| RSKsys E-mini SP Trading System |
Home | Contact | Daily Screen Shots | Daily Videos Spoos KEY INDICES STRATEGY CONDITIONS DIVERGENCE TRIN VIX DIVERGENCE PREM TRENDS PROGRAM TRADING TIMES PARAGOLIC STOPS PRIMARY SIGNALS GAPS PROTECTIVE STOPS |
| KEY INDICES |
| $TRIN | $VIX.X | $SPINX | $NQIQX | $ER2IUX | $TICK |
| For a detailed discusion of these indices see details. | |||||
Spoos KEY INDICES STRATEGY CONDITIONS DIVERGENCE TRIN VIX DIVERGENCE PREM TRENDS PROGRAM TRADING TIMES PARAGOLIC STOPS PRIMARY SIGNALS GAPS PROTECTIVE STOPS |
| Divergence of the PREM |
| The direction of the three Premium feeds is directly related to the spoos. Every price movement of the spoos has a corresponding price in the SP Premium and Nasdaq Premium. Our system captures every 1/4 point price movement to the spoos and assigns the corresponding values of the PREM every minute. By way of a proprietary calculation, we can determine when the PREM is divergent. Depending on the strength of the divergent condition, the spoos will move accordingly. |
| Trends on the TRIN and VIX |
| Perhaps the most significant accomplishment in our system is the discovery of when the trin and vix establishes a trend, and then projecting how far that trend will go before it turns once again. These trends typically last for just a few hours before they run out and start again. However, there are some cases where they can last over a period of a day or more. Since we have a proven method of knowing when a trend is established, even if we were unable to calculate how far the existing trend will go, we can still determine if that trend has ended simply by applying our opposing model to the data. What is amazing is that in many instances the price at which the trin or vix or both will end their respective trends can be calculated within a margin of error of only .02. In many instances the trin and vix will end a trend exactly on the same one minute bar! By way of a proprietary calculation we can predict what these prices will be often hours in advance of their fulfillment. For more information check details. |
| Program Trading Times |
| By synchronous capturing of the spikes (up or down) on the three premium feeds we can ascertain the likely times that futures spikes will occur. New highs or lows on the premium feeds dictate the direction the spoos will move in the interim. Ideally divergence will occur after these spikes. Trades that occur prior to these spikes can and often do lose money. Therefore, the trader should take into consideration the likely timing of these events before executing a trade signal |
| Parabolic Stops. AtStep =.0045 AtLimit = 1 |
| It is generally observed that the probability of successful trades increases by following this rule. Execute long trades after the Long Trailing Parabolic stop is exceeded. Execute short trades after the Short Trailing Parabolic stop is exceeded. Common exceptions are at the open when there are larger gaps in the spoos. |
| PRIMARY SIGNALS |
Spoos KEY INDICES STRATEGY CONDITIONS DIVERGENCE TRIN VIX DIVERGENCE PREM TRENDS PROGRAM TRADING TIMES PARAGOLIC STOPS PRIMARY SIGNALS GAPS PROTECTIVE STOPS |
Primary signals largely depend on the extent to which a trend in the trin and or vix has
already gone. For example, if a new down trend is developing on the trin and vix the
market is therefore long. Entering long trades are therefore made without the use of
projections. On the other hand if a down trend is well established and projections are
already being hit at the close of the day in to the following day, long trades are more risky
and less profitable as the up trends are likely to begin. Therefore while long trades would
still be executed without projections, short trades would be based on the use of projections.
Five levels of divergence are constantly tracked and identified with corresponding signals. The total divergence of all indices on the same bar is not necessary to turn the market. What is more important is the extent to which a trend on the trin and vix is over. Once this occurs, the best pivot of the day may take place with a very small amount of divergence. In larger runs, near or total divergence preceeds the optimal pivot. |
| GAPS |
|
Gaps in data are tracked on all indices. Our studies have shown that gaps in the spoos
between the close and open of the following day or even the following bar, are fairly
meaningless. On the other hand, gaps in the spoos where no corresponding data exists
in the indices are very predictive. Gaps ALWAYS get filled.
See our Gap Video1 and Gap Video 2 and Gap Video 3 as an example. The only exception to this is very small gaps in the Vix that are typically less than .04. But we have found that gaps greater than .09 are always filled. Predicting when a gap will be filled is often possible through the use of our trend projections. It is remarkable how the market will frequently reverse directions for an entire day simply based on the filling of an outstanding gap in the trin and vix. Smaller intraday moves can often be attributed to the filling of small gaps on all indices. Large gaps when filled, frequently turn the market. Our software keeps track of all gaps and can be run on any range of time from intraday to monthly. |
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