How It Works

Learn how Active Account Management (AAM) works in your NT8 accounts

Active Account Management (AAM) is a server-side module designed for automated control of NinjaTrader trading accounts through the CrossTrade platform, accessible via the NT8 add-on. It provides risk management and intraday strategy enforcement by continuously monitoring accounts and triggering pre-defined actions based on configurable parameters.

Core Components

• Monitor Objects:

  • One-to-One Relationship: A single AAM monitor is associated with each trading account in the NT8 platform.

  • Independent Configuration: Each monitor contains specific parameters that dictate automated actions. This isolation supports differentiated account management and allows for unique execution across each account.

• Real-Time Polling Mechanism:

  • Polling Frequency: Monitors are scanned every 2.5 seconds.

  • Event-Driven Operations: This frequency allows rapid response to P/L fluctuations and time-based events. These configurations are continuously checked at this interval, and all configured actions fire directly from that interval, on a client to server and back again basis.

• Configurable Profit/Loss (P/L) Thresholds

  • Dollar Value Parameters: The P/L threshold settings use dollar values as a numerical trigger parameter. Users may configure positive (profit) and negative (loss) threshold values.

  • Evaluation Scope: Users choose if and how commission and unrealized P/L will be factored in to P/L calculations.

  • Disabled Threshold Parameters: Setting either a P/L threshold parameter to zero will disable specific P/L breach scanning, but will not affect other triggers.

  • Action Trigger: When actual P/L values (realized or total as per configuration) exceed thresholds, automated actions are triggered, described below.

• Position Management Actions:

  • Configurable Response: When thresholds are hit, the system can independently "flatten" all positions, or "do nothing," configured uniquely for both profit and loss targets.

  • Flatten Behavior: Flattening involves closing all open positions and canceling pending orders, using the inverse matching orders in NT8’s internal flatten functionality, with all its inherit risks of market movements.

  • "Do Nothing" Option: This prevents automatic position management, useful for configurations focused only on alert modifications.

• Configurable Alert Actions

  • Indepdendent Target Settings: User configure independent alert behavior triggers when P/L targets are met, without needing to implement a flatten command.

  • Available Filtering Actions: The system may: Disable all webhook alerts; Implement a closing only webhook alert filter; Implement no changes to the alert configuration.

  • Individual Account Implementation: Alert filtering affects only the monitor instance it's configured against.

• Automated End-of-Day (EOD) Flattening:

  • Configurable Execution: Automated account flattening is performed at a user-defined time each day.

  • Time Format: The flatten time is specified in HH:mm (24-hour format) using the US/Eastern time zone.

  • Optional Use: The feature can be disabled. Time settings will always default to off unless the end-user manually sets a particular flatten time.

• Session Start Definition and Requirements:

  • Session Reset: The AAM session resets at 6:00 PM US/Eastern time daily.

  • Flat Account Requirement: Managed accounts must be flat at session start (6:00PM ET, no open positions or pending orders). A monitor with pre-existing open positions will be assigned an INACTIVE status at the start of session and must be manually re-activated and reset by an end-user.

• Dynamic Configuration and Monitor States:

  • Dashboard Controls: AAM monitor management (creation, editing, deletion) is managed using the CrossTrade Dashboard interface.

  • Immediate Updates: Settings changes are propagated in real time from the server down to the client when changes are saved in the UI.

  • Monitor States: AAM monitors operate within four states: ACTIVE (scanning active); INACTIVE (disabled by a position at session start, and must be manually re-started); STOPPED (triggered threshold reached or explicitly stopped); PAUSED (manually disabled by the end-user).

• Activity Logging:

  • Log Capture: The system records all significant events and actions to an individual management log.

  • Comprehensive Log Data: Log data includes event time, action type, affected account and related messages

  • Dashboard Access: The activity log is viewable in a dashboard table, presented with time stamps and text for review.

Operational Specifications

• Intraday Application: AAM is optimized specifically for intraday management. Holding overnight positions is unsupported at this time.

• Client Dependency: Operation depends on an active CrossTrade add-on client connection, and all automation is vulnerable when an active connection cannot be achieved or maintained between a user's trading environment and the backend servers.

• Market Slippage: Users should be aware that, due to order executions of market inverse matching order systems, slippage is always possible in fast-moving market environments during a flatten function, which also includes any flatten order triggered by automated systems like AAM. CrossTrade does not guarantee a given fill value, in such instances.

Non-Guaranteed Operations: AAM is not intended to replace personal trading responsibility and should not be considered a means of guaranteed profit or a perfect risk management system. End users should independently assess risk configurations for every account under their management and take responsibility for the actions generated from those settings and from the state of their trading environment.

AAM Design Goals

The core design objectives of AAM center on providing automated and user configurable account controls within an intraday execution context. The end result enhances transparency, control and operational effectiveness for the user.