Menu
Cart 0
A Strategy for Stock Index Futures
E-mini S&P, E-mini Nasdaq, E-mini Dow

Exhaust and Reverse


The Exhaust & Reverse trading system is a new strategy that is designed to trade the stock index futures in a "slow melt up" market. It is designed for Tradestation 9.5, NinjaTrader 7, NinjaTrader 8, and MultiCharts 10. It is an indicator based trading system that does not use indexes such as the NYSE TICK. We trade this strategy on one minute charts and designed it specifically to take advantage of a low volatility trends. It was designed in October 2016 and officially released on February 25, 2017 after a four month walk forward. 

Many traditional strategies rely on strong trends with some range or patterns that take advantage of the emotions of market participants. In 2017, we are experiencing some of the most unique markets in regards to both a strong trend with low volatility and very little emotion. There seems to be neither fear of markets falling nor greed to jump in and catch a runaway market.



This strategy mechanically buys pullbacks when the conditions of narrow range selling are met. It has been tested on the E-mini S&P, E-mini Nasdaq, and E-mini Dow with nice results over the last 12 months. We release this strategy in anticipation of continued market conditions persisting. It is a counter trend, long only strategy and we add this strategy to take advantage of this very unique market environment. 

The video shows the strategy results going back one year in all four platforms and also shows the results for the E-mini Nadaq and E-mini Dow over the last 12 months. We then take a look at the E-mini S&P going back to 2006. This strategy will complement Tick Pulse well since they use different trading methods and there would be a balance of trend and counter trend.

The performance summaries are shown below for three different stock indexes. The performance summaries do not use slippage and commission. (The reason for this is so that we can compare raw results between platforms since different platforms calculate slippage and commission differently. The average trade profit is one of the key factors that we look at to make sure it will be profitable.) The E-mini S&P, E-mini Nasdaq, and E-mini Dow are our three favorite markets for this strategy. The parameters are the same for all three reports.It is possible that other markets such as the E-mini Russell, and DAX would also work but the parameters would have to be changed and at the time of the release, we have not researched "larger" parameter sets to take advantage of these more volatile stock indexes.

Tradestation Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
02/24/2016-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills
Exhaust and Reverse E-mini S&P Tradestation 9.5 Performance Summary

NinjaTrader 7 Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
02/24/2016-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills
Exhaust and Reverse E-mini S&P NinjaTrader 7 Performance Results

NinjaTrader 8 Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
02/24/2016-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills
Exhaust and Reverse E-mini S&P NinjaTrader 8 Performance Summary

MultiCharts 10 Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
02/24/2016-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills
MultiCharts 10 Exhaust and Reverse E-mini S&P Performance Summary

Tradestation Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
1/1/2009-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills
Stock Index Counter Trend Strategy TS Performance

Tradestation Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
1/1/2005-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills

Tradestation Hypothetical Performance Summary, Exhaust and Reverse E-mini S&P
11/1/1997-02/25/2017
No Slippage or Commission
Price is not required to exceed the limit for fills