**PTG DRR for NinjaTrader 120322 โ€” Transcript & Summary | SozAI** Source: https://sozai.app/transcript/ptg-drr-ninjatrader-trading-strategy/ Walkthrough of Polaris Trading Group's Dynamic Reward Risk tool for NinjaTrader 8, covering auto position sizing, hotkeys, risk-based target distribution, and trailing stops. ## Key Takeaways - Position sizing based on account value and fixed risk percentage is central to the tool's value proposition. - Hotkey setup and modifier-key choice are configurable and should be set carefully to avoid accidental orders. - Users can customize target multipliers, distribution percentages, risk definition, break-even, and trailing-stop behavior. - The tool is presented as a planning and execution aid, not a source of guaranteed profits. ## What the video covers - Introduces the Polaris Trading Group Dynamic Reward Risk (DRR) tool for NinjaTrader 8, which auto-calculates position size from account value and risk percentage. - The tool displays entry, stop loss, risk-free (break-even) levels and up to three price targets based on risk-unit multipliers (e.g., 2R, 3R, 4R). - Presenter includes an NFA compliance disclaimer that hypothetical results have limitations and past performance does not indicate future results. - Demonstrates loading the tool as a strategy on a five-minute chart and applying a saved parameter template. - Explains configurable hotkeys for entry and market orders, recommending modifier keys (Alt/Control) to avoid accidental execution. - Covers quantity distribution across targets either by percentage (default 50/30/10/10) or fixed contract counts, with the total required to equal 100%. - Describes risk definition options: fixed dollar risk, percentage of account size (commonly 1% per professional practice), or a preconfigured stop distance such as 20 ticks. - Covers auto break-even (moving stop to entry after the first target) and a trailing stop option that maintains a two-risk-unit distance, aimed particularly at FX traders. - Walks through placing orders via right-click chart menus (set entry, set stop, place order), with a note that live data is needed for execution. - Presenter emphasizes that the tool does not guarantee profits and that users should understand stop distance and entry type implications before trading. ## Chapters 1. 00:00 Introduction and Tool Overview 2. 01:37 Loading the Strategy and Template 3. 03:01 Dynamic Risk Reward Targets 4. 04:00 Configuring Hotkeys 5. 06:04 Quantity and Contract Distribution 6. 07:21 Risk Definition and Stop Settings 7. 08:49 Break-Even and Trailing Stop Features 8. 10:20 Placing Orders on the Chart 9. 15:56 Stop-Entry Use Cases and Closing Remarks Answers ## Questions about this video What does the Polaris DRR tool calculate automatically? The tool auto-calculates position size based on the account value and risk percentage or dollar amount the trader enters. It also displays the entry, stop loss, risk-free level, and up to three price targets. How are the profit targets distributed across contracts? By default, distribution is by percentage (50% at Target 1, 30% at Target 2, 10% at Target 3, with the remaining 10% as a runner). Traders can instead set fixed contract quantities, provided the total matches the position. Does the presenter claim the tool will make money? No. The presenter explicitly states that the video does not imply the trader will make money with the tool, and cites NFA compliance language that past performance is not indicative of future results. ## Full Transcript โ€” Download SRT & Markdown 00:02 Speaker A greetings Traders David de Bay of Polaris Trading Group in this video we're going to review the features of the dynamic position size or reward risk tool with auto trading capabilities for ninjatrader 8. 00:18 Speaker A this tool Auto calculates the position size based upon account value and percentage risk parameters input by the trader it displays the entry price stop loss risk-free levels and up to three optional price targets based upon our values or risk unit values 00:39 Speaker A if you are serious about trading then this tool is an essential addition to your traded toolbox professionals know the true value of the power of position sizing before we get to the features of the tool NFA compliance rule 2-2-9 00:59 Speaker A listed here simply states that hypothetical performance results have many inherent limitations and again some of which you'll described Below in this document and past performance is not indicative of future results also this video reviewing the dynamic reward risk tool 01:17 Speaker A does not imply or explicitly or implicitly in any way that the trader will make money using this tool so with that let's go right to the features of the dynamic reward risk tool okay so I've set up a basic five minute 01:37 Speaker A chart here and we're going to demonstrate the features of the tool and how to use it so it is set up as a strategy here in ninjatrader and so we'll just select strategies and from the select from the strategies menu 01:53 Speaker A here you want to highlight the Polaris Trading Group drr bring it down into the lower quadrant okay and then what we want to do is we want to set up a template so I've already created a template here 02:10 Speaker A of various values so we want to go in and select the strategy template we'll load that up and we have the parameters already now so we'll run through each of the parameters fairly quickly this everything is fairly straightforward 02:27 Speaker A we'll explain each of these sections so you get a better understanding of each the dynamic risk reward area so this is based upon as I mentioned our values so Target one multiplier Target two target three multipliers uh here are based upon 2R values two 02:44 Speaker A risk units that's based upon your initial risk dollar risk or percentage right so two two risk two times your risk three times four times all configurable so those values can be changed uh but those are the initial defaults 03:01 Speaker A in the next section we set up some hotkeys these are um recently added to this tool based upon some folks that do a bit more scalping and they want a quick access uh features to take a trade versus somebody that is taking a little 03:19 Speaker A bit more time and planning out where their entry where the stops would be so this is again pretty straightforward it's based upon a lettering or numbering system you select whichever Associated letter you want to use for the particular 03:36 Speaker A hotkey that you want to create so as an example in setting the entry we're going to set key one all right entry as again there's it's a dual key functionality so key one you can either set to the ALT key the control key 03:58 Speaker A or select none I would not necessarily recommend none because if you were to do this that entry key and again we've selected e to correspond to entry that e key on your keyboard is live it is active so if you mistakenly 04:20 Speaker A hit that letter e again it will execute the function of the hotkey so recommendation typically would either make it an ALT or a control uh to have a little little Safeguard there uh in in the case that you know want to 04:38 Speaker A enter an entry at a specific price so I'm going to do alt e okay and same thing like say for instance market now okay so some people that are scalping they know okay I want to set the m key 04:53 Speaker A for the market and I don't want to use the function of an ALT or a control key so I'm going to set it to none so that way they're ready you know to hit the m key for Market 05:07 Speaker A and again a little execute according to the remaining parameters that the trader has chosen so again uh be careful if you decide to use like hotkeys all right and and you know uh how to use them appropriately for your situation 05:26 Speaker A the next section quantity contract distribution there's two methods one is defaulted by percentage of the of the trade that you have taken based upon uh risk-free percentages here at 50. Target one two and three as again we saw above 05:47 Speaker A here they were two units so two risk units so two times your wrist three times at four times your risk in this section here how do we want to distribute that so thirty percent ten percent ten percent as long as that totals a hundred all 06:04 Speaker A configurable the other option is fixed quantities so in terms of you know let's just say you want to do you know two contracts at the first we want to do another two at the second tour at the second you 06:18 Speaker A know T1 let's just say we want to bypass T2 so you put a zero there and we want to have okay my one my Runner which is corresponding to a 4r value up above I'm gonna want to see if we can get a 06:34 Speaker A runner so if I get the first two um exit points off I wanna I wanna see if we can run it so I want to bypass the next one and go to Target three so again this is all configurable you know to to how you 06:47 Speaker A want uh by default again it's by percentage so it's 50 30. okay 10 as you can let's just say um 10 and then 10. so again as long as it adds up to 100. 07:04 Speaker A default order type is a stop right uh except unless you're using the market now uh hotkey above next parameters again uh you can either Define it as you trade it to find it as uh using account size or again this is 07:21 Speaker A risk definition or by specific dollar risk so in this case uh defaulting to Dollars meaning that the dollar risk let's just say we have a 2000 set in here okay and we're defining our Risk by dollars then that's the way it's going to you know 07:43 Speaker A it's going to calculate your position size uh based upon you know your dollar total dollar risk again uh people you know that have fairly large accounts and so forth uh tend to want to use percentage of their account size because 07:58 Speaker A account size will begin to vary as profit and losses are accumulated and in most cases professionals typically use one percent risk of a maximum account size that they're using uh there is an option here to use a pre-configured stop 08:15 Speaker A distance we'll demonstrate that in this case the value is 20 meaning 20 ticks or five points in the ES we have a break Auto break even so if you have that box checked that means once we uh enter a trade and hits the 08:31 Speaker A first Target it'll move the stop to entry and then we want to for most cases we want to place the auto Target so we have that box checked as well we also have a trailing stop feature and again this is uh very useful 08:49 Speaker A for folks that trade FX The currencies tend to Trend much much better than the indexes on an intraday basis so this was recently added as well uh probably request to one of our customers and essentially if we have that enabled that 09:07 Speaker A means once we've hit that first Target it'll begin to Trail buy two risk units two risk units okay whatever that risk unit is defined as above and as the markets keep moving it'll incrementally maintain uh that to risk unit distance 09:28 Speaker A all right so those are the basic uh setup features let's go right to the chart and let's see how these are function for us so we've got to make sure since it's a strategy we want to make sure that we 09:40 Speaker A enable it here all right we click ok all right so currently I'm offline from a data source so uh we're going to show you the demonstrate how to place the uh orders but the functionality of the placement of orders is you know by a 10:02 Speaker A ninja chart Trader and uh again we'll show that so uh to begin with up here we've selected one percent of a hundred thousand dollar account as our example all right so let's just say we want to enter a trade 10:20 Speaker A that if price you know gets above a particular level it's just highlight 75 here as an example so we want to right click and it's menu driven up here right click we want to go set entry okay and then secondarily we want you need 10:39 Speaker A the place to stop so if price were to trade up through 75 where would we want to place our stop so this is what we refer to as our trade planning uh part of it all right so if I get 10:52 Speaker A executed there then I want to place a stop again we'll just select the level here all right at 68 and if you notice it automatically now will position size uh two units or two contracts in this case all right and that's equivalent to 11:10 Speaker A uh one percent risk of a hundred thousand dollar account which is a thousand dollars and the maximum risk here from this entry to where this stop is 700 and it calculates an automatic position size of two two contracts two units and as you can 11:30 Speaker A see it automatically places the targets based upon the R value uh that we've selected right so 2R 3r 4r right oh same now let's just say here again this is in the planning stage so the next thing what you would do if 11:47 Speaker A you're comfortable with this then you would right click and you would click on place order now so since we're offline it won't really place the order but uh in in live data feed you want to then place the order and then the order will be 12:03 Speaker A placed at the uh you know selected entry line and then once it's triggered what will happen here is you'll see that the orders will be placed all right chart Trader orders associated with the Stop and the exit points so that's what 12:23 Speaker A will happen all right let's just say though in the planning stage here you decide well the Market's kind of moving lower and I want to move my entry lower all right to correspond with the declining price and hopefully we get a you know 12:42 Speaker A better price here a little bit lower price Etc so if you wanted to say move it move your down just to above the most recent bar so you just pre-select that level again all right again and then go back up here 12:56 Speaker A and set entry what will happen is it'll adjust the trade planner accordingly and let's just say you decided to leave the stop where it is so no change in the stop only the entry you'll notice here that the 13:11 Speaker A position size just shifted to four units with a maximum risk now of four I'm sorry of 1000 based upon four contracts so that's your maximum one percent risk of a hundred thousand dollar account okay so that's the idea about position 13:30 Speaker A sizing as uh the distance between entry and stop okay and then the uh risk-free level again that's the equivalent to the stop distance and then Target one which is two times Target two three times Target three four times 13:47 Speaker A Etc okay so that's using the uh set entry set stop manually idea so to clear this out you just come right here and say right click clear all so we're going to clear that totally out now on the selection we also have we go 14:04 Speaker A right click again remember we have the selection with a long entry with a pre-configured stop so some folks say I always want to have a five point stop from wherever my entry is going to be and I don't want to have to you know 14:19 Speaker A enter the stop following the entry Etc I want it all pre-configured all right so that's so we've allowed that option here so what we would do again is Select uh whatever level all right you choose and let's just say it's up here 14:36 Speaker A above this bar High I want to enter only at that point and so long entry with a preconfigured stop so click on that all right even though price is trading below the stop currently right for this particular Trader and 14:55 Speaker A what how they want to handle is only if it gets above a breakout Above This Bar High and if that should happen place a five-point stop Okay so knowing exactly what they want to do how many contracts it'll be in this case 15:13 Speaker A it's going to be a standard four contracts because of the distance I and again the risk unit number so if if price continues to trade lower all right this trading may decide to leave that stop entry where it is or again may decide to 15:31 Speaker A adjust it according to their um you know their plan all right um and again in this particular case once again once we've placed that this is still a planning stage all right you would then once again come up here 15:48 Speaker A and say place order now when when you're ready to you know when the trader is ready to take the appropriate action but until then this is the trading planning stage and this gives the trader a lot of flexibility to see as the Market's 16:03 Speaker A unfolding uh is it is is that entry you know I want to enter it here or if it moves lower I want to enter it there now this is a stop order okay entry so let's just uh say another example let's clear 16:19 Speaker A all uh let's just say we want to enter on on a test of this pivot low so that's another option uh we've seen many times prices come down and retest you know prior known levels and Market holds and then you know 16:37 Speaker A rallies accordingly right so this may be an option here so bring down so if it gets to this level I want to go long entry with a pre-configured stop now in this case it's actually a limit order not a stop order because it is 16:52 Speaker A below the current price the planner reads it as a limit buy and again should Market come down and touch that limit buy then it'll trigger you know the trade again um you want to be able to uh you know 17:09 Speaker A when you say place order now in this case it won't actually place the order it will wait for it to trigger all right so that's another option but I would say most folks would use the option of getting a buy stop 17:26 Speaker A in place here so Above This High uh enter the long entry only if prices break out above you know a particular level so that's the core use of the dynamic position size or again the benefit here is having a specific 17:44 Speaker A dollar unit or percentage risk of your account and the ability to resize that all right so the whole idea of the power of position sizing is we refer to it as is the ability to keep your dollar risk 18:01 Speaker A or percentage of your account risk uniform but yet you want to maximize the amount of contracts traded right so instead of having a static amount of say two or three contracts all the time and that would be again having a set stop already in place 18:21 Speaker A as we've just demonstrated but rather I want to maximize the amount of units or contracts for a given dollar risk based upon the distance of my entry versus where my stop you know would be all right so a lot of a lot of Traders 18:39 Speaker A again professional Traders use the percentage feature of that and they want to clearly they want to maximize uh the amount of contracts because again that's where the power of position sizing comes into play again the the the the cross 18:56 Speaker A concern there is if the stop is too tight all right then you may get triggered on your entry and the stop you know could be fairly tight which means you could get stopped out you know just a bit faster all right so 19:13 Speaker A you have to be able to balance the uh risk of getting stopped out too soon all right versus you know what the position size is but in all cases using a dynamic position size or tool as this you want again the cores is is to keep 19:33 Speaker A your risk unit uniform not the contract size that's a variable it's the dollar risk or percentage of your account that you want to keep uniform all right so that's it um hopefully this video has been helpful to you and uh 19:53 Speaker A best trading with this if you do have any uh questions uh you can always reach me here uh at uh give you the contact information here we go so if you need to get in contact with me uh for any reason uh you best to uh 20:15 Speaker A email me at David Polaris trading group.com and clearly visit our website for additional tools and information about our methodology thank you very much for your attention and as always uh good Trading Topics: NinjaTrader 8 position sizing risk reward trading strategy auto trading stop loss risk management hotkeys trailing stop futures trading Study this video - [Flashcards from this video](https://sozai.app/tools/flashcard-maker/?from=transcript&id=93175) - [Quiz on this video](https://sozai.app/tools/quiz-generator/?from=transcript&id=93175) - [Crossword from this video](https://sozai.app/tools/crossword-maker/?from=transcript&id=93175) - [Word search from this video](https://sozai.app/tools/word-search-maker/?from=transcript&id=93175) - [Study guide from this video](https://sozai.app/tools/study-guide-maker/?from=transcript&id=93175) Free, made by AI from this transcript. 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