Poweremini.com

Profitable E-Mini Trading

Momentum Target System – NinjaTrader Indicator Example

The Momentum Target System is extremely easy to follow no matter what trading platform or broker you are using.

But today I wanted to walk you through the Trade Alert with examples of how it looks using our NinjaTrader “companion indicator” which we include at no extra charge for our Alert Software users.

Today was actually an interesting day to show you this example because when the initial Alert was given, quite a bit of time passed before it actually “triggered”. As you’ve seen from past posts, the Entry Trigger is a 1-minute close past the Alert Price / Trade price Barrier, which was 3294.00 as you see on the screenshot below. That’s a 5-minute chart and you can see how price poked over 3294.00 multiple times, but it wasn’t able to close over it for some time on the 1-minute chart (not shown).

Today’s Alert was given at 9:52 as you see by the time stamp (Eastern time) on the screenshot below – and you can see that almost 30 minutes passed by without a 1-minute close past the barrier. The image below is a screenshot of the Alert Software superimposed on a NinjaTrader 8 chart running our “companion indicator”. At this point, the alert has not “triggered in”.

Notice on the NinjaTrader chart, the indicator automatically plots that green dashed horizontal line, which is the Alert Price / Trade Price Barrier. As I mentioned, you just watch for the the “trigger” on a 1-minute chart. The first candle or bar you see close over that line you just click to enter the trade at market. In the image below I was still waiting to see if the price could make it back up to 3294 (dashed green line) and then close above it.

On this next screenshot (below) the trade had just “triggered in” after a 1-minute close past the Alert price – so I just clicked to “enter at market” with 3 contracts. My fill was actually 3-ticks over the Alert price, but we don’t worry about that. As soon as the Alert Software detects the 1-minute close over the Alert Price it displays the “initial stop” and the first “Dynamic Target”. (The initial stop starts off on the opposite side of the Dynamic Trigger Range, but will “trail” as the session progresses).

The tan line is my Entry at 3294.75. The orange dashed line at 3297.50 is Target 1. The NinjaTrader “companion indicator” automatically plots the Alert Price, Trailing Stop and upcoming Target on your chart. The great thing about the indicator is that you get the all visual reference points automatically. If you’re using a different platform then you simply plot the horizontal lines on your chart manually – no big deal.

This screenshot has the Alert Software superimposed on the NinjaTrader chart so you can see them together and how everything matches up.

The screenshot below just shows how everything looked without the Alert Software superimposed on the chart as the price was approaching Target 1. You can see where I placed a Limit order to sell 1 contract at the first Target, 3297.50.

The next screenshot was taken after the price had already hit Target 1 – at which point the Alert Software and indicator switched to displaying Target 2 at 3302.00 and you can see that I placed another Limit order to sell up there at the second Target.

You can see on the image below that as time went on, the price actually dipped back to the area of my Entry and briefly poked at the Alert price again before turning back up. Notice that as price turned back up the Trailing Stop ratcheted all the way up to 3298.75 which was above the top of the Dynamic Trigger Range now.

Below is the screenshot I took as the price was approaching Target 2. Notice how the Trailing Stop had already ratcheted-up again. You can see I still had that limit order in to sell the 2nd of my 3 contracts at T2. I was just sitting back watching and letting the trade play out – no fear – no stress.

This next screenshot was taken right after Target 2 got hit. You can see the indicator had already automatically plotted Target 3 at 3306.00. I placed another “limit order” to sell the last remaining contract up at that level. Notice that I hadn’t adjusted “my trailing stop” yet (the red line) up to where the “System Trailing Stop” was (yellow line) but that’s the next thing I did.

At this point I only had 1 contract left after taking profits at both T1 and T2.

Here’s a look at what the Alert Software looked like at this point – you can see that Target 3 is displaying in the Dynamic Target” field. Notice the Targets in the System Notes at the bottom of the Alert Software screen. The algo automatically posts the System Notes instantaneously.

The market proceeded to level out and start to move sideways for a while. Here’s how the indicator looked on the chart. Notice by this time the Trailing Stop had ratcheted all the way up to 3298.00 which was 3.25 points over my Entry, so the trade was in a good situation no matter what happened from here.

A little while later, the price started to roll over and didn’t look like it was going to make it up to Target 3. The screenshot below shows my Trailing Stop at 3298.25 which was about to be taken out. No big deal because it was well over my original Entry anyway.

And here’s the final indicator Screenshot, right after the Trailing Stop got hit. You can see the PnL on the trade in the upper right-hand corner +$662.50 (less commissions). When the Trailing Stop gets hit, the system performs an “automatic reset” and all the lines disappear from the chart other than the original “Dynamic Trigger Range”. This is how the chart looked after the reset.

Here’s what the Alert Software looked like after the reset. Notice how the system automatically generated the play-by-play of the entire trade down in the System Notes:

So to recap, shortly after the market opened the system issued an Alert to go long at 3294.00. To avoid getting “faked out” and to confirm the “momentum” we wait for a 1-minute closing candle over the Alert Price, then pull the trigger by entering at Market.

I got filled on 3 contracts at 3294.75 and immediately placed my Stop-Loss order on all 3 contracts at the initial stop displayed in the software (and on the chart by the indicator). I set a Limit Order to sell the first contract at 3297.50 Target 1. Once that got hit I set another limit order to sell one contract at 3302.00 which was Target 2.

I locked in +2.75 points on 1 contract at T1 and +7.25 points on another contract at T2 and continued to follow the Trailing Stop with my 1 remaining contract, which eventually got taken out +3.25 points over my entry.

Here’s how it panned out in the end.

The trade was over a little after 1:00 in the afternoon Eastern Time, so I wrapped it up and took a late lunch. Then I came back and wrote this recap to help you get a feel for what to expect from the Momentum Target System and more importantly – see how it looked on the NinjaTrader chart with our indicator running.

Today was a good example of what the system can do when there’s decent action in the market – which we are seeing a LOT more lately. It’s hard to generalize about what a typical day might bring because market behavior and price action varies from day to day, but what we would normally consider an average good day would be when the price hits both Target 1 and Target 2 and then then perhaps tags the trailing stop somewhere around or a little past breakeven, which is exactly what happened today.

Be sure to watch the video on the Momentum Target System page for a detailed walk-through of the system.

If you aren’t already a member – Sign Up Today – And Trade The Alerts With Us Tomorrow

Recent Posts

Join Our Mailing List for Tips and Tricks and special announcements

We respect your email privacy