[Idea] Third Natural Gas System #idea #natgas #101tradingideas

101 Trading Ideas:

Trading a relationship, Trading Change, Trading Rate of Change

A Simple Natural Gas System, End-of-Day:

Illustrates the idea of trading the relationship between Nat Gas and Crude Oil, changes in price, and the rate of change of daily range

Buy Rules

Average True Range of last 9 days < Average True Range yesterday

Today’s close is the lowest close of the last 9 days

Crude Oil closed higher than it did 9 days ago

 Sell Rules

Average True Range of last 9 days < Average True Range yesterday

Today’s close is the highest close of the last 9 days

Crude Oil closed lower than it did 9 days ago

Exit Rules

After 4 days, or

On reversing signal

Results, 2006-p:

108/192 wins/trades: 53%

Avg trade: $0.055

z score: 2.2

profitable 9 of 11 years

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