Risk Disclosure

Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View full risk disclosure.

BloodHound Overview

Bloodhound is a user programmable indicator based on fuzzy logic.  It takes observations from price action, indicator behavior and other factors as inputs and allows you to design custom logic constructs using logic templates to arrive at a calculated output.  With BloodHound you can encode the behavior of any system, setup, filter or trade signal.

BloodHound is a blank canvas – how you use it and how you configure it is entirely up to you.  It is a powerful fuzzy logic calculator that has no limits on how complex your logic specifications may be.  It allows you to define the inputs, and you define how they are used to arrive at a result.

For example, you may have a trading system with defined entry rules based on what’s happening with certain indicators and price bars on multiple time-frames.  You can use BloodHound to describe your system in exact detail, painting your chart with long and short signals.  These signals can also be fed into a NinjaTrader strategy dictating when to buy and sell.  Your resulting strategy can then be easily modified by re-configuring BloodHound’s logic.  This can be done in real-time, allowing you to change the behavior of your automated (or manually traded) system quickly and easily, without the need to update your strategy code.

Strategies utilizing BloodHound can be brought into NinjaTrader’s Strategy Analyzer for back-testing.  Again by modifying the BloodHound logic you can alter your strategy buy and sell signals without manipulating any code, resulting in a very rapid prototyping  and back-testing cycle.

BloodHound Output

BloodHound’s final output is a number between 0 and 1 for the long side and the short side for each bar (and tick).  BloodHound is actually calculating two separate evaluations for every bar.  A confidence value for the long side, and a value for the short side.  You can use these calculated values to represent trade signals, market filters, or to indicate that a condition is satisfied.  For example, you can program BloodHound to give you a favorable signal when a certain condition happens on an indicator.  When BloodHound outputs 1 for the long side, and 0 for the short side you can use that as a signal for a long trade, or alternatively use it as a filter to take only long trades.  The choice is yours how you ultimately use the values calculated from bloodhound.  The power comes from being able to quickly reconfigure BloodHound’s output by just manipulating the logic in real-time.

Outputs are called confidence values, and their output ranges between 0 and 1, 0 being an unfavorable value, and 1 favorable.  BloodHound can output decimal numbers as well.  This can be thought of as degrees of favorability.  For example, an output of 0.8 for the long side is considered more favorable than an output of 0.5.  Note: it’s more than possible and sometimes desirable to have both the short and long side evaluate to the same value at the same time.  You can configure how much greater one side has to be over the other side to be considered a valid signal in one particular direction.

To do this change the Compare Long and Short Confidence value found in the BloodHound settings from the NinjaTrader Indicator panel.  A value of 1.5 means that the dominant side has to be at least 1.5 times greater than the other side to be considered a valid signal.  For example, an output of 0.7 for the long side and 0.8 for the short side is not considered a valid short signal in this case because the short side is not at least 1.5 times greater than the long side.  On the other hand, if the long side was 0.4 and the short side 0.8, that would be considered a valid signal.  Valid signals in BloodHound are plotted as vertical colored stripes (called racing stripes) on your chart.

You can also set BloodHound to ignore the ratio between long and short signals by setting theCompare Long and Short Confidence to false.

Finally below those two settings you see the Long Threshold and Short Threshold.  These are the minimum amounts that the long and short values must be before a confidence value is considered a signal.  Thus a Long Threshold setting of 0.8 (the default) means that BloodHound will not consider the confidence value an actual signal unless the confidence value is at least 0.8 or greater.  The same holds true for the Short Threshold setting on the short side.

Note: all of these settings are overridden when using the Logic Template system by the current active logic template selected.  If no Logic Template is selected, these settings are used by default.  You can find more information about that here.


1. Settings

BloodHound Settings

Opens the BloodHound interface window to create or open a BH template.  Note: changes made from here are not update on the chart live.  See Real-Time Mode for more information.

Changes the background color when a BloodHound signal is fired (when the confidence is above or below the threshold).

2. Signals

BloodHound Signals

Compare the long and short outputs, and make sure the signal direction in question is greater than the opposite signal direction (by a factor of the Confidence Ratio).

Compare Confidence Ratio
If this number is 1.5, a Long signal is only valid if the long confidence is 1.5 times greater than the short confidence, and vice versa.

The Long Confidence plot value must be equal or greater than this value to be considered a long signal, and trigger the racing stripe.
The Short Confidence plot value must be equal or greater than this value to be considered a short signal, and trigger the racing stripe.
Send an email when a signal occurs.
Important: You must setup NinjaTrader’s Email configuration.  Go to NinjaTrader Control Center » Tools > Options » Misc tab.  NinjaTrader has provided instructions on their support forum, Email configuration.
Please Note: Some email providers filter these emails into spam/junk folders.  Most providers have a way to add filters to prevent that from happening.  Check with your email provider for that option.

Email Body
The body text for the email, using the following replacement variables: {direction}, {time}, {date}, {instrument}, {template}.

Email Form
The email address that will be used to send the emails.

Email Subject
The subject line for the email, using the following replacement variables: {direction}, {time}, {date}, {instrument}, {template}.

Email To
The email address to send the alert emails to.

Replacement Variables

  • {direction}:   This is replaced with the signal direction.
  • {date}:  This is replaced with the date the alert occurred.
  • {time}:  This is replaced with the time the alert occurred.
  • {instrument}:  This is replaced with the chart’s instrument that BloodHound is running on.
  • {template}:  This is replaced with the BloodHound name.

Play sound alerts when a signal occurs.  When ‘Calculate on Bar Close’ is False, the sound will play when the bar closes.  This prevents the issue of multiple audio alerts playing as price ticks up and down intrabar which in turn firing off multiple signals.

Long Signal Sound File
Choose the sound file used to alert when there is a long signal.

Short Signal Sound File
Choose the sound file used to alert when there is a short signal.

3. Performance

BloodHound Settings

Set to True, this setting is used to reduce the number of calculations per second that BloodHound makes to increase performance.
This setting only operates when “Calculate On Bar Close” is set to False.

Lower numbers improve performance by reducing the number of calculations BloodHound performs per second.
Only available when “Throttle Incoming Ticks” is set to True.