59# Intermarket Strategy Trading System

Submit by  joy22  10/04/2011

 

Time Frame:daily.

Indicators:10SMA

Intermarket Strategy takes advantage of the correlation between US Treasury Bond

futures (US) and S&P 500 Index futures (SP). His premise is that strong Bonds and a weak 

 

S&P make a bullish scenario for stocks, while weak Bonds and a strong S&P make a bearish scenario for stocks.When Bonds close above their 26-day simple moving average, and the S&P closes below its 16-day simplemoving average, buy the S&P on the next open. When Bonds close below their 26-day simple moving average, and the S&P closes above its 16-day simple moving average, sell the S&P on the next open.


Long and Short Entries

a) If US is above its simple moving average (SMA), and SP is below its SMA, buy SP on the next open.

b) If US is below its SMA, and SP is above its SMA, sell short SP on the next open.

Long and Short Exits

a) If long, stop-and-reverse on a sell signal; also, exit a long position at the protective stop, the breakeven stop, the trailing stop, the volatility stop, or the big-profit stop.

b) If short, stop-and-reverse on a buy signal; also, exit a short position at the protective stop, the breakeven stopthe trailing stopthe volatility stop, or the big-profit stop.

 


 

In the picture below Intermarket Strategy Trading System in action.

 

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