Beating the FINANCIAL FUTURES MARKET: Combining Small Biases Into Powerful Money Making Strategies

Specifically, on a daily basis, a market will, more often than not, close higher than its open following a down close (close-to-close) and vice versa after an up close. (Down close projects a higher open-to-close, up close indicates a lower one).

Buy at Monday’s opening price plus the previous week’s range on a stop. Sell short at Monday’s opening price minus the previous week’s range on a stop.

If the close is less than the previous day’s low for two days in a row, then buy today at the open minus 50 percent the average three-day range on a limit order. Hold the trade overnight. Tomorrow, take profit at today’s high, or place your stoplosses one tick below yesterday’s low. If neither side is hit, then exit on close. Vice versa for sells.

Enter in the Dow Spoo direction any time between 8:45 and 2:45—exit at 3:00. The start-end times are pretty arbitrary. They’re

It involves a very pronounced tendency for the market to rise during certain times of a given month and fall during the remainder. The ascending times are in and around the end of a month, and the retreating times are in the middle.

For daily bars, I use @ and then the market symbol followed by a dot d suffix, which is usually “P” for pit session.

If x amount of time into a trading day, the S&Ps and bonds are both higher than their respective daily openings, and the bonds are within the top 25 percent of the daily range, that’s bullish, figuring to produce a lock step scenario in the spoos. Buy at market, exit on the close. Scenario 2 would also be bullish. It’s the same time of day as a

Understand your drivers. Test only in support of theories or concepts you believe to be true about the markets.

Again, whenever possible, try to design stops that are dynamic rather than static. Table 20.1 shows S&P optimized stops created from percentages