Advanced Risk Management: Using Billiard
It's 3:47 AM. Your algorithm just executed a trade on ES futures, capturing a 2.3-point move while you were asleep. The next morning, you review your ri...
It's 3:47 AM. Your algorithm just executed a trade on ES futures, capturing a 2.3-point move while you were asleep. The next morning, you review your risk metrics and realize you avoided a potential 12-point drawdown that would have triggered liquidation. This is the power of sophisticated risk management in futures trading. Billiard Bands is a volatility bands indicator that uses a billiard-ball physics model for dynamic support/resistance levels. It's a third-party product developed by Trader Algorítmico, not a native feature of NinjaTrader 8. The name draws inspiration from the strategic precision required in billiards, where players must anticipate ball movement and manage risk to control the table. Key fact: Billiard Bands calculates dynamic support and resistance levels based on volatility, rather than fixed price points, helping traders identify high-probability zones for entries and exits. The indicator doesn't replace sound risk management principles—it enhances them by providing visual cues for volatility-based risk parameters.