Wednesday, December 31, 2008

BollingerBandwidth Indicator for NinjaTrader

NinjaTrader didn't have my favorite indicator already pre-built in, so today I made my first custom indicator for NinjaTrader. The BollingerBandwidth indicator is essentially the same as the Standard Deviation indicator already built in.

The Basic Formula for the BollingerBandwidth indicator is:

Bollinger Band Width = (Upper Band - Lower Band)/Middle Band

As you can see, the Bollingerbandwidth indicator drawn matches the underlying Standard Deviation indicator. The direction of the two will always match each other regardless of the parameters used. With the Bollingerbandwidth indicator that I made, the only real thing that is added is a standard deviation parameter which can be used to reduce or amplify the shape of the indicator to match the standard deviation your using on your Bollingerbands. You could come up with a number of ideas to use the extra StdDev. parameter I've added.

In addition to the basic Bollingerbandwidth indicator I made 2 variations of this indicator which I prefer to use over the standard indicator (All 3 indicators shown in chart above). The first variation I made is an indicator which gives you the raw value between the Upper and Lower Bollingerbands.

Bollinger Band Width Raw = Upper Band - Lower Band

This indicator can be used a number of ways. For example, maybe you want to look for trades where there is a move in a stock of XX pts, or maybe you want to look for when the Raw bollingerbandwidth on ES is greater then XX pts.

The next indicator is my favorite variation of this indicator because it tells me the percentage between the upper and lower bollingerbands.

Bollinger Band Width Percent = ((Upper Band / Lower Band) -1) *100

I like to use this indicator because it is the easiest to understand. For example the standard bollingerbandwidth indicator normally gives values between 0.001-0.01, while the BollingerbandwidthPercent indicator gives you a pecentage of the difference between the upper and lower bollingerband, normally between 0.1-2.0% depending on the range of the move in the stock or futures contract. I like to use this indicator with a combination of other indicators for finding low volatility entry areas and high volatility exit areas.

I've made these indicators available for download for Free at

BollingerBandwidth Indicators

I've created a new website where I will be posting free Ninjatrader Indicators and strategies. My goal is to make a new indicator or strategy once weekly to share with others. If Traders have ideas or suggestions for me please leave a comment.

Tuesday, December 23, 2008

HPT 7min Vs 60min Trend Indicator for NinjaTrader Software

As many of you know, I'm testing out NinjaTrader to backtest my Quotetracker strategies.
Making custom indicators for NinjaTrader reminds me of when I was taking my first Visual Basic class. You basically spend 10min making the indicator and hours debugging for errors you've made.

I just got done setting up the basic 7min vs 60min Trend Signals for NinjaTrader; an indicator that I've given out in my basic Quotetracker Chart setup.

I did notice some small discrepanices for this indicator between Quotetracker and NinjaTrader as you can see from the LONG red arrows in the above chart.

I tried posting the code here, but BLOGGER has issues with the code and it doesn't post correctly, so I've put a Free Download link to the "HPT Seven Vs Sixty Minute Indicator" and I've added this indicator to my free download section.

Note- This file is written in C#. If you don't have NinjaTrader you can still view this file by unzipping the file and opening it with Notepad or Visual Studio.

Additionally, this indicator may be improved upon by using the MAX and MIN function in ninjatrader for finding the 60min high and 60min low respectively, as opposed to how I wrote the code (ie. High[60] , Low[60]). Based on how I wrote the code, I don't believe adding the MAX/MIN function will make a big difference, because it also looks back to the 30 period bar. I will likely improve this indicator in the future. If anyone has any suggestions or ideas, please leave a comment.

Saturday, December 13, 2008

Chart Setups for Quotetracker

I have a number of different chart setups with varying signals used. This is my most recent chart setup that I am testing out for the ATS. Indicators for buys/sells are based off a number of things like bollinger bands and the NYSE TICK trend.
The is my older ADX signal based chart.
Another ADX/Trend based chart.
This is the generic 7min vs 30min trend based chart. You will get the code for these signals when you download my Quotetracker chart setup file from the download link.
This is a plain Volume Profile based chart.

Wednesday, December 03, 2008

HPT's QuoteTracker Chart Setup Video Tutorial


QuoteTracker Chart Setup File- (HPT's Basic Chart setup with indicators)

NOTE- If you already have a backup file in QT, save your own BACKUP FILE first(make a copy, paste on desktop, rename it to your liking to go back to at a later time).

If the download above does not work here is the code for the paintbars

here is the buy signal-

if Bar High>bar high[30] and Bar High>bar high[60] and bar low<bar low[7] and bar high>bar high[1] set color to Blue

sell signal-

if bar low<bar low[30] and bar low<bar low[60] and bar low<bar low[1] and bar high>bar high[7] set color to Red

It took me 2 hours to figure out how to paste this code in blogger- Next time I will know I have to use a Parse service and then Block Quote the selected code in order for blogger to display it properly.


QuoteTracker Chart Setup File- (HPT's Basic Chart setup with indicators)

NOTE- If you already have a backup file in QT, save your own BACKUP FILE first(make a copy, paste on desktop, rename it to your liking to go back to at a later time).

For more info, go to My Quote Tracker Chart Setup page.

HPT ATS Perl Script - (script needed for automated trade system)

For more info, go to my Free Automated Trading System page.

HPT's 7 vs 60min Trend indicator for NinjaTrader .

For more info, go to my "HPT 7min Vs 60min Trend Indicator page"

Sunday, November 30, 2008

ES Volume Profile Chart


Thursday, November 27, 2008

Who is HPT?

Hi, I go by the name of HPT.
I use to keep a live journal of my trading on my blog and use it as a way to interact with people.
I transitioned to prop trading in 2010 and I don't blog as much as I used to.

As a retail trader, I used to use QuoteTracker and NinjaTrader for my charting software and Interactive Brokers as my stock data feed and broker. I also use to use NinjaTrader to backtest trading ideas for my automated trading system. (learn about the free automated trading system I setup with Quotetracker). As a prop trader, I mainly use trading technologies, and proprietary software for trading and research/backtesting.

I have several old trading techniques that I used to use for day trading that I go into great detail on my "High Probability Trade Setups" post.

I also have recorded videos of my live trading and put them on my youtube channel.

Tuesday, November 25, 2008

ATS Results

Testing indicators can be a big waste of time, but its a necessary evil. The ATS kicked butt again today. I turned it off 30min before the close.

42 Trades: 28 wins, 14 losses. Net P/L= $391

I lowered the stop from 24pts to 18pts mid-day. I also messed up by not letting the ATS exit a trade with its original exit signal(I put in a different exit signal mid-day), instead of 100-140pts it only got 74pts.

Saturday, November 22, 2008

ATS video from Nov 14


Friday, November 21, 2008

ATS Results

The ATS had another positive day. Making it positive each day this week. I ran the ATS all day today and it took 44 trades. 26 wins, 17 losses, and 1 Breakeven. the avg. win was 90 and the avg loss was -100. I did move the stop a few times during the day on 3 or 4 trades, and I shouldn't have because the trades would have worked better without my intervention. Next week I will be testing out a different exit strategy because as you will see from the Maximum Favorable Excursion Stats, the ATS could've made a lot more pts per trade if the profit target/trailing stop was optimized. I do agree that there is no perfect parameters and that what works one day will not work the next but there is still a lot of work to do on these ATS signals. The buy signal around 12:30 should have gotten 200 to 250 pts easy but only got 11 pts because the trailing stop was too tight. I'm thinking of changing the exit signal parameters for different time periods of the day because the first hour and last hour will be better suited to exit trades based on my exit signals as opposed to my trailing stop method. I'm happy to hear that people are trying the ATS out on there own and having positive results. I look forward to sharing ideas on automated trading and the signals the ATS makes. Also, ustream has been having problems the last 2 days, so it is likely I will be staying with until uStream gets its act together. I did broadcast on both channels today, but I'm planning on making the primary live video feed as long as they keep there servers running with no problems.

Novermber 21 Ustream Server is down

Novermber 21 Ustream Server is down. We are live at the HPT channel.

Thursday, November 20, 2008

ATS work in progress

The ATS is coming along nicely. My current problems are trying to find the best parameters on Bracket Trader for setting the trailing stop and profit protection offsets. Most of the trade signals were correct, but some of the good trades got stopped out around breakeven from the trailing stop getting hit. The question that I will have to continue to test for is how wide of a trailing stop will be most profitable at locking in winning trades without getting stopped out before the move has completed its move.

Monday, November 17, 2008

Automated Trading System Trade Review


Today I ran one of my trading systems on ES. I was surprised to see it positive considering it had 25 losses and only 10 wins. I was glad to see the avg. profit three times bigger than the avg. loss. I set each trade to have a 1pt hard stop on each trade with an exit based off a signal or an 8pt limit target.
I'm still working on a few things but I've been making pretty good progress in determining the best stops for this system. Many of the trades were winners of 3pts of more, only to be stopped out because I set the "exit signal" to far. I also got stopped out on a few trades because I had a time stop set to breakeven after 3 minutes. I will likely get rid of the time stop. I've noticed the majority of the really good trades are winners immediately even with the ATS's crappy entries. Most good trades don't have more than 3 ticks of heat and are in the black within the first 15 seconds. Almost all of the bad trades are stopped out within 10-40 seconds. I will need to work on the entry method for the system and try buying on the bid and selling on the ask instead of using all market orders.

Below you can see the Trade log from bracket trader, the alert log from quotetracker, and some of the signals the ATS took off the ES chart.

Saturday, November 15, 2008

How to make a Free Automated Trading System Video Tutorial

Thanks to Boogster and some other great software, I've created my own Automated Trading System (ATS). Boogster made a very detailed post on how to make an ATS and I decided to make a tutorial video following his guide. If you have a broker that accepts API connections like Interactive Brokers, then you can make this Automated Trading System for Free. Here are the downloads you'll need-

  • Medved Quotetracker
  • - Free Charting Software

  • Bracket Trader
  • - Free Trade Management Software

  • Mailenable
  • - Free Mail Server

  • ActiveState Perl
  • - Free Scripting Software

  • HPT's updated Boogsters ATS Perl Script
  • - An email client that checks your email and enters a trade into Bracket Trader when a new alert is found in QuoteTracker

  • Interactive Broker’s TWS Demo
  • - A Free Demo account with Interactive Brokers

    In the following Video Tutorial I will be going over everything you need to know from the first step of downloading the software all the way to having the ATS make its first live trade.

    HPT's ATS Tutorial Part 1 - Downloading Software Setup

    Part 2 - Installing and Configuring software

    Part 3 - Setting up Quotetracker & ATS Email Tempelate

    Part 4 - Bracket Trader Setup & Live Trade

    Part 5 - ATS Exit Signals & IB Demo Account

    Example of ATS Exit signal working

    I would like to give a special thanks to Boogster for his work on the ATS perl script, Jerry for his awesome charting software QuoteTracker, and larry for his excellent Trade Management software Bracket Trader.

    Monday, November 03, 2008

    ATS is Live

    Thanks to Boogster I got the Automated trading system running. In the next few days I'll be making a tutorial video on it and be making some automated trades live.

    Sunday, November 02, 2008

    Boogters ATS trading system

    I'm trying to get boogsters ATS setup through quotetracker, but I'm having a problem with the perl application. It's suppose to say "running" every 4 seconds, but I get nothing.
    Any ideas/help?
    Streaming Video by Ustream.TV

    Thursday, October 30, 2008

    What's HPT up to?

    I've been working on my Ustream website and reformatting my computer to windows XP.
    I have to admit, there are some things I liked that Vista had that XP doesn't have, such as the Audio mixer and Vista's Media Center having better functionality. Besides those perks, I'm glad I have Win XP because I have some essential programs that I can now run that wouldn't have worked on the old 64 bit OS, and I also don't have nVidia driver caused monitor seizures.

    Next up on the agenda is working on my automated trading system and making "how to" video tutorials.

    GOOG 411, a free telephone directory

    Google quotes- not stock quotes, compare quotes of McCain and Obama on political issues

    Tuesday, October 28, 2008

    Alarmacar owns HPT


    HPT made a bet with alarmacar that the market wouldn't rally more than 800pts today and lost. The dow closes up nearly 900pts ahead of the fed interest rate decision.

    Wednesday, October 22, 2008

    Hedge Funds Leaving Stock Market

    Hedge Fund Article (Courtesy CNBC)

    Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.

    Last month, he did the unthinkable -- he shut things down, claiming dealing with his bank counterparties had become too risky. Today, Lahde passed along his "goodbye" letter, a rollicking missive on everything from greed to economic philosophy. Enjoy:

    Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.

    Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.

    Tuesday, October 21, 2008

    How to lose Money

    It's interesting to see that the phrase "how to lose money" gets more hits than "how to make money".

    Wednesday, October 15, 2008

    Volatile Stock Market

    "The credit belongs to the man who is actually in the arena; whose face is marred by sweat and blood; who strives valiantly; who errs and comes short again and again because there is no effort without error and shortcoming; who knows the great enthusiasms, the great devotion, spends himself in a worthy cause; who at best knows in the end the triumph of high achievement; and who at worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who have never tasted victory or defeat."Theodore Roosevelt

    Another Down day in the market. I'm not sure why some people that visit this blog dislike me. I never claimed to be a guru. I've shown great humility and many of my worst trades ever on this blog and yet people find enjoyment in my failures. Besides the negatives, I know for a fact that I have helped many people in there trading and that is why I kept this blog going for so long. I'm not deleting this blog because there is a lot to be learned of the journey I have taken as a trader for the last 3 years. Trading futures is very tough. I first lost half my account in the first 6 months of trading and then I made it all back and doubled my account the following year. At the start of 2008 my account was at its peak and I took a devastating long trade over the holiday weekend which more than wiped out half of my account in a day. No one expected the move January 21 2008. I took some time to recover from the loss. I came back and started trading consistently again and I was up nicely after a couple months. My hope and dreams of making it were starting to come back as a trader but then I made some terrible mistakes in June trying to short Crude Oil when it was around $120 a barrel followed up the next month by betting gold was a good buy around $850, unfortunately my timing was a month off. It was a vicious cycle I had put myself in. A cycle that I had seen for the 2 previous years of trading. Make a sold month worth of profits and then lose it all in a couple days from moving stops because I didn't expect the market to be so wild. I have proven to myself that I lack discipline and that I should practice more even after 3 years of trading.

    "I have not failed 10,000 times. I have successfully found 10,000 ways that will not work"Thomas Edison

    "The desire to win is born in most of us. The will to win is a matter of training. The manner of winning is a matter of honour."Margaret Thatcher

    "Risk more than others think is safe ~ Care more than others think is wise ~ Dream more than others think is practical ~ Expect more than others think is possible." Unknown

    "If you love what you do, you won't work a day in your life" origin unknown

    "If you believe in yourself, have dedication and pride and never quit, you'll be a winner. The price of victory is high, but so are the rewards."Paul "Bear" Bryant (Late, great coach of the Alabama Crimson Tide football team)

    More Great Quotes

    Monday, October 13, 2008

    Today was the biggest point move in stocks ever


    Saturday, October 11, 2008

    Fridays Rally at the close

    There was some great commentary of the action going on in the S&P500 pit on Friday.
    Watch and Listen as One Paper buyer is responsible for 40 points of SP rally during the last hour of trading on Friday. (Broadcaster Ben says the guy was holding about 800 contracts on the way up. WOW!)

    Ron Paul Video on the Rescue Plan October 10 2008


    Jim Rodgers on Friday's CNBC close.
    Free TV : Ustream

    Friday, October 10, 2008

    October 10 2008 The Stock Markets most Volatile Day Ever recorded

    A look at the VIX and YM (dow) charts.

    CNBC Video October 10 2008,Market close
    Video chat rooms at Ustream

    Thursday, October 09, 2008

    Good Banks?


    Seeing Citigroup, Merrill Lynch and Bank of America plunge today was a sight to see. If stock price has anything to do with the financial strength of a company then maybe US Bancorp is a good choice for a bank, not to mention having Warren Buffet owning nearly 4% of the company. You know he's never going to sell.

    600 more pts to go for 8,000 on the Dow

    SPY just jumped off a cliff and is free falling now. S&P down 40% from last year highs.

    Dow futures almost to 8,000. This time last year we were above 14,000.

    The last 2 days we have seen 500pt selloffs in the last hour of trading. We are at a 76% fib level. We broke 61% fib retrace like butter 2 days ago. 2002 lows,,here we come.

    Wednesday, October 08, 2008

    Nikkei 225


    20yrs. Zero sum game.

    Tuesday, October 07, 2008

    Buffet is the New Treasury Secretary

    This is one of the funniest things I've read all day. Buffet as Treasury Secretary.

    In other news, the world stock markets are STILL CRASHING, and if you lost money during all of this, Mr. Anonymous from the comment section thinks that you are just a gambler and need to seek help.

    The bad trade

    October 6, 2008. Chart of YM. Dow opens gap down, going down over 800pts intraday.
    I'll tell you what happened. I was long 4 NQ contracts and short 1 YM contract. I was short 2 contracts on YM but I covered the additional contract on YM in the morning. My internet connection went out a little after I covered 1 contract on YM short. I waited to see what was going to happen because the market looked quiet and we bounced off the morning lows. The market kept dropping so I tried calling my broker but I was on hold for 10min and then I got disconnected for some reason. One hour before the market close my internet comes back on and I was stressed out. I decided to add to the YM short right near the lows when the Dow was down 800pts(even though I had a buy signal- market internals were like 300/1 to the downside, so I said screw it). I thought the market was going to fall -1000pts for the circuit breaker to kick in. Well, we reversed and I took a big loss on my YM short that I just added to and I sold my NQ long a little too soon for a loss as we rallied before the close. Lesson learned - trade 1 instrument, 1 direction, unless you plan on doing a longer term pair trade. My original plan was to hold the NQ/YM trade for a bounce, with the ability to add to the YM short if the market kept dropping (my internet went out so I couldn't add to the YM short unless I called my broker, I should have called sooner). My original thinking was that NQ would bounce more than YM because there would be more short covering in Tech names as opposed to financial names because of the short sell ban.

    I hate Comcast.

    Overall, I let emotions get to me on this trade and I miss-managed this trade very badly and took a big loss. I was up 7k in the last 2 weeks, but I lost all that plus another 3k. It may not seem like a big loss to some of you or compared to my January blow up, but it was a mistake that really set me back because I keep losing weeks worth of profits from making the same disastrous mistakes on crazy trading days like Monday.

    Friday, October 03, 2008

    The Great Depression

    I'd like to highlight this post from the Washington Post on the 1987 crash.

    Tuesday, October 20, 1987; Page A01 (Washington Post)

    The stock market was devastated by the worst one-day collapse in history yesterday in a pandemonium of panic selling that shattered all records and swamped stock exchanges around the country and overseas.

    The best-known market barometer -- the Dow Jones average of 30 industrial stocks -- plummeted 508 points, five times the previous record set last Friday. The Dow closed at 1738, dropping 22.6 percent, or nearly double the 12.8 percent plunge of Oct. 29, 1929, the crash that began the Great Depression.

    Does a stock market crash cause a depression or add trouble an already weak economy?

    Tomorrow is the day. Hope for the Best, Expect the Worst.

    Tuesday, September 30, 2008

    Wannabe Strippers

    Looking for some hot young chicks that are into kinky stuff like Pole dancing? Then look no further.

    Here's a few tips ladies-

    Can you imagine what would happen if there was a fight,,,

    Also, make sure you don't make this mistake-

    Family Guy famous Stripper Quote-
    Peter talking to the camera: ...but I'll tell you what's not cool--killing strippers. Strippers are people too; naked people who may be willing to pleasure you for a price you negotiate later behind the curtain of a VIP room. Besides, there's no reason to kill them, 'cause most of them are already dead inside...Good night, folks!

    Monday, September 29, 2008

    Washington is on Plan B


    Normally girls use Plan B after they get F*cked. The latest news is that Washington may be taking the contraceptive.

    Funniest Porno Ever

    You have to watch this.

    Diesel's SFW XXX Party Clip - Watch more free videos

    Props to BlueDog for finding it!

    Maxiumum Pain is Coming


    “The market can stay irrational longer than you can stay solvent.”

    A couple threads from "Elite Trader" (A sign the longs are still praying for a bounce"

    Emergency Rate Cut Tomorrow?

    Margin Call

    Crazy Stock Market Day


    Undoubtedly, there was huge sums of money lost and made today. I cut profits too soon twice today which cost me probably 2k in profits(Hold the trade until you get a reversal signal). I also put on 2 bad trades that weren't based off signals and it cost me some lost profits. Today was a great day to use momentum strategies, a strategy day traders love. I made a good amount of money today. No records broken, but a good day nonetheless.

    Sunday, September 28, 2008

    The Media as a Market Bottom indicator


    Besides the anti-investing comedy by SNL, I really am seeing a lot of people worry about there investments and 401k's.

    Traders Education

    I've put together some of my favorite links to past posts that may help traders.

    Reflection on a bad day

    Drilling for trading perfection

    Top Ten Trading Mistakes

    What does it take to be a successful trader - By Lord Tedders

    The Holy Grail Setup - By Trader Stewie

    Overnight Hold Trade Setup by Trader Stewie

    Linda Rascke's Holy Grail Setup

    Jeff Quinto on when to Press Trades

    Dr.Steenbarger's observations of failing Traders

    Denial as a Trading Motivation from TraderFeed

    Dr.Steenbargers most devastating loss

    Friday, September 26, 2008

    Things to do

    After trading for 22 hours yesterday and 6 hours today, I'm taking a rest this weekend.
    Things to do later this week-
    Explain the indicators on the charts and make instructional video.
    Go over trading rules and make instructional video.

    I will be doing a chart analysis and market outlook Sunday night on Ustream at 9pm PST.

    Wamu Bad news is Good news


    What Market Crash? HPT lives to trade another day.

    I Need to work on taking my trade signals, because I would have made a lot more today having done so.

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