Cobra II Trading System
The Cobra II Trading System, was added in 2008 to create a more conservative version of Cobra. Cobra II used the same entry criteria but also adds a profit target and is limited to one entry per day. The stop loss is still $300-$350 with profit targets between $600-$900. You daily risk is fixed with Cobra II. Cobra II is like Cobra I since it is a middle trend finder.
Cobra II Trading System trades in October 2011 on the E-mini S&P
Recent Trading Performance Snapshot from July 1, 2011-November 1, 2011 on the E-mini S&P
*The reports go back 1/1/2005, no slippage or commission is taken out
$50/month Lease Now
Can I purchase the open code?
I have spent hundreds of thousands of dollars developing strategies. There has been a great deal of trial and error in the last 15 years to determine what works best. I do offer the the open code to my strategies. I consider this my intellectual property. You can purchase this strategy and any of the other strategies on the Purchase page. You must also fill out a Non-Disclosure Agreement in order to purchase any of the open code strategies.
How does Cobra work? The details of the strategy are proprietary. In general, I combine my own pattern based entry technique as well as my own trend indicator. If the trend is up, then we take long trades if the long pattern setup is there. If the trend is down, then we take short trades if the short pattern setup is there. The goal is to trade the trend and get in before the trend accelerates but to also ensure that we have the trend correct. We are not looking to call tops and bottoms but could be described as a “middle trend finder” and to get a piece of the trend somewhere in the middle. It is a day trade strategy.
What is the history? When was it designed?
I designed the Cobra trading system in 2005 for the stock indexes with the creation of Cobra I stock indexes. In 2008, I decided to reduce the daily risk for traders looking to quantify daily risk within a system by limiting the system to one trade. I made the modification of limiting it to one trade in Cobra II and also added a profit target. Cobra and Cobra II have the same entry criteria.
In 2009, I added Cobra III which has a more selective entry criteria than Cobra I and Cobra II but like Cobra II, in that it has one entry per day and a profit target.
In 2008 and 2009 I also added other markets such as Crude Oil, Euro Currency futures and forex, and 30 Year Bonds.
The trend indicator for non stock index markets is different since the stock index market use New York Stock Exchange market internals such as $TICK, $ADV, $DECL, etc. This is the main difference. The trend indicator between non stock index markets is the same.