EMA Bounce Strategy

Image - 1 (Click to ZOOM)

Image - 2 (Click to ZOOM)

Image - 3 (Click to ZOOM)

EMA Bounce Strategy is developed by Rize Capital to be used on NinjaTrader 8 trading platform. When you enable the strategy on your chart, it will look like Image – 1. It will plot a collection of EMA lines  which is pointed by green down arrow. It will also plot information panel at the top-left corner of the chart which is pointed by red left arrow in Image – 1. This strategy enters positions when the market is in strong trend and it avoids placing entry orders where it’s ranging. This strategy enters and exits position with a quantity of multiple of 3 and therefore, quantity for this strategy has to be at least 3 or multiple of 3. After it enters the market, it will place stop loss and profit targets based on historical pivots. The quantity of stop loss updates automatically whenever current position changes. Now, if you select profit target settings from the parameter ‘PT3Action’ as ‘ClosePosition, which is pointed by white rectangle and left arrow in Image – 6, strategy will place 3 profit targets and stop loss to exit a position. But if you select ‘ActivateTrailingStop’, it will place stop loss and 2 profit targets to exit a position by hitting stop loss or to exit 2/3 of the quantity by hitting 2 profit targets; rest 1/3 of the position will be trailed until it exits by hitting the trailing stop loss. 

Image - 4 (Click to ZOOM)

Image - 5 (Click to ZOOM)

Image - 6 (Click to ZOOM)

Image - 7 (Click to ZOOM)

Image - 8 (Click to ZOOM)

Image - 9 (Click to ZOOM)

If you want to back-test the strategy on strategy analyzer, then you will need to check the box beside the parameter ‘IsBacktesting’; otherwise back-testing result may not be accurate. But if you are using this strategy on live data for live or sim trading, then you need to make sure to keep this box unchecked. This parameter is pointed by yellow left arrow in Image – 4. Now you can manage the minimum EMA spread required to consider a market move as trend or not, by defining a value in parameter ‘EMA Spread in Ticks’ in the settings, which is within light blue rectangle in Image – 5. Now when the strategy is ready to place entry order, you can manage how far away the pending entry order or stop loss  order should be placed from the triggered bar, from the parameters in the settings ‘Entry Distance From Bar in Ticks’ and ‘SL Distance From Bar in Ticks’ respectably. Both these options are within the light blue rectangle in Image – 5. You can also change the quantity to enter from the ‘OrderSize’ parameter; but it has to be min 3 or multiple of 3. You can also find this parameter within the same light blue rectangle in Image – 5. 

Now, if you want to receive email alerts for order executions, you can simply check the box beside the parameter ‘Send Email Alerts’ and type your email address within the box beside the parameter ‘Email Address’. Both of these parameters are highlighted by lime green rectangle in Image – 7. You can also manage how many EMAs you want to use with this strategy to check whether current market is on trend or not, by checking the specific EMAs’ numbered boxes; and at the same time you can also customize the periods as you desire. You can also change the EMAs’ color or plot lines’ width from this section of settings. All these are within the purple rectangle in Image – 8. You can also select time ranges and particular days when you want this strategy to place orders for you, from the settings within pink rectangle in Image – 9.

Image - 10 (Click to ZOOM)

Image - 11 (Click to ZOOM)

Now, if you want this strategy to plot ‘Info Panel’ on the chart, you can keep the box checked beside the parameter named ‘Show InfoPanel’. By default it does plot. But if you don’t want it to, then you can simply uncheck the box. You can also customize the Font and position of the ‘Info Panel’ from the same section of settings which is highlighted by brown rectangle in Image – 10. But it is highly recommended not to make any changes in the default settings which are highlighted by red rectangle in Image – 11, except ‘Account’ and ‘Enabled’ parameters, for accurate functioning of this strategy. If you still have any further query, please do watch the video tutorial by clicking here.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article