How does it work?
Every AssistedTrades indicator sends their signals real-time to the AssistedTrades framework, independently from the timeframe and the bar type the Chart is set to. So for example you can have an indicator on an ES future Chart set to 5 minutes, another on an ES Renko Chart and another on an ES Tick Chart. It could be the same indicator on different Charts, different indicators on the same Charts or any combination you like.
The indicators can also have different settings, not only the normal indicator parameters but also the Calculate method. You could set some of them to ‘Calculate on price change’ and others on ‘Calculate on bar close’ or ‘Calculate on each tick’.
The only restriction about indicator combination is that they must be on the same Instrument (makes sense, doesn’t it?).
The graphic below shows three charts with several indicators each sending their signals to the AT Framework ‘backbone’, with an AT ChartMonitor on every chart receiving signals from the framework.
Because the indicators send their signals to our framework, we can combine them and let them generate really tradable signals. It’s up to you to design the indicator combination that fits your trading system best.
How do you do that? Read on…
Standardized indicator signals
We created a standardized signal system based on 5 signal types for the market direction:
- Strong Short
- Weak Short
- None (indicator doesn’t see a concrete market direction)
- Weak Long
- Strong Long
For every indicator we carefully set the signals for specific situations conform experts opinions. Some indicators might have multiple interpretations depending on your trading style, but since our framework is about combining signals from multiple indicators this most of the time doesn’t influence the final combined signal outcome.
And for the most important differences in such indicators you can set the interpretation to your liking.
On the previous page we explained why standard NinjaTrader indicators cannot work with our system, but we rebuilt almost 40 popular indicators for our framework, so there’s enough to choose from!
The logic for the signals is described in the description of each indicator.
Are you missing an indicator or a signal interpretation you’re fond of? Just drop us an email and we’ll consider including it.
Combining indicator signals into one percentage
All AssistedTrades indicator signals on Charts with the same Instrument are automatically combined to form a real-time total signal for that Instrument.
The total signal is calculated as a percentage of all indicator signals in the following way:
- Strong Short = -2
- Weak Short = -1
- None = 0
- Weak Long = 1
- Strong Long = 2
So if you have two indicators (on one or two Charts) that are both Weak Long, the combined signal is 2.
The minimum and maximum value two indicators could give would be 4 (both indicators Strong Long or Strong Short).
Both Weak Long is therefore (combined signal = 2) / (max value for 2 indicators = 4 ) = 2/4 = 50%.
The same calculation with indicator signals Weak Short and Strong Short would give a combined signal of (-1-2) / 4 = -3/4 = -75%.
And the combined signal of Strong Long and Weak Short makes (2-1) / 4 = 1/4 = 25%.
Setting indicator priorities
If you’re a trend trader you would probably want to give more importance (weight) to an indicator like the DMI or a Moving Average combination.
To allow this every AT indicator has a ‘Indicator Weight’ setting. This setting defaults to 1, but you could set it to any value and change the importance of the signal from this indicator in the combined calculation.
Take the same example as above, but let’s give the first indicator a weight of 2 and the second the default weight of 1.
Now the combined possible minimum and maximum values are 2*2 + 2*1 = 4+2 = 6 (instead of 4 above).
Both Weak Long calculates as (1*2 + 1*1) / 6 = 3/6 (still 50% as above).
But Weak Short and Strong Short calculates as (-1*2 + -2*1) / 6 = -4/6 = -66% (instead of -75 above).
And Strong Long and Weak Short calculates as (2*2 + -1*1) / 6 = 3/6 = 50% (instead of 25 above).
The AT ADX and AT Choppiness Index do not signal a market direction, but a market strength.
The AT BBSqueeze indicator can also show strength (it’s a dual purpose indicator).
So their signals have different meaning and implementation.
The signals are defined as follows:
- Zero (0)
- Weak (1/4)
- Medium (1/2)
- Strong (3/4)
- Full strength (1)
The signal of such strength indicators is used as a multiplier for the total combined signal calculated from the ‘normal’ indicators in the same group, and thus makes it possible to create a set of indicators for which the combined signal can only reach high values if a strength indicator is ‘high’ enough.
Hope you’re still with us 😉
Don’t worry, you’ll find it quite intuitive once you’re working with it.
Now comes the interesting part!
ChartMonitor as combined signal indicator
Here’s where the AT ChartMonitor comes into play.
AT ChartMonitor is the “dashboard” of our framework. It monitors all signals from all indicators for the same Instrument (even on different Charts), and allows you to set a threshold percentage for the combined ‘Strong’ signal value.
So given the example in the ‘Combining indicator signals into one percentage’ section above, a threshold of 75% would produce a combined Strong Short signal for the second situation and would trigger an email or alert.
But the same 75% threshold applied to the example in the ‘Setting indicator priorities’ section wouldn’t produce any combined Strong signal, and no ChartMonitor email or alert would be triggered.
That’s where the Indicator Weight settings can protect you from receiving false signals!
Whenever the combined signal value is at or above your threshold, the AT ChartMonitor can give a NinjaTrader alert and/or send an email with a real-time screenshot of the Chart and the indicator values.
And that means you don’t have to sit at your screen all the time trying to process all the information.
The AssistedTrades framework does it for you, exactly in accordance with the rules you have determined.
And in real-time, even for multiple Instruments at once.
Although you could enable every single indicator to send alerts or emails, you only have to wait for ChartMonitor’s Strong Signal alert or email and decide if you want to enter.
Separating indicators in groups
Within a single Instrument you can also separate different indicators in multiple groups by giving them an ‘Indicator Group’ name. This allows you for instance to combine indicators on a Tick Chart into a different group than indicators on a Renko or M5 Chart, or group specific indicator types on different Charts together.
You can then add multiple AT ChartMonitor indicators to one or more Charts, and AT ChartMonitor will only calculate a combined signal for indicators with the same group name(s) as the group name(s) of the AT ChartMonitor.
You can even mix both methods or combine different groups if you have the need for it.
The AssistedTrades framework gives you incredible flexibility!
Excluding indicators from calculations
If you want to put one or more indicators on your chart that you don’t want to be included in combined indicators calculations, you have a few options:
- Leave the Indicator Name empty
- Set the Indicator Weight to zero
- Set the indicator Group to a different value (although this is only useful if you want the indicator grouped with others)
Indicators without a Name or with a zero Weight are excluded from all calculations, although they will enable you to show an indicator signal box in the indicators panel. Setting the Weight to zero is the preferred way to exclude indicators, since this allows you (if you want) to see the descriptive Name in the indicators signal box.
Setting the Indicator Location to Off won’t exclude them from calculations, it will just hide the indicators signal box in its panel.
The indicator Name for all indicators on all charts for the same Instrument must be unique!If you’re missing an indicator in a ChartMonitor list, check the Indicator Group and Indicator Name values.
So don’t name two indicators for the same Instrument for example ‘EMA’, even though they’re on different charts.
Make them unique by naming them for instance ‘M1 EMA’ and ‘M5 EMA’ or something like that.