Is this ES strategy sustainable?

Discussion in 'Strategy Development' started by fielman, Feb 28, 2008.

  1. fielman

    fielman

    I have been trading this fading strategy for just over one year. Profits are very volatile since I don't use stop losses.

    The strategy basically sells strength, buys weakness and waits for the opposite to happen or a time-frame to finish.

    Only trade at end of day with +- 50 reversals in the time period. Only 1 ES contract traded at a time.

    Is patience rewarded that much when trading the S&P 500?
     
  2. Lorenzo

    Lorenzo

    The maximum drawdown is too high, so your strategy is not sustainable imho
     
  3. Chriz

    Chriz

    You should ask yourself if you want to trade a system that didnt make any money since its equity high in september and generated huge drawdowns in between.
     
  4. Is this ES strategy sustainable?

    NO
     
  5. jmoo

    jmoo

    You need more then that. If you were selling against a resistance or support number then it would be more viable. Also I've noticed on days where the dow is up or down more then 150 there is no reversal, we usually close on the lows/highs.
     
  6. FredBloggs

    FredBloggs Guest

    i think its sustainable - providing you risk only a small % on each trade to avoid the strings of drawdowns carrying you out.

    perhaps testing in a variety of market conditions may also help

    jmo