Forecasting Price Action

NinjaTrader includes many indicators, but most are linked to parameters, such as a MACD, stochastic or other measurement. These measurements look at price then give a value. When looking in the past, it’s easy to optimize an indicator for excellent backtested results. All too often, the optimizations do not work very far into the future. As they say in the industry, “past performance is not indicative of future results.” This certainly holds true in the case of most indicators. Markets are forever changing – news, manipulation, low and high volatility, etc. all cause unpredictability against optimized parameters. We have to dynamically base our decisions based on what the candles are doing – not a specific parameter tied to a hard calculation. Every day cannot be traded the same. Being able to understand the current market conditions impacts everything: how long to hold the trade for, where to place profit targets, stops, etc. Your forecast has to be flexible – one you enter a trade, you still have to monitor current market conditions and manage the trade accordingly. You’ve probably seen John Paul move his stops while trading the Atlas Line with a live account. He does this using what the ATR (Average True Range) value “allows” for trading at the present moment. Sign up for the Mentorship Program to gain a full understanding of how to trade the markets day-in and day-out.