Before we dive into Keltner Channels interpretation, here is a quick task for you. Check the graph below and see if you can pick up on what it is telling you:

Here is a little help. Ultimately,  Keltner Channel indicators offer insights into price trends and reversals by essentially creating a dynamic range around the price movement, thus capturing the asset’s volatility. When prices move beyond these channels, traders get a hint of potential strong trends or reversal points.

Swing and momentum traders often find Keltner Channels especially valuable. Since these strategies aim to exploit short and medium-term price moves, the channels can help pinpoint optimal entry and exit points.

In this article, we’ll explore:

1. Constructing Keltner Channels: Detailing how the middle line and upper and lower bands are calculated, emphasizing the role of the Average True Range (ATR).
2. Interpreting Keltner Channels: Exploring the meaning behind price movements related to the channels and how traders can read these signals.
3. Strategies using Keltner Channels: Introducing common trading strategies that utilize the indicator for better decision-making.
4. Comparative analysis: Highlighting differences and similarities with other popular indicators like Bollinger Bands.
5. Limitations and best practices: Addressing potential pitfalls and best practices to help traders maximize Keltner Channels’ benefits.

Understanding the Keltner Channels Indicator

Keltner Channels are a volatility-based technical indicator frequently used in charting. Its primary function is to offer traders insights into price trends and the possibility of reversals by visually representing the volatility of a given asset.

The indicator comprises three primary components. The middle line, typically an exponential moving average (EMA) of the closing prices, is usually set to a 20-day period. The EMA serves as a central marker for the asset’s price movement trend. 

The upper and lower bands are constructed by adding and subtracting a multiple of the Average True Range (ATR) from this middle line. These bands then capture the asset’s inherent volatility. When prices extend beyond these bands, it might indicate a price breakout or signal potential overbought or oversold conditions.

The Keltner Channels were created in the late 1950s by Chester W. Keltner. A commodities futures guru, he introduced the indicator in his (now out of print) 1960 book, “How to Make Money in Commodities.” Keltner first unveiled the indicator under the nomenclature “Ten-Day Moving Average Trading Rule.”

For history buffs’ interest, Keltner’s original version varied from what most traders use today. He used simple moving averages (SMA) and based his band calculations on the day’s high-low range. Of course, over time, with the growing market sophistication and technology enhancements, Keltner’s successors tweaked the formula.

Commodities and futures trader Linda Bradford Raschke played a pivotal role in the indicator’s modernization, popularizing the idea of incorporating the Average True Range in the calculations. This adaptation is more responsive to today’s market volatility.

Keltner Channels Calculation

As one of the popular indicators, your trading platform of choice likely has the Keltner Channels as a preselected option that you can tweak or adjust. Still, understanding the underlying calculations and formulas can help traders better implement Keltner Channel-based strategies. 

Remember, with three lines in the Keltner Channel, we must run three separate calculations:

The middle line is the EMA and uses a weight factor defined as (2/20+1). Weight factors vary depending on trader preference, but this is the baseline standard. The EMA’s formula is: ((Current Price x Weight Factor) + (Previous EMA x (1 – Weight Factor))/2.

We calculate the upper band using the EMA, ATR, and a multiplier (usually set to two, but this varies based on preference): EMA + (ATR x Multiplier).

Likewise, the lower band deducts the latter half of the equation from the EMA: EMA – (ATR x Multiplier).

Implementing Keltner Channels in Trading

On a chart, Keltner Channels are three lines around the price bars or candlesticks. These bands expand and contract based on the underlying asset’s volatility, measured by the ATR.

Traders use Keltner Channels for identifying:

• Overbought/Oversold Conditions: When the price moves outside the upper band, the asset might be overbought, signaling a potential pullback. Conversely, if the price falls below the lower band, it might be oversold, indicating a possible price bounce.

• Trends: A sustained move above the middle EMA line can hint at an upward trend, while a persistent move below it might suggest a downward trend. Day traders use this information to align their trades with the prevailing short-term trend.

• Dynamic Support and Resistance: For day traders, the bands serve as fluid support and resistance levels. The upper band acts as a dynamic resistance, where prices might face selling pressure. The lower band acts as support, where buying interest might emerge. This dynamic nature makes them adaptable to volatile intraday movements.

Identifying Pullbacks and Trading Breakouts and Breakdowns

Keltner Channels shine in detecting potential pullbacks, primarily when prices stretch too far from the middle line or EMA.

• A pullback to the EMA: If an asset’s price is consistently above the EMA (indicative of an uptrend) and then retraces back to touch or approach the EMA, it could mark a potential buying opportunity. Similarly, in a downtrend, if the price consistently trades below the EMA and then rises to approach or touch the EMA, it might present a short-selling opportunity.

• Oversold/Overbought Pullback: If the price dives below the lower band after trading in a range or above the EMA, it’s potentially oversold and might revert to the mean. Conversely, if the price soars above the upper band, it’s possibly overbought and might pull back towards the EMA or further.

The Keltner Channels’ dynamic nature makes them especially useful for highlighting breakout and breakdown scenarios.

• Breakouts: When the price consistently hugs or tests the upper band and then moves even further beyond it, especially with increasing volume, it indicates a strong bullish breakout. Traders might consider entering a long position, expecting the momentum to continue.
• Breakdowns: Conversely, if the price is persistently near or testing the lower band and then sharply drops below it with significant volume, it signals a potential bearish breakdown. This might be an opportunity for traders to short-sell, anticipating further declines.

For both pullbacks and breakout/breakdown scenarios, it’s (of course) important to use additional confirmation tools like volume indicators or other technical signals to double-check the strategy. 

Keltner Channel vs. Bollinger Bands

Keltner Channels and Bollinger Bands are both envelope-style indicators that surround an asset’s price with a set of bands. They both aim to encapsulate most of the price action, but their construction, interpretation, and optimal use differ.

Constructing Keltner Channels and Bollinger Bands

Keltner Channels: They have three components. The middle line is an Exponential Moving Average (usually a 20-period EMA). The upper and lower bands are derived by adding and subtracting a multiple of the Average True Range (ATR) from the middle line, capturing the asset’s volatility.

Bollinger Bands: Bollinger Bands consist of a middle band being a Simple Moving Average (typically a 20-day SMA) with the upper and lower bands set as standard deviations away from this average, portraying the asset’s volatility.

Interpreting Keltner Channels and Bollinger Bands

Keltner Channels: A movement beyond the bands, especially the upper or lower channel, indicates potential overbought or oversold conditions. The width between the bands also reflects the asset’s volatility.

Bollinger Bands: The primary interpretation revolves around the “Bollinger Squeeze,” where a narrowing of the bands forecasts an impending volatility surge. Conversely, a widening of the bands indicates decreasing volatility.

Ideal Uses for Keltner Channels and Bollinger Bands

Keltner Channels: Best for identifying pullbacks within trends. When prices retreat to the EMA or move beyond the bands, there’s potential for a return to the mean.

Bollinger Bands: Highly effective for volatility breakouts. The ‘squeeze’ signals traders to brace for a surge in price movement, either upward or downward.

While both indicators offer invaluable insights, the choice between them depends on the specific strategy and preference of the trader. Whether focusing on pullbacks or anticipating volatility breakouts, understanding the nuances of each tool is pivotal.

For a more detailed dive, check out our Bollinger Band summary.

Keltner Channels vs. Donchian Channels

While both Keltner Channels and Donchian Channels are tools for gauging volatility and potential breakouts, they’re built upon different concepts and have distinct characteristics.

Constructing Keltner Channels and Donchian Channels

Keltner Channels: The framework consists of three bands. The middle one is an Exponential Moving Average (often a 20-period EMA). The upper and lower bands are set by adding and subtracting a multiple of the Average True Range (ATR) from this central EMA, encapsulating the volatility of the asset.

Donchian Channels: Donchian Channels are formed using highs and lows over a predefined period, often 20 days. The upper band is derived from the highest high of this period, while the lower band is the lowest low. The middle band is the average of these two.

Interpreting Keltner Channels and Donchian Channels

Keltner Channels: Movements beyond the upper or lower bands suggest potential overbought or oversold conditions. The distance between the bands serves as an indicator of the asset’s volatility.

Donchian Channels: These channels shine in breakout strategies. A move above the upper band signifies a bullish breakout, while a move below the lower band can indicate a bearish breakout. The middle band acts as a dynamic level of support or resistance.

Ideal Uses for Keltner Channels and Donchian Channels

Keltner Channels: These channels are adept at identifying potential pullbacks within a prevailing trend. The relationship between the price and the EMA, coupled with the bands’ width, provides cues on the asset’s possible moves.

Donchian Channels: Particularly useful for traders practicing trend-following strategies. When prices break out of the channels, it indicates potential continued momentum in the breakout direction.

In essence, both Keltner and Donchian Channels are used to gauge volatility and identify potential breakouts but their construction and emphasis differ. The choice between them hinges on a trader’s strategy and the specific market conditions they aim to capitalize on.

For a deeper exploration of Donchian Channels, we have a full breakdown here. 

Keltner Channels Pros and Cons

Advantages:

1. Versatility: Suitable for various trading strategies, including trend-following, mean-reversion, and breakout trading.
2. Dynamic Nature: Automatically adjusts with changing market volatility, offering more sensitive readings during high-volatility periods and lesser sensitivity during low-volatility phases.
3. Pullback Identification: Effective at signaling potential oversold or overbought conditions when prices move beyond the upper or lower bands.
4. Trend Confirmation: The relative positioning of the price with respect to the middle EMA can help confirm the prevailing market trend.
5. Clear Boundaries: Offers visually clear potential support (lower band) and resistance (upper band) levels.

Drawbacks:

1. False Signals: Like many indicators, Keltner Channels can occasionally generate false breakout or pullback signals, especially in choppy markets.
2. Lagging Indicator: Based on past data, there’s inherent lag, which might cause traders to miss optimal entry or exit points.
3. Not Standalone: For best results, they should be used in conjunction with other indicators or tools to validate signals and reduce the potential for false alarms.
4. Complex for Novices: New traders might find it challenging initially to interpret the bands and the EMA in real time.
5. Limited Differentiation: In less volatile markets, the bands might not provide significantly different information than the central EMA.

Conclusion

Navigating the trading world is tough, but tools like the Keltner Channels shed light on potential market moves and help traders refine their strategies. 

Keltner Channels envelop an asset’s price, adjusting dynamically to its volatility. This offers a dual advantage: clear visual cues for potential overbought or oversold scenarios and a consistent measure of the ongoing market trend based on the price’s relation to the central EMA.

Of course, every tool has its deficiencies. The potential for false signals, especially in inconsistent markets, requires combining Keltner Channels with other indicators. This synergy can create a more robust and reliable trading strategy.

The trading world is as much about strategy as it is about adaptation. With tools like Keltner Channels in one’s arsenal, a trader is better equipped to interpret market dynamics and make informed decisions – ultimately improving their performance. 

The post Everything You Should Know About the Keltner Channels Indicator appeared first on Earn2Trade Blog.

In the trading world, post-trade analysis is the process of reviewing and evaluating all the elements that contribute to a completed trade. This could include factors like market conditions, timing, decision-making processes, and of course, the asset’s performance.

The post-trade analysis is of paramount importance. It offers traders a way to learn from their past actions, refine strategies, and, ultimately, improve future performance. By ignoring post-trade analysis, you risk repeating your missteps and missing potential profit opportunities.

Why Is Post-Trade Analysis Important?

The post-trade analysis is the unsung hero of successful trading. The key mantra for your post-trade analysis strategy is: “What you can’t analyze, you can’t improve.” 

It’s not just about tracking wins and losses but understanding the why behind what happened.

By methodically going through each trade, you are able to dissect your decisions (right or wrong) and draw crucial insights. Mistakes aren’t missteps; they are valuable lessons in disguise. 

Was your timing off? 

Did you misjudge market conditions? 

Were your exit and entry points well planned? 

These, and more, questions will help you understand what worked, what didn’t, and, more importantly – why.

Trading is often a game of repetition. Situations you encounter today will likely pop up again in the future. By revisiting past trades, you’re preparing yourself for future challenges. The more you understand how you reacted to previous market scenarios, the better prepared you’ll be to tackle them when they come around again.

When Is the Best Time for Post-Trade Analysis?

Just as stretching is critical after a good workout to promote recovery and prepare for the next session, so is post-trade analysis after the trading day. The ideal time for this essential task is at the end of each trading day while the events are still fresh in your mind.

Why so soon, you ask? Well, think about the last time you had a test. How much of that information do you actually remember? 

Exactly. 

The sooner you do your post-trade analysis, the better. Your memory of the market conditions and the reasoning for your decisions will be clear, helping you capture the most accurate picture of your trading day.

Consistency is king in this process. Making post-trade analysis a daily habit will ensure you don’t miss any crucial details or patterns that could be invaluable for your future trades. So, after your next trading day, before you shut down your screens, take a moment to look back and analyze. This small habit can make a massive difference to your trading journey.

How to Conduct Post-Trade Analysis in a Few Simple Steps

Navigating the dynamic world of trading can seem overwhelming, but a well-crafted post-trade analysis routine can help you make sense of it all. Here is a brief overview of how to do it in a few simple steps:

Start a Trading Journal

The trading journal is one of the most effective tools in a trader’s arsenal. It is a place to capture every detail, strategy, decision, and outcome of your trading moves. It should form the backbone of your post-trade analysis.

In the world of trading, data is your best friend. Your trading journal allows you to document your trades’ specifics – like entry and exit prices, dates, and times – as they happen. But its importance goes beyond just the numbers. A trading journal also helps you record your strategies and emotional and psychological states during each trade. 

Did fear make you exit too early? 

Did greed make you hold on for too long? 

These are the kind of valuable insights that a trading journal can help unveil.

The more details you record, the better. With time, this data repository will help you spot patterns, better understand your decision-making processes, and improve your strategies.

We have plenty of detailed articles on starting and maintaining a trading journal, like this one, for example, which can guide you through the process. Starting a trading journal may seem like a small step, but it’s a giant leap towards becoming a more self-aware, disciplined, and successful trader. Grab your notebook or open that spreadsheet because a trading journal is pivotal to trading success.  

Record Your Trades

Record every trade, whether it’s a win or a loss. Just like a football team learns from both their victories and their losses, traders gain insights from all trades. The winning moves help you understand what you’re doing right, while the losing ones often provide even more valuable lessons. Each of these trades contributes to your overall trading picture, offering insights that can complement each other.

When it comes to recording your trades, consistency is just as important as being thorough. Make it a daily habit, an integral part of your trading routine. The more data you record, the more material you have to analyze and learn from, thus the more objective your insights. Each data point, no matter how small, helps paint different details in the bigger picture.

In trading, you’re playing the long game. Over time, this wealth of information will allow you to identify patterns, spot mistakes, and fine-tune your strategies. Remember that each entry in your trading record is a step towards becoming a more proficient trader.

Drawing Insights

So you’ve been diligent about recording your trades and now you’re sitting on a mountain of data. What’s next? It’s time to transform that data into actionable insights.

Start by reviewing your trades systematically. Look for patterns and trends – are there particular market conditions under which you tend to perform well or poorly? Do certain strategies consistently yield better results? Are there times of the day when your trades are more successful?

Also, pay attention to the psychological aspects of your trading. Are there emotional triggers that influence your decision-making? Perhaps you’re too eager to jump in on trades or too cautious to take advantage of potentially-good opportunities. By identifying these factors, you can improve your emotional resilience and decision-making under pressure.

Another crucial step is comparing your planned trades to your actual trades. Did you stick to your trading plan or deviate from it? Understanding this can help you maintain discipline and stick to your strategy in future trades.

Remember, drawing insights from your trading data isn’t about dwelling on the past but about learning for the future. With time, you’ll become adept at spotting these nuggets of wisdom in your data.  

Analyzing the Emotional and Psychological State 

When it comes to trading, your emotional and psychological state plays a starring role. Even the best strategy can crumble under the weight of unchecked emotions. This is why analyzing your state of mind and acknowledging your emotions during the different phases of the trading session is an integral part of post-trade analysis.

If you’ve been feeling particularly edgy or agitated, it might affect the quality of your trades. For example, you might notice that on days when you were feeling anxious, you exited trades too early, missing out on potential profits. Or maybe on days when you were frustrated, you held on to losing trades too long, hoping they would turn around.

The key here is to observe and document your emotional state alongside your trades. Were you confident, nervous, excited, or worried when making those trades? Do you see a pattern between your emotional state and the outcome of your trades?

Being aware of your emotions and understanding their impact on your trading decisions can provide valuable insights. It enables you to manage your emotions better and avoid letting them dictate your trading decisions.

In the end, successful trading isn’t just about making the right moves; it’s also about being in the right state of mind. So, keep a close eye on your emotions, as they can be the unseen hand guiding your trading decisions.

Evaluating Trade Performance 

Evaluating your trading performance is like wearing a heart monitor. It helps you gauge your health as a trader and points out areas that need further attention.

There are several key factors to consider when evaluating your trading performance. One of these is your win/loss ratio. This tells you the number of trades you’ve won versus the ones you’ve lost. While a positive ratio is always good, don’t be disheartened by a negative one. Even the most successful traders lose sometimes. The aim is to ensure your winning trades outweigh your losing ones in terms of value, not just count.

Digging deeper, analyze the specifics of your winning and losing trades. Are there any patterns or common factors? Perhaps you tend to win more with a certain strategy, or lose when trading at certain times of the day. Identifying these patterns can provide valuable insights to refine your strategy.

Next, consider your performance in terms of risk. Did you take on more risk than usual? And if so, did that pay off? Trading is a balancing act between risk and reward. Understanding your risk tolerance and how it impacts your trading results is crucial.

Finally, assess your trading stats for the day in regard to your long-term goals. Are you on the right track? If not, what adjustments do you need to make?

Remember, evaluating your trading performance isn’t just about celebrating your wins or brooding over your losses. It’s about identifying what worked, what didn’t, and why. With this information in hand, you can make informed decisions, tweak your strategies, and set yourself up for future success.

Defining Areas for Improvement

Every bit of information you’ve recorded – from your emotional state during a trade to the strategy you used – can provide insights into how you can improve. Maybe you need to manage your emotions better during high-pressure trades. Or perhaps a particular trading strategy isn’t working for you and needs a tweak. The task at hand is to identify these patterns and understand their implications.

Don’t worry, you’re not alone in this task. There are software solutions available that can help you analyze your trading data and draw insights. These tools can turn your data into meaningful information, making your task of improving easier.

Remember, the goal is not to eliminate losses completely but to learn from them. 

Regularly reviewing your trading performance, continuously adding new data to your trading journal, and turning losses into lessons are the hallmarks of a successful trader. This ongoing cycle of analysis and improvement helps to refine your trading skills and better positions you for long-term success.

So, keep at it. Regularly conduct post-trade analysis, identify areas for improvement, and act on them. Your trading journal isn’t just a record of your trades; it’s a roadmap to your trading success. And every bit of analysis you do is a step forward on that journey. Keep learning, keep improving, and remember, every loss is just a win waiting to happen!

Conclusion

In the world of trading, post-trade analysis is your compass, guiding you through the ever-changing landscape of the markets. It’s the lens through which you can evaluate your strategies, refine your decision-making process, and ultimately, become a more successful trader.

So, what’s the key takeaway from our journey through post-trade analysis?

First, remember that consistency is crucial. Make it a habit to meticulously record every detail of your trading sessions, regardless of whether you’ve had a winning or a losing day. Your trading journal is your personal database, brimming with valuable data waiting to be analyzed.

Secondly, don’t just skim through your trade history. Dive deep into the details. Go beyond the figures and take into account the emotional and psychological factors that accompanied each trade. Your state of mind during trading can reveal as much about your performance as your win/loss ratio.

Thirdly, make sure to link all the pieces together. The power of post-trade analysis lies in its ability to draw connections between seemingly disparate pieces of information. Identify patterns, recognize trends, and understand how your emotions interact with your trading strategies.

Lastly, always remember that each analysis you perform, every insight you glean, is a stepping stone towards improvement. Each loss is a lesson learned, and each win – a strategy validated.

Ultimately, post-trade analysis is not a chore but an essential part of the trading process. It’s the secret ingredient that can turn an ordinary trader into a successful one. So, start today, be consistent, and keep learning.  

The post How to Conduct a Post-Trade Analysis: Learning from Wins and Losses appeared first on Earn2Trade Blog.

Jigsaw elevates the trading game with its pioneering application of order book trading, a wealth of educational resources, diverse price models, and other nifty trading tools – a comprehensive toolkit for every trader aiming to take their trading savvy up a notch. Although first-timers may find the learning curve a tad steep, Jigsaw is studded with several alluring features that cater to the needs of both novice traders and seasoned day traders.

Pros & Cons

Pros

• A vast number of available educational materials and resources
• A preferred platform for skilled, full-time traders
• Excellently designed and easy to use
• Responsive customer service
• A welcoming and inclusive community

Cons

• One of the more expensive solutions
• The learning curve is steep, so you must spend time acclimating to the platform to make the most out of it
• Specifically tailored to the needs of day traders and may not be appropriate for other styles or strategies

Features

Before diving into the platform’s features, let’s focus on the term “order book trading.” Jigsaw is a platform designed specifically for market participants involved in this practice. But what does order book trading mean?

Order book trading, a cornerstone of Jigsaw Trading’s allure, is an approach where trades are executed based on active market orders already in motion.

Order book trading is all about seizing opportunities arising from the actions of other market participants. Traders practicing this method keep an eye on various market events, including hefty block orders, trade cancellations, stop orders, trapped trades, and more.

Unlike traditional trading methodologies, order book trading operates in real-time and focuses more on capitalizing on opportunities stemming from the activities of other traders and ongoing trades at any given moment.

Multiple Features

Jigsaw Trading’s toolkit comprises an array of indicators that visually encompass the strategies employed by most traders as they navigate the marketplace. These tools are comprehensive, insightful, and designed to significantly enhance your trading strategy.

By leveraging Jigsaw’s instruments, day traders can better gauge the market’s pulse, boosting their chances of executing profitable trades.

Unlike some platforms, Jigsaw’s trading tools don’t offer ready-to-use trade execution signals. Instead, they guide day traders in constructing trading positions grounded in the order book. So, to truly tap into the power of Jigsaw Trading’s tools, day traders should already be comfortable with order book trades and have a firm grasp on crafting their own deals.

While a few other trading tools offer similar functionalities, the consensus among traders, both rookies and pros, is that Jigsaw Trading’s tools are top-notch. But, be prepared to invest time in learning the ropes and adapting to the platform. Also, keep in mind that the different tiers come with a substantial price tag.

Educational Resources

Jigsaw Trading offers a wealth of educational resources, including articles, webinars, tutorials, and videos for traders of all levels.

At the basic level, which comes bundled with purchasing the trading platform and toolkit, you get a video explaining the fundamentals of order book trading. Despite being entry-level, this resource offers a comprehensive understanding of order book trading, enough to get any rookie started.

Stepping up to the next tier, you’ll find an order book trading course. This aims to teach day traders the core strategies seasoned traders use to secure consistent profits.

For those looking to dig deeper and master the most sophisticated and diverse trading strategies, there’s a third tier of educational content available.

Remember, each of these levels offers a different range of features, plans and lessons and comes with varying price tags. Expect to pay more as you jump from one tier to another.

Jigsaw also offers a comprehensive and helpful blog section, accessible to all, for a taste of its educational resources. 

Depth of Market

One of the standout features of Jigsaw Trading is the Depth of Market (DOM) tool, also known as Depth & Sales. This tool allows users to gain insights into the dynamic interplay between active and passive traders, fostering a more comprehensive understanding of the market’s inner workings.

The Depth & Sales charts and indicators grant you access to vast market information, including:

• The convergence of stop orders and traders within the same vicinity
• The positioning of orders in the queue
• The ripple effects of specific trades on the broader market landscape
• Trends in trade momentum
• The capacity to withdraw or adjust orders swiftly
• Timely market alerts that can influence decision-making

All these elements offer a unique view into the market, helping you further enhance your trading strategy and decision-making process.

Leaderboard

To feed your competitive spirit, Jigsaw’s community features also include a leaderboard with performance statistics, including win rate, P&L, and more. It also showcases how you fare against other Jigsaw traders, giving you extra motivation to excel. 

Setup

Getting your Jigsaw Trading account up and running is relatively straightforward, particularly with the supportive and knowledgeable customer service team at your disposal.

However, we should note that the system setup is not exactly a walk in the park, especially for beginners, and that’s partly because a good chunk – over 20% of Jigsaw traders – are full-timers.

Yet, Jigsaw offers plenty of tutorials on how to start, so if you are willing to spare some time, you will complete the platform setup relatively quickly. Once your platform is firing on all cylinders, you’ll unlock access to an array of tools: real-time order flow charts, the Depth of Market (DOM) tool, an order book heat map, and a historical view of the order book. This arsenal will undoubtedly put you in a prime position to strategize and capitalize on market trends.

User Interface

Navigating through the Jigsaw Trading platform is a breeze since the platform is designed with intuitiveness at its core. However, it’s crucial to note that you need a seasoned understanding of trading and the specific tools you’re after. If you’re dipping your toes into trading waters for the first time, you might want to kick things off in the educational resources section of the platform. This will help you get up to speed with the ins and outs of trading, particularly order book strategies.

Thanks to its vibrant color scheme and user-friendly buttons, commands, and controls, Jigsaw’s UI is engineered to offer a multitude of options without overwhelming users. A standout feature is the charts; they’re a feast for the eyes, easy to interpret and help bring data to life.

Real-time visualizations of market flow are common in many trading platforms. But Jigsaw Trading takes the cake in terms of presentation and user experience.

Beyond the technical aspects, the platform boasts a sizable and easily accessible community. It’s a goldmine of information and diverse viewpoints, particularly for those new to day trading. The user-friendly search function and an appealing and practical design make the Jigsaw community a hub that caters to users of all stripes. Expect to be dropping by frequently as you progress on your trading journey.

Available Indicators

As a Jigsaw Trading user, you’ve got a whole arsenal of technical trading tools empowering you with greater insight. However, it’s crucial to note that Jigsaw doesn’t spoon-feed you. It’s like jumping in at the deep end when you first start using the platform, mainly if you’re not well-versed in these tools and indicators.

Don’t fret, though! Each tool is chock-full of features, and even if you find yourself scratching your head, you can turn to the helpful Jigsaw community. With users more than happy to share their knowledge and answer any burning questions, you’re never left hanging. It’s a platform that encourages self-learning but also fosters a strong sense of community, ready to lend a helping hand when needed.

System Requirements

Jigsaw Trading works as a plug-in for various platforms, including NinjaTrader 7, 8, MultiCharts.NET, MultiCharts.Net Special Edition, MT5, and Tradovate. If these platforms support a feed, then so does Jigsaw.

On top of this, Jigsaw also offers a platform that operates directly with GAIN, Rithmic, IQFeed data feeds, and CQG.

It’s important to note that while Jigsaw doesn’t directly support the ThinkorSwim (ToS) platform, it does support the TD Ameritrade feed, which uses ToS.

Remember, after you’ve installed Jigsaw on your desktop, you’ll need to put in a request for a machine license transfer if you want to use it on another computer, even if it’s your own laptop. The good news is that Jigsaw tends to process these requests swiftly, so you shouldn’t have too much downtime.

Customer Service

The technical prowess of Jigsaw Trading is commendable, but what if you face issues while using the platform and need assistance? Well, you’re in safe hands.

The platform comes with a robust, well-regarded, and user-friendly customer support service catering to all types of clients – from newcomers to seasoned market veterans.

Further enhancing the user experience, Jigsaw Trading offers an active chat room. Traders can use it to exchange insights about order book trading, ask platform-specific or general questions, and learn from more experienced traders, customers, and Jigsaw staff.

The platform also allows traders to test new order book trading strategies in a live data environment by configuring the system in demo mode.

Jigsaw Trading’s support team possesses a deep understanding of the system and is genuinely helpful and knowledgeable. They appreciate that many of their users might be new to the trading landscape, and hence, they excel in explaining complex concepts in an easy-to-understand manner – from order book trading to market analysis and from making deposits to resolving technical issues.

As a result, the technical support provided by Jigsaw Trading is considered to be top-tier in the industry. Almost all Jigsaw Trading reviews emphasize the swift, efficient resolution of technical issues.

Pricing

Jigsaw’s pricing structure leans towards the higher end, which might deter newcomers or even seasoned traders on a budget. However, it’s important to bear in mind that no matter the tier you choose, you are investing in a highly-rated platform known for its cutting-edge features, intuitive UI, excellent customer service, and a strong focus on order book trading. Furthermore, each pricing level includes a wealth of educational resources.

Here’s a breakdown of Jigsaw’s pricing:

Package 1: This basic tier includes the fundamental software and basic-level trader education. The cost is $579.

Package 2: This tier includes all the materials and software from the basic tier, plus tools like an advanced order flow training pack. This package is priced at $879.

Package 3: The premium package includes all the materials and software from the previous tiers, plus institutional training and monthly group training opportunities. This is priced at $1,687.

Additionally, Jigsaw offers annual and monthly subscriptions for continued access, priced at $500 per year or $50 per month.

Customer Issues

The Jigsaw Trading platform enjoys a largely positive reception from its users as evident from the numerous positive reviews it has received.

While the platform is accessible to novices, one of the minor criticisms it has faced relates to its complexity. Newcomers might find it a tad challenging to navigate, citing a steeper learning curve than other platforms. However, the Jigsaw community is often praised for its helpfulness in addressing queries, making it easier for users to acclimate to the system.

Another point of contention for some users is the price point. For those new to trading, Jigsaw’s price tag might seem daunting. However, seasoned traders who make up a significant portion of Jigsaw’s user base find the prices competitive and reasonable for the value they receive.

Customer concerns that pop up in reviews or forums are promptly addressed by Jigsaw’s customer service team and its in-platform community, ensuring a smooth and supportive user experience.

Conclusion

Jigsaw Trading represents a compelling proposition for established order book traders searching for a powerful platform, even at the lowest price tier.

For those on a tighter budget, the costs associated with Jigsaw’s higher-tier packages may prove a bit steep. However, even with its premium pricing structure, Jigsaw Trading provides some of the most outstanding order book tools currently available in the market. Yes, mastering everything it has to offer will require a significant investment, but as the saying goes, you have to spend money to make money – a principle that holds particularly true in the realm of day trading.

For those less familiar with order book trading, a gradual switch between the different tiers may be the most prudent route as they delve deeper into the world of order book trading. Fortunately, Jigsaw’s comprehensive educational resources can accelerate their learning journey, enabling them to gain comfort and proficiency in this trading strategy.

In a nutshell, it is safe to say that, even with its lofty price point, the platform represents excellent value for money.

The post Jigsaw Trading Platform Review appeared first on Earn2Trade Blog.

As one of the few web-based trading software solutions, Finamark lets traders access futures and forex trading while providing access to a universe of indicators, breaking news, and other essential trading tools. The accessibility in both system requirements and user interface means Finamark is an excellent option for newer traders. However, it also has a lot to offer to the more sophisticated and seasoned traders.

Pros and Cons 

Pros:

• A browser-based system that negates the need for high-end computing
• A customizable suite of widgets for all levels of trading experience and strategies
• A free 14-day trial

Cons:

• A limited educational library beyond the user manual. Inexperienced traders will have to learn the theory behind forex and futures elsewhere 
• Beginners may be overwhelmed by the abundance of options if they aren’t familiar with typical trading widget functions 

Finamark Features

Finamark has various features and functionalities, but they are primarily centered around accessibility and ensuring an intuitive, comprehensive experience for traders of all skill and experience levels. The central focus of that accessibility is web trading and emphasis on widgets over an immutable layout. We’ll discuss each in-depth, but here is the full spectrum of the most essential Finamark features:

Web-Based 

Many trading platforms are cumbersome and demanding on computer systems. For even moderately equipped machines, downloaded trading software often brings operations to a crawl. This is the last thing a trader needs when trying to quickly enter and exit positions. As a result, in many cases, newer traders interested in learning the market firsthand could only get started with a complete overhaul and upgrade of their computer system. This effectively cut out entire market segments from even getting started.

Recognizing that need, Finamark developed a browser-based trading platform to run more smoothly across various computing capabilities. This is, of course, great for beginner traders who don’t want to commit to extensive upgrades. At the same time, it also suits the needs of more experienced traders with high-tech rigs at home or who want to trade on the go with a laptop. 

Ultimately, Finamark’s web-based experience means that you can log in from anywhere instantly without waiting for a download. It runs on lower-end machines, with little to no drop in performance across devices. Besides, your widgets and windows will remain as-is regardless of where you log in from. 

Widget-Centered

Finamark’s web-based platform is built around widgets rather than fixed displays. Each chart, data source, indicator, etc., has its own widget that can be resized and dragged wherever is convenient for the trader. 

Finamark breaks its widgets into groups by function and type. The widgets can be saved to a custom layout that can be universally used across devices. 

While Finamark supports various widgets and the development team expands the options with each update, here are some of the most popular:

Recurring Functions

P/L: Tracks profit or loss for an account. Finamark will display P/L for the account’s lifetime when trading forex. However, with futures trading, the platform only displays the P/L for the particular day. This is different from position P/L, which tracks the profit and loss of an individual trade and is shown in other widgets.

Symbol: The symbol shows the name of the traded asset. The widget has a dropdown and a search feature to easily filter and find the asset you’re looking for. 

Quantity calculations: The widget lets you calculate position sizing to optimize your capital and reduce your risk. 

Buy/Sell: The functionality allows you to enter and exit positions at the current market price (for quick order execution) or to open an order window and customize your preferred trading terms. 

Prices: Asset prices are displayed on several widgets, but the standalone price widget shows the last price and bid/ask spread. You can also see volume at bid/ask for an order flow and market depth snapshot. 

 Chart

Charting widgets are the focus of Finamark’s browser platform and can display (depending on preference) the following:

• Asset symbol
• Current price
• Time
• Bid/ask
• Execute buy order 
• Execute sell order
• Drawing tools
• Flags
• 1-Click Trading authorization to speed executions without relying on hotkeys
• Symbol searching

Drawing Tools

In addition to indicators, many traders like to use drawing tools to highlight particular areas of the chart. Finamark has a robust drawing toolset within its widgets and allows you to draw the following:

• Vertical lines
• Horizontal lines
• Trendlines
• Channels
• Arrows
• Fibonnaci retracement
• Boxes
• Colors
• Text

Accounts

The account widget can show as much account information as needed or as little if you find it distracting. Options include:

• Balance
• Margin available
• Margin used
• Financing fees (forex only)
• P/L
• Daily P/L
• Open P/L

Reconstructed Tape

This eminently helpful widget lets traders see a full report of their futures trading activity. The order flow can help uncover market dynamics and open up opportunities to jump on a trade. 

Positions

The position widget shows traders the current portfolio outlay by asset. It includes details about the open positions, including symbol, trade date, asset name, entry and current prices, and position P/L. The bottom of the widget shows your open P/L for all open trades and your daily P/L to monitor progress. 

Orders

The widget keeps a running log of all order executions and includes working orders, filled orders, and canceled orders. These can be viewed individually or all together for a time-series journal. The widget shows the date/time of the order, quantity, status, and execution price. 

Favorites

This customizable widget lets you peek at details you need to know for assets you’re interested in. They can include price, daily percent change, total trade count, and even a line graph of the price to spot trends off-chart. 

Depth of Market

It shows order flow and helps traders visualize the running data better by expanding volume at price points into relative bars.

Finamark Setup

Finamark’s setup is beyond convenient – with no software to download, just open a browser and log in. You can maximize your trading experience by setting up features like:

• Create and save a preferred layout, or import an old layout.
• Add and remove widgets.
• Change settings, including color.

You’ll also need to establish a connection with your data provider. Finamark pre-populates data connections to choose from, and users click the unplugged red icon to select the data connection. Disconnecting from a particular provider happens the same way. 

Finamark User Interface

Traders aren’t restricted to wasting screen space on data or widgets they don’t intend to use. Instead, they can pick and choose the optimal layout.

With standard hotkey controls, Finamark allows day traders to enter and exit positions as quickly as possible. Pre-enabled, standardized hotkeys include:

• Ctrl + Click: open a limit order at a price clicked.
• Shift + Ctrl + Click: opens a stop order at a price clicked. 
• Left and right arrow keys: move the chart left and right in small increments.
• Up and down arrow keys: increase or decrease vertical axis scale.
• Hold Shift + Click and drag on the price axis: Resizes scaling like the above option.
• Mouse scroll: move the chart up and down.
• Search with /: this searches assets by exact code, so you aren’t scrolling through many that you don’t need to find the one you do. For example, searching /ES will show ES, ESQ, EST, and ESK. 

What Indicators are Available in Finamark? 

Finamark has a rich set of indicators available. You can also group your preferred indicators into collections to switch between them depending on your preferred strategy and asset. Indicators in Finamark include:

• Bollinger Band Width
• Acceleration/Deceleration
• Accumulation/Distribution Line
• Average Directional Index
• Aroon
• Bollinger Bands
• Candlesticks
• Commodity Channel Index
• Chaikin Oscillator
• Chaikin Money Flow
• Detrended Price Oscillator
• Exponential Moving Average
• Ease Of Movement
• Envelopes
• Force Index
• Hull Moving Average
• Keltner Channels
• Moving Average Convergence Divergence
• Mass Index
• Money Flow Index
• Last Trade
• Momentum
• %B
• Performance
• Pivot Points
• Percentage Price Oscillator
• Price Channel
• Parabolic SAR
• Price Volume Trend
• Rate of Change
• Relative Strength Index
• Slow Stochastic Oscillator
• Simple Moving Average
• Stochastic Oscillator
• Triangular Moving Average
• TRIX
• Typical Price
• Value Tag
• Volatility (Std.Dev)
• Volume
• Williams %R
• Weighted Moving Average

Finamark System Requirements

The Finamark team recommends using Google Chrome, where the platform works best. Since Finamark is browser-based, there are no defined minimum operating system requirements. Still, prospective users are encouraged to sign up for Finamark’s free trial to test their browser experience to determine whether their machine can keep up.

Pricing

Finamark offers a free 14-day trial period for testing the platform. After the trial, there are four licensing options:

1. Monthly: $49
2. Quarterly: $125
3. Biannually: $235
4. Annually: $450

Support

In addition to setting itself apart through browser-based trading, Finamark also stands out thanks to its superior customer service. It’s one of the few providers that offers live support during market hours. 

The support is available directly in the browser, through email, or in the form of a complete user guide and an online community forum. 

Past Issues

Users have typically reported issues with trade execution. While this could be attributed to latency in network connection, in each reported case, customer service representatives have walked the user through the problem. As a result, any potential issues will likely see a quick response. 

Conclusion

Finamark’s unique positioning as one of the only browser-based futures trading platforms is an excellent option for beginners and experienced traders. The spectrum of widgets and the rich customization opportunities make the platform ideal for all strategies and trading techniques. Finamark is one of the most intuitive and accessible platforms on the market.

The post Finamark – a Complete Guide with Images appeared first on Earn2Trade Blog.

In the words of Mauro Frasson, CEO and founder of Overcharts: “If we really started to fear innovation and the spark of resourcefulness would go out, then it would be like taking away our soul, the essence that makes us what we are.” 

This ethos embodies the Overcharts experience. It seeks to deliver an innovative and adaptive trading experience while continuously innovating and incorporating emerging trends and customer feedback.

Pros and Cons 

Pros:

• Endlessly customizable charting and drawing options 
• A high-end graphics engine supports as many indicators as the trader needs 
• It is reasonably priced, considering the number of features available

Cons:

• Overcharts isn’t a brokerage, so you must connect it to a third party for trade execution and data sourcing.
• The graphics engine is too powerful and can be overwhelming for some machines.  

Features

Although Overcharts doesn’t have an integrated brokerage connection like some other trading platforms, they support many popular futures and FX brokers like Interactive Brokers and more (check the list below). The platform also supports the crypto exchange Binance. 

They also support many popular data feeds, including Yahoo Finance and Rithmic. Any broker that provides a Rithmic data feed can be connected to Overcharts, opening up a broad spectrum of opportunities for the trader. 

What Can I Trade on Overcharts?

You can trade anything your connected broker supports – futures, stocks, FOREX, and any other asset that trades on secondary markets (assuming your brokerage provides access).

Charting in Overcharts

In addition to the many indicators, which we’ll cover shortly, Overcharts offers various chart customization tools. Overcharts uses a 4k graphics engine, so it has enough resources to display as many indicators or charts as you need. Each chart can have as many as 100 million bars, so you will likely run out of tools and indicators long before Overcharts becomes unable to support your strategy.

Overcharts’ chart tools include:

• Multiple data feeds from many supported brokers, so you can ensure that you have the most accurate information.
• Templates to save your indicators across windows.
• An option to overlay charts with differently scaled prices to see the big picture.
• Resolution adjustment – just because Overcharts can support the high-resolution output doesn’t mean your graphics card can. 

Overcharts also supports a universe of chart styles, so that you can choose whatever fits your trading strategy – whether it is candles, bars, dots on close, or any other of the nine chart style options that Overcharts offers. 

Drawing Tools in Overcharts

There is an abundance of drawing tools, and you can use your drawing as a template across multiple windows. With Overcharts’ drawing tools, you can overlay standard lines, shapes, Fibonacci studies, and many more – their offering is really extensive.

Setup

Setup is simple, but traders should know that Overcharts is restricted to Windows computers or Macs running a virtual Windows environment. After downloading the software, you must create an account or log into an existing one. This is fast and typical of any website registration process. 

You’ll then need to connect your data feeds by finding your feed in a preset list or manually adding the connection. Make sure you have your login information for the data feed ready because you can’t use Overcharts’ login for this portion. Once you’re connected, you’ll see three green dots. 

And that’s it – your initial setup is complete, and you’re ready to trade.

For those needing extra support getting started, Overcharts also offers a comprehensive installation guide on their website.  

User Interface

The user interface is invaluable since it is very customizable. In addition to charting, users can overlay the trade panel however it suits them. Active windows in Overcharts are called Workspaces, and each Workspace is independent of the others. This lets the trader designate active trading charts from the ones they want to monitor. 

The order and order status interfaces are equally helpful and can show as much or as little information as the trader needs. You can submit single or multiple orders as part of a strategy and set the orders as market, limit, iceberg, market if touched, and other types. 

The position information is displayed in a small and easy-to-read window. This lets you maximize your Workspace’s charting availability. The position box can be customized, but at baseline shows quantity, average price, and P&L. The background is also red or green, depending on profit or loss, so that you can monitor it with the corner of your eye while trading. 

What Indicators are Available in Overcharts? 

Chart analysis and indicator options are where Overcharts really shines. The selection of tools is top-notch and delivers a comprehensive experience for any technical trader, no matter the strategy. Overcharts offers:

Chart Columns

Chart columns are set up next to the main chart and are vertical columns displaying information of your choice, with new columns and data feeds added with every software update. Some of the standard chart columns are:

• Spread: showing a current price and the bid and ask prices. It helps you get in and out of trades at the best time and avoid mispricing due to wide spreads.
• Pulling and stacking: this displays the current spread compared to a previous snapshot to gauge increasing interest and liquidity,
• P&L: displays the profit and loss to show you the current status of an open position.

TPO Profile

A TPO profile shows trading activity at a designated price. This can help visualize range-bound stocks and identify support and resistance. Overcharts’ TPO profiles are highly customizable and configurable, supporting long-term profiling over multiple years. 

Volume Bubbles

Volume bubbles are a helpful visualization tool that shows the volume of trading activity as a bubble, where more giant bubbles indicate greater volume and vice versa. This helps traders identify and follow whales trading large quantities around specific prices to pursue a potentially imminent trend. Like TPO profiles, the bubbles are very customizable for trader-specific strategies. 

Market Depth Map

The market depth map further helps identify support and resistance by showing volume change dynamics at different levels. This indicator only shows current data, and users cannot use it for historical visualization.

Volume Ladder

The volume ladder is an easy way to see the bid/ask, the spread, and the volume within the standard chart bars. This gives you a quick bird-eye view of the market, without having to flip between screens. There are also customizable options covering additional statistical displays and the overall look of the ladder.

Volume Profile

The volume profile shows volume at different price levels to help see if there are more buyers or sellers at a particular price point. You can tweak the volume profile to define the session, period (intraday, long-term, etc.), and bid/ask style.

System Requirements

To start with Overcharts, your computer must have Windows 7, 8, 8.1, 10, or 11. Overcharts isn’t available on a Mac as a standalone program but can still run if you set up a Windows Virtual Machine. 

Overcharts doesn’t specify minimum hardware requirements. Since the platform is filled with so much data, traders must determine whether their computer can support Overcharts and complex trading strategies powered by a vast number of indicators and lots of information. 

Pricing

Overcharts offers multiple pricing tiers:

• Free: new users get a free 60-day trial with all features and data feeds included
• $29.95 (All Inclusive): the priciest tier gives access to all features, including live trading and all data feeds
• $24.95: This tier restricts data feed selection to two
• $19.95: only one data feed is enabled, and users are limited to selecting between Tradestation, Directa, or Oanda 

The prices above are for the one-year subscription and are the most cost-efficient option. Traders who want to try it out (beyond the free trial) can select between six months, three months, or one month – but the two data feed and single data feed options aren’t available for one-month subscribers. 

Support

Overcharts has a comprehensive support system. In addition to the complete guide we linked earlier, users can access an online consultation center that helps address the most common questions or potential issues. There are also video tutorials on Overcharts’ YouTube for visual learners or those who want to follow a step-by-step process.

Overcharts also offers live technical support, a dedicated page for bug reporting, and the ability for traders to suggest new features for future software updates. 

Past Issues

Most of the reported user issues are raised by traders with incompatible machines that couldn’t match the Overcharts’ powerful engine. 

Since the data feed feature relies on many factors working behind the scenes, some traders also need help establishing or maintaining a data feed. Since this is a common issue, Overcharts offers designated pages for each significant data feed source to troubleshoot problems. 

Users have reported issues with customer service’s responsiveness over the past two years, but Overcharts says this was due to understaffing during the pandemic and has already been fixed.

Conclusion

Overcharts is among the best futures, forex, and stock market platforms. With its powerful engine, advanced traders can use as many indicators or drawings on innumerable charts, limited only by the resources of their computer setup.

The sheer choice of options in charting sets Overcharts apart. Although it isn’t a brokerage, the scope of data feed and brokers you can connect makes Overcharts a valuable trading platform for beginner and advanced users.

The post Overcharts – A Complete Guide with Images appeared first on Earn2Trade Blog.

Pros and Cons 

Pros:

• The charting tools and the selection of technical indicators are top-notch, and third-party customization options enhance the experience even further; 
• The simulated trading functionality is a great way for new or experienced users to test the platform;
• An in-depth education library helps traders along their entire journey.

Cons:

• Premium tiers might price some traders out of the market;
• You can only trade futures and forex natively, and you’ll need to connect a brokerage to trade stocks and options;
• NinjaTrader works only on Windows computers. 

Features

NinjaTrader is a truly comprehensive, one-stop-shop trading platform. Although it offers just a few trading options through its brokerage, it has partnered with Interactive Brokers, TD Ameritrade, and other popular service providers to let users trade a broad spectrum of assets.  

What Futures Contracts Can I Trade on NinjaTrader?

As a National Futures Association-registered firm, NinjaTrader offers a complete futures trading experience and some unique futures trading functionalities.

Micro E-Mini Futures

As the name implies, Micro E-mini futures are smaller contracts of just 1/10^th of the size of the E-mini contracts. 

NinjaTrader offers the full suite of popular Micro E-mini futures, including:

• On S&P 500 – MES
• On Dow Jones Industrial Average – MYM
• On NASDAQ-100 – MNQ
• On Russell 2000 – M2K

Micro Crude Oil

Also, at 1/10th the size of standard oil futures, Micro Crude Oil (MCL) offers traders an opportunity to trade the energy markets for a fraction of the price of the crude oil contract. 

Nano Bitcoin

Much smaller than Bitcoin itself, Nano Bitcoin Futures are priced at 1/100^th of Bitcoin’s trade price. Crypto enthusiasts use them to speculate on the price behavior of Bitcoin. 

More Trading Opportunities 

NinajaTrader has a connection with many popular brokerages like Interactive Brokers and TD Ameritrade. A trader can link their NinjaTrader platform account with a third-party brokerage and take advantage of NinjaTrader’s charting tools and other functionalities to trade a broad range of assets. 

Charting and Order Flow

NinjaTrader offers classic visualization and charting tools but also some unique tweaks. Traders can place trades directly from the chart, allowing them to react quickly to market shifts. Options traders can take advantage of the platform’s advanced features, including an entire option chain showing strikes, expiry, and quotes.   

You can also preconfigure and set a series of hotkeys to execute orders quicker and exploit even the small price-action moves. The charts support many popular and custom technical indicators to best suit your trading style. 

The trade status is clearly displayed when looking at charts since profit/loss are shown directly on the chart alongside execution status. 

Order Flow Trades

Advanced traders can track market whales with NinjaTrader’s Order Flow + feature. The order flow visualization tools include volume indicators, volumetric bars, flow VWAP, market depth, and cumulative delta. 

Develop & Personalize

Since traders can link their brokerage to NinjaTrader, they can import many custom third-party tools or even create their own to enhance their trading experience. Traders can import or create:

• Custom indicators
• Apps
• Chart styles and bars
• Automated strategies (algo trading)
• Drawing tools
• Social sharing tools to show off gains 

Demo Trading

Even without a funded account, NinjaTrader’s simulation and backtesting tools let traders develop a strategy or get familiar with NinjaTrader’s platform before trading with real money.

Setup

The NinjaTrader’s platform offers the following account options:

• Free: The free option only lets you use simulated trading features and view charting unless you have a funded account;
• Lease: You pay $720 annually (semi-annual/quarterly options available) and can access the trading platform and additional Trader+ features;
• Buy: For $1,099, you get a lifetime license to use NinjaTrader and access Order Flow+.

Downloading the platform is simple, but registering an account is a bit more complicated. First, you must choose your preferred trading asset and, depending on it, you may have to register with a funding account. 

You will have to give lots of personal data to NinjaTrader and the funding broker, as with any financial website or firm. These include full name, social security number, address, etc. You can upload a national ID, driver’s license, or passport to validate your identity and a utility bill or bank statement to verify your address.

You will then answer a few questions about your planned use of NinjaTrader, read and agree to the terms of use and disclosure documents, and wait for the account set-up process to complete on NinjaTrader’s end. Since there is so much regulation and liability in the trading world, NinjaTrader’s due diligence takes some time, and you may have to wait up to a week for your account to be ready.  

User Interface

NinjaTrader offers a desktop platform available only for Windows. 

Despite these limitations, the user interface is intuitive and easy to use. Its core features are easy enough to interpret. Furthermore, NinjaTrader’s full customization options give you lots of flexibility. This means you can develop, create, or import interface tools you’d like to enhance your trading strategy and shape your preferred look with.

The baseline offering, before customization, allows you to:

• Search tradable assets
• View charts
• See current portfolio value and status 
• Place orders

What Indicators are Available in NinjaTrader? 

NinjaTrader has over 100 technical indicators native to the trading platform, but the real draw is the accessibility of third-party import options. 

Through the NinjaTrader Ecosystem, you can find and import nearly any indicator imaginable to the trading platform. The search function is intuitive and makes it easy to find indicators that suit your trading style:

You’ll then see a variety of options that can be narrowed down by style, approach, and features. We’ll look at selecting indicators that support identifying chart patterns to understand the process:

Here, you can select the indicator you want to import to NinjaTrader. Some are free, but many are paid or premium options. After selecting the indicator, you will be directed to a third-party website to complete the procedure. 

System Requirements

NinjaTrader is available only on Windows 8.1, 11, and Windows Server 2012 or later. As an advanced software platform, NinjaTrader requires some advanced computing power:

• One gigahertz (GHz) or faster 32-bit or 64-bit processor
• 2GB RAM
• Microsoft .NET Framework 4.8
• Screen resolution of 1024 x 768
• DirectX10 compatible graphics card is highly recommended

These are the bare minimums, and NinjaTrader recommends that users have the following:

• 2 (GHz) or faster quad-core 64-bit processor
• 8 GB RAM
• DirectX 10 compatible graphics card
• SSD Hard Drive

Pricing

NinjaTrader offers a tiered pricing system, including free access, leasing the software, or outright buying a lifetime license:

Outside of primary usage, there are other costs to using NinjaTrader. 

The full breakdown is on their page, but the most common ones are:

• Withdrawal fee: First two are free each month; subsequent withdrawals are $15 each;
• Currency conversion: 1% of total funds;
• Account activity: if an account logs in but doesn’t trade in a month, there is a $25 fee; 
• Commissions: these vary by asset traded and can be found on their site and in the images below. 

Support

In addition to a world-class trading platform, NinjaTrader offers equally good customer support service.

Education

To get aspiring futures traders started on their journey with NinjaTrader, the site offers a “Futures 101” section and a relatively extensive library of educational and research tools. They also provide frequent webinars on trading strategies and platform usage.

Support Forum

For basic questions about the platform or trading in general, NinjaTrader has a forum for users to post questions and engage in discussions:

Live Support

If the forum can’t help you, you can quickly contact support. There are several contact options based on the question or issue. There is also a 24-hour live help desk for emergencies or to place live orders.

Past Issues

The NinjaTrader team continuously rolls out updates to fix bugs and improve the platform. Usually, the most popular issues reported include:

• Computing power: Because the platform is resource-intensive, many with slower or inadequate machines report charts freezing or the software becoming unresponsive; 
• Import difficulties: Since so many third-party or self-developed applications and tools are available, some may not work as expected. This is not necessarily an issue with NinjaTrader itself, but many customers report problems with using some third-party options; 
• Hotkey Management: Although NinjaTrader offers hotkey customization to enter and exit trades quickly, some report that the customization doesn’t always save your preferences properly.

Conclusion

NinjaTrader is a powerful tool for funded and sophisticated traders. For futures traders, NinjaTrader offers a full-spectrum trading platform and brokerage. Other traders can use the charting and technical indicator tools for stocks and options by linking the platform with their brokerage.

We recommend NinjaTrader, even to beginner traders. Its simulated trading tools and educational library are great ways to start a technical trading journey, and the platform’s functionalities remain sufficient even as traders develop strategies and become more sophisticated.

The post NinjaTrader – A Complete Guide with Images appeared first on Earn2Trade Blog.

What’s a Trading Journal?

If you haven’t read our article dedicated to trading journals, don’t worry – we’ll recap the details quickly.

In short, a trading journal is a record of your trades over time that you can look back to and analyze. You can keep those records manually, but the technique is time-consuming and lacks automated statistical and analytical tools. That is why most traders prefer ready-made solutions.

Trading journals can help you in two ways:

1. Strategic management: Building a no-nonsense record of trades you execute under a strategy is critical in analyzing whether the technique works. It’s hard to remember all the trades you execute daily, let alone those from months ago. A trading journal acts as a memory bank to help you analyze your trade history and nail down the variables that impact your strategy. 
2. Emotions management: Keeping a cool head is mandatory for all traders, and a trading journal helps manage emotions. By plotting your strategy on paper (metaphorically) and keeping yourself accountable, you can short-circuit the lizard part of your brain that might panic and blow a trade.

Now, let’s dive into the different trading journal options and their pros and cons.

Journalytix

Journalytix is one of the top options for futures traders needing excellent analytical capabilities. Available free during your Earn2Trade subscription, Journalytix’s base rate is $47 monthly or $399 annually. For prop firms or teams, Journalytix offers an enhanced option priced according to their needs.

Journalytix covers the full suite of tradable assets: forex, futures, stocks, CFDs, and crypto trade logs are all available on the platform. Furthermore, there is an AI-driven real-time trading assistant. The tool monitors your day trades and helps identify misalignment with your strategy or trading goals. This can help you stay on track and avoid letting your emotions get over you after a losing trade. 

Journalytix also gives traders real-time news updates and breaking information as it unfolds, 24 hours a day. Since many traders optimize screen real estate and there’s precious little to spare, Journalytix also offers an audio news feed to avoid sacrificing space. The news feed pulls from over 75 sources, including Bloomberg, CNBC, Zerohedge, Zacks, and more – this bundle, bought separately, would far exceed the Journalytix subscription price. Access to this comprehensive feed alone is worth the cost of entry.  

Finally, one of Journalytix’s shining strengths is its analytics dashboard. The tool helps traders dive into the tiniest details of the day’s trading activity and pick out the crucial moments they may otherwise miss when analyzing the day. This level of detail is beneficial for finding good trading opportunities. 

Data can be categorized and analyzed in many ways, but the most popular Journalytix offerings are:

• Trade distribution by the hour or day of the week.
• Performance by the hour or by day.
• Distribution and performance by account, trade type, asset, and more.
• Statistics that include average holding times, profit factor, average P&L, and more. 
• Backtesting and AI-driven “what if” scenario assessments.

Journalytix Advantages and Disadvantages 

Advantages 

• AI-driven real-time execution assist.
• User-friendly intelligent analytics interface.
• Real-time news updates.

Disadvantages 

• The blog and educational resource section is lacking and hasn’t been updated since 2019.

Edgewonk 

Edgewonk is both a trading journal platform and a comprehensive educational resource. For users from countries outside of the European Union, it costs a flat $169 annual fee, while VAT inclusion makes EU pricing slightly steeper:

Edgewonk offers journaling and logging tools for all major markets, including forex, stocks, futures, CFDs, crypto, and commodities. Edgewonk is unique because it adds a “gamification” element to trading. If you need extra motivation, you can set your sights on preprogrammed milestones and trophies and snag them as you progress in your trading journey. 

Edgewonk’s AI testing tools are also robust. The software offers both strategic backtesting and future account projections based on your trading strategy. You can even input trades you chose not to take and see how they would have performed if you had – all three of these intelligent, AI-driven trading projection tools help refine your strategy. Rather than simply showing you what happened, Edgewonk shows what might have happened and what could happen. 

Edgewonk’s website also boasts a free, robust blog section to educate traders on markets, trading strategies, and the platform itself. A comprehensive help center guides users toward setting up, understanding, and optimizing their use of Edgewonk’s trading journal. 

Edgewonk Advantages and Disadvantages 

Advantages 

• Advanced AI forecasting tools and trophy system.

Disadvantages 

• Pricing may be confusing for EU traders.

Trademetria

While lacking some of the forecasting features of other trading journals, Trademetria excels at diving deeper into the data and statistics underlying existing trades. This makes it suitable for both – advanced and beginner traders. 

Trademetria offers three pricing tiers. All of them support the same assets but vary in order quantity and some other key features: 

1. Free – capped at 30 orders monthly, the free option is best for users who want to experience Trademetria without committing, as 30 orders are far too few for an active trader but are sufficient to understand the “nuts and bolts” of the journal. 
2. Basic – $29.95/month: the basic version lets traders import up to 100 monthly orders, which may be insufficient for very active traders. The basic version, however, does unlock additional tools that are unavailable to free users, including:
   1. P&L simulations;
   2. Distributions;
   3. Strategy rankings;
   4. Watchlists;
   5. Trade exports;
   6. And more.
3. Pro – $39.95: finally, the pro-option comes with all the basic version features but gives users unlimited order imports and the ability to track as many as 50 accounts (compared to the basic and free versions, which cap accounts at one). 

Some of the most popular analytical tools that Trademetria offers include:

1. Pattern analysis;
2. Strategy analysis;
3. Profitability by asset class;
4. Timing of the most successful trades;
5. Period overview and comparison between periods, i.e., month-to-month comparisons;
6. Note-taking targeting emotional management and mistakes to capture the moment as it happens for future reflection.

Trademetria Advantages and Disadvantages 

Advantages 

• Detailed analytics for past trades to inform future strategies.

Disadvantages 

• Fewer forecasting tools than other platforms. 

Tradervue

Tradervue offers fewer tradable asset options, limiting users to stocks, options, futures, and forex but makes up for this via a robust community. As much a social media site as a trading journal, the limited asset options, and group discussion make the platform ideal for newer traders who may need fewer features than advanced traders who manage diverse portfolios. 

Tradervue’s tiers (free, $29/month, and $49/month) differ primarily in the available analytics tools. The Silver and Gold tiers let traders input unlimited monthly trades, while the free version restricts inputs to 30 monthly. The primary difference between Silver and Gold is that the latter gives you access to the following: 

• Risk reporting features;
• Exit analysis;
• Support for commission and fee import;
• Liquidity reporting.

The paid tiers can have a 7-day trial period, so traders can explore the full functionality of each and compare their features.

In addition to quality analytics, Tradervue boasts a community where users can share trades and analytics, and discuss what’s happening in the market. That way, newer traders can learn from more experienced peers. The best part? The community is accessible to all tiers. 

Tradervue Advantages and Disadvantages 

Advantages 

• Advanced community lets users interact and help each other. 

Disadvantages 

• Fewer supported asset classes than other platforms. 

Tradersync

Tradersync, free for seven days, is one of the most popular options for digital nomads as their mobile app functionality is second-to-none. Also boasting a comprehensive tutorial section, Tradersync brings together some of the most popular analytics and forecasting features for traders of all skill levels. Offering tiers at (per month) $29.956, $49.95, and $79.95, the priciest option unlocks access to advanced AI tools. However, all options offer app functionality and can be tested with a free trial. 

Since Tradersync offers many standard baseline analytics for stocks, options, futures, futures options, and crypto, we’ll look primarily at the premium-tier AI selection. After assessing your strategy over time through machine learning models, Tradersync calculates each trade individually and as part of the overall strategy. Then it identifies patterns you may have missed and showcases its assessment results in an intuitive dashboard. 

Furthermore, Tradersync offers a comprehensive and advanced simulator that drills down into each “could have” or “what if” you can imagine, showing you the actual performance compared to your simulated performance. This feature is a great way to test or tweak strategies in a low-threat, low-risk environment without risking your cash. 

One of the few with a mobile app, Tradersync’s Apple and Android apps give traders the platform’s full functionality in an equally intuitive format that doesn’t suffer at all from mobile migration. Tradersync lets users import data from more than 240 brokers.

For each Tradersync feature, the platform offers a detailed breakdown of what it is and how traders can use it in their extensive tutorial library. For visual learners, Tradersync provides video tutorials to follow along with.

Tradersync Advantages and Disadvantages 

Advantages 

• Mobile functionality and advanced AI tools.

Disadvantages 

• AI features are only available at the priciest tier. 

Microsoft Excel (Building Your Own Journal)

For users who need a highly customized experience or want to try building their journal, Microsoft Excel is the best program. Basic literacy with the program lets traders comprehensively log and chart their trade history and draw deep analytical insight from the data.

While this section mentions Microsoft Excel specifically, you can also consider Google Sheets or OpenOffice as viable alternatives. For more details on how to use Exel for your trading journal, you can check out our other article.

That said, your Excel-based trading journal is only limited by your capabilities and strategy. Because of the high degree of variability, there isn’t often a one-size-fits-all solution for traders developing an Excel trading journal. We’ll look at some core tenets you might want to include in a journal, but ultimately your variables and inputs are dictated by your mentality, methodology, and strategy. Below are a few examples of what you can do with Excel, but the experience can be endlessly customized to the individual. Still, the core fundamentals apply to most asset classes, including crypto, futures, and similar equities. 

Basic inputs with an Excel trading journal usually include: 

• Date: lets the trader track progression over time. 
• Ticker: the trader must know what he’s trading, so having the ticker or asset name is critical.
• Previous close, pre-market high, and after-hours change percentage: because the gap strategy relies on big moves outside market hours, these variables help the trader see what minimum or range of percentage change is best. He can also track what stock price range works best, i.e., whether small caps like IONQ outperforms blue chips like AAPL or MSFT.
• Long/short: the trader’s signals include whether to go long or short the stock.
• Entry, time, stop-loss, and exit: these are mandatory in a journal, no matter the strategy or asset class. 
• R: this trader, rather than assessing trades based on strict P&L, determines success as a function of units of risk R. The mechanics of using risk units to evaluate performance are beyond the scope of this article. Still, units of risk are more objective and scale better than dollar value as risk units stay the same while profit and loss totals scale.

Traders with Excel journals also typically use formulas to automate some of the analytics. You can even capture images and generate charts in Excel, so the program has much of the same functionality as other options.

Excel Advantages and Disadvantages 

Advantages 

• Highly customizable to trader needs.

Disadvantages 

• Lacks automatic forecasting features; traders can only analyze past trades and must draw their own conclusions. 

Top Five Best Trading Journal Comparison

Features Comparison

Costs Comparison

Which One is the Best Trading Journal?

No matter which solution you decide to go with, maintaining a journal is mandatory for any serious trader. Key factors in selecting the right one for you include your experience level, strategy, and which of the many analytical or forecasting tools you need in your toolkit. Whether you need an affordable option like Tradervue or the full suite of analytical and trading assist tools of Journalytix – having a reliable, objective, and data-focused journal is one of the cornerstones your trading career rests upon. Ultimately, one of the most important factors to consider are familiarity and ease of use. Journalytix is included in your Earn2Trade subscription, so we highly encourage traders to give it a try; you might find yourself hooked and want to keep using it after you pass your funding evaluation.

The post What is the Best Trading Journal? Top 5 Free & Paid Trading Journals appeared first on Earn2Trade Blog.

Pros and Cons 

Pros:

• It’s free 
• The mobile app lets you monitor your account on the go
• A dedicated connection to RIthmic’s world-class data services means faster trade execution

Cons:

• Support only for Rithmic data feeds
• Can’t import third-party indicators
• Limited user interface customization options 

Features

Before looking at the features of R | Trader and R | Trader Pro, we will go through what Rithmic is best known for: their data feeds.

What’s the Deal with Rithmic Data?

Unlike traditional trading platforms and stock market brokerages, futures and forex service providers use a bit different data feeds, which aren’t always native to standard platforms. Instead, futures and forex traders must choose a data feed service and port the feed into their trading platform.

Data feed service providers are basically middlemen between the trader and the trading platform and brokerage. The best data feed service providers are renowned for fast and accurate data transfer with minimal latency. Furthermore, data services include orders, which makes speed in position management as crucial as when reading charts. Many data services can’t keep up with real-time market action and send you the average price or smoothed-out data instead of live quotes. Combine this with order latency, and you could miss tremendous opportunities or face equally significant losses.

Rithmic offers a solution that many expert futures traders use. The service provider excels in providing access to fast, precise, and reliable data streams. 

Does Rithmic Offer a Trading Platform?

Yes – it expanded its core data service to give traders access to two platform products: R | Trader, and R | Trader Pro.

That way, every trader can create an ecosystem that negates the problem of connecting data to external platforms. Since data feeds are natively integrated, you save time and enjoy greater peace of mind.

What’s the Difference Between R | Trader and R| Trader Pro?

Before diving into the details, here is a quick summary:

R | Trader

R | Trader is an entry-level platform. While it does let futures traders see current price quotes, market volume, and strikes for options traders, it lacks a crucial function most traders need – charting. 

R | Trader allows you to place, modify and cancel orders and see standard stats like your past performance, positions, and risk limits.

Traders who decide to stick with R | Trader rather than upgrading will likely need a secondary screen to view third-party charts, as trading without such can be very complicated.

R | Trader Pro

R | Trader Pro incorporates all of R | Trader’s functionalities but includes charting and an interface pipeline to Microsoft Excel for easier trade management. 

You can also use Excel to create your own indicators. If you don’t know how to, R | Trader Pro lets you add a pre-made bundle live to Microsoft Excel. 

Order Management

A crucial benefit to Rithmic’s platform is its order “storage” process. Since internet connectivity is sometimes shaky, especially for traders on the go, and you can’t be awake 24/7 to trade the markets, Rithmic will log your orders on their servers until they are executed or canceled. 

Since the servers have a constant direct link to major exchanges, you can get order execution at the price you demand, even if you aren’t parked in front of the screen. Here’s a look at the order depth: 

Excel Integration

A big draw for Rithmic’s R | Trader Pro platform is the integration with Excel. Using two-way communication, traders use as many Excel spreadsheets as necessary to:

• View and manage data
• Create custom trading signals
• Develop and view indicators
• Import and view 100 prepackaged studies 
• Configure and send trades to the R | Trade Execution Platform
• Trigger automatic trades for those interested in developing algorithmic trading strategies

Options

There’s also a well-organized options board for options traders to monitor strikes and execute call or put trades. 

R | Trader Setup

Installation is straightforward. After downloading the installation file, you’ll see a shortcut on your screen and under your programs listing at All Programs > Rithmic > Launch > Rithmic Trader Pro.

When you open the application for the first time, you’ll need to connect your broker-dealer (FCM or IB) by entering your credentials. That way, you will gain access to your suite of trading accounts. 

After login, you can either go to the settings management page or navigate directly to your account. If you’re having a slow login or other trouble, click ECL at the bottom of the loading page. Copy and paste the text from the window that pops up and email it to Rithmic support for connectivity assistance. 

And that’s it! R | Trader Pro is much more straightforward to set up than many platforms because you don’t have to go through the complex process of connecting third-party data feeds. 

R | Trader User Interface

While intuitive, the user interface is somewhat basic. The main page lacks customization features but has everything that has to be easily visible and readily available. 

For example, to view a chart, navigate to the Time Chart button on the rightmost column and input the symbol you want to see. The chart will be split into three parts:

• Quote board: located at the top of the chart page, the quote board shows account information, positions, P&L, and market data for the current symbol. This section is also where you’ll manage indicators. 
• Chart body: the main draw of the window is where you will see your chart and manage chart appearance and trades. 
• Chart header: located at the bottom, it allows you to easily change styles and appearance. 

R | Trader Pro lets you draw the chart’s trend lines, shapes, arcs, fans, and other typical user-preferred visual cues. The object selection panel is near the top of the window. 

You can also manage primary and secondary studies from the top of the window and add the technical overlays you have created or used from the pre-programmed selection. 

You can manage chart styles according to your preference and trading strategy. The options to choose from include the following:

• Equivolume bars
• Equivolume shadow bars
• Standard bars and candlesticks
• Candlesticks with volume
• Kagi
• Point and figure
• Renko
• Three-Line Break

If you want to consolidate all the information in a central location, you can generate a quote and market data window directly on the chart.

You can find more features available within the user interface. Most of them are standard across platforms.

Mobile App

R | Trader Pro is one of the few trading platforms with a mobile app available for Apple and Android phones. 

Although you can’t execute trades from the app, you can browse charts, market activity, order flow, and order history. The app is an excellent tool for monitoring your account on the go. 

Although still in beta (as of August 2022), this functionality is an excellent asset for active traders. 

What Indicators are Available in R | Trader Pro? 

R | Trader Pro has about 100 pre-programmed indicators available, although savvy traders can create more independently. Unfortunately, as of the time of writing, you aren’t allowed to import third-party charts. 

Basic charts with basic indicators are all R | Trader Pro offers, so more advanced traders with complex strategies may need more advanced platforms. 

R | Trader System Requirements

As with many platforms, the minimum hardware and network requirements aren’t set in stone because needs fluctuate with market conditions and what you’re trading. 

They recommend a Single Dual Core or more CPU, 4096MB RAM or greater, and High-Speed Cable or better. Besides the app’s monitoring functionality, the software only works on Windows machines. 

R | Trader Pricing

This might be the biggest draw to using R | Trader Pro – it’s free! 

While you won’t have to pay fees or licensing costs for the software, there is a catch – you will need to subscribe to Rithmic data services, as the platform doesn’t support others.

A Rithmic data subscription costs $25 monthly, and you’ll pay $0.10 per contract sent to your broker.

R | Trader Support

Unfortunately, Rithmic offers little support. They list a support phone number and email on their website, but some report that getting in touch with them is challenging, and no operating hours are listed. 

They link to an external forum on their page, so if you need quick help from the community, it may be best to use this option first. 

Rithmic doesn’t offer education or training services but links to other providers they work with. 

Past Issues

The biggest problem R | Trader Pro users have is connecting to the service during the first login. Therefore Rithmic advises you to click the ECL button and email the text to customer support to solve the problem. 

The forums are full of complaints of this nature, but since the root connectivity problem varies by user, it’s best to go directly to support login or connection problems. 

Conclusion

For newer traders or those with a simple strategy that doesn’t need a ton of indicators or advanced features, R | Trader Pro is a great option. Its simple user interface, default connection to Rithmic data services, and mobile app features are excellent for traders with such needs.

Those with advanced strategies or who want greater flexibility should consider other options because the limited indicators, the inability to import third-party indicators, and the lack of access to non-Rithmic data sources limit the platform.

Try it out before deciding, though – you can’t beat free! 

The post Rithmic’s R | Trader and R | Trader Pro – A Complete Guide appeared first on Earn2Trade Blog.