Important tip use the Static DOM if doing this on the DOM so you don’t make a mistake. The issue on a dynamic dom is it “jumps around” so you middle mouse click to place a stop but then to adjust it you left click. If the price jumps when you do this you will accidentally place a limit order (not a stop limit but a limit) and get filled instantly (ie a buy above the market as a limit will get instantly filled). Just practice with a dynamic and you will see what I mean. A static DOM cost .10 a trade/.20 round turn and is worth it the commission and bid ask one an error alone (entry/exit) will more than pay for many a round turns. You know the difference if you see hold in the top left corner its dynamic.
NinjaTrader Version 7 http://www.ninjatrader.com/support/helpGuides/nt7/index.html?static_vs_dynamic_price_ladder.htm
The rules for momentum scalper are simple and using the ATM function on NT7 makes it even easier. Take a few moments to follow these steps and there are only 3 steps to doing the momentum scalper strategy on futures, forex, cfd’s stocks, etf’s
MOMENTUM SCALP TRADE SIMPLE RULES
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BAR EXCEEDS VOLUME (If Up close bar then Long Setup, If down close bar then short setup)
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HI/LO OF THAT BAR IS BROKEN WITHIN THE VERY NEXT BAR BY 3 TICKS (hi if up close / low if down close)
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BAR SIZE IS PROFIT TARGET (LESS 3 TICKS)
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STOP LOSS IS THE LOW OF SETUP BAR IF LONG, HIGH OF SETUP BAR IF LONG
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TRIAL STOP TO LOW OF ENTRY BAR IF LONG ONCE IT CLOSES, TRAIL STOP TO HIGH OF ENTRY BAR IF SHORT WHEN IT CLOSES
OPTIONAL TRAILING STOP EXCEEDING VOLUME - MAY TRAIL STOP USING DASHED MVP LINE (THOUGH USUALLY NOT AS PROFITABLE AS JUST SCALPING)
TIPS & CAUTION: A day where volume is consistently at or exceeding expectations ie more than 1/5 bars is usually a much better day to do this strategy. Not only are there more trades but the trades tend to work out better.
Use caution like in all trades when approaching a +1 or -1 deviation line or high to low as the markets often tend to reverse at these points.
I define close to a deviation as within 2 bars distance (ie tf we use 14 tick bars so within 28 ticks of a +1 or -1 Dev level or high to low dev (on deviation indicator the orange line) then no entries (or at least proceed with caution).
CHART Visual example:
DOM SETUP Visual Example:
NOTE: For ICE Exchange (ie TF) you must use a DAY versus a GTC order if your using Stop Limits
Note do this setting as well for doing multiple momentum scalps at once on the same instrument:
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