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E-mini, Minime, and Me

Learn how to effectively use Standard Error Bands in your trading strategy. Discover the rules for initiating trades, covering positions, and incorporating indicators like Stochastic RSI and FibCMO. Join Teach-Talk-Trade for valuable insights with Uncle Steve!

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E-mini, Minime, and Me

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  1. E-mini, Minime, and Me With Uncle Steve

  2. Standard Error Bands • Standard Error Bands are a type of envelope developed by Jon Andersen. They are similar to Bollinger Bands in appearance, but they are calculated and interpreted quite differently. Where Bollinger Bands are plotted at standard deviation levels above and below a moving average, Standard Error Bands are plotted at standard error levels above and below a linear regression plot.

  3. Standard Error Band “Classic” Rules • Initiate trades only if the 34 sma confirms the direction of the signal (the trend is your friend) • Buy the opening after price closes below the lower standard error band • Cover the long position if there is a close above the upper standard error band • Sell short the opening after price closes above the upper standard error band • Cover the short position if there is a close below the lower standard error band

  4. StochasticRSI Oscillator • Roger Altman, William Blau, Stanley Kroll, and Tushar Chande have all improved on J. Welles Wilder’s Relative Strength Index.  I believe the best of these derivative indicators is the Stochastic RSI.  MetaStock offers one version of this indicator on their formula page. This version is just one of many I use.  I like substituting the numbers 3, 5, & 8 in this formula.  • Mov( ( RSI(8) - LLV( RSI(8) ,8 ) ) / ( ( HHV( RSI(8) ,8) ) - LLV(RSI(8),8) ),3,E) *100

  5. StochasticRSI Rules • Initiate trades only if the 34 sma confirms the direction of the signal (the trend is your friend) • Buy the opening after price closes below the trigger of “12” • Cover the long position if there is a close above the trigger of “88” • Sell short the opening after price closes above the trigger of “88” • Cover the short position if there is a close below the trigger of “12

  6. Master Blaster Rules • Initiate trades only if the 21 sma confirms the direction of the signal (the trend is your friend) • Buy the opening after the FibCMO closes below -5 • Cover the long position if there is a close above the upper standard error band • Sell-short the opening after the FibCMO closes above +5 • Cover the short position if there is a close below the lower standard error band • Use a 6 point, $300 stop on all positions.

  7. Additional Comments Mechanical Trading the E-Mini’s • Stops and additional exit criteria can be applied to the Standard Error Band systems (i.e., fixed stop, change in trend, etc.) • All momentum oscillators can be substituted for the StoRSI • Any trend identification/filter is better than “no” trend identifier • Over-optimizing is really stupid

  8. Teach-Talk-Tradewith Uncle Steve • The following information will help you to get a “hot- seat” for the daily chat room sessions: • Go to http://www.paltalk.com and download the free software. • Once you open it up, go to Business and Finance and find the room called "Teach-Talk-Trade...Technical Trading w/Uncle Steve"

  9. Cedar Creek Trading • www.cedarcreektrading.com • Seminars can be obtained at: http://freedailystockpicks.com/us-eminiclass • kernish@comcast.net • And most importantly:Thank you!!!!!!!!!!

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