I absolutely love this method for practicing day trading. Even though I have been trading since 2005, I constantly use this tool to work on trading issues that arise, and to test out new strategy ideas. What is it? It’s the Market Replay Connection on the NinjaTrader Platform.
Best Way to Practice Day Trading for Consistency
Market Replay lets you download historical trading days (in forex or futures) and trade them as if you were trading in real-time on that day. Download and trade as many days as you like, and trade them whenever you want. Practice day trading on weekends or evenings, and trade multiple sessions in one day if you wish. This is awesome if you have a job and can’t trade while markets are open/active, but you want to learn how to day trade in your spare time. If you’re a seasoned pro, use this feature to work on new strategies in the off hours, and practice trading those strategies against historic market conditions.
I trade for a two hour period each day, that’s it (whether day trading forex, stocks or futures). Using Market Replay I can download multiple days and then only trade the two hour period I usually trade on each of those days. I can trade 10 of those two hour sessions in a weekend if I want to, working out any issues I’m having with my strategy or psychology.
This video shows how to use the Market Replay connection to practice your day trading. Place entry, stop loss and target orders in the Replay just as you would if trading normally. This allows you to see if your trades would have been profitable or not. Over the years it’s the best way to practice day trading I have found.
Need a strategy to trade? Check out the Trader Mentoring page.
Here are some common problems and fixes if the Replay Connection doesn’t work.
–Make sure you have loaded some contracts you want to trade into your Instrument Manager (under Tools menu).
–Make sure the day you download is a trading day that occurred while that contract was actively traded.
–Set the chart to the same contract as the contract day you downloaded to replay.
–Make sure the From and To fields on the Replay Connection interface are set to the days you want. The To day is the day you want to trade, and the From date is the day before.
–If the data looks wonky, reset both dates in the To and From fields.
–To start trading at a specific time, right-click on the Replay interface and select Go To. Make sure the date and time correspond to the day you want to trade.
–Remember, NinjaTrader is set to the time on your PC. Make any adjustments necessary to trade during the appropriate market hours. For example, I trade from 8:30 to 10:30 AM EST, or 6:30 to 8:30 AM my local time.
Best Way to Practice Day Trading – Final Word
Trading is an evolving skill. Slight changes in strategy are often required to adapt to new types of market conditions. It’s continual work to stay disciplined and focused. Just because you had a few profitable months doesn’t mean you get to relax. Keep practicing your day trading and honing your skill. Schedule practice sessions each week, or at minimum each month. Be honest with yourself about what areas you could work on. Then download some Replay sessions and trade them, honing in on those specific issues. If you want to improve and gain consistency in your day trading, this is an excellent way to do it.
Oh, and it’s free. There’s no excuse not to improve. Take personal responsibility for your success and start practicing and workings on your day trading issues.
By Cory Mitchell, CMT
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