I now have a more advanced version of the SPY system that's
automated. It will automatically buy ES in place of SPY, but
it uses SPY for the signals. However there is a lot more that
I can do with this now, watch the following video
anyway here's the results of you traded only 2 contracts or 10
contracts of ES and and didn't compound your money. Even
trading only 2 contracts makes quite a bit of money. Most
firms like Tradestation or Interactive Brokers charge 4 - 5K margin
for 1 ES contract, and some firms like Global Futures only charge
$500 per contact.
The reason I have the system set up to trade ES is because first
off it's automated and I don't need to manually enter the trades.
Secondly, with the continues ES contract I can now do
something more exotic like having the system scale out of large
moves that occur in the overnight session:
For example, let's say the system enters into a Long with 10
contracts, well if in the middle of the night futures have a huge
spike (which happens a lot because we know that a lot of movement
occurs overnight 12am - 6 am etc), I could have the system
automatically scale out of some of those contracts i.e. maybe sell
3 - 4 of them. Then I would have the system look to re-enter
those ES contracts back at lower prices (since the daily
signal is still on a buy), any lower prices that the system can buy
those contracts back is money in the bank and beating the daily
system. However the goal would be to have the system do these
scale outs and scale ins only overnight. Basically I would
use my statistics and indicators to look for extreme moves that are
out norm late at night or early morning ONLY, scale out and then
scale back in. Sometimes the system might not be able to
re-buy the shares for better prices, but I think most of the time
it would and would greatly improve the returns. I know that
Peter Campbell does a similar thing with this funds.
This all of course is professional level and would not be
available to the website and logistically it couldn't be
available because these trades have to be taken by the computer,
not manually via email and the trades would be at night mostly
where you are sleeping.
This is something I would do in a fund, or maybe for
professional BPT clients with large accounts who would be willing
to pay a % of profits for it. Again none of this is set, just
brainstorming options.
That would be excellent for you if you can set up your system to
do that. I'm a fellow insomniac, so I watch a lot of the overnight
futures. There are so many false moves late at night, and your
system would benefit from that.
Also, I can have the system scale out of contracts during the
day or anytime, for example I could say have the system enter more
contracts then I would normally hold for a long swing trade, but
have profit targets at 2 points, 3, points, 4, points etc for 1/2
of the contracts and then only keep the last remaining half of
contracts for runners.
Just as an example, I tried this with 10 ES contracts and I
instructed the system to scale out of 6 of the contracts at 8 ticks
(2 points), 16 ticks (4 points), and 24 ticks (6 points) which you
can almost always get even in the trades that end up being losers
on the daily system. I then hold 4 remaining contracts for
the daily system
SPY system and trading ES and automation
Posted by matt on 6th of Jul 2011 at 03:44 pm
I now have a more advanced version of the SPY system that's automated. It will automatically buy ES in place of SPY, but it uses SPY for the signals. However there is a lot more that I can do with this now, watch the following video
VIDEO Discussion
anyway here's the results of you traded only 2 contracts or 10 contracts of ES and and didn't compound your money. Even trading only 2 contracts makes quite a bit of money. Most firms like Tradestation or Interactive Brokers charge 4 - 5K margin for 1 ES contract, and some firms like Global Futures only charge $500 per contact.
Sounds like a great opportunity!
Posted by starfox on 7th of Jul 2011 at 09:48 am
Sounds like a great opportunity! Can't wait for details about signup info.
interesting data. If it isn't proprietary-do
Posted by cemerman on 6th of Jul 2011 at 06:52 pm
interesting data.
If it isn't proprietary-do you have the sell set up the same way as you do for the SPY system
In other words, a buy signal triggers an EOD buy on the SPY and a subsequent sell triggers a market on open sell.
Did you run your statistics using similar rules for the /ES?
The reason I have the
Posted by matt on 6th of Jul 2011 at 07:27 pm
The reason I have the system set up to trade ES is because first off it's automated and I don't need to manually enter the trades. Secondly, with the continues ES contract I can now do something more exotic like having the system scale out of large moves that occur in the overnight session:
For example, let's say the system enters into a Long with 10 contracts, well if in the middle of the night futures have a huge spike (which happens a lot because we know that a lot of movement occurs overnight 12am - 6 am etc), I could have the system automatically scale out of some of those contracts i.e. maybe sell 3 - 4 of them. Then I would have the system look to re-enter those ES contracts back at lower prices (since the daily signal is still on a buy), any lower prices that the system can buy those contracts back is money in the bank and beating the daily system. However the goal would be to have the system do these scale outs and scale ins only overnight. Basically I would use my statistics and indicators to look for extreme moves that are out norm late at night or early morning ONLY, scale out and then scale back in. Sometimes the system might not be able to re-buy the shares for better prices, but I think most of the time it would and would greatly improve the returns. I know that Peter Campbell does a similar thing with this funds.
This all of course is professional level and would not be available to the website and logistically it couldn't be available because these trades have to be taken by the computer, not manually via email and the trades would be at night mostly where you are sleeping.
This is something I would do in a fund, or maybe for professional BPT clients with large accounts who would be willing to pay a % of profits for it. Again none of this is set, just brainstorming options.
Matt, That would be excellent for
Posted by cw12 on 6th of Jul 2011 at 08:04 pm
Matt,
That would be excellent for you if you can set up your system to do that. I'm a fellow insomniac, so I watch a lot of the overnight futures. There are so many false moves late at night, and your system would benefit from that.
Also, I can have the
Posted by matt on 6th of Jul 2011 at 07:47 pm
Also, I can have the system scale out of contracts during the day or anytime, for example I could say have the system enter more contracts then I would normally hold for a long swing trade, but have profit targets at 2 points, 3, points, 4, points etc for 1/2 of the contracts and then only keep the last remaining half of contracts for runners.
Just as an example, I tried this with 10 ES contracts and I instructed the system to scale out of 6 of the contracts at 8 ticks (2 points), 16 ticks (4 points), and 24 ticks (6 points) which you can almost always get even in the trades that end up being losers on the daily system. I then hold 4 remaining contracts for the daily system
The results are 99% winning trades.
Excellent, especially in taking advantage of after-hours volatility...
Posted by lessarda on 6th of Jul 2011 at 04:36 pm
looking forward to whatever you don't reserve for the hedge fund.
Does anyone know what the
Posted by ascr on 6th of Jul 2011 at 05:01 pm
Does anyone know what the risk looks like for trading 10 contracts. I know less than nothing about trading ES futures.
I think 10 ES contracts
Posted by cw12 on 6th of Jul 2011 at 06:45 pm
I think 10 ES contracts would be equivalent to 5,000 shares of SPY.
I.e., it's like investing over
Posted by algyros on 6th of Jul 2011 at 06:54 pm
I.e., it's like investing over $600,000. People should be aware of what that means and of the drawdowns it entails.