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George III - emini futures trading system

At this point I am committed to releasing KING as soon as possible and so George III will not be released until the KING project is completed. Moreover, due to the markets increased volatility, this is really not a good season for counter-trend systems, which is another important reason why I am reluctant to release this system now.

George III is essentially a counter-trend system and most of its trades will seek to counter the market trend. Since markets spend most of their time bound in more or less narrow ranges, it makes sense to exploit this by opposing any larger deviations from such ranges. The majority of trades generated by the system will thus be counter-trend trades. However, the system also detects situations when the market is likely to breakout and in cases like that, it initiates a position with the trend. Moreover, in some situations a counter-trend position may be reversed leading to another trade the same day. 

There can be at most two trades per day, but not every day the system produces a signal.

The system is relatively simple, in its simplest form that includes only counter-trend trades it can be described on just one page. Additional trades and additional conditions that refine the counter-trend trades take 2-3 more pages. 

The system uses only very basic indicators, such as moving averages and bands, all of which should be easily available in any charting package out there, such as, for instance, Sierra Chart which is my trading software of choice. 

The entries for the counter-trend trades and the breakout trades are at precisely identified points as are the exits. The entries for the reversal trades are determined with the help of indicators.

A sample of results from the most recent months is presented below. The results while still preliminary, are unlikely to be very different from the final results.

June 2007: 10.25 pts with 16 trades

July 2007: 13.75 pts with 16 trades

August 2007: 17.75 pts with 18 trades

September 2007: 26.25 pts with 17 trades

October 2007: 18.50 pts with 20 trades

November 2007: -4.50 pts with 15 trades

December 2007: 2.75 pts with 15 trades

I have been forward testing this system in real time as of September 2007 and the results have clearly been encouraging. The back tested results have been good too.


 

 

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.