Diamond Trading Strategy In Action
Here is an example of what the Diamond Strategy is looking to do. The following chart outlines actual trades placed in the market on June 11, 2008 using Continental Trading Strategies' automated trade entry system. In this instance, we are looking at the Diamond Strategy attached to one June 08 E-Mini Nasdaq Composite Contract. The strategy's dynamic rules quickly recongnized the downtrend and predicted that, if the market reached as low as 1946.75, the trend would continue for the duration of the day. In this instance, the prediction matched the market move and a profit was taken near the close. Please note that the following chart is for illustrative purposes only and is not indicative of results one should expect on any given day. It is good to remember that, as with any automated, rule-based strategy, there are good days and bad days. Both Platinum and Diamond seek to limit the bad days with tight stop losses and exploit the good days by letting winning trades work.
