Trade rules

This system trades up to four times each day based on Figure 1’s moves. Limit orders are used in an attempt to get better fills, which increased the average profit-per-trade. Therefore, trades aren’t triggered every day. Each trade has a stop-loss of $300 per contract (24 points). If not stopped out, each trade is closed within two to four hours. Each rule is independent and can be traded separately. Or you can combine all four trade rules into a single system. Table 3 shows results for the combined strategy and for each individual rule. Trade rules are listed in chronological order.

1. At the 6 p.m. ET open in Sydney, sell short the
next bar at limit price of previous day’s 5 p.m.
close + 4 points. Exit at 9 p.m.

2. At 9 p.m. ET, buy the next bar at limit price of the
prior bar’s close. Exit at 12 a.m.

3. At 5 a.m. ET, sell short the next bar at limit price
of the prior bar’s close + 3 points. Exit at 7 a.m.

4. At 11 a.m. ET, buy the next bar at limit price of the
prior bar’s close - 2 points. Exit at 3 p.m.