Emini Methods- Advice- Article6 - Free trading system: BC

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Free trading system: BC

This is a very simple mechanical system that uses no oscillators. The only indicators it employs are those of the moving average and bands variety.

The system details along with a whole folder of pictures have been posted on my Yahoo.com group on April 19th, 2006. Please feel free to sign up for the group if you would like to learn more about this system.

I named the system 'BC' which stands for 'Breakout Continuation', the breakout in question being that of the 9:30-11:45 AM range. What's so special about this range? Well, 11:45 AM marks the end of first third of the futures daily session (9:30 to 16:15 EST). This means that the market has had enough time to make up its mind as to where it wants to go for the rest of the day and very often the breakout of the range in question is successful. This little system of mine waits for the first pullback after the breakout and enters in the direction of the breakout as long as the breakout is strong enough. The system determines the breakout strength before the entry takes place.

The system results can be seen on this page. As you see, the system is profitable. I would encourage you though to concentrate on the entry setup and use it even outside this particular range breakout as long as the breakout is strong enough and occurs after 10:30 AM. That's how I use it. I also apply discretion to my trades, so I usually do better than the system. The main reason I design simple mechanical systems like this one is to see if my setups have a genuine edge. If they do have one, then I can feel pretty comfortable using them in a discretionary way. If they lack such a thing, then adding discretion is not going to help much and it makes more sense to find something that has a true edge instead of hoping for the market mercy- the market is not that often merciful to fools.

I have not tracked this system in 2006 simply because I track many systems and once I have done this for a while and I am sure the system is solid enough I might stop doing it. This is particularly so for the systems that rely on indicators (they take more time to keep track of) and those where I apply discretion (my results are not that often consistent with the system results so why bother keeping track of both if the actual results are usually better, anyway).

I wrote the system description just for myself and so if you find it a bit cryptic, please refer to the pictures. There are plenty of them and they are well described so you will certainly get the big picture. It is the big picture that matters and not the details. The details were introduced to make the system as simple and clean as possible mechanically, but if you use discretion you may choose to ignore some of them.

One of the things that I hope you will learn from this system is that it is possible to trade without oscillators. Some 80% of traders lose, and about as many vendors use oscillators in their systems or methods. I suspect that there is a correlation between these two things. In any case, it is never a bad idea to seek the edge where most people don't...

I posted the system details on my Yahoo.com group and not here for two reasons. First of all, I want to limit the transfer of files from this site as I have to pay for this. And secondly, I suspect that this site will not survive longer than Yahoo.com groups. My first site, even though very popular lasted only seven years. This one will probably not last longer while I would expect Yahoo.com to last until the next major comet impact. Yes, comets can impact your life the same way most vendors do... The only reason dinosaurs could go on living for so long was because there were no vendors in those days yet...

One more thing: I did not create my Yahoo.com group to snatch your email address and spam your account. It does not take a Ph.D. in anything to know that this marketing 'technique' usually does not work and sometimes even backfires. Somehow, that does not prevent many vendors from using it, but that's another story. You can read all I post to the group on the web, you don't have to receive any emails from me, whatsoever.

Disclaimer: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS UNLIKE AN ACTUAL PERFORMANCE RECORD. SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

HOME A Word of Advice	Free trading system: BC This is a very simple mechanical system that uses no oscillators. The only indicators it employs are those of the moving average and bands variety. The system details along with a whole folder of pictures have been posted on my Yahoo.com group on April 19th, 2006. Please feel free to sign up for the group if you would like to learn more about this system. I named the system 'BC' which stands for 'Breakout Continuation', the breakout in question being that of the 9:30-11:45 AM range. What's so special about this range? Well, 11:45 AM marks the end of first third of the futures daily session (9:30 to 16:15 EST). This means that the market has had enough time to make up its mind as to where it wants to go for the rest of the day and very often the breakout of the range in question is successful. This little system of mine waits for the first pullback after the breakout and enters in the direction of the breakout as long as the breakout is strong enough. The system determines the breakout strength before the entry takes place. The system results can be seen on this page. As you see, the system is profitable. I would encourage you though to concentrate on the entry setup and use it even outside this particular range breakout as long as the breakout is strong enough and occurs after 10:30 AM. That's how I use it. I also apply discretion to my trades, so I usually do better than the system. The main reason I design simple mechanical systems like this one is to see if my setups have a genuine edge. If they do have one, then I can feel pretty comfortable using them in a discretionary way. If they lack such a thing, then adding discretion is not going to help much and it makes more sense to find something that has a true edge instead of hoping for the market mercy- the market is not that often merciful to fools. I have not tracked this system in 2006 simply because I track many systems and once I have done this for a while and I am sure the system is solid enough I might stop doing it. This is particularly so for the systems that rely on indicators (they take more time to keep track of) and those where I apply discretion (my results are not that often consistent with the system results so why bother keeping track of both if the actual results are usually better, anyway). I wrote the system description just for myself and so if you find it a bit cryptic, please refer to the pictures. There are plenty of them and they are well described so you will certainly get the big picture. It is the big picture that matters and not the details. The details were introduced to make the system as simple and clean as possible mechanically, but if you use discretion you may choose to ignore some of them. One of the things that I hope you will learn from this system is that it is possible to trade without oscillators. Some 80% of traders lose, and about as many vendors use oscillators in their systems or methods. I suspect that there is a correlation between these two things. In any case, it is never a bad idea to seek the edge where most people don't... I posted the system details on my Yahoo.com group and not here for two reasons. First of all, I want to limit the transfer of files from this site as I have to pay for this. And secondly, I suspect that this site will not survive longer than Yahoo.com groups. My first site, even though very popular lasted only seven years. This one will probably not last longer while I would expect Yahoo.com to last until the next major comet impact. Yes, comets can impact your life the same way most vendors do... The only reason dinosaurs could go on living for so long was because there were no vendors in those days yet... One more thing: I did not create my Yahoo.com group to snatch your email address and spam your account. It does not take a Ph.D. in anything to know that this marketing 'technique' usually does not work and sometimes even backfires. Somehow, that does not prevent many vendors from using it, but that's another story. You can read all I post to the group on the web, you don't have to receive any emails from me, whatsoever.
	Disclaimer: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS UNLIKE AN ACTUAL PERFORMANCE RECORD. SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.