The Anotomy of an AUTOMATED ASSISTED TRADING SYSTEM (ATS) Strategy

TradeFoxx Auto-Bot Version 11 How to use guide April, 2021

TradeFoxx Auto-Bot is an Automated Trading Strategy. One of the biggest attractions of strategy automation assistance is that it takes the emotion out of trading since trades are automatically placed once a certain criteria is met. TradeFoxx establishes specific rules for trade entries and exits, programmed to use TradeFoxx Indicators, and which are executed via a Ninja Trader Version 8 platform.

The Auto-Bot has the ability to be back tested through Ninja Trader Strategy Analyzer. Back testing applies t ohistorical market data to determine the viability and the settings for optimized trades in the market of choice.Careful back- testing will allow traders to evaluate and fine-tune to a specific market, and to determine the system's expectancy – like the average amount that a trader can expect to win (or lose).

The trade rules are a collection proprietary trade setups and classic trade setups we have programmed into the auto-bot called Aggressor Events. We call them Aggressor Events and Sub Events. The execution is performed automatically once a signal is met, discipline is preserved even in volatile markets. Human Discipline is often lost due do emotional factors such as fear of taking a loss, or the desire to squeeze a little more profit from a trade. Automated assisted trading helps ensure that discipline is maintained because the trading rules are absolute and will be followed exactly based on the adjusted settings like clock work without emotions, “it’s a robot”.

There is no such thing as an Auto-Bot Trader that wins 100% of the time – losses are a part of Trading. TradeFoxx Auto Bot allows traders to achieve consistency in wins has well as losses by using absolute rules. TradeFoxx Auto Bot responds immediately to changing market conditions, it will generate orders as soon as trade criteria are met, a few seconds earlier can make a big difference in the trade outcomes, and this is one of many benefits of an Auto Assisted Trader.

We have programmed our own Trade Setups called Aggressor Event 1 and Aggressor Event 2, both are kissing cousins much alike, except Aggressor 2 logic is less strict. Event 1 and Event 2 is the trade setups we promote in our manual trading guide using TradeFoxx indicator. We have also added some classic trades setups, these are in the system as Sub Events currently there are 8 trade setups.

Back-testing the collection of trade algorithms is available by setting the Limit/Market/Back-test parameter, and setting it to the value to 3.

To trade live or simulate with playback or live feed, you would set the Limit/Market/Back-test parameter to 1 for Limit Orders (Buy/Ask) or 2 for at Market Price using a ATM file for Profits, Trailing, Stops.

Setting Limit/Market/Back-test to a value of 3 allows live trading using hard profits target, and the use of Hard Stops, Parabolic Stop, and Stop-trail features. You can use the field Stop-type to choose 1 for Hard Stop,2 is Parabolic Stop, 3 is Stop-trail.

Disadvantages and Realities of Automated Trading Systems

As stated before, there is no such thing as a trading Auto Assisted Guide that wins 100% of the time. There are many advantages for using a properly designed Auto Bot, but we like to go over some disadvantages you need to be aware of.

Automated assisted trading is a sophisticated method of trading, yet not infallible. If an Internet connectionis lost, an order might not be sent to the market or an order could have been sent and only the Stop Loss ofthe order fill will close it, other Auto Bot logic will not play a role in the exit with this issue.

There will be a discrepancy between the "theoretical trades" generated by the strategy analyzer and the order entry platform component that turns them into real trades, expectations vs reality will differ somewhat.Traders should expect a learning curve when using automated trading systems, and it is generally a good ideato start with small trade sizes while the process is refined.

Simulate with Ninja Trader SIM account for a month and never use the Auto-Bot for trading real money, until you can prove in simulation a profitable two week streak.

It must be monitored (baby sat). Automated trading systems do require monitoring. This is due to the potential for mechanical failures, such as connectivity issues, power losses or computer crashes, and system quirks. It is possible for an automated trading system to experience anomalies that could result in errant orders, missing orders, or duplicate orders. If the system is monitored, these events can be identified and resolved quickly.

Over-optimization during adjustments of settings and back testing can occur. Traders who employ back testing techniques can create systems that look great on paper and perform terribly in a live market. Over- optimization refers to excessive curve-fitting that produces a trading plan that is unreliable in live trading. It is possible, for example, to tweak a strategy to achieve exceptional results on the historical data on which it was tested and incorrectly assume that adjustments should have close to 100% profitable trades or should never experience a draw-down to be a viable plan. As such, parameters can be adjusted to create a "near perfect" plan – that completely fails as soon as it is applied to a live market.

Although appealing for a variety of factors, Mechanical failures can happen, and as such, these systems do require monitoring.

Warning this is a real Trade Bot and will trade live. Never Trade Live until you have proven in simulation that your ATM Strategy and the Bot is actually profitable after extensive simulations. There is no guarantee that this bot will make profits every time, it is not a holy grail profit machine.

A DJUSTMENTS S ETTING I N D IC A T O R P ARAMETERS TradeFoxx Triple EMA, Double Stochastic, and MACD Default Parameters

Indicator Parameters values

Audio Parameters 0 off 1 on for Turn off Audio 1 English or 2 Spanish Alerts for Audio Lang

TradeFoxx Triple EMA (EMA)An exponential moving average (EMA) is a type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. It's also known as the exponentially weighted moving average. This type of moving average reacts faster to recent price changes than a simple moving average.TradeFoxx Double StochasticDouble Stochastic is a variation of the Stochastic indicatordeveloped by William Blau. We have modified this indicator as anawesome manual indicator and it is used in the auto-bot logic’s forconformations.TradeFoxx EMACDMACD uses moving averages, which are lagging indicators, toinclude some trend-following characteristics. These laggingindicators are turned into a momentum oscillator by subtractingthe longer moving average from the shorter moving average. Wehave modified this indicator as an awesome manual indicator and itis used in the auto-bot logic’s for conformations.

Fuzzy ParametersThe Fuzzy Logic is what the name implies it will work sometimes and sometimes not, but its math is complicated and was created to offset the errors of any logical setup. You can see its benefits when back testing. The default is fuzzy logic is off 0. 1 turns is on. Its our version ofa Human Baby Sitter, but it is not a complete replacement, you shouldstill monitor. Max Profit and Max Loss is what amount max your willing to win or lossper trade monitoring, this is not per session total.

Session ParametersThere is control of the Days to Trade. The value of 0 (zero) means that day is off and will not be traded. Saturday and Sunday are turned off by default. If you want to Trade Sunday set the value 1.

There is also control of the time to trade, it is set with military time. 1:00 AM would be 10000. The default is set the DayTrading which includes time-frame to trade Oil, early morningcommodities and the indices.

Converting Standard Time to TradeFoxx Military Time

12:00 am 0 12:00 pm 120000

1:00 am 1000 1:00 pm 130000

2:00 am 20000 2:00 pm 140000

3:00 am 30000 3:00 pm 150000

4:00 am 40000 4:00 pm 160000

5:00 am 50000 5:00 pm 170000

6:00 am 60000 6:00 pm 180000

7:00 am 70000 7:00 pm 190000

8:00 am 80000 8:00 pm 200000

9:00 am 90000 9:00 pm 210000

10:00 am 100000 10:00 pm 220000

11:00 am 110000 11:00 pm 230000

There are Two session time controls that can be used for DaySession and a Night Session Or an afternoon session to leave out any side-ways time frame as with trading Indices when a side way market time frame is around 12:00 to 1:00pm, This will allow the Auto-bot take a break while you also take a lunch break too.

Block Out Cry’sThere is a block of the opening bell which is usually not a good time to trade, default block is 5 minutes before and 10 minutes after.

You can block any time for other markets volatility out cry time-frames.

Trade Parameters and Logic

Sub Events # SettingsIf any Sub Event has features that can beadjusted, you can edit the values here,which would modify the outcome of theTrade-setups.

Total SessionsTrade Count Per Day, is how many Trades per active session. If you turn the Bot off and this resets. The Same is true for Daily Profit and Loss. Does not work in Back-test

Trade Logic SetupsAggressor Event and Sub Events are theTrade Setups inside TradeFoxx Trader.

Aggressor Event is where you switch from Core setups to Extra Setups, we add from time to time called Sub Events.

A Value of 0 trades All core setups plus one Sub Event if value set. If you want to trade just the core setups, put 99 in the Sub Events field and no subevent will trade.

Core Events are two, Value 1 trades themore conservative setup and a Value 2trades the more aggressive setup.

Aggressor Event value 3 is must if you want to trade the Sub Events. The value of 1 -8 in the sub event field for one of 8 setups in the Library. If you put Aggressor Event to 0 and SubEvent to 0 all setups trade.

ATM-Limit ATM-Market Back-test is very important. 1=Limit Orders (Bid-Ask) 2=Market Price Orders, 3=Back-test used for Strategy Analyzer Testing (tick trading).

Turn Off Buy or Sell is set to on value ofone. If you just want to trade onedirection set the value to Zero.

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Last Bar Price SpreadThere is a Price Spread value for everyevent, this is a filter for the Trade Setupthat sometimes a benefit to filter noise.The concept is if the last bar before entry isof a certain size in the direction the tradesetup wants to go, it would give enoughmoment for the short term trade tosucceed. Some setups will not work if thevalue is too high, you can disable byputting a value of 0.

How Trade In Simulation, Playback, Live Trading

ATM Name, this is a ATM Strategy you must create for your Profit and Stop targets and or Trailing Stops. When using Limit/Market/BackTest to value 1 or 2 The Auto Bot will not function without a ATM. The name can be any name but it is case sensitive. You can bypass ATM with value 3 then only ticks will be used. One is provided for you under the folderC:\TradeFoxx\AtmStrategy this needs to becopied to the NinjaTrader folder C:\Users\xxx??\Documents\NinjaTrader8\templates\AtmStrategyInstructional video on ATM creation Instructional video on Advance ATM

The ATM Strategy does not work in the strategy analyzer, only the Profit Ticks and Loss Ticks will allow Profit Target and Stop Target in back-testing. Set Limit/Market/backtest to value of 3

Special NoteThis is a fully functional Trading System do not trade live until you understand the system completely and have mastered all aspect in simulation mode.

How to trade simulation , playback connection and backtesting.

The Trade Setup Logic will work in Limit/Market/BackTest in any value 1 or 2 or 3, 1 and 2 use ATM, 3 usesProfit Tick and Loss Tick.

The difference is that with 1 and 2 you need to create a ATM for Profit Targets and Stops. Using the value of 3 which is used for back-testing will also simulate but you will use the Profit ticks and Stop ticks to trade. By using the value of 3 you can adjust what hard stop you want to use.

The StopType field is where you pick the type of Loss Ticks you want to use. The defaults are preset and will react around the LossTicks field value you put. Read Ninja Trader Help file if you need more detail.

1. SetStopLoss()

2. SetParabolicStop()

3. SetTrailStop()

Trade Parameters (Aggressor Logic Events)

Aggressor Events

The Trade Setup Logic of the Auto-bot is located here.Aggressor Event has a value of 0 1 2 and 3. Any other number turns off the logic.

• Aggressor Event Value Zero = all Trade Setups Active.• A Value 1 conservative Triple EMA Crossover• A Value 2 less conservative Triple EMA Crossover• A Value 3 Custom Trade Sub Events will be used.

Sub Event Values

• 1 = Crossover HMA,EMA,WMA• 2 = Crossover SMA9 to SMA25• 3 = Crossover Trix 14 to 9• 4 = Dochian Turtle Trade Setup• 5= Three Bar High, Three Bar low (Larry Williams)• 6= RSI Overbought Oversold Trend Change• 7=DMI Trader at Trend Change• 8=Find Tops and Bottoms

We have set the Auto-Bot with default settings that are optimal for trading the Indices, if you would like us to provide default settings for you market, send an email to support@tradefoxx.com . We be happy to sendyou a starting point setting.

• 0= All Setups Active

You can run a Ninja Script strategy in real-time in a live or simulation account. Ninja Trader MUST be connected to a live brokerage or market data vendor

Strategy menu options will NOT work if not connected live

You cannot run Chart Trader on a chart while you have a running strategy applied to the chart

A Ninja Script Strategy is a self-contained automated trading system and orders generated are live and notvirtual. Canceling strategy generated orders manually can cause your strategy to stop executing as youdesigned it. If you want to manually cancel an order, terminate the strategy itself.

Running FX NinjaScript StrategiesRunning FX Ninja Script Strategies on a Live Brokerage ConnectionRunning an FX strategy on a live brokerage connection either in a live funded account or a simulation (Sim101) account order quantities will reflect the lot size convention that your brokerage trades in. For example, if your brokerage has a lot size of 1 that equals 100,000 units of the base currency (a "standard" lot) then use a value of 1 to trade 100,000 base units.

H I ST O RI C A L B A C K TE ST R ES U L T S

Hypothetical Performance Disclaimer: Hypothetical Performance Results Have Many Inherent Limitations, Some Of Which Are Described Below. No Representation Is Being Made That Any Account Will OrIs Likely To Achieve Profits Or Losses Similar To Those Shown. In Fact, There Are Frequently Sharp Differences Between Hypothetical Performance Results And The Actual Results Subsequently Achieved By Any Particular Trading Program.

Systems Trading Risks: Automated Trading Programs in General Are Also Subject to The Fact That They Are Designed with The Benefit of Hindsight. No Representation Is Being Made That Any Account Will or Is Likely to Achieve Profits or Losses. There Have Been No Promises, Guarantees or Warranties Suggesting That Any Trading Will Result in A Profit or Will Not Result in A Loss.TradeFoxx Does Not Guarantee the Accuracy or Completeness of the Information or Any Analysis Based Thereon.

Back testing Strategies

The Back Testing Strategies video walks through the process of configuring, running, and analyzing the results of a standard strategy back test in the Strategy Analyzer. All configurable back test properties are covered in this video.

Check this Video How to Back Test

Strategy Analyzer Overview

Ninja Script strategies can be back tested and optimized to test theoretical strategy performance on historicaldata within the Strategy Analyzer. The Strategy Analyzer Overview covers the basic layout of the StrategyAnalyzer, and individual test types will be covered in greater detail in future videos.

Check this video How to use Strategy Analyzer

When your real time simulation test performs has expected more than two weeks, you could use the bot withreal money if you wish. You must monitor the trades has you can manually exit any trade in profit or exit anytrade that seems to be going wrong.

Recorded Results for an instrument

You could also use Market Replay to test the Auto-Bot.

Practice, Adjust, Practice, Adjust

Malcom Gladwell, staff writer at The New Yorker & author of bestseller, Outliers, popularized the theory that it requires 10,000 hours of practice for one to become a master of a particular skill.

Just like any other skill sets, if you want to master trading, it requires practice. However, with the markets only producing a limited amount of live data per day, reaching that 10,000 hour threshold can appear daunting at best.

NinjaTrader’s Market Replay, a.k.a. Playback Connection in NinjaTrader 8 Beta, puts live on-demand data at your fingertips. This tool, included with every download of NinjaTrader, enables you to record, download and replay market data at your convenience. Whether it be aftermarket hours, or on the weekend, NinjaTrader’s Market Replay delivers data to all NinjaTrader windows as if it was happening in real-time.

Test indicators, strategies, entry/exit rules, or your tape reading skills on any market or timeframe. Furthermore,testing daily indicator or strategy performance doesn’t have to take 7 or 8 hours.Market Replay offers the ability to playback data up to 500 times faster than normal market speed!

Master your trading skills and increase your exposure to live market data with NinjaTrader’s Market Replay! Checkthis video How to use Market Replay

Optimizing StrategiesStrategy optimizations allow you to iterate over a pre-defined range of strategy input values to determine the combination of property values which score highest on a chosen performance metric. The Optimizing Strategies video on NinjaTrader8 youtube channel covers the aspects of optimizations which differ from standard back-testing.

Will it work on all time-frame?No, Trade Setups do not performe on all time-frames or special charts like Range or Renko. When you use Price Spread Range or Renko will only work if the points created by this particular chats are greater the Price Spread Value. If you want to use this charts put Price Spread to 0.

Minute charts work but will perform negative below 5 minutes and the same of higher than 15 minutes.

Can I use the Auto-bot on more than one chart and instrument at the same time?Yes you can open on chart with the ES and its special ATM Strategy and open another trading Oil, Gold or Forex with a different ATM and using any logic you wish.

Can I use currency target instead of ticks?

No you must figure out how many ticks give you a currency equivalent for instance 4 ticks in the ES is $50 win or $50 loss for one contract.

Where are the documents for TradeFoxx?

In your C: drive under C:\TradeFoxx you will find useful documentation to help you use TradeFoxx Software.

Why does Heiken Ashi work better with the Auto-Bot?For some unknown reason the Heiken Ashi Charts work better with our logic. The 3 to 15 minutes charts produce promising results. We been trying to figure it and have come to this conclusion. Heiken Ashi produces an average price bar and because the logic is based on averages, the probability of averages to averages is better than averages to actual current price.

No Representation Is Being Made That Any Account Will Or Is Likely To Achieve Profits Or Losses. ThereHave Been No Promises, Guarantees Or Warranties Suggesting That Any Trading Will Result In A ProfitOr Will Not Result In A Loss.

TradeFoxx Does Not Guarantee The Accuracy Or Completeness Of The Information Or Any AnalysisBased Thereon.DISCLAIMER: Futures and options trading involves substantial risk of loss and is not suitable for everyinvestor.

The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you donot fully understand these risks you must seek independent advice from your financial adviser. All trading strategies are used at your own risk. This software should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make.

Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication from Day Trading LLC, INC. (DBA) TradeFoxx that you will profit or that losses can or will be limited in any manner whatsoever. Day Trading LLC, INC (DBA) TradeFoxx is not responsible for any losses incurred as a result of using any of our trading strategies and software. The Auto-trader should never be left unattended due to the possibility of events out of your control, such as computer or data failure, power outages, position mismatches, and/or network problems.

Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. trading system, automatic trading software, trading indicators, trading computers, trading desks, trading software for NinjaTrader systems. online trading platform, trading platform, charting software, futures trading, stock trading, forex trading, discretionary trading, automated trading, online trading, active trader, active trading, Kinetick, trade simulator, trade simulation, trading system development, trading strategy development.

FINRA’S PATTERN DAY TRADING RULE DOES NOT APPLY to Future Commodity Traders (Only).

Beware of Trading Stocks with Auto-BotAccording to FINRA, you are a Pattern Day Trader if:You use a margin account; and

Day trade the same security for more than four times within five business days; andThe day trades form more than 6% of your total trading activity for the same five-day period.And if you are a Pattern Day Trader, you must keep up at least $25,000 in your trading account to day trade.

It is very difficult for day trader to avoid the label of Pattern Day Trader. Of course, you can trade very infrequently,or use a cash account. Both are not ideal solutions and impede the goal of a day trader.Day traders want take the best trades, even if the best trades occur more than four times within five business days.Day traders want to make the most out of small intraday swings and using a margin account for leverage is essential.Those are the bad news, at least for stock and options traders. The good news is that the Pattern Day Trading Ruledoes not apply to futures traders.

Futures traders can have less than $25,000 in your account and still day trade to your heart’s content. (Subject toyour rigorous market analysis, of course.)