Chapter II. Lost in the Ninjatrader environment.

Intro

A strange “Titotic” noise give me the welcome to the new world, red and grey colors appeared in the first windows after that, a panel with prices were quickly changing and at least 4 more windows appears around this environment that didn’t look friendly. I was in front of my screen without knowing where to look so I went to Youtube to look for a tutorial.

Investing in the future

The tutorial explained me very quickly what was the meaning of each od the windows that I had in front of me but also appeared a new word: FUTURES, what the hell is it? Could the future be invested in? At this point, I was even more lost and about to uninstall Ninjatrader but I remembered that I wanted to get rich, in my mind a flash of the video of that tattooed character appeared having an incredible life and I did not want to miss the opportunity so I had to learn what futures were. Again, I was on YouTube and in this case my eyes went wide. Without being exhaustive, I discovered that they were an instrument where you could earn a fixed amount of money with each movement of price (regardless of direction). For example, in the SP500 mini future if you go long with 1 contract and the price moves 1 tick up, you win $ 12.5 and I had just watched the price move nonstop at the Ninjatrader window so I felt like I had found water in the desert.

Strategy to be millionaire.

After some time of research, I was in love with the instrument of future. I saw it as the perfect vehicle to be a millionaire. In addition, I felt lucky because as you will remember from the previous chapter, I had also discovered a community of traders led by a “Robin Hood” that had a strategy that seemed magical to make money. Without thinking about it, I started to load the recommended set-up and on my screen a graph with two very basic indicators already appeared: a simple channel together with an EMA. I felt like the king of the jungle. The plan was clear, every time the price struck one of the two zones of the channel, I had to enter a trade confirming the direction with the EMA.

Starting on a simulated account.

Ninjatrader offers a trial connection as well as a simulated account so I decided to start putting my plan in motion. My set-up was ready and the price started moving so I was waiting to my signal…although the time frame used was minutes I had to wait at least 10 minutes till the first signal. I verified that the EMA followed the movement and that the price was in the lower zone of the channel so I quickly opened a long, I felt great emotion to see my position and how the amount of money that I had accumulated with my position appeared in a box. The result of that first position was negative since the price went down and the stop jumped but I remember that later I hit a winning streak where I did not always respect my rules but I managed to put the account at +100 after an afternoon. I was very happy but I really wanted to see that this strategy was a winner and it was my pass to the millionaires club.

Backtest

Our “Robin Hood” strongly recommended doing a manual backtest of strategies for months but I wanted to be a millionaire in that moment, not in a few months. I quickly started looking for how to speed up the process and surprisingly Ninjatrader had already thought about that and had a solution for me that I will tell you about soon.

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