Legend24 Trading Strategy

by Jack Cahn.

Legend 24 is somewhat of a misnomer as the globex does not trade 24 hours a day rather they trades for 23 hours , close an hour for settlement and close for down for the week end. However the distinction is clear in the name of the Legend24 that it is a position trading type of program as opposed to a day trader. One of the primary risk trader’s face is the opening gap when holding over night. Hence the higher margin requirements by the broker. However, with the advent of the globex the time is narrowed down to just an hour except the weekends. I am not too sure, if the brokers take that into account in their calculations. In any event in this regard the Legend 24 does not hold trades at all over weekends. Legend24 always exits market on close (moc) on a Friday.

The Legend24 is a unique “change” of condition strategy. It uses the newest version of the %C to indicate when the market is more likely to experience a change from its most recent pattern; it also uses a bottom to up approach on multiple data streams to help make its determination. (SEE “%C Solution”)

A trend following strategy is an investment strategy that tries to take advantage of long-term moves that seem to play out in various markets. A trend following strategy aims to work on the market trend mechanism (moving averages of some type and combination) and take benefit from both sides of the market enjoying the profits from both the ups and downs of the futures markets. With that in mind remember that the Legend24 is looking for a change in trend to entry long or short after an extreme of the previous trend has been witnessed.

These two aspects make Legend24 unique in its construction as it will try to avoid price extremes- as trends have a tendency to precise – Legend24 will wait for a clear sign of “change” but it will try to avoid a change into a dead action period. This characteristic has a tendency to limit losses during the market's sideways periods. As mentioned above, Legend24 also uses a bottom to up approach on multiple data streams to makes its determination of when to trade a change.
When a set up for change exist, the program enters at the open of the next bar at the market and trades on a 15 minute bar, as the bottom up approach suggest the data 2 and data 3 can be of a lesser time frame like 10 minutes and 5 minutes respectively.

Legend24’s edge comes from letting profits run and cutting losses short it is a priced based systems and use money based exit program. It trades a one lot. However, trade sizing is available with TraderAssist™ advisory included in the service pack.