George II - e-mini day trading system

While I stopped updating this system's performance in early 2010 being too busy with KING, my main e-mini futures offering at this point, I still believe that this is a very fine system not just for educational purposes. This very simple, mechanical system can also do well if used as designed in reasonably volatile markets: it made well over 80 points in ES in the second half of 2008 and closed 2009 in the positive territory and it managed to post two positive years in Russell 2000 in 2006-2007, when this contract was trading on CME, so it is definitely more than a mere toy. For only $75, I am convinced it's a real steal. This system is now offered as part of the George Collection, which is an even better deal.

George II is based on a trading system that I designed for ES, the S&P 500 e-mini futures market, in 2002, a good volatile year in which it performed supremely well. I decided to share it with the public in 2006 and while it did not do well at first in ES due to this market's relatively low volatility, it did well in another, more volatile market, the Russell 2000 e-mini futures.

To appreciate how well the system can do in the right market conditions, those of relatively high volatility, check out the following sample of results from the volatile days of 2008-2009.

5-26-09: George II caught over 20 points in ES!

3-23-09: George II caught over 35 points in ES!

9-17-08: George II caught over 30 points in ES!

9-29-08: George II caught over 650 points in Dow's crash!

The system has only one parameter, which was adjusted in testing. It is the size of the stop-loss.

It is probably the simplest system you will ever see. All of the system rules are described on just one page with some room to spare.

Despite its simplicity, it has produced profits two years in a row, in 2006 and 2007. This was accomplished in ER2, the Russell 2000 e- mini futures market, currently referred to as TF. It could be a perfect system for those who would like to see how mechanical trading systems work. This system should do well in dynamic, volatile markets such as TF, and even in ES when the levels of volatility we saw in this market in 2008 or 2009 occur again.

You can trade it on paper using free data resources that I mention in the system manual.

The system for ER2 was released in the first decade of March 2006. At that time, I was expecting it to outperform the market it had been first designed for and this indeed proved to be correct during already the first several months into its release. The reason for this was much greater volatility of ER2 compared to ES, which gave rise to a much better win/loss ratio in the ER2 market.

Here is a sample of the system performance for ER2 (Russell 2000 e-mini futures) from the last months of 2007.

June 2007: 16.9 pts with 6 trades

July 2007: 5.3 pts with 8 trades

August 2007: 5.3 pts with 7 trades

September 2007: -14.3 pts with 10 trades

October 2007: -19.8 pts with 13 trades

November 2007: 58.5 pts with 9 trades

December 2007: 34.6 pts with 8 trades

Over the period of 24 months in 2006 and 2007, George II made $8,160 in hypothetical profits in this market with 219 trades using only 1 ER2 contract. The system would have easily been profitable after taking into account standard commissions and slippage.

In July 2008, I decided to switch to monitoring the system performance using ES. This was because ER2 was in the process of moving to another exchange. Because of this, its volume kept dropping reducing its volatility as well. It is just because of this transition that, I believe, the performance of this system in ER2 over the first months of 2008 might not have been very representative of the system power.

The first results for ES were quite good indeed, as you can see below.

July 2008: 46.0 pts with 11 trades

August 2008: 59.0 pts with 8 trades

September 2008: 22.75 pts with 6 trades

The system continued making money in 2009 as well. As of July 2009, it's up over 50 pts.

The entries are executed via stop or limit orders with the former being much more common.

You know the trade entry and direction even before the market opens and it takes, literally, a minute to determine both. Frankly, you could do this even in 15 seconds because it's so simple.

The best way to start trading this system is the same as with all other mechanical systems, that is in a larger drawdown of at least 25 pts. If you start in a drawdown like that and give yourself 6-12 months, with a cushion of $5000, you stand a very good chance of making money, but no one can predict how much. That's true about all trading systems, no matter how stellar their performance happened to be in the past or how expensive they are.

George II is an amusingly simple system. This is a perfect system for educational purposes, but you stand a reasonable chance to make money with it too.

Here is again, in a nutshell, how neat this system is:

1. not optimized,

2. uses NO indicators,

3. trades only several times a month,

4. generates only one trade a day if at all,

5. extremely easy to manage,

6. great for educational purposes.

Instead of taking all the trades, about 100 a year, you may want to settle for the simplified version of the system.

This version selects very special trades with a high probability of success. Trades like that can happen only a few times a year, but their combined profit is very likely to pay for the system many times over. I always look for trades like that. They take place when the market jumps over the entry level in the morning, before the daily session open at 9:30 EST, and does not return to it during the first hour of trading. If the market then breaks out of the first hour range in the direction called by the system, you take that trade. Use the same size of the stop-loss as for regular trades, although cutting it down to 2.5 pt for ER2 and 4 pts for ES should work well too. No matter the size of the stop-loss, employ a re-entry if shaken out of your position.

Here is, what you will obtain when you order this system:

1. the system manual,

2. the trade spreadsheet,

3. several pictures showing the system in action,

4. the right to my email support,

5. the right to free upgrades.

So, here comes the price. I am sure, you will agree that it's quite reasonable. Since it's so low I decided to make the system purchase non-refundable. It's a fine system that I believe you should find useful for your trading in one way or another.

Price: $75.

Any questions? Please let me know. Put "George II" in the subject of your message.

You can order this product here. You will be able to download it right after you paid via Paypal, even if it's 3 A.M.