When multiple day trading strategies confirm a long trade, we take that as a good sign. In this trading video, the ATO 2 and Atlas Line agreed that going long was correct. They were correct – the trade resulted in a two-point winner in just a few minutes. Trading one contract, this trade was worth $100. Two contracts = $200 of profit. You get the idea. Remember that these figures do not consider brokerage commissions or other costs. Generally, futures commissions are around $4.00 per contract, per trade (round-turn cost).
For background, this trade was taken on the E-mini S&P 500 market (ES in NinjaTrader). At 10:20 a.m. EDT, the Atlas Line produced a long signal. At the time, price was at 2822.75. A market buy order was placed soon after the signal appeared. With the Atlas Line and ATO 2, the signals appear once a bar closes. The rules for these strategies are fully taught in the included live training and online training video(s).
We understand that some traders prefer to work on other things during the day. With these two trading systems, you can set up a sound file to play when a trade occurs. This allows you to go back to the platform, place, and monitor the trade.
Day Trading Strategy Profit Targets & Stop Losses
Did you notice how the stop loss and profit target were automatically placed? That’s because an ATM Strategy was used. In NinjaTrader, ATM Strategies let you predefine a profit target and stop loss value. By selecting an ATM Strategy in the DOM prior to a trade, the specific predefined profit target and stop loss will apply once a trade is placed. The 2 point profit target and 4 point stop ATM Strategy is commonly used by DayTradeToWin.com because it’s a good average of risk vs. reward in terms of how the E-mini generally behaves. An effective day trading strategy should involve adaptive values.
By the way, NinjaTrader is free for practice trading. DayTradeToWin.com’s real-time practice data (simulator) page helps with this. Assistance can also be provided for MetaTrader, though at the moment, the ATO 2 is the only indicator available by DayTradeToWin.com for MetaTrader.
Changing a profit target or stop loss while in a position is best avoided. Doing so will put you behind other traders because orders are processed in the order received. When a trade goes against you, closing a position (via the DOM) is always an option.
Having stops that are too small may cause an early exit to an otherwise profitable trade. Stops that are too large expose you to greater risk. Similarly, profit targets that are too small may unnecessarily limit the amount of profit you can make on a trade. Profit targets that are too large may increase risk because they’ll never get hit or keep you in the market for longer than necessary. For these reasons, we approach trading dynamically. We prefer to use a tool called the ATR to determine what are profit target and stop loss should be based on real-time conditions. The full rules for this approach are explained in the included training for our strategies.
Improve Your Day Trading Strategy
In NinjaTrader, there are two ways to monitor profit and loss while in a position. If you have Chart Trader enabled, look for red or green chart text showing a profit or loss value. You can also check the bottom of the DOM.
We’ve said it before, but we truly do follow price action. We let price dictate our risk and our goal. We want to be in and out as quickly as possible with the largest bang for our buck. A simple and realistic day trading strategy is the way to go.
If you want to learn everything we have to offer during a comprehensive eight-week coaching program, Mentorship is for you. This live training occurs twice a week online. The webinar format allows you to see live charts, ask questions, and learn from an experienced trader. All of our courses and software are included with live training. We record every class for later playback. Need help installing or configuring NinjaTrader? No problem – our support people can help via remote assistance. Have trading questions outside of class? No problem – email them in and we’ll respond as soon as possible.