System 2 - Coral

EMA Breakout with Lookback Range Confirmation

A breakout-based day trading system for NQ futures on 5-minute bars that enters positions when price breaks above or below recent highs/lows while maintaining proper distance from a key exponential moving average. Uses day-specific parameters optimized for each weekday.

Instrument
NQ (E-mini NASDAQ-100)
Timeframe
5 minutes
Type
Day Trading
Direction
Long & Short

Key Features

  • Recent high/low breakout detection
  • EMA distance validation for quality setups
  • Directional bias from candlestick patterns
  • Time-based exits after specified bars held
  • Session-based trading (no overnight positions)

Core Technical Components

Breakout Detection

Identifies when price breaks out of recent trading ranges

  • Lookback period to find highest high / lowest low
  • Excludes current bar to avoid false signals
  • Requires close above/below breakout level

EMA Distance Filter

Ensures entries occur at optimal distance from moving average

  • Exponential moving average for trend reference
  • Price/EMA ratio must be within defined range
  • Prevents entries when too far from average

Trade Execution Logic

Entry Requirements

Long Entry

  • Close above EMA and above lookback period highest high
  • Close above open (bullish bar)
  • Price/EMA ratio within acceptable distance range

Short Entry

  • Close below EMA and below lookback period lowest low
  • Close below open (bearish bar)
  • Price/EMA ratio within acceptable distance range

Exit Scenarios

  • Fixed bars held exit (time-based)
  • Fixed percentage profit target
  • Fixed percentage stop loss
  • End of session exit

View Actual Trading Results

Explore System 2 - Coral results with detailed performance charts, comprehensive metrics, and complete trade-by-trade history from actual executions.

Risk Disclaimer

Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The performance data shown represents historical backtesting and simulation results. Actual trading results may differ significantly. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.