Sunday, November 7, 2010

Index Futures Trading

dow2664

Heikin Ashi Candlesticks were added to our charts This week's SBV chart example is based on the 5-day SBV Histogram S&P 500 index futures chart. This chart example is a continuation of example that was posted on October 22, 2010 . +13 points on the S&P 500 index futures Chart 1. Relationship between the SBV Histogram and index reversal points. S&P 500 index futures. 5-day view. 1 bar = 5 minutes. SBV Histogram(20,9) In our trading example, we applied the following simple system which is based on our SBV Histogram: Once the SBV Histogram has advanced above zero level (after having been below that level), we will enter a long position ; Once the SBV Histogram has fallen below a zero level (after having been above that level), we will enter a short position ; Close Position at the end of a trading session and before FED announcement (strong volatility). Detailed system description with explanation of used rules could be found in our ” SBV Trading System ” tutorial. Table 1: Trades based on the 5-rule system. Time Motivation Signal Index Profit (points) 11/1/2010 9:35 Rule #1 Buy 1187.50 +2.50 10:40 Rule #2 Sell Short 1190.00 +4.00 12:30 Rule #1 Buy 1186.00 -2.50 14:10 Rule #2 Sell Short 1183.75 +1.00 14:30 Rule #1 Buy 1182.75 -2.50 14:35 Rule #2 Sell Short 1180.25 +0.75 15:50 Rule #3 Cash 1179.50 11/2/2010 10:50 Rule #2 Sell Short 1188.50 -0.75 11:10 Rule #1 Buy 1189.25 0.00 11:20 Rule #2 Sell Short 1189.25 +0.75 11:50 Rule #1 Buy 1188.50 +1.50 12:40 Rule #2 Sell Short 1190.00 -1.25 13:05 Rule #1 Buy 1191.25 -0.50 14:20 Rule #2 Sell Short 1190.75 +0.75 16:00 Rule #3 Cash 1190.00 � 11/3/2010 10:25 Rule #2 Sell Short 1191.50 +5.25 12:25 Rule #1 Buy 1186.25 +0.75 14:00 Rule #3 Cash 1188.00 � 11/4/2010 9:35 Rule #1 Buy 1207.25 +0.50 10:00 Rule #2 Sell Short 1207.75 -2.50 10:40 Rule #1 Buy 1210.25 +2.25 11:25 Rule #2 Sell Short 1212.50 +0.25 11:45 Rule #1 Buy 1212.25 -0.75 12:00 Rule #2 Sell Short 1211.50 -2.00 12:30 Rule #1 Buy 1213.50 +0.75 12:35 Rule #2 Sell Short 1213.75 +0.75 13:35 Rule #1 Buy 1213.00 -0.50 14:00 Rule #2 Sell Short 1212.50 -3.00 14:35 Rule #1 Buy 1215.50 +3.00 16:00 Rule #3 Cash 1218.50 11/5/2010 11:00 Rule #2 Sell Short 1222.50 +2.75 12:50 Rule #1 Buy 1219.75 -2.00 14:15 Rule #2 Sell Short 1217.75 -1.00 15:40 Rule #1 Buy 1218.75 +5.25 16:00 Rule #3 Cash 1223.50 � Total: +13.50 points Note: Our charts are unique in that they give traders the opportunity to choose the specific chart settings that best fit their personal trading styles and risk tolerances. Traders can thus develop and test their own trading systems. On our charts, you can scroll back in history to test any system that you have created. Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Index Futures Trading



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