The link to the website doesn't work. In fact website is defunct. Can anyone please explain clearly what this system was about? Thanks.
Thanks for advice but my point is - Maybe this system does not work, but I might just get some ideas from this system and tweak them to make it work. It obviously generated quite some interest when it was mentioned here on ET. So, at least some ideas might be worthwhile. I would really appreciate if someone can write down the rules of this system for me. Thanks.
Thanks a lot. Upon reading the article, it seems that I already have developed a variant of this strategy. Still, thanks again!
I'm pretty sure this was the system that was originally posted.... Simple System for Beginners The purpose of this thread is to present a simple system for beginners to trade stock index futures. We will use the emini Russell2000 "ER2" Globex contract. Its value to the trader is $100 per full point per contract. It trades in .10 increments so each tick is worth $10. If you trade with InteractiveBrokers your round turn commission is about $5.00. To keep our risk low, we will only enter trades for the afternoon session. So Rule #1 is: 1). WAIT until 1:00 Central Standard Time. The entry technique to use is a simple breakout method with which we look to catch an afternoon trend. We will take a move either long or short whichever comes first. The signals are derived by looking at moves AWAY from the day session opening price. This method is sometimes called "Opening Range Breakout". It has been "around" for many years. I first used a variation of it in 1989 on the S&P500 pit traded contract. Larry Williams used a variation of it on the 30yrBonds and the S&P500 to pyramid $10,000 to over $1,000,000 to win the Robbins Trading Championship in 1986. For this thread we will calculate the signals as follows: 2). Multiply the opening price of the day session by 1.0033 to get the buy signal. 3). Multiply the opening price of the day session by .9967 to get the sell short signal. At 1:00 enter a buy stop at the buy signal price and a sell stop at the short sell signal price. If the market is already past either signal it will become a market order with immediate execution. The remaining unexecuted stop is your stop loss. If the market is trading in a narrow range neither side may be executed and you may have no trade for the day. If your stop loss is hit you are done for the day. You will simply ride the position untill 3:00 pmCST and exit at that time. 4). Exit trade at 3:00pm if not stopped out. Thats it.
I think you have misunderstood. It's not MY system. I just copied and pasted the description of the original system that was on the link ("Example Trading System") posted by Sidinuk at the beginning of the thread.
But you said,you`d used the variation of it.Isn`t it the same thing? May i ask another question?What is the basis behind multiplying the opening price?Why these particular numbers?