The ATR Strategy on the Dow Jones was sweet today, making one hundred points on each trade for a total of 200 points or $1,000 in profits.
First, we had to contend with the Non-Farm Employment Numbers that were released at 8:30 am. We anticipated a downward movement but this is a high volatile market report. Can’t trade those on the futures (although you can on the binary options and spreads). The movement is quick and veracious. If you are on the right side of the market, slippage takes your profits. If you are on the wrong side of the market, it can be hard to exit. Instead, we wait for the wide bar retracements and then our setups.
ATR Strategy on the Dow Jones Using NinjaTrader
Finally, after the market opening we had our chance. Price had flipped the ATR to blue. We needed the ATR to be red. It flips to red. We know that it should retest the ATR to form resistance for the down move. It tests and gives us diverging volume on the highs. Oh, yeah! This is what we had been waiting for and we enter. Exit comes 100 points later. Then price retraces again and again we get an entry. Exit on that entry comes 100 points later.
We knew in advance that we were going to have a great day because we identified the sweet spot prior to the start of the trading day. We had also looked at forex and anticipated the moves on it but used a combination of the binary and spreads for it. Of course, the market did exactly what we anticipated because the TradersHelpDesk indicators rock — as long as you know how to use them and incorporate your higher timeframes. The strategies simply highlight the entries and then you simply confirm with the higher timeframes. Of course, the aggressive stop is also quite awesome because it protects our profits.