As a trader, one of the most exciting moments is spotting a high probability move right after a breakout. The challenge, however, lies in identifying these opportunities consistently and executing trades with precision. Over time, I have developed and refined a powerful strategy called the Double Cross Double Move (DCDM) within the AlgoBox system, designed specifically for NinjaTrader futures trading. This strategy leverages proprietary indicators and real-time order flow analysis to give traders an edge in capturing strong follow-up moves after key market events.
In this comprehensive guide, I’ll walk you through the DCDM strategy, breaking down its components, how to recognize setups, manage risk, and maximize potential rewards. Whether you’re new to order flow trading or looking to sharpen your breakout tactics, this tutorial will provide you with actionable insights to incorporate the DCDM into your trading toolkit.
Table of Contents
- Step 1: Understanding the Core Concept of DCDM
- Step 2: Recognizing When a DCDM Setup Occurs
- Step 3: Adding Context with Market Speed and Audio Box Alerts
- Step 4: Executing a DCDM Trade – A Real Example
- Step 5: Mastering the DCDM Strategy Through Practice
- Step 6: Taking Your Trading to the Next Level with AlgoBox
- Frequently Asked Questions (FAQ) About the DCDM Strategy
- Conclusion: Harnessing the Power of the Double Cross Double Move
Step 1: Understanding the Core Concept of DCDM
The Double Cross Double Move (DCDM) is a strategy concept that centers around detecting significant shifts in market momentum by observing specific order flow patterns. At its core, the DCDM leverages the power of what we call Flowmaster crosses—unique proprietary indicators developed for the AlgoBox system.
Flowmaster crosses are designed to track real-time order flow shifts, pinpointing moments when there is notable buying or selling activity. These shifts often suggest that the market momentum is about to change or accelerate. The magic of the DCDM occurs when two Flowmaster crosses appear within a short span—specifically within ten to fifteen Algo bars of each other—indicating the potential for a double move in price.
This setup is particularly powerful because it combines both timing and order flow data, giving traders a signal not just that something has happened, but that a continuation or acceleration of the move is likely.
Why Focus on Two Crosses?
One Flowmaster cross signals a shift in order flow, but when two crosses occur in close proximity, it suggests a reinforced momentum shift. Think of it as the market confirming its direction twice in rapid succession. This “double confirmation” helps reduce false signals and increases the probability that the move will continue.
It’s important to note that the 10-15 Algo bar window is crucial. Too far apart, and the crosses lose their relevance to each other; too close, and you might miss important market developments in between.
Alternative Indicator: Alpha Omega Crosses
While Flowmaster crosses are the primary indicator for the DCDM, the strategy can also be applied using Alpha Omega crosses. These are another set of proprietary indicators within the AlgoBox system that similarly track order flow and momentum shifts.
One key difference is that the system does not automatically plot stops and targets for Alpha Omega-based DCDM setups, but the underlying structure and logic remain valid. This flexibility allows traders to adapt the strategy based on their preferences or the instruments they trade.
Step 2: Recognizing When a DCDM Setup Occurs
Identifying a DCDM setup requires watching for specific market conditions and price action. Typically, a DCDM happens in one of two scenarios:
- After a breakout from an accumulation zone: When price consolidates in a tight range, often called an accumulation zone, a breakout signals that buyers or sellers are stepping in. The DCDM setup emerges as the market confirms the breakout with two Flowmaster crosses.
- Following a strong directional move: Sometimes, after a powerful price move, the market pauses or pulls back slightly before continuing. The DCDM helps identify when the momentum is gearing up for the next leg.
Both scenarios offer a solid chance for a strong follow-up move, which is exactly what the DCDM strategy aims to capture.
How AlgoBox Helps Define Structure
One of the advantages of using the AlgoBox system is its automation of key trade structure elements. When a DCDM setup is detected, AlgoBox automatically plots ideal levels for stop placement and target projection. This feature removes a lot of guesswork, helping traders clearly visualize where to enter, where to protect their capital, and where to take profits.
Having these levels automatically generated based on proven logic means you can focus more on execution and less on manual calculations or second-guessing your plan.
Step 3: Adding Context with Market Speed and Audio Box Alerts
While the Flowmaster crosses and plotted levels form the backbone of the DCDM strategy, additional factors can provide valuable context and increase confidence in your trades. Two such factors are market speed and audio box alerts.
Market Speed
Market speed refers to how quickly price is moving. A rapid acceleration in price movement can signal strong buying or selling pressure that supports the DCDM setup.
Paying attention to speed helps you differentiate between a weak move and one with real momentum behind it. A DCDM setup accompanied by accelerating market speed is more likely to result in a successful trade.
Audio Box Alerts
The AlgoBox system features audio alerts—often referred to as “audio box clacks”—that notify you of significant order flow activity, such as large buyers entering the market. These sounds act as an audible confirmation that big players are participating in the move.
When you hear audio box alerts right after or during a DCDM setup, it reinforces the signal and suggests that the move is supported by strong market interest.
Step 4: Executing a DCDM Trade – A Real Example
To illustrate the DCDM strategy in action, let’s walk through a typical trade setup:
- A Flowmaster cross appears on the AlgoBox chart. This signals notable order flow activity and potential momentum shift.
- Within the next 10-15 Algo bars, a second Flowmaster cross emerges, confirming the initial signal and reinforcing the potential for a continued move in the same direction.
- Price may hesitate momentarily, which is normal as the market tests supply and demand levels.
- During this pause, audio box clacks begin, indicating that large buyers or sellers are entering the market.
- This audio confirmation suggests that other traders are jumping into the move, increasing the probability of success.
- At this point, traders might consider entering near a key price level, which is often highlighted by AlgoBox tools.
Choosing Your Targets
When setting profit targets, I recommend focusing on key levels such as the “golden line,” a term used within the AlgoBox system to denote important price areas derived from historic and structural analysis.
These levels often act as natural points where price may stall or reverse, making them ideal spots to take profits or scale out of your position.
Managing Risk with Stops
Risk management is paramount in any trading strategy, and the DCDM is no exception. I advise placing stops below the Flowmaster crossbox—the area where the crosses occurred—to protect against sudden reversals.
This stop placement aligns logically with the trade structure: if price falls back below the crossbox, it suggests that the momentum has failed, and the trade idea is invalidated.
Step 5: Mastering the DCDM Strategy Through Practice
Mastering any trading strategy takes time and repetition. The DCDM concept is no different. To build confidence and improve your ability to spot these setups, I highly recommend using NinjaTrader’s market replay functionality.
Market replay allows you to simulate trading in a risk-free environment by replaying past market data. This gives you the opportunity to practice identifying Flowmaster crosses, spotting DCDM setups, and executing trades without risking real capital.
Through consistent practice, you’ll develop an intuitive feel for the timing and nuances of the DCDM, enhancing your ability to apply it in live trading.
Step 6: Taking Your Trading to the Next Level with AlgoBox
If you’re ready to integrate the full power of the AlgoBox tools and strategies into your trading, I encourage you to start with a free two-week trial. This gives you complete access to the system, including Flowmaster crosses, Alpha Omega crosses, automatic plotting of stops and targets, audio box alerts, and much more.
Additionally, AlgoBox offers an eight-day boot camp designed to deepen your understanding of key concepts like the DCDM and other advanced order flow strategies. This structured training helps traders accelerate their learning curve and start applying these techniques effectively.
Joining the AlgoBox community also connects you with real-time insights, trade room discussions, and ongoing support, creating an environment that fosters continuous improvement.
Frequently Asked Questions (FAQ) About the DCDM Strategy
What exactly are Flowmaster crosses?
Flowmaster crosses are proprietary indicators within the AlgoBox system that detect real-time shifts in order flow, signaling significant buying or selling activity. They help identify potential changes or accelerations in market momentum.
Can I use the DCDM strategy with instruments other than futures?
Yes, while the strategy is demonstrated with NinjaTrader futures, the principles of order flow and momentum shifts apply broadly. However, availability of Flowmaster or Alpha Omega crosses depends on your trading platform and instrument.
How do I know the best place to enter a DCDM trade?
Entry is typically considered near the second Flowmaster cross or at key price levels confirmed by audio box alerts and market speed. AlgoBox also plots ideal entry zones to guide your decision.
What if the price reverses after I enter a trade?
Risk management is critical. Place stops below the Flowmaster crossbox to protect against reversals. If price hits your stop, it’s a signal to exit and preserve capital.
Is it necessary to use audio box alerts?
While not mandatory, audio box alerts provide valuable confirmation that large traders are entering the market. They add an extra layer of confidence to the DCDM signal.
How can I practice the DCDM strategy without risking money?
Use NinjaTrader’s market replay feature to simulate trades on historical data. This allows you to practice identifying setups, executing trades, and managing risk in a controlled environment.
Are there any resources to learn more about DCDM and AlgoBox?
Yes, AlgoBox offers free downloads, training videos, and an eight-day boot camp that covers DCDM and other strategies in depth. Joining the AlgoBox community also provides live trade rooms and ongoing support.
Conclusion: Harnessing the Power of the Double Cross Double Move
The Double Cross Double Move strategy is a powerful tool for traders looking to capitalize on high probability moves following breakouts or strong directional shifts. By combining real-time order flow indicators like Flowmaster crosses, automatic trade structure plotting, and contextual cues such as market speed and audio box alerts, the DCDM offers a comprehensive framework for precision trading.
Mastering this strategy requires patience, practice, and a disciplined approach to risk management. Using resources like NinjaTrader’s market replay and the full suite of AlgoBox tools can accelerate your learning curve and help you trade with greater confidence.
Whether you are a beginner or an experienced trader, integrating the DCDM into your trading plan can add a valuable edge. Start exploring this strategy today and take advantage of the structured, data-driven approach to breakout trading that AlgoBox provides.
Happy trading, and here’s to your success in capturing those double move opportunities!
This article was created from the video DOUBLE CROSS DOUBLE MOVE (DCDM) Strategy 🟪 NinjaTrader Futures | AlgoBox Training with the help of AI.