Trading strategy: S&P 500 Break-out (René Wolfram)
Description
R.W., René Wolfram, has been a professional trader for over 18 years. He combines day trading and swing trading and only uses trading strategies which he designed by himself. As part of his RealMoneyTrader project he trains clients and allows them to see all his trades in real-time. The free RW S&P500 Break-out strategy is based on trading ranges.
René Wolfram trades futures. The e-mini S&P500 future quotes on the CME. Thus future requires an intraday margin of USD 1.550. The minimum spread is very low: 0,25 point. It is also possible to use CFDs.
| Suitable for | : S&P 500 market index |
| Instruments | : Futures and CFD |
| Trading type | : Day trading |
| Trading tempo | : Maximum one trade per day |
| Using NanoTrader Full | : Manual or (semi-)automated |
When to open a position?
The strategy opens a long position on the S&P 500 if the market price moves 1 point above the high of yesterday’s 15h20-22h00 trading range. The strategy opens a short sell position on the S&P 500 if the market price moves 1 point below the low of yesterday’s 15h20-22h00 trading range. This implies that the S&P 500 must open within yesterday’s trading range and move out of the range. When the S&P 500 opens already outside yesterday’s trading range, no signal is possible.
The strategy will automatically open either the long position or the short sell position if AutoOrder is activated.
When to close a position?
The S&P 500 Break-out strategy uses a profit target and a stop loss order. If the TradeGuard is activated, the NanoTrader trading platform will automatically place both orders at René Wolfram’s price levels.
This example
shows the trading range. A long position is bought when the
market price moves above the range. The position is stopped
out.
Conclusion
René Wolfram has a strong preference for break-out strategies.
You may also be interested in
- More about René Wolfram.
- Trading events with René Wolfram.
- René Wolfram’s Vola-Break-Out package in the trading store.
Practical implementation
Using the NanoTrader Full follow these steps:
- Select the S&P 500 and open the chart.
- Select the template study "WHS RW SP 500 Break-out" in the "WHS Strategies" folder.
- If necessary, adapt the settings as described above.
- If you want to trade semi-automatically, activate
TradeGuard+AutoOrder in the chart. If you want to trade
automatically, activate AutoOrder in the chart.