Published on 07/24/2005

Professional system trader Art Collins shares his daily biases in the index futures markets for July 25. Plus, Art reviews the results from July when the market bias signals are at least +/-3.

The Odds Czar: Index Futures Biases for July 25

As we’ve discussed in past articles, there are potentially different applications for the biases we uncover. The Daily CzarChart, for example, lists eight individual components signaling long or short for the next day (open-to-close basis). The bottom bias line flashes a long, short or neutral signal off a simple majority of the combined indicators.

The line just above it shows the exact total (strength/weakness) of the components. Are the signals stronger (or weaker) if your absolute numbers are greater? I haven’t found a definitive answer to that one. Part of the problem is, as you make the qualifier more stringent, the size of your total trials tends to get unreliably small.

We did, however, once mention the potential wisdom of going with longs that are +3 or greater or shorts that are less than or equal to -3. Just eyeballing the month of July provided a snapshot that is pretty in line with how you’d expect such typical time segments to pan out. Something to keep in mind as you view the actual +3/-3 July results.

Dynamic Monthly Biases for July 25

Flip from short to long in the Russell. Hold longs in S&P and Nasdaq.

The bottom two rows determine the signal. Dynamic Day One trumps everything—you always follow it. When it’s neutral, the Monthly Perpetual provides the direction. Click here for a more in-depth explanation of the rules.

Daily CzarChart for July 25

The bottom row provides the direction of the bias at the open: long (L) or short (S). When it’s neutral, it will read zero (0). Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented on in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.