The Details to My New Favorite System

Aug. 16, 2024

This week we’re talking about my new favorite system.

I want something to dollar-cost-average into and something that I trust.

That’s why I chose an index.

And we’ve seen the Equity Curve and addressed its potential problems. Curve again here:

So how does it trade?

Here are the details:

The ES Daily RSI Pullback Foundational System (@ES)

• For Longs, price must be above the 210-day moving average
• For Longs, price must close into Oversold (length 2, OS 18)
• For Long exit, price must close into Overbought (length 2, OB 78)
• For Shorts, price must be below the 210-day moving average
• For Shorts, price must close into Overbought (length 2, OB 95)
• For Short exit, price must close into Oversold (length 2, OS 25)
• Emergency stop: $5500 per contract

Here are some trades:

As you can see, there was some optimizing done. And as you can also see, the win rate is pretty high.

Here’s the Report via Portfolio Architect:

If we compare it to the SPY over the same period, this system beats the SPY in total profit and also has a lower drawdown. If we compound our gains as our account increases, we beat the SPY by a very wide margin.

This is something I’m deeply interested in.

Maybe it’s interesting to you, too.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

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 ACTUALLY 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.