TradingBoss Glossary (Beginner-Friendly, Full Explanations + Examples)
Welcome to the TradingBoss Glossary.
If you’re new to futures, automation, NinjaTrader, or prop firms, you’re going to see a lot of new words fast. That can feel overwhelming at first, but this is normal.
This glossary is not a “dictionary with one-line definitions.” It’s designed to actually teach you what the term means, why it matters, and how it shows up inside TradingBoss + NinjaTrader + prop firms.
✅ How to use this document
Keep this open while you read other guides.
When you see an unfamiliar term, search it here and come back.
What You’ll Learn
You will learn:
What each key term means in plain English
Why it matters for automated futures trading
A simple example/context for each term
Related terms so concepts connect together
VPS (Virtual Private Server)
Definition: A VPS is a remote Windows computer that runs in a data center and stays online 24/7.
Why it matters: TradingBoss strategies are meant to run continuously. If you run them on your laptop, your laptop might sleep, update, crash, or lose internet. A VPS solves that by staying on all the time with stable connectivity.
Example: You connect to your VPS using Remote Desktop. You open NinjaTrader on the VPS, enable your strategies, then you can close your laptop and the bots keep running.
Related terms: Remote Desktop (RDP), uptime, machine binding.
ChartVPS
Definition: ChartVPS is a VPS provider commonly used for trading setups.
Why it matters: Trading-focused VPS providers are usually optimized for:
stable performance,
low-latency networking,
and consistent uptime.
Example: You buy a plan, receive login credentials, connect via Remote Desktop, and see a Windows desktop with NinjaTrader installed (depending on your setup).
Related terms: VPS, Remote Desktop (RDP).
Remote Desktop (RDP)
Definition: Remote Desktop is how you control your VPS from your own computer.
Why it matters: You don’t physically “go” to the VPS. You connect to it like a remote screen. Everything you do in that window happens on the VPS.
Example: You open Microsoft Remote Desktop, enter the VPS IP address, log in, and now you’re “inside” the VPS Windows environment.
Key beginner note: If you disconnect RDP, the VPS does not stop. It keeps running.
Related terms: VPS, uptime, disconnect.
NinjaTrader
Definition: NinjaTrader is the trading platform software where you run charts, connections, and automated strategies.
Why it matters: TradingBoss strategies run inside NinjaTrader. NinjaTrader is the “engine room” where:
price data comes in,
strategies decide what to do,
and orders are sent to your broker/prop firm connection.
Example: You open NinjaTrader → connect to your Tradovate or Rithmic connection → open an MNQ chart → add Pulse strategy → enable it.
Related terms: Control Center, chart, strategy, data feed, connection.
Control Center (NinjaTrader)
Definition: The Control Center is NinjaTrader’s main window. It includes menus for Connections, Accounts, Log, and other tools.
Why it matters: Most key actions happen from the Control Center, including:
connecting to your broker/prop firm connection,
checking account lists,
viewing logs and errors.
Example: You click Connections in Control Center to connect. You click Log to view connection errors.
Related terms: Connections, Log tab, Output window.
Instrument
Definition: An instrument is the market you are trading (example: NQ, MNQ, ES, MES).
Why it matters: TradingBoss strategies are designed for specific instruments. If you put the strategy on the wrong instrument, it may:
behave incorrectly,
not trade,
or have totally different risk than you intended.
Example: Pulse can run on NQ or MNQ. If you meant MNQ but accidentally selected NQ, your risk is 10x larger.
Related terms: contract, tick value, mini vs micro.
Futures
Definition: Futures are standardized contracts that represent exposure to an underlying market (like NASDAQ or S&P 500) for a specific contract month.
Why it matters: Futures move differently than stocks:
leverage is high,
tick values matter,
and brokers/prop firms enforce margin and drawdown rules.
Example: NQ futures might move 50 points in a day. That movement becomes real dollar P&L based on your contract size.
Related terms: contract, tick, point, margin.
Contract (Futures Contract)
Definition: A contract is the unit you trade in futures. It’s not “shares” like stocks—one contract has a defined tick value and size.
Why it matters: Your profit and loss is directly tied to how many contracts you trade.
Example: 1 MNQ contract is small. 1 NQ contract is 10x larger.
Related terms: mini contract, micro contract, tick value.
Mini Contract
Definition: A “mini” contract (also called E-mini) is the larger standard futures contract size.
In our context:
NQ and ES are mini contracts.
Why it matters: Mini contracts have much larger tick value and point value. Beginners often blow prop firm accounts by accidentally trading minis too early.
Example: 100 ticks against you on NQ is $500 per contract. On MNQ it’s $50 per contract.
Related terms: micro contract, tick value.
Micro Contract
Definition: A micro contract is 1/10 the size of a mini contract.
In our context:
MNQ and MES are micro contracts.
Why it matters: Micros allow safer sizing and smoother account swings. They are typically the best starting point for beginners.
Example: MNQ tick value is $0.50 (versus NQ $5).
Related terms: mini contract, tick value.
NQ
Definition: NQ is the E-mini NASDAQ-100 futures contract.
Why it matters: NQ is fast-moving and volatile, which can be good for opportunity—but dangerous for sizing mistakes.
Example: NQ tick value is $5 per tick per contract.
A 20-tick move on 1 contract is $100.
Related terms: MNQ, tick value, volatility.
MNQ
Definition: MNQ is the Micro E-mini NASDAQ-100 futures contract (1/10 size of NQ).
Why it matters: MNQ is often ideal for beginners and for controlling risk on prop firm accounts.
Example: MNQ tick value is $0.50 per tick per contract.
A 20-tick move on 1 contract is $10.
Related terms: NQ, micro contract.
ES
Definition: ES is the E-mini S&P 500 futures contract.
Why it matters: ES is widely traded and liquid. Its tick value is larger than NQ’s micro versions, so sizing still matters.
Example: ES tick value is $12.50 per tick per contract.
A 4-tick (1 point) move is $50.
Related terms: MES, tick value.
MES
Definition: MES is the Micro E-mini S&P 500 futures contract (1/10 size of ES).
Why it matters: MES is a safer way to trade S&P futures, especially with prop firm drawdown rules.
Example: MES tick value is $1.25 per tick per contract.
A 4-tick (1 point) move is $5.
Related terms: ES, micro contract.
Tick
Definition: A tick is the smallest price movement an instrument can make.
Why it matters: All risk and profit calculations start with ticks. If you don’t know tick value, you don’t know your risk.
Example: For NQ, tick size is 0.25.
If price goes from 22000.00 to 22000.25, that’s 1 tick.
Related terms: tick value, point, point value.
Point
Definition: A point is a full 1.00 movement in price.
Why it matters: Many traders speak in points (“NQ moved 10 points”). But your P&L is actually tick-based under the hood.
Example: With tick size 0.25:
4 ticks = 1 point.
Related terms: tick, tick size.
Tick Size
Definition: Tick size is the price increment of one tick (commonly 0.25 for NQ/MNQ/ES/MES).
Why it matters: Tick size controls how price moves and how ticks convert to points.
Example: If tick size is 0.25, then 4 ticks = 1 point.
Related terms: tick, point.
Tick Value
Definition: Tick value is how many dollars you gain or lose per tick per contract.
Why it matters: This is the key to risk calculation.
Reference values:
NQ: $5/tick
MNQ: $0.50/tick
ES: $12.50/tick
MES: $1.25/tick
Example: If MNQ moves 10 ticks in your favor on 2 contracts:
10 × $0.50 × 2 = $10 profit.
Related terms: point value, risk calculation.
Point Value
Definition: Point value is how many dollars you gain or lose per point per contract.
Since 1 point = 4 ticks (for these instruments): Point Value = Tick Value × 4
Reference values:
NQ: $20/point
MNQ: $2/point
ES: $50/point
MES: $5/point
Example: If ES moves 2 points against you on 1 contract:
2 × $50 = $100 loss.
Related terms: tick value, point.
Stop Loss
Definition: A stop loss is an order that exits your position if price moves against you by a defined amount.
Why it matters: Stops control maximum loss per trade. But maximum loss is not just the stop—contracts multiply it.
Example: MONEYBAGS uses a 100-tick stop (structure).
On MNQ, 100 ticks = $50 per contract.
On NQ, 100 ticks = $500 per contract.
Related terms: target, bracket, risk.
Take Profit / Target
Definition: A target (take profit) is an order that exits your trade at a profit when price moves in your favor by a defined amount.
Why it matters: Targets define the “win size” and are part of strategy design.
Example: MONEYBAGS targets 20 ticks.
On MNQ: 20 ticks = $10 per contract.
On NQ: 20 ticks = $100 per contract.
Related terms: stop loss, bracket.
Bracket Order
Definition: A bracket is the combination of:
entry order,
stop loss order,
take profit (target) order.
Why it matters: Brackets protect you. Good automation relies on always having protective stops/targets attached.
Example: Strategy enters long, and immediately submits both:
stop below entry
target above entry
Related terms: stop loss, target.
Trailing Drawdown
Definition: A trailing drawdown is a max-loss threshold that moves upward as your account hits new equity highs.
Why it matters: It’s the #1 reason prop firm accounts fail unexpectedly.
Example: 50K eval, trailing drawdown distance $2,500.
If your peak equity becomes $52,000, your fail line becomes $49,500.
If you drop below that, you fail—even if you’re still “above starting balance” in some sense.
Some firms trail unrealized equity, making large size especially risky.
Related terms: static drawdown, evaluation, PA.
Static Drawdown
Definition: Static drawdown does not move upward with your equity peak (or it “locks” after a point). It stays fixed at a defined level.
Why it matters: Static drawdown is often less punishing than trailing drawdown and is typically seen in some funded stages.
Example: If your max loss line is fixed at $50,100, it stays there even if your account grows.
Related terms: trailing drawdown, funded account.
Evaluation
Definition: An evaluation is the test phase in a prop firm where you must hit a profit target without breaking rules.
Why it matters: This stage has strict drawdown rules. Many traders choose different risk here than they do when funded.
Example: A trader might use FastPass to attempt a quick pass (if the firm allows).
Related terms: prop firm, profit target, trailing drawdown.
Funded Account
Definition: A funded account is the stage after you pass evaluation where you can earn payouts (after meeting payout rules).
Why it matters: This is where stability matters most. Aggressive eval behavior can destroy funded accounts.
Example: After passing, many traders switch to more conservative sizing and strategies.
Related terms: PA, payout, risk management.
PA (Performance Account)
Definition: A “PA” is a term some firms use for a funded account stage.
Why it matters: This is the stage tied to payouts, so risk should usually be more conservative.
Related terms: funded account, evaluation.
Prop Firm
Definition: A prop firm provides a rule-based funded environment where traders can qualify for payouts.
Why it matters: You are trading under a rulebook. Automation must follow those rules, and you must size accordingly.
Example: Firms may enforce trailing drawdown, daily loss limits, minimum days, etc.
Related terms: evaluation, funded account, drawdown.
Broker
Definition: A broker is the company that routes your orders and provides market access/data.
Why it matters: Prop firms often use brokers like Tradovate or Rithmic as the “pipeline” into the market.
Example: Your prop firm account might be an “Apex account using Tradovate connection.”
Related terms: Tradovate, Rithmic, connection.
Tradovate
Definition: Tradovate is a brokerage/data feed connection option commonly used in futures and prop firm setups.
Why it matters: Your account type determines whether you use Tradovate or Rithmic. You must connect using the correct one in NinjaTrader.
Example: In NinjaTrader, you select Connections → Tradovate → enter credentials.
Related terms: broker, connection, data feed.
Rithmic
Definition: Rithmic is another brokerage/data feed connection option in futures and prop firm environments.
Why it matters: Some prop firm accounts are specifically “Rithmic-based.” NinjaTrader must connect using the correct Rithmic connection.
Example: If you try to connect a Rithmic account using Tradovate settings, it will fail.
Related terms: broker, connection.
Connection
Definition: A connection is NinjaTrader’s link to your broker/data feed.
Why it matters: No connection = no data = no trades.
Example: A green indicator typically means connected; red often means disconnected.
Related terms: data feed, credentials, log.
Data Feed
Definition: A data feed is the live market price stream (quotes, candles, ticks) coming into NinjaTrader.
Why it matters: Strategies need live data to function. If your chart is frozen, your data feed may be stalled.
Example: If NQ is moving in the market but your chart isn’t, data feed may not be flowing.
Related terms: connection, chart, chart frozen.
Chart
Definition: A chart is the visual display of price over time. Strategies attach to charts.
Why it matters: TradingBoss strategies must be placed on the correct chart with the correct instrument and timeframe.
Example: MONEYBAGS must be on a 30-second chart of NQ or MNQ.
Related terms: timeframe, instrument, strategy.
Timeframe
Definition: Timeframe is the candle interval (1 minute, 3 minute, 30 seconds, etc.).
Why it matters: Strategies are designed for specific timeframes. Wrong timeframe can mean:
no trading,
incorrect signals,
or broken behavior.
Example:
FastPass: 1-minute chart
MONEYBAGS: 30-second chart
Blitz: 3-minute chart
Pulse: 1-minute chart
60M: 3-minute chart
Related terms: chart, instrument.
Strategy
Definition: A strategy is an automated trading algorithm running inside NinjaTrader that can place real orders.
Why it matters: This is the “bot.” TradingBoss strategies are pre-built. Your job is to apply them correctly and manage risk.
Example: You right-click chart → Strategies → select “Pulse” → enter license → select account → enable.
Related terms: algorithm, bot, enable.
Algorithm
Definition: An algorithm is a set of rules that makes decisions automatically.
Why it matters: TradingBoss strategies are algorithms. They do not “feel” the market. They follow structured logic.
Example: Blitz may check filters like trend direction and confidence thresholds before entering.
Related terms: strategy, bot.
Bot
Definition: A bot is a shorthand word for an automated strategy.
Why it matters: Bots follow rules consistently. That’s powerful, but they also can’t “guess” what you intended if setup is wrong.
Example: If you apply the bot to the wrong instrument, it may still trade—just with unintended risk.
Related terms: strategy, automation.
License
Definition: A license is permission to use TradingBoss strategies, enforced by validation.
Why it matters: Without a valid license, strategies will show UNLICENSED and refuse to trade.
Example: You paste your license key into the strategy settings. Strategy verifies it with the license server.
Related terms: license key, machine ID, subscription.
License Key
Definition: The unique code you paste into the strategy settings to activate licensing.
Why it matters: A missing or incorrect key will prevent trading.
Example: Format often looks like XXXX-XXXX-XXXX-XXXX.
Related terms: license, UNLICENSED.
Machine ID (Machine Binding)
Definition: A machine ID is a fingerprint of your VPS/computer used to bind a license to one machine.
Why it matters: This prevents license sharing and controls access.
Example: If you change VPS providers, your machine ID changes and you may need a license reset.
Related terms: licensing, VPS.
Heartbeat
Definition: A heartbeat is a periodic “check-in” sent from the strategy to the server indicating it’s running.
Why it matters: Heartbeats help monitoring, troubleshooting, and session validation.
Example: The strategy may ping status every 30 seconds to maintain live monitoring.
Related terms: licensing system, monitoring.
Session
Definition: A session is a defined trading time window.
Why it matters: Strategies often only trade during specific sessions to avoid low-liquidity or undesirable periods.
Example: Blitz may trade only during a power hour window.
Related terms: time window, session times.
Position
Definition: A position is your current market exposure: long, short, or flat.
Why it matters: If you’re in a position, you have risk. Strategies manage positions automatically.
Example: If Pulse is IN TRADE, you have an open position.
Related terms: long, short, flat.
Long
Definition: Long means you bought expecting price to go up.
Why it matters: If price rises, longs profit. If price falls, longs lose.
Example: Strategy enters long MNQ and targets 28 ticks.
Related terms: short, position.
Short
Definition: Short means you sold expecting price to go down.
Why it matters: If price falls, shorts profit. If price rises, shorts lose.
Example: Strategy enters short NQ on a bearish signal.
Related terms: long, position.
Flat
Definition: Flat means no position is open.
Why it matters: Flat = no exposure risk at that moment.
Example: Strategy is SCANNING (flat) waiting for next setup.
Related terms: position, scanning.
Entry
Definition: Entry is the moment/order where a strategy opens a position.
Why it matters: Entry price determines stop/target placement and risk.
Example: Bot enters long at 22000.00 with a stop 88 ticks below.
Related terms: exit, fill.
Exit
Definition: Exit is the order that closes your position (stop loss, target, manual close).
Why it matters: Exits define outcomes. Bots typically exit via stop/target.
Example: Trade exits at target for +20 ticks.
Related terms: stop loss, target.
Fill
Definition: A fill is the actual executed price of your order.
Why it matters: You might not fill exactly where you click. The difference affects P&L.
Example: You place an order at market; fill happens 1–2 ticks worse. That’s slippage.
Related terms: slippage, orders.
Slippage
Definition: Slippage is the difference between expected order price and actual fill price.
Why it matters: Slippage increases with volatility and can slightly change your real risk.
Example: If your stop triggers during a fast move, you may exit a few ticks worse than planned.
Related terms: fill, volatility.
ATR (Average True Range)
Definition: ATR is a volatility measure that estimates how much a market typically moves.
Why it matters: 60M uses ATR-based sizing to adjust contract size based on volatility.
Example: High ATR day → fewer contracts, wider stop.
Low ATR day → more contracts, tighter stop.
Related terms: volatility, dynamic sizing.
Volatility
Definition: Volatility is how much and how quickly price moves.
Why it matters: Higher volatility increases:
slippage,
drawdown swings,
risk of hitting trailing thresholds.
Example: On major news days, NQ can move extremely fast.
Related terms: ATR, slippage.
Hedging
Definition: Hedging (in prop firm context) often refers to holding opposing positions that some firms prohibit.
Why it matters: Running multiple strategies can create accidental hedging (one long, one short).
Example: 60M is long while Pulse enters short on the same account.
Related terms: prop firm rules, one strategy per account.
Contract Stacking
Definition: Contract stacking is when multiple strategies open positions and your total contract count becomes larger than you intended.
Why it matters: You can exceed risk limits without realizing it.
Example: Strategy A opens 2 contracts, Strategy B opens 3 contracts → total 5 contracts exposure.
Related terms: hedging, risk management.
Workspace (NinjaTrader)
Definition: A workspace is a saved layout of charts and windows in NinjaTrader.
Why it matters: If you don’t save your workspace, you can lose your setup when NinjaTrader closes.
Example: You save a workspace called “TradingBoss” and reload it after a restart.
Related terms: charts, setup.
Output Window (NinjaTrader)
Definition: Output is where NinjaTrader strategies often print status and diagnostic messages.
Why it matters: Licensing and errors are frequently visible here.
Example: You see “LICENSE VALID” or “License validation failed.”
Related terms: Log tab, troubleshooting.
Log Tab (NinjaTrader)
Definition: Log is where NinjaTrader records connection events and errors.
Why it matters: If you can’t connect, Log usually tells you why.
Example: “Login failed” or “Connection lost.”
Related terms: connection, credentials.
Account
Definition: An account is the trading account you select when enabling a strategy (SIM, evaluation, funded).
Why it matters: If you select the wrong account (like SIM 101), the strategy may trade in simulation instead of your real prop account.
Example: You must choose your Apex evaluation account from the dropdown, not SIM.
Related terms: simulation, live account.
Simulation / Sim (SIM 101)
Definition: Simulation is paper trading. It uses fake money and does not place real trades.
Why it matters: It’s useful for testing. But beginners often accidentally run strategies on SIM and think the bot “isn’t working live.”
Example: In Accounts list, you see only SIM 101 when disconnected. After connecting, your real accounts appear.
Related terms: live account, account selection.
Live Account
Definition: A live account is a real prop firm account (evaluation or funded) that places real trades.
Why it matters: You must select the correct live account to trade properly.
Example: If you want FastPass to trade, it must be enabled on the correct evaluation account.
Related terms: account selection, prop firm.
Demo Account
Definition: A demo account is a test account provided by a broker/firm that may simulate live conditions.
Why it matters: It’s another “not real money” environment, but some licenses may restrict to demo only depending on product terms.
Related terms: licensing, simulation.
Status Labels (ACTIVE, SCANNING, IN TRADE, DONE FOR DAY, UNLICENSED)
Definition: These are status states strategies display to tell you what they’re doing.
Why it matters: They prevent confusion. “No trade” isn’t always a problem—SCANNING is normal.
Examples:
ACTIVE: licensed and running
SCANNING: waiting for setup
IN TRADE: position open
DONE FOR DAY: daily limit reached
UNLICENSED: licensing problem, won’t trade
Related terms: troubleshooting, output.
Summary
You now have a clear explanation of the core vocabulary used across TradingBoss:
Platform and infrastructure: VPS, RDP, NinjaTrader
Markets and math: contracts, ticks, points, tick value
Strategy behavior: charts, timeframe, sessions, statuses
Prop firm rules: evaluation, funded/PA, trailing drawdown
Risk concepts: slippage, volatility, ATR, stacking, hedging
Setup tools: workspace, Output, Log
If any term still feels fuzzy, that’s okay. Understanding comes from repetition. The key is knowing where to look when you need clarity.
Next Steps
You’ve completed the onboarding documentation set through the Glossary.
If you want the final “wrap-up” document that ties everything together operationally, go back to:
daily-operations.mdtroubleshooting.md
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