Monster ES Day Trading System Rules

[jaywireman]

I wanted to share a system I have been using for the past few days with some great results. I welcome any comments/feedback you can provide to improve the rules.

Here is the setup for Tradestation:

1) Create a 3000 tick bar chart of the @ES.D. The system also works on the @ER2.D.

2) Insert a 9 period EMA moving average. Make this line white.

3) Insert a 55 period SMA moving average. Make this line magenta.

4) Insert the Tradestation built-in indicator "TrendLines Automatic". Use the following settings: TrendLines Automatic(4,4,10,"Yes","Red","Blue","Intrabar").

5) Insert the MACD indicator. Use the default settings: 12,26,9.

Here are the trading rules:

1. Red line-this is the resistance line. This line will only be used for buy signals. One close above the red line and you can take a long(buy) entry on the open of the next bar.

2.Blue line-this is the support line. This line will only be used for sell signals. One close below the blue line and you can take a short(sell) entry on the open of the next bar.

3. White line-this line is your intial stop line and trailing stop line. Once you close above the red line or below the blue line then you use the white line as your stop. For ex: if you close one bar outside of the red line would be a buy signal at the open of the next bar. After entry your intial stop and trailing stop would be one close below the white line after entry.

4.Yellow/cyan line-these two lines are at the bottom of the chart. If the yellow line is above the cyan line the market is in an uptrend. If the yellow is below the cyan then the market is in a downtrend. The wider the lines are apart from each other then the stronger the trend in that direction. Also, you will notice a green horizontal line just near these lines. If both lines are above this green line(also called zero line) then the market is in a strong uptrend. If both lines are below the green horizontal line then the market is in a strong downtrend. In uptrends you like to see the yellow above the cyan and both lines above the green(zero line). This indicator validates the breakouts and breakdowns when you enter the market.

Here is a screen shot from March 20th, 2008:

Hope this helps my fellow traders.

Feedback and comments are welcome.

 

[dcraig1]

I wanted to share a system I have been using for the past few days with some great results.

We are in a period of exceptional volatility. I really don't think that any system tested over just the last few days is likely to have any enduring value.

 

[GatorLarry]

We are in a period of exceptional volatility. I really don't think that any system tested over just the last few days is likely to have any enduring value.

Maybe . . . maybe not. But at least he was kind enough to share his idea and I appreciate it. Anyone who takes trades from ANY system without enough back-testing will only have themselves to blame for losses.

 

[teezeike]

I wanted to share a system I have been using for the past few days with some great results. I welcome any comments/feedback you can provide to improve the rules.

Here is the setup for Tradestation:

1) Create a 3000 tick bar chart of the @ES.D. The system also works on the @ER2.D.

2) Insert a 9 period EMA moving average. Make this line white.

3) Insert a 55 period SMA moving average. Make this line magenta.

4) Insert the Tradestation built-in indicator "TrendLines Automatic". Use the following settings: TrendLines Automatic(4,4,10,"Yes","Red","Blue","Intrabar").

5) Insert the MACD indicator. Use the default settings: 12,26,9.

Here are the trading rules:

1. Red line-this is the resistance line. This line will only be used for buy signals. One close above the red line and you can take a long(buy) entry on the open of the next bar.

2.Blue line-this is the support line. This line will only be used for sell signals. One close below the blue line and you can take a short(sell) entry on the open of the next bar.

3. White line-this line is your intial stop line and trailing stop line. Once you close above the red line or below the blue line then you use the white line as your stop. For ex: if you close one bar outside of the red line would be a buy signal at the open of the next bar. After entry your intial stop and trailing stop would be one close below the white line after entry.

4.Yellow/cyan line-these two lines are at the bottom of the chart. If the yellow line is above the cyan line the market is in an uptrend. If the yellow is below the cyan then the market is in a downtrend. The wider the lines are apart from each other then the stronger the trend in that direction. Also, you will notice a green horizontal line just near these lines. If both lines are above this green line(also called zero line) then the market is in a strong uptrend. If both lines are below the green horizontal line then the market is in a strong downtrend. In uptrends you like to see the yellow above the cyan and both lines above the green(zero line). This indicator validates the breakouts and breakdowns when you enter the market.

Here is a screen shot from March 20th, 2008:

Hope this helps my fellow traders.

Feedback and comments are welcome.

Hi,

Your setup looks quite impressive.

BUT...I reckon that NO mechanical system works in trading.

What works is to try to know the market.

Cheers.

Ted

 

[mp6140]

I wanted to share a system I have been using for the past few days with some great results. I welcome any comments/feedback you can provide to improve the rules.

4.Yellow/cyan line-these two lines are at the bottom of the chart. If the yellow line is above the cyan line the market is in an uptrend. If the yellow is below the cyan then the market is in a downtrend. The wider the lines are apart from each other then the stronger the trend in that direction.

AHAAA ! --- i must ask you to trust me here and examine this phenomenon more closely --- when using x-over (or any indicator with a signal line) please understand that the WIDER APART THE LINES BECOME, THE CLOSER TO REVERSAL THE TRADE IS BECOMING !

other words, as the lines get wider apart (and HOW far apart you will learn thru experience} the trade is coming to an end --- one could even exit, with experience, based on how wide apart they are, and definitely when the lines are far apart and the "main" line begins a turn towards its "signal" line.

nice observations though

Also, you will notice a green horizontal line just near these lines. If both lines are above this green line(also called zero line) then the market is in a strong uptrend. If both lines are below the green horizontal line then the market is in a strong downtrend. In uptrends you like to see the yellow above the cyan and both lines above the green(zero line). This indicator validates the breakouts and breakdowns when you enter the market.


I notice you have a thin red line ABOVE your price, and it appears to be the same or similar to my LRC lines --- if you noticed, there were multiple attempts at breaking thru that line, which failed and created a retrace ---- now what I WOULD HAVE DONE is exit at the point of not having broken thru resistance, ride the present downtrend as a SHORT, and prepare for the obvious RETEST of the highs that is coming, and which may well break thru at this time.

As you can see, yours and most any x-over system has to, by its very nature, enter and exit late, with exits usually much later percentage wise than entries --- WHILE MUCH SAFER, this does cut down on your profit tremendously. You can overcome this problem by using support and resistance areas and exiting when resistance is hit (and then waiting to see if it breaks resistance, where you can enter again, either manually or with a BUY STOP set 5 pips or so ABOVE the resistance line) In this case, when the price hit the top trend line and could not break, that point was the OPTIMUM exit point to maximize profits.

If it doesnt break through, be ready to take the trade as a SHORT for the downside run and then trade the retrace back up BUT WATCH YOUR BULL/BEAR INDICATOR --- if the indicator shows BULLISH, be aware that the retrace will not be a long one (its simply the normal drop before the pop !) and that you wil be moving up fairly soon, depending on your timeframe ! Towards that end, you might add a 12 or 20 EMA which will react slower and not go as far down as your 9EMA did on the first drop --- that would have shown that the drop would only have been a small one, and that the BULLISH nature would continue (although all it did was go to the same resistance point this time, if it was going to break thru you could have remained in the trade because the indicator was giving you a positive and bullish confirmation !


enjoy and trade well

mp

 

[TWI]

jaywireman, thanks for the ideas. I have personally always found mean reversion the way to go with es. I have never used "TrendLines Automatic" in TS so have something new to play with now.

 

[Silversea]

Read this, found it helpful.Was thinking of the 3000 tick bar chart, how does one convert that into minutes bars? ( maybe a little late for this question !), whatever...

 

[Chartsky]

Read this, found it helpful.Was thinking of the 3000 tick bar chart, how does one convert that into minutes bars? ( maybe a little late for this question !), whatever...

They are completely different kinds of bars. Minute bars are finished forming when the time period is complete. Tick bars are finished when the number of ticks you set it for have been traded, regardless of the time it takes. For example, when volume is higher (right after the open) tick bars will form much faster than when volume is lower (like during lunch).

Some traders prefer either tick bars or volume (share) bars to minute bars because they provide a little more consistency. Price may move quickly for 10-15 minutes and distort any indicators (EMAs, etc.) based on a minute-based bar chart more than a tick or volume bar chart.

 

[dv007]

Jay Wireman is a system seller and a scammer...stay away.

 

[Silversea]

They are completely different kinds of bars. Minute bars are finished forming when the time period is complete. Tick bars are finished when the number of ticks you set it for have been traded, regardless of the time it takes. For example, when volume is higher (right after the open) tick bars will form much faster than when volume is lower (like during lunch).

Some traders prefer either tick bars or volume (share) bars to minute bars because they provide a little more consistency. Price may move quickly for 10-15 minutes and distort any indicators (EMAs, etc.) based on a minute-based bar chart more than a tick or volume bar chart.

Thanks for the detail explanation and thank you for your time.So the tick bars RATE are directly proportional to the Volume which is the same as a momentum visual aid. So how does that affect the Candlesticks Bars using ticks? hell, I'M getting too deep into this nonesence.But I would guess it would make the Candlesticks less reliable.

 

[Futures Trader 501]

Jay Wireman is a system seller and a scammer...stay away.

Is this is your day job? Trashing people trade? I think your mama is calling you.

 

[dv007]

Is this is your day job? Trashing people trade? I think your mama is calling you.

I'm a series 3 registered broker. Have seen so much snake oil it makes me sick. Back off and work on your English.

 

[Futures Trader 501]

I'm a series 3 registered broker. Have seen so much snake oil it makes me sick. Back off and work on your English.

You are a broker. I guess you don't trade and have time to give negative rewiews. I better forward this to the NFA, SEC, and CFTC.

 

[dv007]

You are a broker. I guess you don't trade and have time to give negative rewiews. I better forward this to the NFA, SEC, and CFTC.

Forward your butt off - by the way, I'm also a CTA so I get paid to trade. And I will give negative reviews about any material that I think is detremental to aspiring traders. Take care now.

 

[Futures Trader 501]

Forward your butt off - by the way, I'm also a CTA so I get paid to trade. And I will give negative reviews about any material that I think is detremental to aspiring traders. Take care now.

If you are a CTA, you must not be successful one. A successful CTA does not have time to post negative reviews or calling other traders scam.

In other word, you must be a failure CTA. You are a joke. Why dont you show your trading strategy in this forum. Don't be afraid.

 

[dv007]

If you are a CTA, you must not be successful one. A successful CTA does not have time to post negative reviews or calling other traders scam.

In other word, you must be a failure CTA. You are a joke. Why dont you show your trading strategy in this forum. Don't be afraid.

It takes me 30 seconds to post and I'm usually done trading by noon. And no CTA would ever divulge their strategy...you really have a lot to learn. And I have NEVER called a "trader" a scam. I have seen the system of which this thread is about and it is complete b.s. and a scam. I have seen other vendors selling snake oil on this forum and I know that most of their systems are b.s. because in the long run they don't make money. Just ask any series 3 registered professional and they will tell you the same thing - most commercially available systems are junk and they are designed to take advantage of newbies. I'm done with this...you are now officially wasting my time.

PS - Good luck with that 2pt target and 5pt or 6pt stop

 

[Futures Trader 501]

It takes me 30 seconds to post and I'm usually done trading by noon. And no CTA would ever divulge their strategy...you really have a lot to learn. And I have NEVER called a "trader" a scam. I have seen the system of which this thread is about and it is complete b.s. and a scam. I have seen other vendors selling snake oil on this forum and I know that most of their systems are b.s. because in the long run they don't make money. Just ask any series 3 registered professional and they will tell you the same thing - most commercially available systems are junk and they are designed to take advantage of newbies. I'm done with this...you are now officially wasting my time.

PS - Good luck with that 2pt target and 5pt or 6pt stop

If you are a CTA, show me your trades? CTA post their results and past performance. If you add the link here, consider that a marketing. Or, you can show me where your CTA rank by clicking the link below:

Top CTA Rankings - Managed Futures Performance - Altegris Investments


Enough of your B.S talk. Show me the proof? Otherwise, you are nothing but a joke.

 

[The ES]

If you are a CTA, show me your trades? CTA post their results and past performance. If you add the link here, consider that a marketing. Or, you can show me where your CTA rank by clicking the link below:

Top CTA Rankings - Managed Futures Performance - Altegris Investments


Enough of your B.S talk. Show me the proof? Otherwise, you are nothing but a joke.

Seems like DV007 is full of Sh##. LOL!

 

[new_trader]

Top Marks!

It takes me 30 seconds to post and I'm usually done trading by noon. And no CTA would ever divulge their strategy...you really have a lot to learn. And I have NEVER called a "trader" a scam. I have seen the system of which this thread is about and it is complete b.s. and a scam. I have seen other vendors selling snake oil on this forum and I know that most of their systems are b.s. because in the long run they don't make money. Just ask any series 3 registered professional and they will tell you the same thing - most commercially available systems are junk and they are designed to take advantage of newbies. I'm done with this...you are now officially wasting my time.

PS - Good luck with that 2pt target and 5pt or 6pt stop

Excellent, well said! A REAL trader.