Blue Wave Trading

Alogorithmic Trading and Automated Trading Systems

 

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About Blue Wave Trading

Blue Wave Trading (BWT) has been developing automated trading systems since 1997 and has become the premier developer of automated strategies in the retail side of the trading industry. We are perhaps the only fully Automated entry, exit, trail stops etc. trading strategy for Ninja Trader that not not have the dreaded overfills, in live trading that renders any strategy literally worthless, as you lose control of your strategy when this occurs. We had early success with the Tradestation™ platform, and then became an add on partner with NinjaTrader™ in 2007.  Blue Wave Trading has more experience with the NinjaTrader Platform than most of our competitors as Blue Wave Trading was the 5th NinjaTrader Add on software developer in 2007.  This was long before the ecosystem and the addition of hundreds of competing vendors and products. As a result of  of our software being a showcase for what could be done early on in NinjaTrader history, it’s no surprise or coincidence that Blue Wave Trading has been imitated and emulated countless times by or former colleagues and competitors, but our innovative style of development and graphical presentation is the original that began in 2003, and likely created a paradigm shift in graphical presentation long before the industry became a circus of vendors overrun by internet marketers claiming to be trading experts which it seems to be now. Through all this Blue Wave Trading has received the prestigious Stocks and Commodities Readers Choice award for Trading Systems through 2014 making it 6 years in a row. As we no longer advertise with S&C we are not eligible for the Reader’s Choice vote or awards. We remain focused on innovation and improvement of our software in a dynamic and ever changing market. Blue Wave Trading has had audited and documented success with it trading systems past and present.

Blue Wave Trading Backstory and beginning

In 1980 I began my career as a financial planning professional specializing in tax sheltered investments. During this time I was self employed as a Financial Advisor and held several Securities licenses including Series 6 and 26, supervising a group of brokers. After building a thriving financial planning practice over the following 17 years, I came across a story about how a little known group of traders on computers were “stepping in front of size”, which were big orders placed by NYSE specialists. Because of their relative small size and nimble ability to buy and sell these individual traders placing the inside bid “in front of” large orders were making small fortunes on short term movement in the markets, now commonly known as “Daytrading”. Needless to say, I was fascinated by this.

I started trading stocks in 1997, when I took what was probably one of the first day trading “Webinars” as they are known today with an instant messaging program called ICQ. I thought that with my market experience trading would be “easy”… needless to say, my exuberance was quickly humbled and I took some substantial losses. However, this only strengthened my resolve to learn how those on the “inside” operated. By 1998 I was trading this “new” instrument called the E-Mini S&P on a platform called Best Direct run by Walter Bressert and now defunct PFG.

My first trading software purchase was Tradestation, shortly after it was re-invented from a program called System Writer. From day one I began to learn programming in Easy Language until I became quite proficient at it, and by Fall 1998 I became a Registered Investment Advisor, managing a small portfolio of 7.5 million dollars for my clients. I employed  Mutual Fund Market Timing  from simple trading models I had created in Tradestation mostly based on moving average and volatility based indicators that I had developed into a set of rules for Buy and Sell signals. In the bull market of the 90s these worked well.

In  September- December of 1999, I placed 6th in an industry trading competition among 2000 competitors made up of my investment advisor peers. This earned me a cash prize of several thousand dollars and bragging rights. In early 2000, after a life changing event I realized my lifelong goal to live in Hawaii and moved to Maui, HI, where I retired from my 20+ year career as a Financial Advisor, to focus on trading in my own account and developing automated systems full time. The last trade I made for my clients was to position them in cash in late March of 2000 which was the beginning of a 3 year bear market that saw the NASDAQ decline 70% from its high near 6000.

After a few years of intense research of testing literally a thousand different trading rules and optimizing various strategies that were crunching numbers on four high-end computers running 24/7, I came up with a trading system based on floor trader pivots support and resistance zones and the probabilities of the market opening and closing within those levels or “Zones”. The system was called surprisingly, the BWT Zones SP.

I traded my own account using my Zones System full time for two years when in 2003 my broker noticed how well my account was growing and asked how I was achieving this. When I told him I was trading my own automated strategy that I had coded for my personal use only, he asked if I would make it available to other traders. Blue Wave Trading was born sometime in March, 2003.

As technology improved, Internet providers were beginning to offer higher bandwith at affordable prices, computing power advanced rapidly, and that literally changed the world as we know it, causing Intraday Trading Volume to surge dramatically.

In 2004 I  submitted my Blue Wave Trading Zones System to be audited by Futures Truth Magazine. The following year the BWT Zones Trading System ranked as high as 3rd in the Top Ten SP Trading Systems in Futures Truth Magazine, and was the #1 performer at Attain Capital Mgmt. (a broker and CTA that focuses on Automated Systems Trading). At the time BWT was the subject of numerous articles pertaining to system performance and statistics.

In late 2006, long before popular trading forums and a hundreds if not a thousand new startup trading retailers, I offered the BWT Precision Indicators which at it’s core was the now the well known, BWT Precision Trend Indicator. The initial release of these indicators and the success of the BWT Zones System for Tradestation turned some heads. I had the good fortune to meet and consult with floor traders, hedge fund managers, traders of all types and was invited to visit the home offices of some well known institutions in the retail and professional trading industry. Valuable lessons were learned about what really goes on in the business of trading. The reviews were very positive and established BWT as an innovator and forward thinker in trading and analysis tools. Many former clients include a number of competitors who after working closely with BWT essentially pirated BWT Proprietary indicators and methodologies and sold them as their own which is why it is no coincidence so many competing products look like BWT, but seriously lack the ethics and hard work that created them.

Fast forward, today, in an unregulated retail trading product market, where probably 80% or more of retailers of trading products are less than a few years old, Blue Wave Trading is going strong into its 15th year with industry awards in the trading system category from Stocks and Commodities Magazine.

Since our inception, Blue Wave Trading has been an innovator in programming technical indicators and systems development. The 2006-7 debut of BWT Precision Auto Trader and BWT Precision Indicators and our visual style of development and feature set have become industry standard and influenced many.

Randy M Sarrow
CEO Blue Wave Trading Research and Development


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Blue Wave Trading Blog

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  • Automated Trading, Blue Wave Trading Automated Trading Software for NinjaTrader Great Day March 16, 2016
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FULL RISK DISCLOSURE The following statement is furnished pursuant to Commodity Futures Trading Commission (“CFTC”) Regulation 1.55(c).This brief statement does not disclose all of the risks and other significant aspects of trading in futures, forex and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures, forex and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. The risk of loss in trading commodity futures contracts and foreign currency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points: You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market or foreign exchange market, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account. The funds you deposit with a futures commission merchant for trading futures and forex positions are not protected by insurance in the event of the bankruptcy or insolvency of the futures commission merchant, or in the event your funds are misappropriated. The funds you deposit with a futures commission merchant for trading futures or forex positions are not protected by the Securities Investor Protection Corporation even if the futures commission merchant is registered with the Securities and Exchange Commission as a broker or dealer. The funds you deposit with a futures commission merchant are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the futures commission merchant, or if the futures commission merchant is otherwise unable to refund your funds. Certain derivatives clearing organizations, however, may have programs that provide limited insurance to customers. You should inquire of your futures commission merchant whether your funds will be insured by a derivatives clearing organization and you should understand the benefits and limitations of such insurance programs. The funds you deposit with a futures commission merchant are not held by the futures commission merchant in a separate account for your individual benefit. Futures commission merchants commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the futures commission merchant does not have sufficient capital to cover such other customers’ trading losses. The funds you deposit with a futures commission merchant may be invested by the futures commission merchant in certain types of financial instruments that have been approved by the Commission for the purpose of such investments. Permitted investments are listed in Commission Regulation 1.25 and include: U.S. government securities; municipal securities; money market mutual funds; and certain corporate notes and bonds. The futures commission merchant may retain the interest and other earnings realized from its investment of customer funds. You should be familiar with the types of financial instruments that a futures commission merchant may invest customer funds in. Futures commission merchants are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your futures commission merchant deposits funds with affiliates and assess whether such deposits by the futures commission merchant with its affiliates increases the risks to your funds. You should consult your futures commission merchant concerning the nature of the protections available to safeguard funds or property deposited for your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”). All futures, forex and options positions involve risk, and a “spread” position may not be less risky than an outright “long” or “short” position. The high degree of leverage (gearing) that is often obtainable in futures and forex trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains. In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the futures commission merchant you select to entrust your funds for trading futures positions. As of July 12, 2014, the Commodity Futures Trading Commission requires each futures commission merchant to make publicly available on its Web site firm specific disclosures and financial information to assist you with your assessment and selection of a futures commission merchant. Information regarding this futures commission merchant may be obtained by visiting the websites of the respective FCM partner of NinjaTrader Brokerage: Dorman Trading (www.dormantrading.com), Phillip Capital (www.phillipcapital.com), FXCM (www.fxcm.com)ALL OF THE POINTS NOTED ABOVE APPLY TO ALL FUTURES AND FOREX TRADING WHETHER FOREIGN OR DOMESTIC. IN ADDITION, IF YOU ARE CONTEMPLATING TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS, YOU SHOULD BE AWARE OF THE FOLLOWING ADDITIONAL RISKS: Foreign futures transactions involve executing and clearing trades on a foreign exchange. This is the case even if the foreign exchange is formally “linked” to a domestic exchange, whereby a trade executed on one exchange liquidates or establishes a position on the other exchange. No domestic organization regulates the activities of a foreign exchange, including the execution, delivery, and clearing of transactions on such an exchange, and no domestic regulator has the power to compel enforcement of the rules of the foreign exchange or the laws of the foreign country. Moreover, such laws or regulations will vary depending on the foreign country in which the transaction occurs. For these reasons, customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including the right to use domestic alternative dispute resolution procedures. In particular, funds received from customers to margin foreign futures transactions may not be provided the same protections as funds received to margin futures transactions on domestic exchanges. Before you trade, you should familiarize yourself with the foreign rules which will apply to your particular transaction. Finally, you should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign futures contract is liquidated or the foreign option contract is liquidated or exercised. THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY AND FOREIGN CURRENCY MARKETS.Copyright © 2023 • [footer_backtotop text="Blue Wave Trading" href="http://bluewavetrading.com/"] • All Rights Reserved