Hypothetical
performance results have many inherent limitations, some of
which are described below. No representation is being made
that any account will or is likely to achieve profits or
losses similar to those shown. In fact, there are frequently
sharp differences between hypothetical performance results
and the actual results subsequently achieved by any
particular trading program. One of the limitations of
hypothetical performance trading results is that they are
generally prepared with the benefit of hindsight. In
addition, hypothetical trading does not involve financial
risk, and no hypothetical trading record can completely
account for the impact of financial risk in actual trading.
For example, the ability to withstand losses or to adhere to
a particular trading program in spite of trading losses are
material points which can also adversely affect actual
trading results. There are numerous other factors related to
the markets in general or to the implementation of any
specific trading program which cannot be fully accounted for
in the preparation of hypothetical performance results and
all of which can adversely affect actual trading results.
eMESA is the
first mechanical trading system designed specifically to be
used in eSignal. Over 4000 trades have been considered in
development backtests reaching back to 1996 to ensure robust
performance. When considering the hypothetical results below,
we are sure you will agree that it is one of the most
effective and profit-producing trading systems available. An
updated version of eMESA is included with
eSignal 7.8.
eMESA trades
short term trends, trading about every two weeks on the
average. The eMESA approach senses when the
market has a maximum departure from the long term trend and
trades on the basis that the market will return to the mean
price - thus establishing the short term trend. eMESA
is easy to trade. It is always in the market - both long and
short. There is only one type of entry signal. That signal is
a stop order to reverse at the current closing price. The
reversal signal is given for the next day. Monitoring the
price during the day is not necessary. eMESA
holds positions overnight and until the reversal stop signal
is reached.
While specifically
characterized for the popular S&P e-mini index futures
contract, eMESA can sucessfully be used on
other indices such as:
Dow Jones Index
Russell Index
S&P 400 Midcap Index
Mini Value Line Index
NYFE Index
Nasdaq 100 Index
S&P Value Index
S&P Growth Index
the full size S&P Futures Index
Additionally, eMESA is an excellent tool to
trade ETFs, such as the SPY, DIA, and QQQ.
Since eMESA trades relative to the opening price, only day session data
should be used. This is done by appending "=2" to
the symbol name. For example, the correct symbol for the June
2003 S&P contract is SP M3=2. eMESA contains EFS code for backtesting. Perpetual Contracts are
best used for backtesting. The correct symbol for the S&P
perpetual contract is SP #F=2. You should change the number
of shares to 50 (because the futures value is $50 per point)
to get the correct backtest results in dollars. We strongly
urge that the full S&P contract data be used for the
signals, even when the orders are placed on the e-mini
contract.
download
eMESA USERS GUIDE (37KB)
link to eMESA chat archives
