ZoneTraderPro Trading Strategies

ZoneTraderPro has three distinctive parts to it.  They are the price patterns, the order flow patterns, and the divergence patterns.  One type of patterns, in and of it by itself, doesn’t generally result in a trading strategy.  The one possible exception is the divergence indicator, which has 3 types of divergences.  The special divergence as a general rule, works immediately.

When ZoneTraderPro was created it looked at only price patterns.  These generally succeeded at a historical rate of about 67%.  The challenge was to figure why a trade loses.  The best solution at the time was the $TICK symbol and the Tick Divergence trading pattern.

In March 2018 ZoneTraderPro started development of the order flow patterns.  Other order flow products were not reliable.  They had signals that would disappear and change.  Those vendors were charging yearly “maintenance fees.”  What is a maintenance fee?  Its just a way to put more money in their pocket.  They are not being charged anything by NinjaTrader to keep your “lifetime license” active. 

They also charged an “upgrade fee” when you upgraded to NT8.  But I thought I had a lifetime license?

In January 2019 ZoneTraderPro began adding the cumulative delta and Delta Strength tools, which are tools 100% unique to ZoneTraderPro.  Why is the cumulative delta unique?  It uses tape reconstruction technology to identify the size of the order and not the size of the fill.  With Delta Strength we can filter for large orders, as in the example on the left. 

The cumulative delta was then modified to add real time divergences, giving ZoneTraderPro a complete trading solution.

Special Divergence Example
Special Divergence with Delta Strength

ZoneTraderPro and SharkIndicators BloodHound

Trend Trade with BloodHound Confirmation
Trend Trade with BloodHound Confirmation

In June of 2019 the ZoneTraderPro script was completely re-written from a clean sheet.  The original script was not compatible with BloodHound.  Previously it had taken days to test a strategy idea. Now those trade ideas can be done in an hour.  What is more important is that you can test different parameters in just minutes.

In the picture on the left, we can see 4 trading patterns on the chart.  But only 3 had a combination of a price pattern and an order flow pattern. Where you see the red or green line on the chart, that is where you had the combination of a completed order flow pattern and a price pattern, indicating an entry.

The Purpose of These Pages

ZoneTraderPro is a complete trading solution. As such there are tools that can be combined and used in conjunction with each other.  These pages are just some historically profitable strategies.  They can give you trading ideas and inspiration for others.  

It is important to note that these are not complete trading strategies.  They generally have a historical win rate over 75% to over 80%.  That is a strategy that puts you on the right side of a trade after you enter, and that is important.  But its not the complete solution because it does not address the exit from the trade.  The definition of a win is that we form a new set of zones with a new zigzag.  That means the price has moved 2.75 points.  But you are not going to be able to enter at a top or bottom, because you are waiting for the order flow confirmation.

After waiting for confirmation, that leaves 6-7 ticks of profit before we have a new zigzag and a win.  For a complete strategy the trader needs to address the exit. 

BloodHound Trades with Divergence

You are not always going to able to call a bottom.

Trade Exit
Trade Exit

You are not always going to able to call a bottom.  It takes work.  That is why we have to do a little homework.  But with ZoneTraderPro and BloodHound those answers become easier.

Those answers can be a profit target, order flow, divergences and opposing price patterns.  These are answers that are easily tested.  For example, with BloodHound we only have to look at the successful trades and we can do that by only having to look at one chart.  No more trying to look at 3 different charts and trying to figure out what signals were present.

On that same chart we can see when stops are hit and can very easily test different stops.   

 

Reversal With Accumulation
Reversal With Accumulation

The Trading Strategies

There have already been several strategy videos created and are most easily found on the blog or ZoneTraderPro YouTube Channel right now.  Over the next several days, individual web pages will be created for each strategy and the video will linked there also.

As those pages are created, they will be linked here and will also be found in the website menu as a sub-item.

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