AFT NinjaTrader Self-Optimizing Adaptive Bars
The concept of Self-Optimizing Adaptive Bars was pioneered by Tom Leeson of MicroTrends Ltd in 2016 to 2019. These bars were developed to address key challenges in algorithmic trading, particularly the need to re-optimize algorithms frequently and navigate the time-consuming compliance approval process. This innovation emerged during Leeson's tenure as Head of Algo Trading for Clear Point Capital, and the solution was designed to ensure that algorithms could:
- Maintain trading activity without pausing for approval processes, which could result in missed profit opportunities.
- Drastically reduce optimization time and effort during back testing by eliminating the need for exhaustive parameter testing across a vast universe of futures contracts with varying ranges, sessions, and volatilities.
Key Benefits of Self-Optimizing Adaptive Bars:
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Efficiency in Backtesting:
- Traditional optimization often requires testing millions of parameter combinations across instruments. Adaptive Bars reduce this effort to a handful of settings (e.g., 4–10), drastically cutting costs and development time.
- This streamlined process enables a faster-to-market algorithm while maintaining performance quality.
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Universal Applicability:
- The bars allow for a "one-setting-suits-all" approach across various trading styles, including settings for:
- Scalp Trading
- Day Position Trading
- Swing Trading/Intermediate-Term Trading
- The bars allow for a "one-setting-suits-all" approach across various trading styles, including settings for:
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No need for Re-Optimization:
- By adapting dynamically to changing market conditions, these bars negate the need for constant re-optimization, ensuring continuity in trading performance - as they actually adapt and fit to the market phases automatically.
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Turnkey Workspaces
- AFT turnkey workspaces utilize Self Optimizing bars within the market analyzer providing a 1 setting for entry and exit across all instruments
- Settings were optimized over millions of iterations prior to setting a the scalp or session breakout bar seed setting for day trading - traders can increase or lower bar sensitivity
Retail Accessibility via AFT
AFT introduced this revolutionary technology to the NinjaTrader platform, making it accessible to retail traders. This move democratized the benefits of Self-Optimizing Adaptive Bars, providing retail traders with tools that were previously reserved for institutional use.
Advanced Proprietary Mechanism
While competitors have adopted similar concepts under names like ATR Bars, the AFT Self-Optimizing Adaptive Bars employ a far more sophisticated mechanism. Components include:
- Stacked Volume
- Tick Flow Analysis
- Contract Spread Analysis
- Session ATR
- Bars Per Session
These proprietary methods enable superior adaptability compared to simpler implementations like ATR-based bars which many NT ecosystem vendors now copy and sell - for the source AFT has the answer.
AI Cloud Bars for Commercial Fund Use
In addition to the retail offering, AFT developed AI Cloud Bars, available exclusively for institutional trading. These bars leverage a self-optimizing hive that analyzes hundreds of parallel algorithms using advanced AI techniques, including:
- Bayesian Regression of real-time data algo samples
- Detection of drawdown patterns, choppy conditions, and winning runs.
The exclusivity agreements in place currently restrict access to these AI-powered bars, making them unavailable to retail traders and represent the next level to self optimizing bar types.
Summary
AFT Self-Optimizing Adaptive Bars represent a groundbreaking innovation in algorithmic trading, significantly reducing the overhead of optimization while enhancing performance and adaptability. The retail availability of these bars via NinjaTrader ensures that traders at all levels can benefit from this cutting-edge technology, while the AI Cloud Bars highlight AFT's continued leadership in institutional algo trading advancements.
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