Trust my luck, I decided not to trade the EOD system last night to find that it was perfect in it’s trade. If anyone had put on the trade they would be laughing, they would have made 20 points (or 80 Emini prices).

As I mentioned, the system does have a positive expectancy from my backtesting and also through my own live testing over the last couple of weeks.

Since I have been testing the system, I’ve seen only two losses. I didn’t trade the system two nights back and that was the big loser…  however, I am prepared to take only 10 points loss (the system allows for 40!)

I hope to be able to set up some sort of alerting system for people interested in following the system at some stage so you can all get the information as and when it is published!

Just as I haven’t chosen to trade todays short entry at close on the S&P, the market has already moved 4. 5 points (or 18 S&P emini prices) in profit if I had taken the trade!

Still early days but it’s going the right way.

The system has a positive expectancy over time though so to fully get it’s real benefits, I should ideally be trading this every day according to plan. The system also sets a 40 point stop which is a lot, I’m only comfortable with a max loss of 10.

This, of course, can change the expectancy of the system but in modelling it, I’ve found it to still be profitable with a smaller stop loss.

If you had traded last nights signal (and I’m glad that I didn’t) you would have lost.

Anyway, the system is showing a sell with target 1498 today. I am not sure if this would be a good idea considering how strong the market is.. I think I’ll sit out this one also.