SBV Technical Analysis - Trading Volume with Confidence
Simple SBV Trading System Blog
| Tweet |
S&P 500 SBV Trading System Example
Friday, April 20, 2007
This week SBV chart example is based on the 30-day SBV(13) chart. The trading system described below may be applied to e-mini index futures over short-, mid-, and long-term. The principles outlined here will work not just for the S&P 500 index – they can be applied equally well to the Russell 2000, DJI, the NASDAQ 100, as well as to other indexes.
| Chart 1. Relationship between the SBV oscillator and index reversal points. S&P 500 index. 30-day view. 1 bar = 30 min. SBV(13). |
 |
In our trading example, we applied the following simple system which is based on our SBV indicator:
- Once the SBV indicator declines below minus 33% (the indicator will now show green), we enter a short position (if we are not already short);
- Once the SBV indicator advances above minus 33% (after having been below that level), we will enter a long position (the indicator still shows green);
- Once the SBV indicator rallies above plus 33% (the indicator will now show red), we enter a long position (if we are not already long);
- Once the SBV indicator declines below plus 33% (after having been above that level), we will enter a short position (the indicator still shows red).
We recommended that you incorporate additional stop-loss rules that suit your personal risk tolerance. For instance, you may create additional rules to take a loss if prices move 2 points against your position.
Table 1: Trades based on the SBV Oscillator.
| Open Trades | Closed Trades | Profit (points) | ||||||
| Time | Motivation | Trade | Index | Time | Motivation | Trade | Index | |
| 03/29/07 | rule #2 | Buy | 1424 | 03/29/07 | rule #1 | Sell | 1419 | -5 |
| 03/29/07 | rule #1 | Sell Short | 1419 | 03/29/07 | rule #2 | Buy to Cover | 1419 | 0 |
| 03/29/07 | rule #2 | Buy | 1419 | 04/04/07 | rule #4 | Sell | 1438 | +29 |
| 04/04/07 | rule #4 | Sell Short | 1438 | 04/05/07 | rule #3 | Buy to Cover | 1443 | -5 |
| 04/05/07 | rule #3 | Buy | 1443 | 04/09/07 | rule #4 | Sell | 1446 | +3 |
| 04/09/07 | rule #4 | Sell Short | 1446 | 04/12/07 | rule #2 | Buy to Cover | 1442 | +4 |
| 04/12/07 | rule #2 | Buy | 1442 | 04/17/07 | rule #4 | Sell | 1471 | +29 |
| 04/17/07 | rule #4 | Sell Short | 1471 | 04/18/07 | rule #2 | Buy to Cover | 1472 | -1 |
| 04/18/07 | rule #2 | Buy | 1472 | 04/20/07 | rule #4 | Sell | 1479 | +7 |
| 04/20/07 | rule #4 | Sell Short | 1479 | 04/20/07 | rule #3 | Buy to Cover | 1479 | 0 |
Total: | +61 | |||||||
| Date | Index | Timeframe | Number of Trades |
| December 28, 2007 | S&P 500 | 60-day | 5 "Long" and 6 "Short" trades |
| December 21, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| December 8, 2007 | S&P 500 | 60-day | 6 "Long" and 7 "Short" trades |
| December 8, 2007 | S&P 500 | 60-day | 6 "Long" and 6 "Short" trades |
| November 30, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| November 23, 2007 | S&P 500 | 60-day | 4 "Long" and 6 "Short" trades |
| November 16, 2007 | DJI | 60-day | 5 "Long" and 6 "Short" trades |
| November 9, 2007 | DJI | 60-day | 4 "Long" and 5 "Short" trades |
| November 2, 2007 | Russell 2000 | 1-day | 5 "Long" and 6 "Short" trades |
| October 26, 2007 | NASDAQ 100 | 5-day | 6 "Long" and 5 "Short" trades |
| October 19, 2007 | DJI | 60-day | 6 "Long" and 6 "Short" trades |
| October 12, 2007 | NASDAQ 100 | 15-day | 6 "Long" and 6 "Short" trades |
| October 5, 2007 | Russell 2000 | 1-day | 5 "Long" and 6 "Short" trades |
| September 28, 2007 | NASDAQ 100 | 60-day | 4 "Long" and 4 "Short" trades |
| September 21, 2007 | Russell 2000 | 1-day | 3 "Long" and 4 "Short" trades |
| September 14, 2007 | DJI | 60-day | 4 "Long" and 4 "Short" trades |
| September 7, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| August 31, 2007 | S&P 500 | 60-day | 7 "Long" and 6 "Short" trades |
| August 24, 2007 | S&P 500 | 60-day | 7 "Long" and 6 "Short" trades |
| August 17, 2007 | DJI | 15-day | 6 "Long" and 6 "Short" trades |
| August 10, 2007 | S&P 500 | 60-day | 6 "Long" and 6 "Short" trades |
| August 3, 2007 | S&P 500 | 60-day | 6 "Long" and 5 "Short" trades |
| July 27, 2007 | S&P 500 | 60-day | 5 "Long" and 4 "Short" trades |
| July 20, 2007 | NASDAQ 100 | 15-day | 6 "Long" and 7 "Short" trades |
| July 13, 2007 | S&P 500 | 60-day | 4 "Long" and 4 "Short" trades |
| July 6, 2007 | DJI | 60-day | 3 "Long" and 3 "Short" trades |
| June 29, 2007 | NASDAQ 100 | 15-day | 5 "Long" and 4 "Short" trades |
| June 22, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| June 15, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| June 8, 2007 | S&P 500 | 60-day | 4 "Long" and 5 "Short" trades |
| June 1, 2007 | S&P 500 | 60-day | 6 "Long" and 5 "Short" trades |
| May 25, 2007 | NASDAQ 100 | 60-day | 10 "Long" and 11 "Short" trades |
| May 18, 2007 | S&P 500 | 60-day | 6 "Long" and 6 "Short" trades |
| May 11, 2007 | NASDAQ 100 | 30-day | 2 "Long" and 1 "Short" trades |
| May 4, 2007 | S&P 500 | 60-day | 5 "Long" and 5 "Short" trades |
| April 27, 2007 | S&P 500 | 60-day | 5 "Long" and 4 "Short" trades |
| April 20, 2007 | S&P 500 | 30-day | 5 "Long" and 5 "Short" trades |
| April 13, 2007 | NASDAQ 100 | 5-day | 3 "Long" and 3 "Short" trades |
| April 4, 2007 | S&P 500 | 60-day | 6 "Long" and 5 "Short" trades |
| March 30, 2007 | S&P 500 | 60-day | 5 "Long" and 6 "Short" trades |
| March 23, 2007 | S&P 500 | 60-day | 6 "Long" and 5 "Short" trades |
| March 16, 2007 | S&P 500 | 60-day | 4 "Long" and 4 "Short" trades |
| March 9, 2007 | S&P 500 | 60-day | 3 "Long" and 2 "Short" trades |
| March 2, 2007 | S&P 500 | 60-day | 2 "Long" and 2 "Short" trades |
| February 23, 2007 | S&P 500 | 60-day | 4 "Long" and 4 "Short" trades |
| February 16, 2007 | NASDAQ 100 | 15-day | 2 "Long" and 2 "Short" trades |
| February 9, 2007 | NASDAQ 100 | 15-day | 1 "Long" and 2 "Short" trades |
| February 2, 2007 | NASDAQ 100 | 60-day | 2 "Long" and 2 "Short" trades |
| January 26, 2007 | NASDAQ 100 | 60-day | 1 "Long" and 2 "Short" trades |
| January 19, 2007 | NASDAQ 100 | 15-day | 1 "Long" and 1 "Short" trades |
| January 12, 2007 | NASDAQ 100 | 15-day | 4 "Long" and 3 "Short" trades |
