Developing a System to trade YM, ES and ESTX50

[TrailingStop]

Hi,

I’m starting now to develop a -for me- new Trading-System. I want to trade YM, ES and ESTX50. My first approach is a ‘Channel-Break-Out’ System. So what I want to do is this: Find a future that doesn’t move more that 0.2% for a defined period - let’s say 30 minutes. Then place a stop buy 0.1% above this channel and a stop sell 0.1% below it. If one of the orders gets filled, the other can work as a trailing stop.
I know that this is an old, well known system, I still do not know if it can be profitable today? Since I think that some traders have already tried this kind of system I would like to ask if anyone would share his experience.

Good Trades to all,
Daniel

 

[intradaybill]

I haver backtested a similar system in the past for currency futures and worked just fine. My only objection at this point is that the high volatility of the last few months could have resulted in large drawdowns.

I suggest you backtest this to get a better indication if it can offer some type of an edge.

 

[TrailingStop]

Hi intradaybill,

yes, I will do some more evaluation and backtesting. I think Volatility can also be a plus if used with a close stop. I will check this as well.