NinjaTrader: Automatic trading via API in the LYNX Trading Platform
Speed is becoming increasingly important when trading. Today, for example, more than 75% of stock market trading is automated. Automated trading not only improves the speed and efficiency of the trading process, but it potentially also prevents emotional decisions.
Have you ever thought about automating your own investment strategy?
In the upcoming period we will discuss the most popular third party trading software that can be used in combination with the LYNX Trading Platform. NinjaTrader is one of the biggest parties in this field and can therefore not be missed in this series.
Topics discussed in this article:
- Introduction of NinjaTrader
- Advantages and risks of linking NinjaTrader to your LYNX Trading platform
- What type of investor is NinjaTrader most suitable for?
- Insight into the 2019 cost structure
NinjaTrader offers an advanced system for more active traders. The system has an extensive range of free functions, such as technical analysis, creating your own trading strategies and, relatively easy, backtesting. To make use of the many options that NinjaTrader offers, the platform can be linked to the LYNX Trading Platform. Such a connection is established, technically, from the Application Programming Interface (API). LYNX however has a pre-configured configuration file for NinjaTrader that enables the integration with the LYNX Trading Platform with the touch of a button. Using our LYNX NinjaTrader configuration file will enable streaming live price data from the LYNX Trading Platform. It also allows for implementation of your algorithmic trading strategies on the market with NinjaTrader. However, you would be required to purchase a NinjaTrader license for the latter.
[!NOTE] Please note, for the use of market data within NinjaTrader you must have access to live data. An overview of all available market data subscriptions with LYNX can be found here. A good product to start testing with is Forex, as live Forex data is available for free.
System requirements NinjaTrader
Windows 7, Windows 8 and Windows 10
LYNX Trading (version 973.2 or higher)
Benefits and risks of linking NinjaTrader to your LYNX Trading platform.
Similar to the LYNX Trading Platform, the NinjaTrader platform has the ability to customize various worksheets as desired. Numerous options are available for technical analysis of stocks, futures and more than 25 different currencies.
NinjaTrader also offers a few other features to take advantage off:
One of the most attractive features of NinjaTrader is backtesting. In short, this is the testing of your developed strategy based on historical data. You can optimize your strategy through such trade simulations. You can create strategies in NinjaTrader using the so-called Strategy Builder. This is easy to set up and therefore programming knowledge is not necessarily required. By subsequently adding a strategy to the Strategy Analyzer, it can be tested using an extensive range of parameters. It remains important at all times to take into account the fact that historical performance does not guarantee future performance.
Algo Trading / automated trading
The automatic execution of your strategies is possible with NinjaTrader on stocks, futures and currencies (Forex). The speed of your modern computer could improve execution delay compared to manual order submissions. At the same time you are less dependent on spending time behind the computer. Within NinjaTrader it is possible to activate a strategy on an instrument, but also on an entire list of instruments. It is of course important to know that algorithmic trading has many risks. Strategies are never completely watertight and always remain dependent on the market. Futures in particular have a high risk profile and require knowledge and investor experience. Apart from the influence of the market, technical errors in algorithmic trading cannot be entirely prevented. For example, an incorrect parameter that results in an unwanted order being sent to the exchange. For that reason, it is highly advisable to extensively test strategies and to be aware of potential adverse consequences. To this end it is possible to use NinjaTrader in combination with a LYNX Paper Trading account.
An important feature within NinjaTrader is adding your own scripts. You can think of implementing automated trading strategies as mentioned above, but indicators can also be added in this way. This is based on the NinjaScript framework, which itself is based on the C# programming language. There are also more than 1000 apps and add-ons especially designed for NinjaTrader. Examples can include exclusive indicators for technical analysis, but also complete trading strategies.
What type of investor is NinjaTrader most suitable for?
NinjaTrader is generally used by active traders. The reason for this is that the platform mainly exists to enable (semi) automated trading. With the arrival of NinjaTrader 8, the platform has also become more user-friendly. This makes NinjaTrader more accessible to traders who are interested in learning more about automated trading. Nevertheless, The Strategy Builder gives traders with less programming knowledge the opportunity to apply their strategies to the market. With the help of NinjaScript, NinjaTrader also remains very interesting for the experienced programmer. In addition to the fact that NinjaTrader has an extensive online manual, LYNX can also assist in setting up the NinjaTrader platform. Naturally, the investor remains responsible for his strategy. LYNX offers no support in finding or developing a trading strategy.
Insight into the 2019 cost structure
NinjaTrader can be used free of charge for technical analysis, backtesting and trade simulations. A license must be purchased in order for your trading strategies to send actual orders. Depending on your preference, a lifetime license including updates can be purchased for a one-time payment of $ 1099 or the license can be rented. You can choose to pay per quarter ($ 225), per half year ($ 425) or on an annual basis ($ 720). The license also brings the OrderFlow+ tool at your disposal, which includes premium depth book functions, among other functionalities; prices may change and deviate from what is mentioned in this article. More information about this license with an extensive comparison can be found here. As mentioned earlier in this article, there are costs associated with receiving live market data on your LYNX trading account. The platform fee does not apply to the active trader and we are one of the cheapest brokers in Europe.
NinjaTrader is a platform with which strategies can be automated and backtested. It gives you the chance to distinguish yourself from the market and to make use of the current available technology. The NinjaTrader system can be installed free of charge and it is relatively easy to gain experience with all the different tools. It is important to be sure of your strategy before you decide to apply it to the actual market. A marginal error can quickly have a major impact. The choice to purchase the NinjaTrader license and to start with the algorithmic trading always remains available afterwards.
A configuration file that can be imported in NinjaTrader for an immediate connection with the LYNX API and two watchlists (AEX25/AMX)