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Fully-Automated Systems

Another trading strategy is to use a fully-automated system.  These systems allow traders to fully automate a trading method including their entries and exits.  NinjaTrader allows you to fully customize when, where and how to take trades.  One of the most beneficial parts of using an automated system is to remove the emotions and stress of trading.  Negative emotions can cause us to enter trades we wouldn’t normally take, typically resulting in losing trades.  Everyone needs to understand the importance of emotions/psychology in day trading.  Another upside to using an automated trading strategy is the ability to back test.  NinjaTrader allows you to test your strategy on historical data, allowing you to find the best setups.  A screenshot of the NinjaTrader strategy analyzer can be found below.  It is important to note that even though a strategy may have performed well in the past, this does not guarantee that these returns will continue.

Backtest Example