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George II ER2 - emini futures trading system Special Notices- last: (11/13/08) It is a very good idea to use the simplified version of George II, as described below, in combination with George IV and it is an excellent idea to check out George IV while you are here. 9-17-08: George II caught over 30 points in ES! 9-29-08: George II caught over 650 points in Dow's crash! George II ER2 is based on the original version of George II for ES that I designed in 2002. It has only one parameter, which was adjusted in testing. It is the size of the stop-loss. It is probably the simplest system you will ever see. All of the system rules are described on just one page with some room to spare. Despite its simplicity, it has produced profits two years in a row, that is in 2006 and 2007. This was done in ER2. It could be a perfect system for those who would like to see how mechanical systems work. You can trade it on paper using free data resources that I mention in the system manual. This system should do well in dynamic, volatile markets such as ER2 and even in ES as long as the levels of volatility we see in 2008 continue. Here is a sample of the system performance for ER2 from a few recent months.
In July 2008, I decided to switch to monitoring the system performance using ES. This is so because ER2 has been in the process of moving to another exchange. Because of that. I think that the performance of this system in ER2 over the first months of 2008 may not be very representative of the system power. The initial results for ES are quite good indeed, as you can see below.
The entries are executed via stop or limit orders with the former being much more common. You know the trade entry and direction even before the market opens and it takes, literally, a minute to determine both. Frankly, you could do this even in 15 seconds because it's so simple. The system for ER2 was released in the first decade of March 2006. At that time, I was expecting it to outperform the market it had been first designed for and this indeed proved to be correct during already the first several months into its release. The reason for this was much greater volatility of ER2 compared to ES, which gave rise to a much better win/loss ratio in the ER2 market. The best way to start trading this system is the same as with all other mechanical systems, that is in a larger drawdown of at least 25 pts. If you start in a drawdown like that and give yourself 6-12 months, with a cushion of $5000, you stand a very good chance of making money, but no one can predict how much. That's true about all trading systems, no matter how stellar their performance happened to be in the past or how expensive they are. George II is an amusingly simple system. This is a perfect system for educational purposes, but you stand a reasonable chance to make money with it too. Here is again, in a nutshell, how neat this system is:
Instead of taking all the trades, about 100 a year, you may want to settle for the simplified version of the system that selects very special trades with a high probability of success. Trades like that can happen only a few times a year, but their combined profit is very likely to pay for the system many times over. I always look for trades like that. They took place when the market jumps over the entry level in the morning, before the daily session open at 9:30 EST, and does not return to it during the first hour of trading. If the market then breaks out of the first hour range in the direction called by the system, you take that trade. Use the same size of the stop-loss as for regular trades, although cutting it down to 2.5 pt for ER2 and 4 pts for ES should work well too. No matter the size of the stop-loss, employ a re-entry if shaken out of your position. Here is, what you will obtain when you order this system:
So, here comes the price. I am sure, you will agree that it's quite reasonable. Price: $65. The price, that started at $50, is being gradually increased. There are only 3 more copies of the system left at this price. When they are gone, the price will go up to $75 and then may go up again. Buying now is better than buying later. You can order this product here. You will be able to download it right after you paid via Paypal, even if it's 3 A.M. If this system does not make you at least $200 per contract after commission and slippage in the next 12 months, you are entitled to a refund. Just show me that you have taken all the trades called by the system (even on a simulator such as Zeroline Trader or NinjaTrader) and send me your results by email.
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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. |
| Copyright Waldemar Puszkarz © 2005-2008. |