#154: HOW TO CREATE A QUALITY STRATEGY IN 60 SECONDS
During more than 10 years of my trading career, I have never seen a more robust and reliable trading setup than the one I’m going to share with you today.
In fact, I dare to even call it a universal evergreen trading setup, because I’ve been trading its variations for almost 10 years over and over, and it still makes money.
Now, before I share with you what it is all about, one warning.
This strategy is for FUTURES INDEXES only. And it works LONG SIDE only. Indexes are a long-biased market, so it is totally ok to use this small built-in edge and explore the best, most universal and most reliable ways to use this to our advantage. Here it is:
1. Take yesterday’s close and add reasonable volatility to create a breakout entry-level,
2. Add exit at the end of the week and some reasonable stop-loss.
Let me show you what I mean.
Here I randomly took the e-mini S&P 500 market, 60-minute timeframe. And all I did was create this piece of code, reflecting the rules above:
Notice, that I used a multiplier of 2.5 for volatility (2.5 * AvgTrueRange). I chose this value arbitrarily, without any reoptimization, because it really doesn’t matter much what value you pick - you mostly arrive at positive results anyway.