Basics of this strategy: This strategy stands on a multi-pillar foundation. Main pillars of this strategy are:

1) Statistical and quantitative analysis of ES market data

2) Analysis of S&P500 stocks data like market breadth etc.

3) Analysis of options markets data like put-call ratio, skew etc.

4) Seasonal tendencies of US stock market like January effect etc.

Research has clearly established that above tendencies persist over the years in the US stock markets and are reflected especially in the e-mini market. This strategy has been designed to exploit these longstanding tendencies. Exact entry and exit points are determined using techno-statistical analysis.

Position Sizing: Recommended account size is 20k. You can trade this system with just 10k also, but you might have to accept larger drawdowns. Depending on the strength of a signal, either 1 or 2 ES is bought or sold at trade initiation. Later on, strategy can add 2-3 more contracts, especially if position is making money and there is momentum in our favor. Sometimes if position is losing money, but ES is close to a support/resistance level, then also strategy adds more contracts.

The exact scaling decision depends on a number of variables like whether ES is trading near a support or resistance, what is the current multi-day trend direction, how fast ES is losing momentum etc. etc. So, sometimes after we score a win in one direction, if ES is losing momentum and our techno-statistical analysis indicates a possibility of reversal, strategy closes the trade and takes a reverse position.

Trader's Experience: I have been professionally trading since late 2006, so a total experience of 7 years. I have successfully traded the bear market of 2008 and the QE fueled bull markets afterwards.