WHAT THE BEST PRACTICE IS NOT

The Best Practice for deploying a Bots, aka Sceetos [Self-Contained-Electronic-Exchange-Trading-Orbs], is not sitting and staring at the screen all day with your trigger finger clenching your mouse.
 

DEPOLYING BOTS - BEST PRACTICES

The Best Practice that has been established for deploying Bots aka Sceetos [Self-Contained-Electronic-Exchange-Trading-Orbs] is to use a 3 step workflow that evolved organically during the time that we began incorporating these Sceetos that we built into our own trading routines.

The Best Practice is a 3 step process designed to allocate the tasks that computers do best to the computer, and allocate the tasks that humans do best to the humans.

Computers are good at:

Processing Information - Such as order flow

Executing Rule Based Task - Such as enter now

Humans are good at:

Pattern Recognition

Strategy Based on Historical Experiences
 

Important Insight - Our approach maximizes the blending of the skills of humans with the skills of computers.

LOCATION, LOCATION, LOCATION - WHY PRICE ACTION & MARKET STRUCUTRE MATTERS

I am sure that you know the old maxim, “Location, Location, Location”.  Well, it is also relevant to trading.
 
Customers come into stores that are in a known location. As the market is always moving around, prior market turns, become familiar spots - Spots that traders have a memory of.
 
Though there are multiple approaches, and terms, for mapping the markets, the goal of these approaches is to provide a framework for ideal trade entries, stops, and targets.

By using order flow we see an additional for the analysis of Price Location, we can break this down into 2 primary Locations:
 
  1. Locations where the Price Discovery process is more vulnerable to accelerated moves
  2. Locations where Order Flow will play a more accurate role in immediate price forecasting

It has been my experience that there are certain trade locations where reversals, or accelerations, in Price, are much more likely to occur.
 
These areas can be referred to as Ideal Trade Locations.

We spend time building algorithms in order to programmatically detect these Ideal Trade Locations, and we spend time waiting for price to arrive at these Ideal Trade Locations.

We also spend time and computing power, monitoring order flow before, during, and after, price excursion through these pre-identified Ideal Trade Locations.
 
This is the essence of our model.
 
Our approach is to levearage known trade entry locations whose patterns are easy for the human to spot such as:
 

  1. Right Shoulder
  2. Breach of Neckline
  3. ABC Retracements
  4. Conclusionary Breach

Then, at these locations, we know from order flow what an ideal reversal or a continuation pattern looks like.
 

OUR 3 STEP WORKFLOW COMPRISES OF THE FOLLOWING  3 STEPS:



[Note - Most of the 'work' in the 'workflow' is done by computers]

  1. Alert - When something of merit occurs in order flow, and alert will get your attention - This way you don't have to stare at the screen all day. [More About Alerts Here].
  2. Assess - Once alerted, you as the trader can take a look at your charts and see if any potential opportunities are on the near-term horizon.
  3. Activate - If your pattern recognition skills triggers a potential trading strategy, you can deploy one or more Bots, aka Sceetos. [More About Activation Here].




These Sceetos will then orbit the market and wait for a material imbalance between supply-based order flow and demand-based order flow using our latest suite of advanced order flow algorithms - Cool, huh?
 

THE TRADER ASSESSES THE ORDER FLOW ALERT IN CONTEXT OF CURRENT PRICE ACTION AND MARKET STRUCTURE

In this video we review how one bar can either close out as a Breach Trade if the range bar closes at the High, or the bar can close out as a Pivot trade if the range bar closes out at the Low.

I think that you will like this video because we dig into market context, price action, intra-bar order flow, and also conclusionary order flow.



Determine the State of the Market by looking at the chart which triggered the alert.

Was there Potential Conclusionary Order Flow?

Conclsuionary Order Flow occurs when a move is mature and the order flow event comes in:

  • 2 SD
  • Hammer with Engulfing Sweep
  • Book Pressure > x
  • Sweep > y

Was there Potential Conclusionary Price Action?

  • Tick of Death
  • Double Top
  • Double Bottom
  • Right Shoulder
  • Hovering at Known Support?

If so, where is Price Action currently with regards to overall Market Structure?

Use this guide to determine which Bot configuration to deploy where to deploy Bots.
BEST PRACTICE REMINDER - Listen for, and look for, Conclusionary Order Flow on larger size range bar charts while deploying Sceetos on smaller size range bar charts.

This will allow you to identify strong conlusionary on the larger charts while pouncing on the smaller range bar charts once new fuel is identified in the order book.

Your Sceeto will realize this new fuel in real-time and will immediately pounce.

.Sceeto Cheat Sheet Uptrend By Phases Sierra Chart NinjaTrader Order Flow

 

THE PRIMARY LOCATIONS & CONFIGURATIONS FOR BOT DEPLOYMENT:


At each location you can deploy either Sweep or Pressure or Both Sweep & Pressure Bots.

If one Bot engages and you have multiple Bots deployed, the remaining non-engaged Bots will automatically be disabled so you need not worry about turning them off.

 

Bot Configurations - Right Shoulders & ABC Retracements

 
2019 02 01 12 28 51

Note - Mandatory Pivot 
 

Bot Deployments - Right Shoulders & ABC Retracements | USE '1&Done' Button

NinjaBots_Panel_-_Right_Shoulders_and_ABC.jpg

RIGHT SHOULDER - Enable your Right Shoulder Bot (With Pivot) 
after the following events have transpired:

   ✅  A head with conclusionary order flow has recently taken place.
   ✅  A price excursion from the pivot of the head of at least x ticks (e.g. 11-12 ticks on a 3 tick ES range bar).
Disable your Right Shoulder Bot if price breaches the Pivot Head.

Note - If Price Breaches the Pivot Head by 1 tick, and then the range bar creates a pivot, you have a Tick of Death situation and should trade accordingly.
ABC RETRACEMENT IN AN UP-TREND - Enable your ABC Retracement NinjaBot (WIth Pivot) when price goes one tick below a Higher-Low.
ABC RETRACEMENT IN AN DOWN-TREND - Enable your ABC Retracement NinjaBot (With Pivot) when price goes one tick above a Lower-High.
          

NinjaBot Configurations - All Breaches [Neckline, Conclusionary, Double Bottoms, Double Tops] USE 'Current Bar' Button

 
NinjaTrader_-_NinjaBots_-_Breach_Trading_Configuration_-_Order_Flow.jpg
 
Note - Without Mandatory Pivot
 

NinjaBot Deployments - All Breaches [Neckline, Conclusionary, Double Bottoms, Double Tops]

NinjaBots_Panel_-_Breaches.jpg

Enable your Breach NinjaBots when the current range bar's body can straddle the Breach Line.

Note - As you are using the 'Current Bar' settings, if there is no order flow signal within the bar that the NinjaBot was deployed on, the NinajBot will automatically turn itself off at the close of the bar.