Trades for 8/2/2010

Today's Forecast for ES(E-Mini S&P 500)

If market opens between yesterday's High and open(1103.50 - 1100.25)  then goes down and touches 1100.25 go short (Sell Limit) at 1101. Target 1096.25.   Stop Loss at 1107.50

If market opens between yesterday's Open and Low(1086.50 - 1084.50)  then goes up and touches 1100.25 go long (Buy Limit) at 1099.50 Target 1103.25 Stop Loss at 1095.


Table - PS  ES Pivot Levels:







































IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that this information is free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!


Since June 21, 2010 we have had 15 trades, 49.25 points win and 7.75 loss
Avg trades per week = 2.5, Avg win/trade = 2.8



ES Points by Trading Day


Cumulative Profit Made by Trading Day 












A slippage of One tick and a commission of $5.00 is deducted from each round trip trade.
The minimum required to trade 1 contract varies from $500 to few thousand dollars depending on the broker.
Based on  $5000/Contract, the annual return is %287.
Some traders suggest to have $20,000/Contract for psychological reasons.
Based on  $20,000/Contract, the annual return is %72.

Click General Information to learn more.

This forecast is based on analysis of data tables prepared by computer simulation and modeling every night based on more than 12 year of data.






Trades fo 7/30/2010

Today's Forecast for ES(E-Mini S&P 500)

If market opens between yesterday's High and open(1113 - 1110)  then goes down and touches 1096.75 go short (Sell Limit) at 1097.50. Target 1093.50 Stop Loss at 1106.25

If market opens between yesterday's Close and Low(1096.75 - 1088.75)  then goes up and touches 1096.75 go long (Buy Limit) at 1096 Target 1099.25 Stop Loss at 1088.50


Table - PS  ES Pivot Levels:


































IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that this information is free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!


Since June 21, 2010 we have had 15 trades, 49.25 points win and 7.75 loss
Avg trades per week = 2.5, Avg win/trade = 2.8



ES Points by Trading Day


Cumulative Profit Made by Trading Day 












A slippage of One tick and a commission of $5.00 is deducted from each round trip trade.
The minimum required to trade 1 contract varies from $500 to few thousand dollars depending on the broker.
Based on  $5000/Contract, the annual return is %287.
Some traders suggest to have $20,000/Contract for psychological reasons.
Based on  $20,000/Contract, the annual return is %72.

Click General Information to learn more.

This forecast is based on analysis of data tables prepared by computer simulation and modeling every night based on more than 12 year of data.

Trades for 7/29/2010

Today's Forecast for ES(E-Mini S&P 500):
If market opens between yesterday's Close and Low(1102.50-1099.25) go long at open profit target 1102.50 and stop loss 5.5 points below entry.  


Tip: Adjust your stop loss according to pivot levels in Table - PS.






If market opens between yesterday's High and open(1111.50 - 1108.25)  then goes down and touches 1102.50 go short (Sell Limit) at 1104. Target 1099.75 Stop Loss at 1111.75

If market opens between yesterday's Close and Low(1102.50 - 1099.25)  then goes up and touches 1102.50 go long (Buy Limit) at 1101.50 Target 1104.25 Stop Loss at 1095.75








Table - PS  ES Pivot Levels:






























IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that this information is free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!

Since June 21, 2010 we have had 14 trades, 45 points win and 7.75 loss
Avg trades per week = 2.5, Avg win/trade = 2.6

Click General Information to learn more.

This forecast is based on analysis of data tables prepared by computer simulation and modeling every night based on more than 12 year of data.





Trades for 7/28/2010

Today's Forecast for ES(E-Mini S&P 500):
If market opens above yesterday's Close(1111) go short at open profit target 1111 and stop loss 6.25 points above entry.  


Tip: Adjust your stop loss according to pivot levels in Table - PS.






If market opens below yesterday's close(1111) then goes high,and touches 1111 go long (Buy Limit) at 1110.
Profit target is 1116 and stop loss is 1103.75.










Table - PS  ES Pivot Levels:

































IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that this information is free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!

Since June 21, 2010 we have had 13 trades, 45 points win and 1.5 loss
Avg trades per week = 2.5, Avg win/trade = 3.65

Click General Information to learn more.

This forecast is based on analysis of data tables prepared by computer simulation and modeling every night based on more than 12 year of data.

Trades for 7/27/2010

IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that the following information are free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!
100% Winning Trades Since June 21, 2010!
We have had 12 trades, 45 points win and no loss
Avg trades per week = 2.5, Avg win/trade = 3.75
Click General Information to learn more.
 The following forecast is based on analysis of data tables prepared by computer simulation and modeling every night based on more than 12 year of data.
Forecast for 7/27/2010:
Before Gap
If market opens between yesterday's high and close(1111.75-1109.50) go short at open profit target 1109.50 and stop loss 6 points above entry.  

If market opens between yesterday's close and open (1109.50 1100.75) go long at open profit target 1109.50 and stop loss 6 points below entry.








After Gap
If market opens above yesterday's high (1111.75) then goes down, go short at 1109.50.

If market opens below yesterday's low(1097.75) then goes high, go long at 1109.50.
In both cases profit target is 4 points and stop loss is 6 points.








Table - PS  ES pivot points:























Review 7/26/2010:
Forecast:
Before Gap
Condition = Market opens in highlighted  areas..
Type = Very Aggressive
Entry = Opening price
Direction = Long 
Target= 1101
Stop = 10.25 Points

After Gap




Condition = Market opens in highlighted  areas and the gap closes.
Type = High Probability
Entry = 1101 
Direction = In the direction of closing the gap
Target = 4 Points
Stop = 10.25 Points






Review:
Before Gap
The market opened at 1100.75 only one tick below the target.  It was not worth trading it.
After Gap
We had after gap trades for openings above high and below the low.  Since the market opened between the open and close of the prior day, no trade was triggered.

Copyright © Ali Mohseni 2010 Charts are created using Tradestation software.




Gap Probabilities for Monday 7/26/2010

IMPORTANT NOTICE: Futures trading has large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures markets. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account is likely to achieve similar results. The past performance is not necessarily indicative of future results. There is no guarantee that the following information are free of errors, including , program bugs, internet errors, communication errors, human errors, etc.   Trade at your own risk!
100% Winning Trades Since June 2010!
The above factual statement does not mean that it is mathematically possible for this to continue for ever. 
Click General Information to learn more.
Forecast for 7/26/2010:
Before Gap
Condition = Market opens in highlighted  areas..
Type = Very Aggressive
Entry = Opening price
Direction = Long 
Target= 1101
Stop = 10.25 Points









After Gap
Condition = Market opens in highlighted  areas and the gap closes.
Type = High Probability
Entry = 1101 
Direction = In the direction of closing the gap
Target = 4 Points
Stop = 10.25 Points






Table - PS  ES pivot points:



















Review 7/23/2010:
Forecast:
Before Gap
No trade for Before Gap.
After Gap
The market opened at 1087.25 between the close and open of the prior day.  It triggered the "Buy Stop at 1088.50" for a target of 4 points and stop of 9 points.  Here is what happened:






Review: The price hit our buy stop entry order at 9:40 bar.  It moved up within 3 ticks of our target on the next bar.  Then it went to draw down area for about 25 minutes but it did not get close to our stop loss point.  It finally hit the target at 10:35 bar.











Raw Data 7/26/2010:
The Following tables are prepared daily based using more than 12 years of data.
Table - 1        Gap Fade Probabilities (based on Market Structure)
Profit Target = Gap Close, Stop Loss = 10.25 points.

Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
1.34 1.77 1.24 0.58 1.25 1.13 1.51
PCT Prof 69% 81% 70% 47% 58% 66% 74%
Avg Loss $298 $226 $213 $266 $256 $225 $276
Net Loss $18,750 $5,875 $16,600 $4,250 $2,813 $25,188 $26,188
Loose
63 26 78 16 11 112 95
Avg Win $178 $93 $113 $175 $235 $128 $145
Net Win $25,213 $10,413 $20,638 $2,450 $3,525 $28,438 $39,538
Win
142 112 182 14 15 222 273
Avg P/L $32 $33 $16 $60 $27 $10 $36
Net
$6,463 $4,538 $4,038 $1,800 $713 $3,250 $13,350
Total 
205 138 260 30 26 334 368

Table - 2     Gap Fade Probabilities(based on timing)
Profit Target = Gap Close, Stop Loss = 9 points.

Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
0.88 0.86 1.15 0.81 1.07 1.05 0.89
PCT Prof 57% 82% 78% 68% 49% 64% 61%
Avg Loss $246 $335 $322 $313 $231 $274 $262
Net Loss $14,750 $1,675 $5,150 $2,188 $5,088 $24,363 $32,525
Loose
60 5 16 7 22 89 124
Avg Win $161 $63 $106 $118 $260 $161 $149
Net Win $13,050 $1,438 $5,925 $1,763 $5,463 $25,588 $28,850
Win
81 23 56 15 21 159 194
Avg P/L $12 $8 $11 $19 $9 $5 $12
Net
$1,700 $238 $775 $425 $375 $1,225 $3,675
Total 
141 28 72 22 43 248 318

Table - 3     After Gap probabilities(based on Market Structure)
Profit Target = 4 points, Stop Loss = 9 points. Conditional probabilities after the gap is filled.

Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
1.30 1.10 0.95 0.34 4.85 0.93 1.19
PCT Prof 64% 56% 55% 30% 88% 55% 60%
Avg Loss $265 $228 $237 $252 $250 $239 $246
Net Loss $11,150 $11,638 $23,188 $1,763 $250 $26,500 $24,313
Loose
42 51 98 7 1 111 99
Avg Win $194 $197 $184 $200 $173 $183 $195
Net Win $14,525 $12,788 $21,938 $600 $1,213 $24,563 $28,913
Win
75 65 119 3 7 134 148
Avg P/L $29 $10 $6 $116 $120 $8 $19
Net
$3,375 $1,150 $1,250 $1,163 $963 $1,938 $4,600
Total 
117 116 217 10 8 245 247
Copyright © Ali Mohseni 2010 Charts are created using Tradestation software.







Gap Probabilities for Friday 7/23/2010

Gap Probabilities for Friday 7/23/2010
Please Refer This site to those who may benefit from it.  Thanks!  

This page is organized by the following color codes: 
__________________
General Info
Yesterday's Review
Today's Forecast
Today's Raw Data

IMPORTANT NOTICE: Futures trading has large potential rewards, but also large potential risk . You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. There is no claim or guarantee that the following information are free of errors,including typos, program bugs, error in modeling the data, internet errors, communication errors, human errors, etc.
Trade at your own risk!


These Probabilities Have lead to 100% Winning Trades so far since June 2010!
Please note that the above factual statement does not mean that it is mathematically possible for this to continue for ever.  Having said that, I believe this system will help you gain remarkable advantage over random trades.

For help with using this guide visit Fading Opening Gaps 101.
For trading in general, the best place I have found so far is  
LBR Group 
headed by market wizard Linda Raschke. Beware that most other sites are scams.

H, O, C, and L refer to High, Open, Close and Low of yesterday
Yesterday's Review:
Levels and signals:
ES pivot points:;                                                                     Signals:
(based on prior day's data)                                                                (based on today's opening price)
R3:1119.00
Before GAPAfter GAP

Fib 1.618:1100.75









R2:1094.50









Fib 1.272:1092.25









High:1085.50







SELL
Open:1085.00







R1:1079.00









Pivot:1070.00









Close:1063.75





BUYBUY
Low:1061.00





S1:1054.50









Fib 1.272:1054.25









Fib 1.618:1045.75









S2:1045.50









S3:1021.00





High Probability
Medium Probability
Aggressive
Very Aggressive

Forecast:
Before Gap
Table -1 and Table - 2 agree on a high probability long trade if the market opens in CL zone as shown in table - PS below.
Entry = Open Price
Target = Yesterday's Close Price(1063.25)
Stop Loss = 7.25 points from Entry.
After Gap
According to Table - 3, if the market opens in CL(1061-1063.25) or HO(1085.50-1085) zones and it closes the gap, then there is a good chance it will go in the same direction(the direction of closing the gap) for another 4 points. Refer to the After Gap column in Table - PS.   I will take this trade.
Entry = Close
Target = Close +- 4
Stop Loss = 7.25.

Review:
The market opened at 1078.25, in the OC zone.  We only had setups for CL and HO zones.  So no trades was triggered. 
If we had entered any trade in this area, it would have been a short trade because our target,  the close (1063.25)  was below the open.  As you see in the chart above, the market after opening at 1078.25 immediately started to move up and never looked back.  Our stop loss would have been hit in about 25 minutes.  So again these probability numbers helped me avoid a bad trade.  I feel very good when my trades are successful and I make money but I feel even better when I identify a bad trade and avoid it.



Today's Forecast:
Correction(8:00 AM Eastern Time)
I just found out that I made a mistake in my calculations last night.  I am sorry about it.  I caught it now and I don't have time to correct all the page because we have to rush for the appointment with pediatrician but I make a summary correction here:
There is no Before Gap play today.  For After Gap, if the market opens above high(1094.50) or in C-O zone(1088.50 to 1078.25) and it closes the gap (the price moves down or up to 1088.50) then I enter in the direction of the move and target 4 points (i.e. 1092.50 or 1084.50 depending on the direction).  Stop loss is 9.
Before Gap
Table -1 and Table - 2 do not agree on any high probability trades.  But we have an aggressive trade in the H-C (1094.50 - 1088.50) zone.
If the market opens in this zone:
Entry = Open price
Target = 1088.50
Stop Loss = Entry Price + 9 points
After Gap
 Table - 3 does not have any high probability areas.  So there is no After Gap setup for Friday. 

Table - PS
ES pivot points:           Signals:
(based on prior day's data)     (based on today's opening price)

R3: 1120.00
Before GAP After GAP

Fib 1.618: 1104.75









R2: 1103.50



Fib 1.272: 1099.00

R1: 1096.00
High: 1094.50
Short at Open
Close: 1088.50
Pivot: 1087.00
S1: 1079.50
Open: 1078.25
Low: 1078.00



Fib 1.272: 1073.50



S2: 1070.50









Fib 1.618: 1067.75









S3: 1054.00











High Probability
Good Probability
Aggressive
Very Aggressive                                                  

The Following tables are prepared daily based on more than 12 years of data.
Today's Raw Data:
Table - 1        Gap Fade Probabilities (based on Market Structure)
Profit Target = Gap Close, Stop Loss = 9 points.


Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
0.88 1.41 100.00 0.45 0.66 0.98 1.02
PCT Prof 54% 71% 100% 38% 40% 66% 66%
Avg Loss $283 $250 $0 $253 $254 $270 $239
Net Loss $1,700 $1,250 $0 $1,263 $763 $22,400 $29,613
Loose
6 5 0 5 3 83 124
Avg Win $214 $147 $38 $188 $250 $134 $128
Net Win $1,500 $1,763 $38 $563 $500 $21,975 $30,275
Win
7 12 1 3 2 164 236
Avg P/L $15 $30 $38 $88 $53 $2 $2
Net
$200 $513 $38 $700 $263 $425 $663
Total 
13 17 1 8 5 247 360

Table - 2     Gap Fade Probabilities(based on timing)
Profit Target = Gap Close, Stop Loss = 9 points.


Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
2.32 1.19 1.09 0.61 0.88 1.27 1.58
PCT Prof 68% 80% 71% 42% 43% 66% 72%
Avg Loss $285 $344 $343 $305 $213 $324 $323
Net Loss $8,563 $5,850 $10,988 $4,575 $850 $28,175 $31,025
Loose
30 17 32 15 4 87 96
Avg Win $316 $101 $154 $255 $250 $213 $197
Net Win $19,888 $6,988 $11,988 $2,800 $750 $35,863 $48,950
Win
63 69 78 11 3 168 249
Avg P/L $122 $13 $9 $68 $14 $30 $52
Net
$11,325 $1,138 $1,000 $1,775 $100 $7,688 $17,925
Total 
93 86 110 26 7 255 345


Table - 3     After Gap probabilities(based on Market Structure)
Profit Target = 4 points, Stop Loss = 9 points. Conditional probabilities after the gap is filled.


Opening Zone > H H-C C-O O-L < L All All


Short Short Long Long Long Longs Shorts
PF
100.00 1.10 100.00 100.00 100.00 1.10 0.90
PCT Prof 100% 54% --- 100% 100% 60% 54%
Avg Loss $0 $213 $0 $0 $0 $272 $255
Net Loss $0 $1,275 $0 $0 $0 $17,950 $29,088
Loose
0 6 0 0 0 66 114
Avg Win $200 $200 $0 $200 $200 $198 $194
Net Win $600 $1,400 $0 $400 $200 $19,788 $26,063
Win
3 7 0 2 1 100 134
Avg P/L $200 $10 --- $200 $200 $11 $12
Net
$600 $125 $0 $400 $200 $1,838 $3,025
Total 
3 13 0 2 1 166 248
Copyright © Ali Mohseni 2010 Charts are created using Tradestation software.