needs to be large enough to avoid incidental stops by a normal market retracement, you need to put your stop loss at a 2 Standard Deviation distance of the normal market range in order to give you a 95% probability (or 19 out of 20 times) that your trade will not be stopped out and then continue without you.  In essence, you only want to be stopped out when you have a high degree of confidence that the market is going to continue to go against you.  As a result, since your target price is mostly less than your stop price by about 3 to 1, you need to have a higher than 66% success rate in order to be profitable.  Therefore, by counting the prior wave distance and applying the concept of Market Symmetry, it gives you the confidence that your trade is more likely to reach your profit objective and therefore, increase your profit percentage ratio to overcome the negative skew phenomenon.

We just added a new Rainbow Strategy that takes multilple orders at various EMA levels once the market has established it’s hypertrend conditions.  This strategy requires more trading capital since you could be trading up to 10 contracts as the market moves against you before you have the ability to get out with a profit or if the market continues to go against you, the capital loss could be several thousand dollars.  The percentage of profitable trades is so high (above 90%) that it’s still worth the risk in my opinion.

Martin Braunschweig has over 30 years of experience in the financial services Industry and is passionate about giving you the opportunity to remove one of the most important factors in day trading… time.  By automating the trading, you can free up your time to do all of the other things you want to do in life.  Never again feel tied to your screen to have to wait for the proper trade setups.  They will come to you!!!