Emini Futures (/NQ) Trade Entry Rules

Here is a chart highlighting our trades today. We traded out of SIM most of the day since we are still validating a few things. Out of SIM we ended a positive $220, some of the trades are shown on the chart; we had 10 total.

One thing I want to explain is our entry rules:

We enter the signals that are triggered in the direction of the overall trend, disregarding initial / less significant counter trend signals (if the market has a strong trend supported fundamentally and technically for the day). Once we get a trend reversal confirmation, we consider trade signals in that direction and disregard the counter trend signals.

As you can see from the chart, we took both long and short signals that were given due to the fact that the market was not in a clear strong trend. There was little fundamental news pushing the markets except for housing sales numbers that came in worse than expected. Japan and Libya issues seem to currently be having a small impact on the markets at the moment. This may be due to the lack of volume from traders, who we believe are waiting for first quarter earnings to come out; which they will then begin moving money around once domestic figures start being released.

We draw trend lines on our chart, and look for a breakout of trend with confirmation from our other indicators to take a trade in the direction.