Blow is the modified futures trading rule:
"Days Range: An initial morning momentum trade is allowed if the 24-hour Range is at least 50 ticks. No additional trades are allowed if the initial morning trade is a loss AND the Morning Session Range (tick range for day beginning with 6:30 open) is less than 50 ticks. Morning Session Range must exceed 50 ticks before second trade of day is entered. If the second trade is a loss AND 24-hour Range is less than 100 ticks, trading shall cease until 24-hour Range exceeds 100 ticks. Failure of the market to exceed the 100 tick rule in the 24-hour session eliminates momentum trades for remainder of day."
Use of this rule will ensure that momentum trades are used for days that trend. I am allowing for a couple of tests to possibly catch trades that will begin the trends for the day, but those trades will forever now be kept on a short leash.
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