For those of you looking for an Automated Trading System for Futures, you have come to the right place! Pro Range Trading has developed an automated trading system for the NinjaTrader 7 Platform.
The system is based upon 4 concepts:
- Market Symmetry– The basis for this concept is that markets act in symmetrical patterns. Therefore, by counting the prior wave pattern, we can predict the next wave distance. This is also know as Action/Reaction. You can project the reaction swing from the prior action swing.
- Range Bars– The Pro Range Bars that we developed are designed to reduce the overall market “noise” and focus the trader on the reaction swings as they develop. The range bars also help establish a trailing stop levels equal to a 2 Standard deviation distance away in order to reduce incidental stops from a normal market retracement.
- Fibonacci Extensions– We use the Fibonacci extension to calculate the distance of the next wave. The Fibonacci extension tool computes the wave distance of the prior wave and plots the next wave target from the current retracement low/high. The swing trader needs to wait for the confirmation signal which is above/ below where the prior wave peaked. That is your pivot point. When you measure the distance from your pivot point to your projected target, you only want to take the trade if the projected distance is large enough so it’s worth taking the risk.
- Aroon Oscillator– The Aroon Oscillator is a very good entry signal for getting into waves at an early stage. By definition, using Fibonacci projection from the prior wave count requires a prior wave move that you would otherwise have to avoid because it would be needed to calculate the next wave distance. But with Aroon Oscillator signal complimenting the prior wave count strategy, we can get into the next reversal wave much earlier. The problem with getting into a wave early is that in a choppy market, you will get many false signals. To mitigate this problem, we measure the prior wave move in the opposite direction to give us a qualifying signal prior to taking the Aroon Oscillator trade.