Steve's Simple System 2

Here's another very simple idea that traders might find useful as a starting point for building a systematic approach to trading the S&P Futures

The basic idea is to limit oneself to using longer time frame charts and trading tests of the previous range (RTH) open high & close or well established areas of support/resistance.

The rule set is also very simple as follows

1. Starting with the Weekly, Daily and 130 minute charts, ask yourself whether price is trending or range bound
2. If the answer is "Trending" the next challenge is to identify "preferred" trade direction. In other words, the trader will determine in advance whether to "prefer" long or short entries
3. If the answer is "range bound" then the trader's next job is to identify Support and/or Resistance

The attached charts are the basis for the system and they include the weekly, daily, 130 min and 30 min

 

 I'll talk more about it as time permits. Still testing it, but so far it seems promising...its simple in design and straightforward to implement, and because the trader works from longer time frame charts, they will tend to be taking trades at the extremes, which places the trader in better alignment with commercials and speculators who have the money to move markets, thus increasing the odds of success.