T3 Trend Trade Strategy V2
This page will describe and provide instructions on how to apply and use the T3 Trend Trading automated system version 2 that incorporates small chart entry and exit logic.
The Trend Trade Strategy
The goal is to enable users to trade with minimal effort and analysis. Version two continues to add functionality, consistency, and automation of the T3 ProTrader indicators analysis for trend trading. We have designed the T3 Trend System to replicate what we have taught and continue to teach over the last decade. The system will use any user-desired combination of strong momentum looks in the triggers and pullbacks for entry when there is room to the target, provided there are no termination conditions that would limit that room. See the inputs section for adjusting the inputs to your personal preference.
Start With A Windows High Power Plan
Adjust TIME ZONE To Eastern or Change Templates
If the T3 Strategy default templates use" start and end times", they are based on the EASTERN / New York time zones If you are not in EST, you will need to adjust your session start and end times accordingly. See time settings in the inputs section.
Small chart entry logic
Version 2 will incorporate a reversal bar, a market order triggered by a signal on the large chart, and ensure that the small-chart price and trigger line location are correct for entering a trade.
Limit or stop entry orders on the small chart version 2 are not ready yet and will be available in future updates.
Small chart management
Version 2 of the Trend Trade System will incorporate many of the small chart management entry and exit techniques required to preserve trading capital. Please watch the video below to learn basic concepts you can apply to your trading system.
The System will incorporate the following exits when selected in the inputs.
Any Divergence - if there is any divergence against the position, it will exit.
Higher / Lower Divergence- if in a trade and you have a divergence that is higher or lower than the prior, it will exit the position when the second divergence condition is true.
Pivot Stop Out of Prior Divergence- PSO- When price reaches a prior divergence line and makes a reversal the system will exit.
Fibonacci-Based Exits: When the price reaches a Fibonacci line and reverses, the system will exit.
One to One Exits - When the price reaches a One to One level and reverses, the system will exit.
System Indicator Chart Template
When building a new chart, please uncheck the "Replay data" tick and use the T3 Trend Trade System Large Chart Template for your large chart. Use the T3 Trend Trade System Small Chart for the smaller chart setup. Both will include the same indicators, but the small chart will include synthetic triggers and the proper system settings.
You may also format any of the indicators, such as the Fibonacci Update Period, EMA size, or T3 Trigger Line size, and the system will read and use the values on the chart.
Adding The Strategy To Your LARGE CHART
Build the size chart you wish to use and apply the T3 Trend Trade System Large Chart template. Right-click on your chart and select strategies.
You will want to format your system rules and session time templates, and you can also load any of the premade system templates Nexgen has provided after running the installer.
Remember that Version 2 of the trend trade system consists now of a Large Chart, which is a transmit chart. The large chart will send the possible entry signal to the smaller chart for further analysis.
To apply the basic settings to your large chart, select the templates section and apply the default large transmit chart.
You will then want to select your NinjaTrader ATM for trade management. Select the account you would like to see the trades placed in, and then ENABLE the strategy by checking the box.
Historical trades will plot, and you will be able to enable or disable the trading signals by toggling off the transmit button on the side bar. Remember that the strategy WILL NOT trade outside the time session, as indicated by the dark gray in the settings.
Create your small chart
Create a chart and apply the small chart system template layout for indicators.
Right-click your chart, apply the strategy, and start with the default receiver chart template.
It is important to note that the small chart analysis, filters, and settings are 100% independent of the large chart system settings. The SMALL CHART ATM will be used for live trades.
You are now ready to start doing replay or trading the market. With both the transmit chart and the receiver chart active, when a signal happens on the large chart, and all of your conditions in teh grid are true on the small chart, and you have a reversal bar for entry, the small chart will place your trades and use the ATM on the small chart.
You must check your grid right away after enabling the strategy. If the grid is populated, then you will get trades as they happen live. If the grid is not populated, this will alert you to reboot NinjaTrader and clear the cache and temporary files during the reboot.
When you run the large chart in SOLO MODE.. everything will be identical to Version1 and there will be no small chart trading.
Once enabled, if the current time is in a trading time zone and the rules are met, it will generate trades. In the following picture, you can see that the large chart generated a signal, and the small chart also met all of its rules. REMEMBER- just becuase the large chart makes a signal, if the rules on the small chart are not what you set it for, there will be no trade.
Remember, while all of this automation is happening, you are still in 100% complete control of your trades, your stops, and your targets.
You may still enter your trades manually if you wish, under your personal conditions.
The system will enter if you do not, and the system will manage the trade based on the rules and exits you selected.
Manual trading will use system exit rules
It's important to remember that any rules you have active in the trading system will also apply to your manual trading.
Once an order is filled, the NinjaTrader ATM will place stops and targets that you selected on the smaller timeframe chart.
As a trader, you will have complete control over your management of the trade. You may also add on to a position that the system has generated if it meets your rules for a higher probability trade.
A few plots you will see, such as a line where the limit order entry was placed on each bar. There is also a FILL plot, so you know when it was filled and where. You may turn these on/ off or change plot colors.
When analyzing a trade setup, asking questions in the chat room, or needing technical assistance, make sure your grid is activated in your pictures.
⚠️ Important Risk & Monitoring Notice ⚠️
Automated futures day trading systems by Nexgen Software Services are not set-and-forget tools. While the strategy will handle 100% of the entries and exits, all users must continuously monitor positions and system activity. Market conditions can change rapidly, and during periods of extreme volatility, news events, sharp trends, or unusual price behavior can lead automated strategies to behave in ways that require immediate user intervention. Failure to monitor the system may result in significant losses.
By using the automated strategies, you are solely responsible for managing your risk, ensuring proper system function, and pausing or overriding the strategy if markets become excessively volatile or behave outside of normal expectations.
The strategy was designed with the NQ and or ES futures markets in mind. The RTY, YM, or other markets may be tested for positive gains with various settings and ATMs. For the NQ, one would use a 34 -5 Dynamic Renko Chart and a monitor management chart using a 13-2 Dynamic Renko chart. For S&P E-Mini Futures, one might use a 13-2 as a large chart and the 5-1 as a management chart. The system will run on any size dynamic renko bar you wish to test.
Input Meanings
We designed this strategy to be transparent and accessible, not a black box or hidden logic; he wanted everyone to understand what they were trading and why. He views this strategy as a supplementary tool to the discretionary trading Nexgen has taught since the 1990s.
05 EMA Offset - this is how many ticks before ( positive #) or after ( negative #) you wish to place your entry orders. There are five types of entries.
Market Order - When the price reaches the entry area and all rules are true.
Limit Order- The system will place a limit order at the EMA Offset price when the rules are met.
Stop Limit order- the price will place a stop limit order (+/- Stop Limit Offset Ticks)
Stop Order - Rules met, then the price hits the entry area; the entry will be a stop above or below the market, which provides some confirmation.
MIT - Means market if touched (by price).
We have made the time sessions easier. There are 3 "trading sessions" and one close session window in which any trade opened that is in the window will be automatically closed. There is also a daily loss limit and a profit objective with a dollar trailing drawdown.
Rules For Entry Signals
Divergence. Either True or False - if this is the only rule, it will show in the grid for study.
Both triggers are either red or green, indicating whether they are crossed up or down.
Small trigger lines location vs the Large Trigger Lines location above or below.
Small Triggers Vs the EMA -location above or below.
Price vs EMA - this is when price (=/-) offset reaches the EMA.
The Entry bar must be a TAIL, or have a wick with the price above or below the prior bar. Keep in mind that this is an INTR-BAR condition.
The Large Trigger Lines VS EMA. The location of the large triggers as they break above or below the EMA. This will significantly slow down trend trades in a strong trending market. This and the EMA vs MID BAND #8 will require much more of a trend trade.
The 21 EMA crossing above or below, and its location relative to the T3 Mid Band. Due to real-time ticks, it doesn't always plot arrows when true, but the system will recognize it.
9. Large Triggers vs. the EMA/- the offset input. This will stop taking trend trades when the EMA gets too many ticks on the "wrong" side of the large triggers.
Price bars entirely on the "other side" crossing over the EMA.
Setting 11.1 to 11.7 addresses profit targets, terminations, and the continuation of trends
11.x Triggers Quantity Index allows you to set how many triggers are required to break an area to keep trading in that trend direction.
11.x Room to Profit Target Ticks is the minimum required ticks from the ENTRY TO the TARGET LINE
11.x Level Hit Tolerance- How close does PRICE 1 bar ago need to be to a Fibonacci line, Divergence line, or One to Ones?
The Exit Section
Exit if opposite divergence true false. This will exit a trade if there is divergence against your trend trade.
Session 1 &2: 4-digit numbers followed by one space. 0000 is midnight, 0300 is 3 am, 1200 is noon.
Max Daily Loss - if you lose this much, it will no longer automate signals. It will, however, post arrows until the following day. (DATE CHANGE) not session break.
Daily Profit with Trailing Stop in dollars. This will be a profit target amount. Once reached, it will continue trading until the trailing stop amount is hit.
Trading Rules Grid Display Properties
You can adjust the size, color, or opacity of the rules grid. Remember to right-click on the enabled disabled button to open the grid.
The remaining parameters are for your ATM strategy. You will be able to use any pre-made or custom ATM strategy in NinjaTrader. Select the name, and it will use it on each signal.
The account will be SIM, PLAYBACK, LIVE, and the PROP FIRM account will work with it. Nexgen does not advocate breaking the rules of prop firms, so please check the rules.
The Soft Close Indicator
-----> Download it HERE
This is an indicator that one of Nexgen's programmers has allowed us to add to the strategy. It is a third-party indicator (functionality) and should be used with caution. To explain what it does, when you close a trade by using the CLOSE BUTTON provided by NinjaTrader 8, this will "disable" the strategy on your chart. Using the "soft close" button will close a strategy's position without disabling the strategy.
REQUIRED CFTC HYPOTHETICAL DISCLAIMER
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
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