In addition to the Momentum and Scalper algos, the Alert Software also includes a Brand-New stand-alone day trading strategy specifically designed for trading the new ES Micro contract – MES.
This easy-to-follow strategy was created to capitalize on the new ES Futures Micro Contract.
Check out this video to see how it works.
A Brand-New High-Probability Targeting System
Simply wait for a 1-minute close past the Trade Price Barrier to enter the trade.
The Benefits of Trading the ES-Micro (MES) Power Target Strategy:
1) It’s super-easy to follow along with the Alerts.
The system starts up 5-minutes after the market opens (cash session) and shortly thereafter you will get a Trade Alert. Simply wait for a 1-minute close past the Trade Barrier and pull the trigger on the trade. The software will show you the initial stop-loss and the 1st Target. Sell a partial position at the first target and follow the system trailing stop with the remainder of your contracts.
2) Trading the ES Micro Contract lets you trade multiple contracts and use wide stops
Since this is a “targeting system” we are looking to enter a directional move off the 5-minute opening range and the system calculates high-probability targets. With multiple contracts we can pull some contracts off at each target and hold the remaining contracts for the next target.
3) It’s easy to get started with very little risk and a small account size.
The MES (ES Micro Contract) is 1/10th the size of the regular CME ES contract so each MES contract represents only $5 per point. You can trade the MES without fear of big drawdowns and it’s the perfect way for a beginner to get started in the Futures market and learn the ropes. Build your confidence trading live with the Micro contract.
4) We’ll include the NinjaTrader on-chart indicator at no extra charge.
We have a “companion indicator” for both NinjaTrader 7 and 8 that plots everything on the chart for you – making it even easier to follow along. You’ll see the opening range, trailing stops and Targets right on your chart – and they adjust automatically. Just let us know which version of NinjaTrader you’re using and we’ll send you the download instructions. If you aren’t using Ninja, no worries – the system is still easy to follow and trade on whatever trading platform you are currently using.
5) The strategy is consistently profitable and scores big points.
As soon as the CME announced the new Micro contract we realized that it would open up a whole new world of possibilities for a strategy we’d developed that required an enormous account size to implement. Most traders don’t have the account size to trade this system with the full sized ES contract – due to the nature of the wide stops and aggressive targets. Since it’s a “targeting strategy” the idea is to enter with multiple contracts and jump in on the early trend of the day, while keeping the trailing stop wide enough to stay in through normal market fluctuation.
The system is designed to keep you in for the big point moves – as it takes partial profits along the way. The trailing stop ratchets up as price moves.
The system “quants out” with an extremely high degree of accuracy. Trade Alerts are both to the Long and Short side, depending on the primary trend of the day.
One of the best features of all is that this is a “morning trading strategy” so you can trade it during just the first part of the day – score your points – and then wrap it up and go on to do other things.
Screenshot of the Alert Software running the ES Micro Power Target EZ Strategy
Note that the Alert Price doesn’t correspond with the price breaking out of the opening range. The range is simply the Opening 5-Minute Range and can adjust later in the session. Trades are based on the Alert “Trade Price Barrier” and you simply wait for a 1-minute close past the Barrier.
The System uses wide trailing stops. Remember we are trading the ES Micro Contract and this is part of the strategy. The Trailing Stop gets tightened up as price moves, but is calibrated to play the major moves of the day without getting knocked-out by normal fluctuation.
The beauty of the ES Micro Contract is that we can use a wider stop, which allows us to stay in for the primary trend moves. With the regular ES contract, using a 5-8 point stop is typically not feasible for most traders, but with the Micro Contract it’s no sweat. This flexibility, in addition to being able to trade multiple contracts is what makes this system work so well.
The system generates multiple Dynamic Targets but only the current Target is displayed in the Alert Software. In other words, if the first Target gets hit you will see the Target change to the next one – even though you may or may not still be in the trade. Typically there will be 2-3 Targets in play past the Trade Price Barrier. You want to sell some contracts at each of the Targets and continue to follow along with the system trailing stop.
The Trend Direction Arrow shows which direction the system will be giving alerts for. A Green arrow means we are trading to the Long side and a Red arrow means the system will be giving Alerts to Short. Note that the Momentum Meter does not move because it’s not used in this strategy.
The ES Micro Target Strategy runs during the cash session and most of the action occurs early in the day. Many days the system will wrap it up early and no longer issue alerts after lunch freeing you up to do other things. We look to capture big points in the morning and call it a day.