As technology has advanced it has become easier to develop software utilities that may detect a reversal and locate an entry based on market position, volume imbalance, velocity, momentum, price action and probability.
The system looks for the highest high and lowest low over past bars, then the system tags the entry with a line that is proportional to your entry settings. Then the strategy calculates:
Imbalance, (the calculation with the difference between Ask & Bid volume with price as an error).
Velocity, (the amount of price moves over time in the bar) Greater the number is greater the velocity.
Momentum, (the amount of Ask & Bid volume changes that are in each tick) greater the number equals greater the momentum.
Probability, a calculation to determine if the current bar is going to continue in the same direction.
The advanced features of Bet Reversals 2.5 include; Start trade time and End trade time, Money management, Profit and Loss targets, Momentum, Velocity, Volume Imbalance and Probability filters. Maximum ASK and Bid filters, Advanced market position control, using NinjaTrader 8 ATM (Advanced Trade Management) Strategy. Market and Limit entries, Exit filters to limit losses. With over 20 filters as part of our enhanced algorithm
Works with time, tick and volume charts, best with time charts from 3 minutes to 30 minutes
NinjaTrader QA Tested
Above video is of simulated data from MNQ 2/13/2024 9:00 AM
Back Test with NinjaTrader Strategy Analyzer
Normally you can not back test with NinjaTrader’s ATM as your market entry/exit strategy, but we’ve added a back-test option that allows specific entries based on fixed Profit Targets and Stop-Loss, it’s simple. Just check back-test only and set your profit target, stop-loss target, instrument and dates to test, then let it run. You can even run the Ninja Script Output to watch your trades happen.
Back-Testing simulated data from NQ for the month of January 2024
Back-Testing simulated data from NQ for the month of January 2024
Below is the Ninja Script Output showing the trades exits with dates and times of the trades, so its easy to follow-up to a more in-depth analysis. Simulated Data for the Month of January 2024 NQ
