Profit Target Suggestion

[RicTessitore]

Hi Ray,

I am a brand new user that was on your presentation yesterday about NT. First I would like to just say you have done an incredible job in addressing the serious gap in technology for "real" trade management, thank you. In my previous life I was a project manager for software development and realize that product enhancements are often customer feedback driven...hence this post. I would like to plant a bug in your ear about looking atorder management in light of risk management.Presently profit targets are a seperate function of stops (i.e. no linear or 3 dimensional relationship). My wish would be to have an option (perhaps radio button based) for profit targets that is related directly to the size of the stop. I do not mean to digress here into a trading strategy discussion but to highlight the power of this option I know of no other way. So here is a typical scenario...

For example,every intraday trade I place has the following 3 charateristics:

1. Money Management is toemphaSIZE size, NEVER have single lotorders ever as this leavesus no advance trade management techniques to achieve required risk/reward characteristics. I trade in multiples of 3 as explained below.

2. Reward to risk ratio of a min. 1.6% for intradaytrades

3.Get risk free as soon as possible (free trades if you will)

Achieving this is quite simple actually. I use a 3 step stop, based entirely off my risk for each position which I call the 1,2,3 PT Exit. I.E. if I am risking 1 handle (example only) than T1 is 100% risk or 1 handle, T2 is 200% risk or 3 handles and T3 is 300% risk or 3 handles. Risk free trades are a function of a BE stop after T1 is hit (or move stop to 50% of original risk if I need a little more wiggle room in that particular Instrument).So at T1I am risk free and if using only 3 contracts am looking at a potential 2:1 risk reward ratio (Loss = 3 handles /potential profit= 6 Handles). As I take a transaction based approach to my trading business this tells me I can be profitable with 50% win to loss ratio with even greater pofit potential using trailing stops after T1. This discipline is very easy for me to follow giving my trading a consistent approach based on solid money management and trade psycology. THIS IS NOT AN ENTRY SIGNAL DISCUSSION so I wont even begin to go there.

So why am I bothering you with this....simply put EASE of USE. If my profit targets were automatically adjusted and submitted based off my intitial risk (stop) than that eliminates 3 more steps of trade management for me by not having to manually adjust each profit target to the 1,2,3 Rule above. I realize this may be specific to my needs and would be willing to hire you or another programmer to build this logic if your API allows (the return on that investment is very easy for me to justify the expense). Perhaps a radio button on targets that allows for risk based % targets vs the standard point based system presently used. Save the logic as a strategy and I am fully automated from the time I determine my stop, elievating human error and allowing me to focus on other markets for steups.

Again, I apologize for being verbose here, I really tried to keep this as short as possible yet still highlight the benefits and reasoning behind the product enhancement request.

Ric

[NinjaTrader_Ray]

I will reply over the weekend once I have had a chance to digest what you are suggesting.


Ray

[NinjaTrader_Ray]

Hi Ric,

Fiirst, sorry for the delayed reply. Interesting thoughts. With the shear size of the NT user base accomating unique requests becomes considerably difficult since one must take into the needs of the collective. Your suggestion from first read is really outside of what most of us traders use on a daily basis. I will add this request to the list for consideration as I enter new development phases.

Thanks for taking the time to share your suggestion.

Ray

[gpfx19]

Ric,

I agree fully with what you are suggesting, but have handled it by programming most of the logic using what NT will presently let me do. I can't be too specific with what you have mentioned, as you were not specific either, which I understand(why give away your, or my,secrets?).

I use settings in Auto Trail to do this. The biggest issue I have found is that just because my trailing stop is hit, doesn't mean my targetwill be filled when they are placed to the same value. It is not an OCO correspondence. For this reason, I have to place my my trailing stop 1 tick further out & hope that the price movement continues that far. If not, I must still make the adjustment manually. Though not ideal, it still in infinitely better than having to enter everything manually. [So Ray, my request would be to add the ability to move stops per targets being filled, versus just a price being reached.]

- Greg

[Creamers]

Hi,

Is gpfx19 question already possible in Ninja? :

"So Ray, my request would be to add the ability to move stops per targets being filled, versus just a price being reached"

Greetings,

[NinjaTrader_Bertrand]

Creamers, thanks for the post - unfortunately not, the bid / ask / last would be used to trigger the AutoTrail or AutoBreakeven stop adjustments - http://www.ninjatrader-support.com/H...tegiesTab.html