Top 10 Questions
1) What sort of training is necessary?
- While manual trading has a very long learning curve, autotrading relies on a set of definite skills that can be acquired by most people familiar with how to install computer programs and troubleshoot basic functionalities.
- “And does it take a lot of time?” If you are not a user of Ninjatrader and/or haven’t done automated trading, there's a learning curve. Best of all, the strategies are set to run from the get-go. Thus, once you get past the basic familiarity of using Ninjatrader, you should be pleased with the process of running automated strategies.
- If you are new to futures trading, then first understand the risks associated with trading leveraged financial instruments. It’s paramount to run automated trading software first on a demo account until you gain full control of the variables. Full Risk Disclosure
2) What makes Zoom in Profit Algo System different?
I’ve found that multiple layers of indicator filters tend to contradict each other. Instead of trying to make one perfect strategy, the ZiP Algo System’s premise is:
To develop multiple strategies whose results hedge each other through an inverse synergy of cumulative drawdown.
3) If your system is so good why do you sell it?
It's for mutual benefit:
- FOR ME: After 12 years refining the System, I look forward to some instant gratification. Having customers across 24 time zones is a real thrill.
- FOR YOU: This may be the best trading tool you'll ever buy.
- VALUE: If you're familiar with the relative accuracy of Ninjatrader 8 strategy playback, you'll agree with me that the price is quite fair.
4) What resources are needed and how much capital?
• Ninjatrader 8 and live futures data (14-day free trial is available). When trading a real cash account, you'll need to purchase or lease a Ninjatrader platform license.
• ninZa.co’s indicator(s) according to your choice of strategy. The T-Stop indicator is automatically included in the T-Stop strategies package. You'll receive additional discount for other indicators, if you don't already own them. ninZa.co's indicators are very affordable.
• Very reliable internet (99.99% uptime) and a desktop computer. For added reliability and peace of mind, I use the NY server by VpsForexTrader.com. More details we'll be provided in the Tutorial.
• Some strategies run 24/5 and require overnight margin (and double or triple that amount for safety of drawdown). Day trading margin as low as $500 DO NOT work for system trading. It's recommended at least 5K per contract. If you intend to daytrade with lower margin, you'll need to optimize the strategies to meet your personal goals.
5) What if I still need further assistance?
Ninjatrader offers free training on all aspects of its platform. For installing and running the strategies, you’ll receive tutorials as well as direct assistance as far as importing the strategies to Ninjatrader 8. A Facebook Group will become the support hub and hang out for fellow traders to help each other with platform questions and strategy optimization.
6) What are some of the pitfalls of algo trading?
Autotrading does not mean unattended trading. There are numerous potential glitches that can affect your account, from internet disconnection to broker or exchange failure to execute your orders as expected. A temporary chart freeze for any reason may also skew results.
Here’s an example of platform freeze of 10 seconds, which halted my strategies and left open orders running afoul.
Having a dedicated server or VPS (virtual private server) greatly diminishes your chances of technical disaster. My low-cost preference is VpsForexTrader.com (New York server); for dedicated servers, you can either pay a couple hundreds dollars month or $100 monthly at Ionos.com.
I particularly check in before market opens to make sure the internet is on and Ninjatrader is running. Before the end of market session, I check that there are no hanging orders that failed to close. Very seldom there is need for intervention.
Scheduled economic news announcement and unexpected political events can make price action unpredictable, including the halting of trading, which greatly affect results positively or negatively.
7) Can the Zoom in Profit Algo System be used on any market and swing trading?
The main market is the e-mini S&P 500 (symbol ES), which has the greatest liquidity. Showcase settings have not been optimized for other markets. This is really good news in that there are countless possibilities for you to look for even more profitable or efficient settings both the e-mini S&P 500 and other liquid futures instruments in the U.S. or the German DAX.
Micro-contracts: You can trade the MES (one-tenth of e-mini S&P 500 contract size. Proportionally, the micro-contracts incur more commission cost.
Swing trading can be very lucrative. But your account size must take into account potentially large drawdowns. Here's a playback backtest running three contracts with multiple targets (from $600 to $4,000). This had an average of two trade opportunities per day on the 10-minute chart. The performance graph below looks too good to be true. Nevertheless, Ninjatrader 8's playback results have a high degree of data accuracy for testing strategies, especially if they do not involve scalping.
For intents and purposes of legal disclaimer, this performance graph is not the norm. There will be fantastic months like September, 2020, and there will be months of losses, which the System has attempted to minimize through a comprehensive set of strategies rather than one-size-fits-all. Of course proper capitalization is paramount to peace of mind.
8) Why trade futures?
- First, futures markets have large pools of liquidity, whereby you control a diversified number of stocks or commodities with a single order.
- Second, futures trading provides ample use of leverage, which is adequate for short-term trading using pre-determined targets of profit and loss. Risk Disclosure
These factors together make the perfect scenario for automated system trading and “trader funding programs.”
LEE LOO TRADING is a new comer that seems to be a game changer with far less stringent criteria: www.leelootrading.com.
9) What’s the difference between “Playback” and “Historical” backtests?
On Ninjatrader 8 platform, Historical backtests (aka Strategy Analyzer) are less reliable than Playback (aka "replay mode"), as an indicative of past performance. You can speed the playback time by 1,000x faster. I have compared the replay of 1x versus 1,000x and they do not differ. Simply amazing!
10) What’s the biggest challenge in achieving profits consistently?
• Managing stop losses:
It hurts your profits (and often messes up your emotions) to have a trade stopped out only a tick or two before price turns around toward your target. While stop losses can kill a strategy , their absence kills your account!
Since the perfect stop loss placement is illusive, the Zoom in Profit System aims to achieve balanced results by trading multiple strategies on the same futures contract. However, it often happens for both trades to hit the stop loss. Thus, proper capitalization is required.
• Surviving inevitable drawdowns:
Without adequate capitalization, many traders quit in losses while a trading system or their personal trading plan is going through usual drawdowns.
Do you still have questions?
Zoom in Algo System is the premier provider of automated trading software for ninZa.co indicators. Ninjatrader is a leader in futures charting platforms with proven autotrading capabilities.
If you are new to futures trading, think of it like this:
1. Indicators are like an automobile that carries buy/sell signals from the markets onto your charts. The user is the driver/operator of the "vehicle" (indicator).
2. Zoom in Algo System turns ninZa.co indicators into a standalone trading system with full control of trade execution, i.e., your trading autopilot.
3. Ninjatrader is the information highway on which Thing 1 and Thing 2 happen.
About Zhwoun Santos:
I’ve toyed with the Ninjatrader platform since 2008. I made my first algorithm robot at the height of huge market volatility, which made it look easy to daytrade futures. Little did I know that when markets quiet down, volatility-based strategies tank. Ever since I've dreamed of creating a system of multiple outcomes to survive all market conditions. A more robust platform since the launch of Ninjatrader 8 and professional indicators by ninZa.co have facilitated this process. With the high-quality indicators from ninZa.co, coupled with the powerful Ninjatrader 8 charting and trading execution platform, the sky is the limit.
Btw, 'zhwoun' is the phonetic pronunciation of my seemingly unpronounceable Brazilian name João. John simplifies it for English speakers!
Financial Advisor, Morgan Stanley Dean Witter
MBA, San Jose State University
Stock and options operator, American Century Brokerage
Financial Analyst, Engebra (Brazil)
Independent trader in futures and forex and founder of Zoom in Algo System in 2020