Old Faithful is one of the most consistent, logical, simple and powerful strategies in any

market, let alone the S&P E-mini. There is no "holy grail" in trading, but this is about as

close as you will ever come to seeing a strategy approach that kind of status. In fact, it is

so powerful that it alone almost out-performs the buy and hold in the S&P Since the

inception of the S&P 500 index in 1982. Since 1982, the S&P 500 is up about 1,100 points.

The Old Faithful S&P Strategy is up about 800 points, non-compounded (Make sure you

read the compounding section in this report). What is really impressive is that this strategy

is only in the market about 7 to 8 days a year. What this means is that the non-

compounded profit potential of this strategy is about the same while only having about

2.5% of the risk exposure.

In short, Old Faithful has similar profit potential as the buy and hold, with a fraction of the

risk. While the buy and hold has seen dramatic drops in the overall investment value (as

much as 55%), Old Faithful has seen less than 10% drop. If you compound the growth

according to a conservative compounding strategy, the profit potential increases to 8,000

points with a drawdown equity highs of less than 5%. (See compounding section in this

report).

The equity graphs below illustrate the difference between the buy and hold and Old Faithful.

Old Faithful - S&P E-mini Strategy Report

The Stats:

Old Faithful is a very simple strategy, based on very sound logic. It is buy only with many

different variations that can be traded depending on how aggressive the trader is and what

their goals and risk levels are. As long as the main premise of the strategy is followed, the

overall probability of solid performance is very good.

Here are the statistics for the most conservative and best performing variation while

keeping the strategy very simple.

These statistics are some of the most impressive strategy statistics I have ever seen and I

have been actively creating and trading strategies for over 20-years full time. A strategy

that is so simple with a 92% accuracy rate on 68 trades is simply unheard of. Throw a

17.75 profit factor and average trade of almost 12 points per trade ($2,916) and these are

simply staggering. This is why I say that every trader should strongly consider this strategy

in their portfolio to some degree.

The Logic

Demand causes prices to move higher. If you know when the most demand is, you can

develop a solid trading strategy for it. However, sometimes it is the reverse that is true. If

you can find when the market moves up the most, you might have an idea of when the

most demand is in play.

Based on the statistics above, the most consistent demand for stocks is going into the first

calendar day of each month. The basis of all variations mentioned in this report is to be

long the S&P E-mini on the first calendar day of the month.

That's it.

It is said that this is the day 401k and funds pump money into the stock market to bolster

their holdings for reporting purposes. I first discovered this strategy back in 2004. The

historical results and the performance since then have been outstanding.

As stated, there are many variations of this strategy. You can buy on the close of the day

before the first calendar day and exit on the close of the first calendar day. Or you can buy

on the open and exit on the close of the same day. You can hold an extra day, etc. There

are also several filters you can apply. The filters for the variation that produced the stats

above are simply:

The Rules:

1. The close of the day before the first calendar day is at least 3.00 points below the

previous day's high

2. Don't trade in August.

That's it. When those two conditions are met, buying on the close of the day before the first

calendar day and exiting on the close of the first calendar day has carried a whopping 92%

accuracy rate.

What about without those filters?

As you can see, even without the filters, this strategy is extremely robust. 72% accuracy

rate, a profit factor of 4.04 and total net profit of $244,937 (979 points).

The breakdown of these stats reveals some more interesting facts. What follows is a

monthly and day of week breakdown of the performance without any other price action

filters being applied.

As you can see, August is the only month that does not perform with this strategy. The two

worst performing months outside of August are July and November. All other months have

outstanding performance numbers.

(NOTE - These stats are based on buying on the close of the day before the first calendar

day and exiting on the close of the first calendar day).

Night Session verses Day Session:

When the stock market closes in the US, there is still trading going on overseas, and now,

thanks to globex, US stocks also trade overnight. The "night" session is based on the price

change from the close of the day before the first calendar day to the open of the first

calendar day:

Night session movement is still strong at 67%, $112,312 in net profits and a 3.38 profit

factor. In short, about 46% of the profits of the Old Faithful strategy comes in the

overnight session. Below are the Day session only stats:

Even though the overall net profit for the day session is higher, other statistical factors are

actually less impressive than the night session only stats. The day session has a lower

accuracy rate and the profit factor is smaller at only 2.65.

Clearly though, the best execution for this strategy is to buy on the close of the day before the first

calendar day and exit on the close of the first calendar day.

Below are the monthly breakdowns for each:

The monthly breakdown is very similar to the night + day session with maybe the only real

noticeable difference being in the November results.

The monthly breakdown of the night session only is very interesting. The bulk of the profits

are made during March, June, September and December. In fact, these four months make

up 85% of the total net profit of the night session trades. The common denominator with

these months? Each one is the month prior to the end of the quarter.

Breakdown by Day of Week:

Below is an analysis of the Day of Week performance. This means when the first calendar

day falls on a Monday, Tuesday, Wednesday, Thursday or Friday. These are also divided by

night and day sessions.

All of these are solid stats, but as you can see by the accuracy rate and the profit factor,

Wednesday is the best performing day. Tuesday is in a close 2nd and actually has a higher

net profit level, so some big moves are made on a Tuesday.

Despite the many variations that can be used with strategy, and the many filters, the only principle

you need to understand with using a filter is that you do not want to buy if the market movement on

the day before the first calendar day is significantly bullish. If the last trading day of the month posts

a bullish move, the stats for the first calendar day become little more than breakeven:

Here are the stats for Old Faithful based on the filter of having the close of the last trading day less than

the previous high. Below are the stats when the close is greater than the previous high:

As you can see, if the last trading day has a close higher than the previous high, the stats

for buying on the first calendar day are only slightly bullish.

When the close is higher on the last trading day, the day session only variation of the first

calendar day actually loses money.

Accordingly, any "less than bullish" move on the last trading day is the only filter you need

to use with this strategy. Generally, the less bullish, the better the overall stats are.

However, the more stringent you get with the filter, the fewer the trades. A good medium

is to have the close at least 3.00 points less than the previous high on the last trading day.

The Power of Compounding

No trader should trade any strategy without a well thought out trading plan, and one that

includes how and when to compound profits that occur. I have spent much of my career

preaching the power of compounding in trade. In 1995, I created a compounding strategy

that has proven again and again to be one of the most efficient compounding strategies for

active traders. This strategy is called the "Fixed Ratio" money management method. I fully

explain this method in the book "The Trading Game" (1999, John Wiley & Sons), and in my

10-hour online course called "Mission Million Money Management".

Below is the equity curve of starting with a single S&P E-mini contract and applying a

conservative Fixed Ratio money management strategy.

The Fixed Ratio money management method can be applied to any strategy in any market.

The purpose of this report is not to explain the Fixed Ratio method, but traders need to

understand its power and learn how to apply it to their trading, so I at lease wanted to

illustrate in this report.

Other Strategies

I first published the Old Faithful strategy in 2004. There have been some knockoffs with

this strategy, but it wasn't until 2010 that I was able to really analyze the strategy and find

what the key principle was in the filter (anything other than a bullish day on the last trading

day). It was in 2010 that we began to be able to utilize the software program "Quantum

Charts" and really analyze the markets (See section below). It is through this software

program that we have also been able to discover many, many other great trading strategies

in all types of markets. We have begun to make available these strategies through the QC

System Club (the website where you requested this report).

QC System Club Limited Time Access

For a limited time only, you can get full access to all the strategies we make available

through the QC System Club for one low price. You don't have to buy each individual

strategy, or try to pick which ones to buy, we make them all available for one low price.

Since we have not yet even released this site to the general public (you cannot get there from a public

web search), you have an opportunity to become a QC System Club member before the public release

and significant price increase. The "Old Faithful" strategy alone is worth the club membership.

Go to this link to sign up now.

http://184.73.209.142/QCS/systemClub.php

How We Discover Trading Systems

When you become a QC System Club member, every strategy is fully revealed. You also

get access to Quantum Charts Research version for no extra cost. With each strategy, you

also receive a file you can open up in Quantum Charts and begin to customize each strategy

based on your own ideas. It is extremely simple to do through a unique drag and drop

process no other trading tool in the industry offers. Here is what the Old Faithful strategy

looks like (conditions were dragged and dropped, not typed).

All conditions are conveniently categorized and listed for you. All you have to do is

drop them in the right spot, which is super easy to learn. Be sure and go to our

website and watch of few or our amazing videos on the power of this trading tool.

www.QuantumCharts.com