I am trying to define a Trend following strategy to be used with NinjaTrader. I would like to eventually automate the strategy since I still work a day job.
I have read several books and been looking at the charts, but still rather new. So I want to brainstorm my ideas here and see what the more experienced traders say. I am looking for more the longer term trend trades and was thinking about nearly all markets (Forex, Futures and Equities).
Trend Following Strategy Indicators I am considering:
Donchian Channel - This would indicate when a trend is in breakout. Meaning price has broken out of the channel
CCI - This would indicate when the instrument is over bought or over sold. Thus giving me a sign that consolidation is happening and a potential reversal on the trend.
ADX - this indicates the strength of the trend
My rough idea would be as follows:
1. Check if trend exists - ADX indicator provides this
2. Check if breakout is likely (how close to Donchian Channel top or bottom) and strength of trend from ADX
3. Enter long or short based on above and exit as CCI begins to show over bought or over sold or when ADX shows trend weakening
General Trend and Indicator Questions:
1. Which is an earlier indication on changes in a trend - ADX or CCI?
2. Donchian Channel might be good for Break out, but I am not sure if that will exclude me from riding trends that stay within the channel
3. What is a good chop indicator to tell me when to avoid trades or risk being stopped out?
4. How would Renko bars help this versus looking at price candles?
5. What changes or other indicators would you recommend?
Thank you for your help for a new guy and I am looking forward to growing with the community here.
Brand new to this forum. I started a few months back looking at chart pattern and doing pattern recognition to find breakouts, ranking performance per industry and then buying/selling on good breakouts in those highly ranked industry. I like it and it was something that felt natural. Since then I have flocked more towards trend following, something about it convinced me that is where I want to be.
I am brand new to ninjatrader and the actual execution of trend following. I have just been reading a ton and I am trying to transition to the application phase. Ninjatrader is a little overwhelming, but I have been watching some tuts and think I am on my way.
I wanted to reach out to you to see how those indicators you considered have been working for you and how the rest of your trend following journey has been going? Any input you might have or direction you could push me would be great.