NC Stochastic Cycles Description
NC Stochastic Cycles is an automated stochastic cycles strategy for NinjaTrader 8, and it comes with the full C# source code. I wanted to see what John Ehlers' MESA Stochastic and Super Smoother can do when they make every decision alone. It trades the turns of the cycle, and the exit follows the cycle too. The honest catch: markets don't always cycle, and there's no fixed stop in ticks.
How it works. The MESA Stochastic takes trend and noise out of price with a roofing filter (48-bar high-pass, 10-bar Super Smoother), then takes a stochastic over the Stochastic Period (15 by default) and smooths it again. A long needs a bar closing above the Super Smoother line (Super Smoother Period 15) after the previous bar's low touched it, a rising Super Smoother, and the stochastic below the Threshold (20). Shorts are the mirror, above 80. It enters at market with Position Size (1), one position at a time. A long is closed if the stochastic drops back under 20 before reaching 80. At the cross above 80, a trade not in profit is closed; otherwise a stop goes to entry plus Break Even % of the open profit (0). When the stochastic falls under 20 again, a trade not in profit is closed, and a winner exits on the next cross of either line. It warms up for 144 bars, has no time filter and doesn't close at the session end.
What you see. The Super Smoother is drawn on the price chart and the MESA Stochastic in its own panel, with lines at 20 and 80. Aqua and purple arrows mark the two exit stages, below the bar for longs and above it for shorts. It calculates on bar close.
How to use it. It needs no special bar type or extra data series. A higher Threshold, like 30, widens both zones for more trades. Raise Break Even % to lock part of the profit once the cycle peaks; before that the stochastic is the only exit, so check how far trades run against you. Run it on Sim101 and in the Strategy Analyzer first, and use it at your own risk.
Make it yours. Like all my frameworks, it comes with a code review video that explains the entry and exit logic, plus eight John Ehlers indicators with source code. Use it as is, learn from the code, or change it yourself or with AI like Claude. You could add a fixed first-stage stop, a session window or an end-of-day exit. Signals, staged exits and order handling are separate parts, so it's an easy base to build on. Have some good trades!
