ES Trend-Following Intraday System

Discussion in 'Strategy Development' started by IndexSwing, Apr 1, 2009.

  1. Using a chart of ES with 5min bars and MACD plus 20 period EMA.

    Entry:
    Enter long when the MACD line has crossed above the zero line and price is above the 20EMA. Enter short when the MACD line has crossed below the zero line and price is below the 20EMA.

    Stop & Profit Target:
    Set a 2 point stop and a 10 point profit target/limit order. (this is based on current market volatility, back in Oct maybe 4 point stop and 20 point profit target). Trail the stop according to the last value of the EMA.


    What is right or wrong with this system?