Ah..daytrading.Trying to adapt Jake Bernstein's 30 minute breakout for S&P,currencies,commodities to SPI day trading. JB maintains his system works.
Rules are fairly simple but need to be adhered to rigourously
1.Take the first 30 minutes high and low for spi(950-1020)eg to-day 5239-5217-to establish range of 22 points valid for to-day only.
2.Go either long or short but only ,repeat only ,at the next 30 minute ending price bar (not during)eg to-day went short at 1050 ending 30 minute bar at 5212.Thus ,counterintuititively ,short if below range ie today went short at 5212.
3.Here is where i deviate from JB'S system,only taking 70% of range thus 16 points. My initial profit target eg to-day 5212-16=5196approx. JB'S IPF 5212-22=5190 exact.
4.Closed trade at 1001 at 5200(did not wait for my IPT of 5196)for a profit of 12 points for one contract.
5.JB waiting ..closed trade at 1146 at 5190,reached his target for a profit of 22 points.
6.Variation on 3.4.5 is multiple contracts cashing in first contract moving some or all of the other contracts to breakeven and so on.Would have been quite profitable to-day.
7.What happens if the trade moves against you,after going short initially, in this case say SPI went to 5261 and over .This where the pain may occur (stop and reverse at 5239+22=5261,in my case5239+16=5255,now long)Only do SR once,should the trade go against you again ,in this case down to 5239 or 5255 get out and means end of day trading for that day.
8.Always exit at end of day for positions not stopped out.
9.You may find there is no day trade as range for the first ending 30 minute bar is say 100 points plus and any subsequent 30 minute bar until end of day(1630) does not go above or below.Hey ,to-morrow is another day.
10.Do not enter trade in the last hour .
11.You do not have to take the initial trade particularly if entry in 30 minute ending subsequent bar is more/less than high/low of the range eg to-day way above 5261 or way below 5195.
12.You may have to accept 6/7 consecutive losing trades .
13.You will need at least 25000,50000 preferred if you are trading spi one point at 25 dollars,I guess less if you are trading made market cmc .
My experience is inconclusive,having traded only for some 25-30 trading days but believe system can work over a longer period .
(20min delay)