SBV Technical Analysis - Trading Volume with Confidence

Simple Trading System on SBV

+18 points on the S&P 500 index futures

1 point on the index = $50 on 1 emini contract

10 point on the index = $5,000 on 10 emini contracts

Chart 1. S&P 500 index futures.
5-day view. 1 bar = 5 minutes. SBV Histogram(20,9)

Russell 2000 Emini index futures February 2012

In our trading example, we applied the following simple system which is based on our SBV Histogram:

  1. Once the SBV Histogram has advanced above zero level (after having been below that level), we will enter a long position;
  2. Once the SBV Histogram has fallen below a zero level (after having been above that level), we will enter a short position;
  3. Close Position at the end of a trading session.
  4. Do not open a new position if less than a half of our left to the market close.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 4-rule system.
TimeMotivationSignalIndexProfit (points)
07/14/201410:20Rule #2Sell Short1971.50-2.00
11:00Rule #1Buy1973.500.00
11:10Rule #2Sell Short1973.50+2.50
14:25Rule #1Buy1971.000.00
16:15Rule #3Cash19.71.00 
07/15/201410:10Rule #2Sell Short1970.00 +8.25
12:20Rule #1Buy1961.75 +6.25
14:30Rule #2Sell Short1968.00 0.00
16:15Rule #3Cash1968.00  
07/16/201409/40Rule #1Buy19.75.00 -3.75
10:45Rule #2Sell Short1971.25 -2.00
12:05Rule #1Buy1973.25 +1.75
13:45Rule #2Sell Short1975.00 +0.50
16:15Rule #3Cash1974.50  
07/17/201409:55Rule #1Buy1973.50 -0.75
10:55Rule #2Sell Short1972.75 +6.50
12:35Rule #1Buy1966.25 -4.25
14:05Rule #2Sell Short1962.00 +8.50
16:05Rule #3Cash1953.50  
07/18/2014Rule #2Sell Short1964.75 -2.50
 Rule #1Buy1967.25 +1.25
 Rule #2Sell Short1968.50 -2.50
 Rule #1Buy1971.00 +0.50
 Rule #3Cash1971.50  

Note: Our charts are unique in that they give traders the opportunity to choose the specific chart settings that best fit their personal trading styles and risk tolerances. Traders can thus develop and test their own trading systems. On our charts, you can scroll back in history to test any system that you have created.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.
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