Submitting a Custom ATM Strategy

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Video Transcript:

Hello Traders, welcome to the Ninja Trader tutorial, and the fourth module, Superdome Interactive. In this lesson, I’m going to show you how to submit a custom ATM strategy within the Superdome.

Now first of all, I’m going to tell you what an ATM strategy is. An ATM strategy is an order that has a fixed stop-loss and a fixed target. And the stop-loss order and the profit-target order or the limit order, in this case are OCO, meaning that one-cancels-the-other. Meaning that, if you enter the trade and the trade hits or price hits your limit order, or your profit-target, your stop-loss order will be canceled, and vice-versa. If your trade, or if price hits your stop-loss and closes your trade at a loss, your profit-target or your limit order will be canceled.

Now the first step you need to know or the first step you need to take in order to place an ATM strategy, is to choose the quantity of contracts you want to trade. Now, on this manual where it says ATM strategy, you can see that you have none and when you have selected none, it means that any market order or any order that is filled, will not have a defined profit-target or stop-loss in it. You have to do that manually.

ATM Orders

I’m going to show you how to build a custom one. As you can see, the quantity is already set on two because right here, you modified it at two contracts before you changed from none to custom. Now you will, we have to define the stop-loss and the profit-target. Remember that the stop-loss and profit target are intakes. This means that, well crude oil moves, or one tick in crude oil is a one cent move in price. So if you want to set your stop-loss 10 cents below the market or below the entry, you are going to set a 10 tick stop-loss and if your profit-target is 10 cents, you are going to set at 10 tick profit-target.

ATM Strategy SuperDOM

Now, let’s buy this market right now with a custom ATM strategy. Now, you can see that right here in brown, we were filled at 50-30, with two contracts. And right now, we are down $40 or two ticks, because we are trading two contracts. You can see right here, at the bottom, the red line is our stop-loss level and the green line is our check-profit level. If price hits our stop-loss level, the trade will close at a loss and this order will be canceled. Now, I’m going to move my stop-loss level, up to one tick below the last traded price so you can see that this order is canceled when the stop-loss gets hit. To do this, just click on the price level, and move it below, and move it up. Now you can see that our stop was filled at a loss, and the profit-target was canceled because of the strategy. If this a strategy that we are going to be using a lot in our trading, we can save it as a template. To do so, just right-click on the Superdome and click on manage ATM strategy template. Just name it, we’re going to name it Invest-to-10-ticks, and we’re going to save it.

Now, on the drop-down menu, we have the Invest-to-10-ticks template and whenever we choose it to trade with, every time we enter the market, we are going to have a 10 tick stop-loss and a 10 tick profit-target.

Now, let’s again open a new, another Invest-to-10-ticks strategy trade. If we choose to add to this position, with a non-selected on our drop-down menu, every single contract that we buy or sell out of the strategy, will not add to the stop-loss or to the profit-target. Meaning that, right now we are four contracts long. We are going to buy four more contracts, and now you can see that we are eight contracts long but our stop-loss is only two contracts and our target is only two contracts, because only two contracts were bought using the Invest-to-10-ticks strategy that we just built.

Adam

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