Building a Rule-Based Approach With the LizardIndicators Toolbox

Developing a consistent, rules-driven strategy can be one of the most effective ways to navigate the futures markets. Kris Lassen of LizardIndicators shared how their newly launched Strategy Toolbox enables traders to move from loosely defined setups to a structured, testable approach using their suite of premium tools, including the Ichimoku indicator.

 

From concept to code: Building structure with the toolbox

 

LizardIndicators, founded in 2014 by Kris Lassen and Harry (known in the community as Fat Tails), supports a wide range of traders from discretionary to fully automated system developers. At the heart of their offerings is a 145-indicator open-source library, and more recently, a premium suite of proprietary tools.

The Strategy Toolbox is the next evolution. This framework allows traders to formalize trading ideas into objective rules, enabling clear entries, exits, and risk management logic. The toolbox integrates seamlessly with NinjaTrader’s Strategy Analyzer and supports a wide variety of filters, parameters, and time-based testing.

 

Using Ichimoku for signal clarity

 

To demonstrate the framework, Lassen used the premium Ichimoku indicator as an example. This multi-timeframe trend and momentum indicator includes five main components: Tenkan-sen, Kijun-sen, Senkou Span A and B (the cloud), and Chikou Span. By combining these elements, traders can identify trend direction and filter out noise.

Within the Strategy Toolbox, traders can define specific conditions, such as requiring price to be above the Kijun-sen, the Tenkan-sen to cross above the Kijun-sen, and price to be positioned above the cloud. These rules help differentiate between bullish, bearish, and neutral scenarios using visual cues like colored paint bars.

 

Testing for a statistical edge

 

Once the rules are set, the next step is determining whether the signals offer a statistical edge. Lassen emphasized the importance of isolating key and secondary signals and using time-based exits to gauge market follow-through. If a trade moves favorably within three to five bars, it may indicate a predictive setup; otherwise, it may just be market noise.

The included NinjaScript strategy templates allow for customization of directional bias (long/short/both), auto-reverse logic, and prime exits. Time-of-day filters further enhance control, enabling traders to test setups within high-probability windows based on volatility patterns.

 

Managing trades with the ATM master strategy

 

While fully automated strategies have appeal, many traders prefer a hybrid approach. The ATM Master Strategy template bridges the gap by combining backtested entry logic with discretionary trade management via the NinjaTrader Chart Trader interface.

Once a signal triggers, trades are executed using ATM templates, allowing traders to adjust stops and targets in real time. Features like trailing stops and break-even triggers are supported, and a directional toggle lets traders focus on long or short setups based on broader market context.

 

Expanding the framework to other tools

 

Beyond the Ichimoku indicator, LizardIndicators has developed similar Strategy Toolbox resources for their candlestick pattern, swing trend, and zero-lag oscillator indicators. Additional ATM templates for these tools are being added soon, extending the structured, rule-based approach across the premium suite.

For those using SharkIndicators tools, such as BloodHound and BlackBird, LizardIndicators also offers sample templates and tutorials to integrate their indicators with those platforms.

 

A pathway to methodical trading

 

Whether you’re aiming to build your first rule-based system or looking to refine your trade management, the Strategy Toolbox offers a structured pathway. By providing both the tools and the logic to identify and test potential trade setups, it gives traders the foundation to transition confidently from strategy development to live execution.

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