Post Tagged with: "futures trading"

Simple Shorting Strategy

October 17, 2016 5:00 am9 comments

Over the years I’ve looked at several very simple long strategies that were published in the book, “Short Term Trading Strategies That Work” by Larry Connors and Cesar Alvarez. Those articles include the following long strategies: Double Seven Strategy RSI(2) Strategy VIX Stretch Strategy RSI And VIX Strategy Buried within Connors and Alvarez’s book you will find one simple shorting strategy which can be used on the major market indices. In this article I will review this strategy and also combine it with the Double Shorting strategy we explored last week. Simple Shorting Strategy The rules of this system are very simple. The instrument must be below its 200 day moving average. If the instrument closes up for four or more days in […]

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The Double Seven Strategy

October 10, 2016 5:00 am4 comments

It’s time to look at another simple trading system which can be found in the book, ”Short Term Trading Strategies That Work” by Larry Connors and Cesar Alvarez. In this article we are going to look at the Double 7 strategy. This is a simple strategy that can be applied to the major market indices such as DIA, DOW and QQQ. It can also be applied to the futures markets. The rules of this system are very simple. The instrument must be above its 200 day moving average. If the instrument closes at a 7-day low – buy. If a long position is open and the instrument closes at a 7-day high – sell. The trading system follows two basic concepts we have talked a lot about on this […]

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Step One In Building An Intraday Trading System

September 26, 2016 5:00 am7 comments

If you have been reading System Trader Success for a while you’re probably familiar with how I develop trading systems. The very first step is to come up with a simple idea to act as the seed or core of your trading system. I call this your key concept. This key concept is a simple observation of market behavior. This observation does not need to be complex at all. In fact, they are often very simple. For example, here is a key concept: most opening gaps on the S&P market close if the gaps are less than 4 points. This key concept is very simple, and testable. It is from such observation that I’ll often start to build a trading […]

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Two Dimensional Market Environment Filter

September 5, 2016 5:00 am13 comments

In this article I’m going to demonstrate a technique to help adapt your trading systems to the changing market conditions. In a previous article entitled, “Trend Testing Indicators“, I tested several indicators that could be used to divide the market into two modes: bullish and bearish. These two modes were then used to dictate how the trading system should execute its trades. For example, during a bull mode only open long trades. During a bear mode only open short trades. In essence, we made our system adapt to the given market conditions. However, we can take this concept further by looking at a different market characteristic: trend strength. A market may be in a bull regime, but how strong is […]

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When To Go Short: S&P Intraday Price Study

March 14, 2016 5:00 am0 comments

This article is going to be an extension of a previous article where we performed an intraday price study. We do this by exploring different market sessions to determine if we can find an edge for a possible intraday trading system. If you have not read the previous article, When To Go Long, I urge you to read this because we are going to jump right in and explore the same concept on the short side. As a reminder here are the five different market sessions we will be looking at. Six Market Sessions Pre-Market, 06:20 – 08:30 The Open, 08:30 to 10:40 Midday, 10:40 to 13:50 The Close, 13:50 to 15:00 Post-Market, 15:00 to 17:10 We will be using the […]

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Top Five Most Popular Articles From 2015

January 4, 2016 5:00 am0 comments

Happy New Year system traders! With the new year it’s time to take a look back at 2015 and highlight the top five most popular articles. These articles all provide great material to help you in your systematic trading. Did you miss any of these articles? If so, now is your chance to review this popular material and see where it might fit into your system development process. I determined the top five articles based upon the number of views the article received. So let’s get going by starting with the 5th most popular article for 2015… Number 5 Connors 2-Period RSI Update For 2014 Once again the simple 2-period RSI trading models popularized by the book, “Short Term Trading Strategies […]

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The Death Cross – What You Need To Know

September 7, 2015 5:00 am0 comments

How well does the Death Cross or the Golden Cross predict future market behavior? One way to see is to create a simple trading system based upon the the Death Cross and Golden Cross signals. Using EasyLanguage it’s simple to create a trading system that is always in the market switching between a long position and short position based upon a moving average crossover. Check out the performance summary. You might be surprised!

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Improving The Simple Gap Strategy Part 4

July 27, 2015 5:00 am2 comments

In the last article of this series, Improving The Simple Gap Strategy Part 3, I tested a price-based filter on the in-sample data. This filter was based upon the price action of the previous trading day. During this test we discovered that if the previous trading day was a down-day we could open a Simple Gap trade today. On the other hand, if the previous trading day was an up-day we should not take our Simple Gap trade today. In this article I’m going to test dynamic stops and targets. Currently the strategy uses a fixed dollar amount for both the profit target and stop loss. I’m going to use the size of the gap as a factor in determining both the profit […]

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Most Popular Articles For 2014

December 29, 2014 5:00 am0 comments

mzns the year winds down, it’s time to take a look at the top five most popular articles for 2014. I determined the top five articles based upon the number of views the article received. So let’s get going by starting with the 5th most popular article for 2014… Number 5 RSI And How To Profit From It This is a popular article as it was written back in 2012. It demonstrates two very simple trading models to trade the S&P buy being into short-term weakness. This article was updated in 2013 which also made it to this list (see below). But we are due for an update in 2015 as many people will be wondering how this trading model did […]

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Improving The Double Seven Strategy

July 14, 2014 5:00 am19 comments

In this article I want to take a look at a reader’s recommendation on improving the Double Seven strategy. If you recall, the Double Seven strategy is a long-only strategy for the the broad U.S. indexes. It was created by Larry Connors and was covered in a previous article, “Double Seven Strategy”. Recently a reader pointed out a possible improvement to the system which appeared in the “Letters to the Editor” section of Stocks & Commodities Magazine, V. 27:3 (8-9). In short, the recommendation modified the entry and exit signals in an attempt to capture more profit. Changes included the following:  Market entry would become a buy stop entry and the exit would become a trailing stop. To be honest, […]

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