A synthetic instrument is a combination between two market instruments whose objective is to evaluate “PairTrading”, in order to minimize the risk.
Traders who migrate to NinjaTrader 8 from other platforms like CQG and want to display chart using synthetic instrument don’t find this functionality available.
In order to make this functionality available in NinjaTrader8, Candlerobot team has developed the Synthetic Instrument indicator so you can visalize this type of instrument using many options.
Indeed, thanks to this indicator, you can visualize the relation between two instruments using different mathematical operations types depending on your trading vision: (* : instrument1 * instrument2),(–: instrument1 – instrument2),(/: instrument1/instrument2) or (+: instrument1 + instrument2) .
You can also choose whether to display the indicator using OHLC or classical japaneese candles.
This indicator is really powerful, It can be used in a variety of strategies, such as: Statistical Arbitrage, Pair Trading and Mean reversion.
Software :Ninjatrader 8