Finding a bullish trend with the golden cross signal

The golden cross occurs when the shorter term moving average rises and crosses above the longer term moving average . Usually, a golden cross is associated with sharp upward price movement and can be used as a buy signal in the belief that a significant uptrend will follow. The position should be maintained until prices close below the longer term moving average.

ADAPTED OPTION STRATEGY: LONG SYNTHETIC FUTURES

When you are bullish on the market the long synthetic futures strategy is ideal as it will not be affected by changes in volatility. Profit increases as the market rises. Profit is based strictly on the difference between the exit price and the synthetic entry price. Selling a Put effectively removes the risk of time decay for the long call position.

LONG SYNTHETIC FUTURES: Leg 1

Trading Symbol ES M7
Option Type CALL
Option Strategy BUY
Strike 2180
Expiration Nov 2017

LONG SYNTHETIC FUTURES: Leg 2

Trading Symbol ES M7
Option Type PUT
Option Strategy SELL
Strike 2140
Expiration Nov 2017

ADAPTIVE FUTURES STRATEGY

Trading Symbol6B ES M7
Strategy Long
Entry Point1.2975 2180
Target 2400
Stop Loss 2140
Contract Expiry Nov 2017

FINDING A BULLISH TREND WITH THE GOLDEN CROSS SIGNAL.: ES M7 NOVEMBER 2016

ACTUAL OUTCOME

POTENTIAL GAIN PER CONTRACT

As a trend following strategy, substantial upside can be expected. The upside target is unlimited. The position is closed once prices close below the 50-period moving average.

POTENTIAL DOWNSIDE PER CONTRACT

If the price falls below the 50-period moving average, the position is closed with a limited loss.

Golden cross signal happening now

6E #F

ZW #F


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