Submitting a Multi Target ATM Strategy

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Video Transcript:

Hello, traders. Welcome to the NinjaTrader tutorial and the fourth module, SuperDom Interactive. In this lesson, I’m going to teach you how to submit a multi-target ATM strategy, meaning that if you want scale out of your trade while the trade moves in your favor, you can do so by designing a multi-target ATM strategy. We are going to be using the same crude oil SuperDom. And, as you can see, we have the [inaudible 00:00:34] strategy right here. We are going to go to none, because we are going to trade six contacts this time. Then, we are going to go to custom because we are going to build a three target ATM strategy.

Multi ATM Order SuperDOM

Now, we are going to be using authentic stop loss for all the three targets but, because this is a multi-target ATM strategy, you can also use a multi-stop loss strategy, meaning that the second and third step loss can be lower than the first but this is very unusual and unorthodox and we are going to use the same stop loss, because this is actually one trade. We are just trying to scale out as the market moves in our direction.

Now, the first target, let’s say that we want to get out at four ticks. If our second target is eight ticks from our entry point, we are going to put down here an eight and, of course, if we want to get out at 10 ticks, we are going to put 10 ticks right here. Now, this is the strategy that we just built but, as you can see, the quantity has to be modified also. We want to get out or we want to scale three contracts out at four ticks, we want to scale out two contracts at eight ticks and one contract at ten ticks. So, this is the multi-profit strategy that we just built.

Multi Order SuperDOM

Now, let’s buy this market with this strategy. As you can see right here, we got filled at 50-27. Right here in brown is our entry point at 50-27. Okay? We are up two ticks on six contracts. You can see that our stop loss is right here, ten ticks below our entry point. We have the first target for three contracts at 50-31, which is four ticks above our entry point. Then, we have two more contracts at eight ticks and one contract at 10 ticks.

And the great thing about these strategies is that, when the first target gets filled, all three contracts, the stop loss will diminish in three contracts because, as you can see, our stop loss is a consolidated order of six contracts, meaning that we have a three contract stop loss for the first target, a two contract stop loss for the second target and a one contract stop loss for the third target. So, this strategy takes care of itself in not only arranging our trade the way we want it but also taking out the stop losses as we get filled more targets. As you can see, the first target just got filled and our stop loss order diminished in three contracts.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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