Corn Swing Trading System
On 12/28/2011, we added Corn Swing to our trading. This strategy was designed almost five years ago and “Placed on the shelf”. We simply forgot about and stopped tracking this trading system. The reasons we have not traded this strategy is because our main focus has been on day trade systems. In, December 2011, we pulled up the strategy and found the walk forward results too good to pass up so we added this trading system as one of our top strategies going into 2012, and our only swing trading strategy that we currently recommend.
This trading system uses a $400 stop loss and $500 profit target, trading on 30 minute bars. We also exit at the open of any day that shows a profit. The entry is proprietary. The strategy can also exit open trades at the end of the day and converted to a day-trade system, but the average profit per trade significantly decreases from about $86 per trade on average for swing trades to about $40 per trade on average for day-trades. This is before slippage and commission. The average profit per trade and recent performance can be improved by increasing the profit target to a larger number such as $800. Using an $800 profit target, the average profit per trade is right at $100 and the profit target is 2 times larger than the stop loss. This strategy does not use a stop loss or profit target at night and the largest losing trade is $1025 since the market can gap past our stop loss.
Corn Swing Trading in April and May 2012