Saturday, May 7, 2011

S&P Trading

dow2664

+9% on the S&P 500 in two months Chart 1. Relationship between the SBV Oscillator and index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20) 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) 3/18/2011 rule #2 Buy 1282 +7 3/23/2011 rule #4 Sell Short 1289 -21 3/24/2011 rule #3 Buy 1310 +22 4/04/2011 rule #4 Sell Short 1332 -5 4/05/2011 rule #2 Buy 1337 -5 4/05/2011 rule #4 Sell Short 1332 +16 4/14/2011 rule #2 Buy 1316 +4 4/15/2011 rule #4 Sell Short 1320 +14 4/19/2011 rule #2 Buy 1306 +56 5/02/2011 rule #4 Sell Short 1362 +22 Total: +120 (+9.4%) Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit. Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.



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