How does the parabolic stop work in NT8?

[itrader46]

Can someone do better than the help file (

Although logic wise very similiar, this technique works different from the

ParablicSAR

indicator) in explaining how does it actually work and how to make it less twitchy? When I activate in my strategy, in trends it stops the position on nearly every candle

[NinjaTrader_Jim]

Hello itrader46,

Thanks for your post, and welcome to the forums!

SetParabolicStop() uses the same parabolic trailing as the ParabolicSAR indicator, but the indicator will be relative to bar data when the SetParabolicStop() method will be relative to price acceleration and the entry price. With each update to the parabolic stop, the stop will move closer and closer to the current market price until it is filled.

I may suggest testing a simple strategy like the following in the Simulated Data Feed to observe the stop getting updated and moving closer to the current market price.

protected override void OnStateChange()
{
    if (State == State.SetDefaults)
    {
        Description                                    = @"Enter the description for your new custom Strategy here.";
        Name                                        = "ParabolicTest";
    }
    else if (State == State.Configure)
    {
        SetParabolicStop(CalculationMode.Ticks, 12);
    }
}

protected override void OnBarUpdate()
{
    if (State == State.Historical)
        return;
    if (Position.MarketPosition == MarketPosition.Flat)
        EnterLong();
}

Please let me know if I can be of further assistance.

[LuciusForum]

Hello itrader46,

Thanks for your post, and welcome to the forums!

SetParabolicStop() uses the same parabolic trailing as the ParabolicSAR indicator, but the indicator will be relative to bar data when the SetParabolicStop() method will be relative to price acceleration and the entry price. With each update to the parabolic stop, the stop will move closer and closer to the current market price until it is filled.

I may suggest testing a simple strategy like the following in the Simulated Data Feed to observe the stop getting updated and moving closer to the current market price.

I notice the difference but I still don't get it right.I love the way to get stopped out this way. It would be shinier to be able, to not only be stopped out this way, but also be get in in the other way. Can you help me out with a concrete implementation using OnBarUpdate()/ExitLong()/ExitShort() in NT8, please?

[NinjaTrader_Jim]

Welcome to the forums LuciusForum!

Reimplementing the ParabolicStop logic using Exit methods may be more effortful than taking the approaches below. I would suggest considering these instead:

1. Trap the execution of the Parabolic Stop in OnExecutionUpdate and to call an Enter method to re-enter in the opposite direction
2. Use BarsSinceExitExecution to check if the Parabolic Stop has executed in OnBarUpdate to re-enter when the next bar has processed in OnBarUpdate

Number one will allow for the script to enter in the opposite direction as soon as the execution for "Parabolic Stop" is seen.

Number two may be easier to implement if you are not as familiar with NinjaScript and can be built using the Strategy Builder. You would need to use variables to track what the strategy's last position was so you can determine which direction you need to re-enter when the BarsSinceExitExecution for "Parabolic Stop" is 0,

Parabolic Stops have an Execution name of "Parabolic Stop" so this string can be used in BarsSinceExitExecution and will also be the Execution.Name when the Parabolic Stop execution is seen in OnExecutionUpdate.

BarsSinceExitExecution - https://ninjatrader.com/support/help...texecution.htm

OnExecutionUpdate - https://ninjatrader.com/support/help...tionupdate.htm

SetParabolicStop - https://ninjatrader.com/support/help...abolicstop.htm

Please let me know if I can be of further assistance.

[Conceptzx]

Just curious if anyone got this to work properly, Could be a nice strategy for a Renko chart.

[NinjaTrader_ChelseaB]

Hello Conceptzx,

Attached is a test script you can use to test the parabolic stop.
SetParabolicStopTest_NT8.zip

Note, an issue has been identified where in some instances the stop price is moved to an improper price. This is being tracked with ID # NT-6575 and is scheduled to be corrected in the upcoming release of NinjaTrader 8.
https://ninjatrader.com/support/help...ease_notes.htm