Trading The Dow Jones Index - The 3-Day Trade

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I would strongly recommend you test the trend index system/methodology initially on just one market, which has proven to be very successful for us.

You may check and test this yourself to prove profitability...

Here, we focus entirely on the Dow Jones 100 Index, using our Trend Index Indicator, and trade it for maximum 3 days, as shown here [3-Steps]...

[1] Upon a Brand New Orange [or Gray] Bar, you enter the Dow Long [or Short if Gray] just before the close of trading that day.

[2] Hold the position for precisely three days, thus capturing the momentum in the swing.

[3] On the Third day, exit the position at the market close.

Using this basis, check the Dow Jones chart to see the profitability on the test since inception to the date of writing this page...

Nov 21/2005: Long Signal: Entry=10820 Exit=10931 PROFIT= 111 Points

Nov 29/2005: SHORT Signal: Entry=10888 Exit=10877 PROFIT= 11 Points

Dec 14/2005: Long Signal: Entry=10883 Exit=10836 LOSS= (47) Points

Dec 27/2005: SHORT Signal: Entry=10777 Exit=10717 PROFIT= 60 Points

Jan 04/2006: Long Signal: Entry=10880 Exit=11011 PROFIT= 131 Points

Jan 17/2006: SHORT Signal: Entry=10896 Exit=10667 PROFIT= 229 Points

Jan 27/2006: Long Signal: Entry=10907 Exit=10953 PROFIT= 46 Points

Feb 06/2006: SHORT Signal: Entry=10798 Exit=10883 LOSS= (85) Points

Feb 09/2006: Long Signal: Entry=10883 Exit=11028 PROFIT= 145 Points

Feb 24/2006: SHORT Signal: Entry=11061 Exit=11053 PROFIT= 8 Points

Mar 10/2006: Long Signal: Entry=11076 Exit=11209 PROFIT= 133 Points

Mar 24/2006: SHORT Signal: Entry=11279 Exit=11215 PROFIT= 64 Points

Apr 18/2006: Long Signal: Entry=11268 Exit=11347 PROFIT= 79 Points

May 01/2006: SHORT Signal: Entry=11343 Exit=11438 LOSS= (95) Points

May 05/2006: Long Signal: Entry=11577 Exit=11642 PROFIT= 65 Points

May 12/2006: SHORT Signal: Entry=11380 Exit=11205 PROFIT= 175 Points

May 25/2006: Long Signal: Entry=11211 Exit=11168 LOSS= (43) Points

Jun 06/2006: SHORT Signal: Entry=11002 Exit=10891 PROFIT= 111 Points

Overall Results Since Inception to June 15th 2006:

Total Number Of Trades: 18

Number Of Winning Trades: 14

Number Of Losing Trades: 4

Percentage Winners: 77.7%

Number Of Dow Points Gained: 1368 Points

Number Of Dow Points Lost: 270 Points

Net Gain Since Start: 1098 Points (80%+ Winning Points vs. Losing Points)

The Dow can be traded using Dow e-mini futures [which follow the index very closely], or Exchange Traded Funds [or ETF's].

For more information on Dow E-Mini's, point your browser to:

http://www.cbot.com/cbot/docs/49707.pdf

http://www.cbot.com/cbot/docs/42357.pdf

http://www.cbot.com/cbot/docs/62166.pdf

For more information on ETF's, point your browser to:

http://www.streetauthority.com/cmnts/sp/2004/01-05-dia.asp

Our own trading is now largely focused on the Dow Index, and this is producing excellent single trade returns on a consistent basis.

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