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FibStrike Settings Guide

Complete configuration guide for FibStrike break-of-structure trading strategy

This guide covers all configurable settings for the FibStrike automated trading strategy. FibStrike identifies break-of-structure (BOS) patterns and enters trades on retracements to Fibonacci levels, providing a systematic approach to trend-following with precise entry points.

Table of Contents

Trading Hours

The Trading Hours settings control when the strategy is active during each trading day.

Start Time (Default: 8:35 AM)

  • Function: Defines when the strategy begins looking for trading opportunities
  • How it works: No entries will be taken before this time, ensuring you only trade during your preferred market hours
  • Format: Uses your local timezone settings

End Time (Default: 11:00 AM)

  • Function: Defines when the strategy stops looking for new entries
  • How it works: The strategy will not initiate new trades after this time
  • Open Positions: Existing positions continue to be managed after the end time
  • Overnight Sessions: If end time is before start time, the strategy automatically handles overnight trading

Minimum Displacement (Default: 1 tick)

  • Function: Minimum price movement required to confirm a break of structure
  • How it works:
    • Price must move at least this many ticks beyond a swing level to trigger a BOS
    • Helps filter out false breaks and noise
    • Higher values require stronger breaks but may miss some opportunities
  • Range: 1 to unlimited ticks

Structure Settings

The Structure Settings control how the strategy identifies and displays market structure.

Swing Strength (Default: 3)

  • Function: Number of bars on each side required to identify swing highs and lows
  • How it works:
    • A value of 3 means a swing high needs 3 lower highs on each side
    • Higher values identify more significant swings but are slower to detect
    • Lower values are more responsive but may identify minor swings
  • Range: 3 or higher
  • Impact: Directly affects BOS detection sensitivity

Long Color (Default: Turquoise)

  • Function: Color for bullish BOS lines and visual elements
  • How it works: All long-related drawings use this color for easy identification

Short Color (Default: MediumVioletRed)

  • Function: Color for bearish BOS lines and visual elements
  • How it works: All short-related drawings use this color for easy identification

Line Width (Default: 2)

  • Function: Thickness of BOS lines drawn on chart
  • How it works: Higher values create more visible lines
  • Range: 1 or higher

Line Style (Default: Solid)

  • Function: Visual style of BOS lines
  • Options: Solid, Dash, Dot, DashDot, DashDotDot
  • How it works: Changes the appearance of structure lines on your chart

Draw BOS Lines (Default: true)

  • Function: Toggle display of break-of-structure lines
  • How it works:
    • When enabled, draws horizontal lines at broken swing levels
    • Helps visualize where BOS occurred
    • Can be disabled for cleaner charts

Entry Parameters

The Entry Parameters control how the strategy enters positions after identifying break-of-structure patterns.

Retracement Level (Default: 61.8%)

  • Function: Fibonacci retracement level for entry after BOS
  • Options:
    • 0%: Enter immediately at the swing level
    • 38.2%: Shallow retracement entry
    • 50%: Mid-point retracement entry
    • 61.8%: Deep retracement entry (default)
  • How it works: After BOS, the strategy waits for price to retrace to this Fibonacci level before entering

BOS Confirmation Type (Default: BarCloseConfirm)

  • Function: Method for confirming break of structure
  • Options:
    • HighLowBreak: BOS confirmed when price wick breaks swing level
    • BarCloseConfirm: BOS confirmed when bar closes beyond swing level
  • How it works: BarCloseConfirm is more conservative and reduces false breaks

Long Take Profit R (Default: 2.0)

  • Function: Profit target as multiple of risk for long trades
  • How it works:
    • If set to 2.0, take profit is 2x the stop loss distance
    • Set to 0 to disable long entries completely
  • Example: 10 tick stop loss = 20 tick take profit

Short Take Profit R (Default: 2.0)

  • Function: Profit target as multiple of risk for short trades
  • How it works:
    • If set to 2.0, take profit is 2x the stop loss distance
    • Set to 0 to disable short entries completely
  • Example: 10 tick stop loss = 20 tick take profit

Allow Recursive Entries (Default: false)

  • Function: Allow new BOS signals to override existing retracement waits
  • How it works:
    • When false: Must wait for current retracement setup to complete
    • When true: New BOS can cancel pending retracements
  • Use Case: Enable for more aggressive trading in strong trends

First BOS Only (Default: true)

  • Function: Take only the first BOS in each direction per session
  • How it works:
    • When true: After a long BOS entry, only looks for short BOS
    • When false: Continues looking for BOS in both directions
  • Purpose: Reduces overtrading and follows trend direction

Fibonacci Template (Default: Default)

  • Function: Name of the Fibonacci drawing template to use
  • How it works: Uses your saved Fibonacci template settings for visual display
  • Note: Must match an existing template name in NinjaTrader

Risk Range Calculation (Default: UMO)

  • Function: Method for calculating the risk range for entries
  • Options:
    • UMO: Uses the original swing range (Up-Middle-Out)
    • PostBOS: Waits for new swing after BOS for range calculation
  • How it works:
    • UMO: Immediate retracement calculation from BOS swing
    • PostBOS: More conservative, waits for market to form new structure

Exit Strategy

The Exit Strategy settings control how positions are closed.

Exit Confirmation Type (Default: BarClose)

  • Function: How to confirm exit signals
  • Options:
    • BarClose: Exit when bar closes beyond stop level
    • Wick: Exit when price wick touches stop level
  • How it works: BarClose is more forgiving and reduces premature exits

Exit Strategy (Default: OriginalStop)

  • Function: Determines which swing level triggers exits
  • Options:
    • OriginalStop: Exit only at original entry stop level
    • AnyBOS: Exit on any opposing BOS signal
  • How it works:
    • OriginalStop: Maintains initial risk/reward ratio
    • AnyBOS: More dynamic, exits on market structure changes

Risk Management

The Risk Management settings control position sizing and daily limits.

Use Dollar Risk Sizing (Default: false)

  • Function: Enable dynamic position sizing based on risk amount
  • How it works:
    • When enabled: Calculates position size based on dollar risk
    • When disabled: Uses fixed 1 contract per trade

Risk Sizing Type (Default: Dollar)

  • Function: Method for calculating risk when sizing is enabled
  • Options:
    • Dollar: Risk fixed dollar amount per trade
    • Percent: Risk percentage of account per trade

Max Dollar Risk (Default: 5000)

  • Function: Maximum dollar amount to risk per trade
  • How it works:
    • Acts as safety cap for all position sizing calculations
    • Used in both Dollar and Percent modes
  • Purpose: Prevents excessive risk on any single trade

Max Contracts Per Trade (Default: 10)

  • Function: Absolute maximum position size allowed
  • How it works: Final safety cap regardless of risk calculations
  • Purpose: Prevents algorithmic errors from taking huge positions

Account Size (Default: 10000)

  • Function: Starting account value for percentage calculations
  • How it works: Used when Risk Sizing Type is "Percent"
  • Note: Update this to match your actual account size

Risk Percentage (Default: 2.0%)

  • Function: Percentage of account to risk when using Percent mode
  • How it works:
    • 2% of $10,000 account = $200 risk per trade
    • Position size calculated to match this risk
  • Range: 0.1% to 10%

Full Compounding (Default: true)

  • Function: Whether P&L compounds across sessions
  • How it works:
    • When true: Cumulative P&L carries forward
    • When false: P&L resets each session
  • Note: Primarily affects backtesting calculations

Max Trades Per Day (Default: 0)

  • Function: Daily trade limit
  • How it works:
    • 0 = No limit
    • Any positive number sets maximum trades per day
  • Purpose: Prevents overtrading

Max Daily Profit (Default: 99999)

  • Function: Stop trading after reaching daily profit target
  • How it works:
    • Strategy stops taking new trades once this profit is reached
    • Resets at start of new session
  • Default: Effectively no limit

Max Daily Loss (Default: 99999)

  • Function: Stop trading after reaching daily loss limit
  • How it works:
    • Strategy stops taking new trades once this loss is reached
    • Resets at start of new session
  • Default: Effectively no limit

SMA Bias Filters

The SMA Bias Filters add trend-following rules to entry decisions.

SMA 1 Period (Default: 20)

  • Function: Period for first moving average calculation
  • How it works: Commonly used for short-term trend bias
  • Range: 1 to 500

SMA 2 Period (Default: 200)

  • Function: Period for second moving average calculation
  • How it works: Commonly used for long-term trend bias
  • Range: 1 to 500

Use SMA 1 Bias (Default: false)

  • Function: Require price above SMA 1 for longs, below for shorts
  • How it works:
    • When enabled: Only takes trades in direction of SMA 1 trend
    • Neutral when price equals SMA
  • Purpose: Adds short-term trend filter

Use SMA 2 Bias (Default: false)

  • Function: Require price above SMA 2 for longs, below for shorts
  • How it works:
    • When enabled: Only takes trades in direction of SMA 2 trend
    • Neutral when price equals SMA
  • Purpose: Adds long-term trend filter

Show SMA Lines (Default: false)

  • Function: Display SMA lines on chart
  • How it works:
    • SMA 1: Green (bullish), Red (bearish), Gray (neutral)
    • SMA 2: Purple (bullish), Orange (bearish), Blue (neutral)
  • Purpose: Visual confirmation of bias filters

Advanced Filters

The Advanced Filters add momentum and volatility conditions to entry signals for higher quality trades.

Use MACD Filter (Default: false)

  • Function: Enable MACD momentum filter for entries
  • How it works:
    • When enabled, requires MACD to meet threshold conditions
    • Helps confirm momentum direction before entry
  • Purpose: Filter out trades against momentum

Long MACD Threshold (Default: 8.0)

  • Function: Minimum MACD value required for long entries
  • How it works:
    • Long entries only allowed when MACD > this value
    • Higher values require stronger bullish momentum
  • Range: -50 to 50

Short MACD Threshold (Default: -8.0)

  • Function: Maximum MACD value allowed for short entries
  • How it works:
    • Short entries only allowed when MACD < this value
    • More negative values require stronger bearish momentum
  • Range: -50 to 50

Use ATR Filter (Default: false)

  • Function: Enable volatility filter using ATR
  • How it works:
    • When enabled, requires minimum volatility for entries
    • Helps avoid low volatility periods
  • Purpose: Trade only in sufficiently volatile conditions

Long ATR Threshold (Default: 27.5)

  • Function: Minimum ATR value required for long entries
  • How it works:
    • Long entries blocked when ATR below this level
    • Ensures sufficient volatility for profit potential
  • Range: 0 to 100

Short ATR Threshold (Default: 30.0)

  • Function: Minimum ATR value required for short entries
  • How it works:
    • Short entries blocked when ATR below this level
    • Can be different from long threshold
  • Range: 0 to 100

Use ADX Filter (Default: false)

  • Function: Enable trend strength filter using ADX
  • How it works:
    • When enabled, requires minimum trend strength
    • Currently only applies to short entries
  • Purpose: Trade only in trending conditions

Short ADX Threshold (Default: 26.0)

  • Function: Minimum ADX value required for short entries
  • How it works:
    • Short entries blocked when ADX below this level
    • Higher values require stronger trend
  • Range: 0 to 100
  • Note: No long ADX threshold in current version

ATR Trailing Stop

The ATR Trailing Stop provides dynamic exit management based on volatility.

ATR Period (Default: 14)

  • Function: Lookback period for ATR calculation
  • How it works:
    • Number of bars used to calculate Average True Range
    • Standard is 14 periods
  • Range: 1 to 50

ATR Multiplier (Default: 3)

  • Function: Multiplier for ATR-based stop distance
  • How it works:
    • Stop distance = ATR × Multiplier
    • Higher values give wider stops
  • Range: 0.5 to 10.0

Use ATR Trailing Stop (Default: false)

  • Function: Enable ATR-based trailing stop
  • How it works:
    • When enabled, uses ATR trailing stop once position is profitable
    • Trails stop based on ATR distance from price
    • Only activates after price moves above entry (longs) or below entry (shorts)
  • Purpose: Lock in profits while allowing trends to run

Data Analysis

FibStrike includes built-in indicator analysis that records technical indicator values at trade entry and outputs comprehensive statistics when the strategy terminates, helping you identify which market conditions produce the best results.

Indicators Tracked

At each trade entry, FibStrike captures:

  • RSI: Relative Strength Index value
  • ADX: Average Directional Index value
  • DM+ and DM-: Directional Movement indicators
  • ATR Current: Current ATR value at entry
  • ATR 14-bar Average: 14-period average of ATR
  • MACD: MACD value at entry
  • Entry Price: Exact entry price
  • Trade Direction: Long or short position

Trade Completion Data

When trades close, the strategy records:

  • Exit price
  • Profit/Loss in dollars
  • Trade classification (Winner/Loser)

Strategy Termination Report

When the strategy is disabled or NinjaTrader is closed, FibStrike outputs a detailed analysis broken down by:

  • Long Winning Trades: Average indicator values for profitable long trades
  • Long Losing Trades: Average indicator values for unprofitable long trades
  • Short Winning Trades: Average indicator values for profitable short trades
  • Short Losing Trades: Average indicator values for unprofitable short trades

Each category shows:

  • Average RSI, ADX, DM+, DM-, ATR (current and 14-bar), and MACD values
  • Average profit/loss for that category
  • Trade count for statistical significance

Using the Analysis

This data helps you:

  • Identify optimal entry conditions: Compare indicator values between winners and losers
  • Filter improvements: See if certain RSI, ADX, or MACD levels correlate with success
  • Volatility insights: Understand how ATR values affect trade outcomes
  • Directional bias: Compare DM+ vs DM- values for winning trades
  • Market condition optimization: Adjust strategy filters based on empirical data

Accessing the Report

The analysis is output to the NinjaTrader Output Window (Tools > Output Window) with a clear header:

============= INDICATOR ANALYSIS AT TERMINATION ===========

The report includes:

  • Total trade count
  • Breakdown by direction (long/short) and outcome (winner/loser)
  • Average indicator values for each category
  • Average P&L for each category

Note: The analysis provides more meaningful insights with larger sample sizes. Consider running the strategy for at least 20-30 trades before drawing conclusions from the indicator averages.

Need Help?

If you need assistance with settings:

Remember: These are default suggestions. Always adjust settings based on your personal risk tolerance and trading goals.