System 3 - Emerald

Multi-Bar Price Pattern Recognition with Trend Filter

A pattern-based day trading system for NQ futures on 20-minute bars that identifies specific multi-bar close/open relationships while confirming directional bias with an exponential moving average and trend strength indicators. Uses day-specific parameters optimized for each weekday.

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

Key Features

  • Three-bar close/open ratio pattern analysis
  • EMA trend confirmation for directional bias
  • ADX threshold for trend strength validation
  • Time-based position holding limits
  • Session-based trading (no overnight positions)

Core Technical Components

Price Pattern Recognition

Analyzes relationships between close and open prices across multiple bars

  • Examines current bar and previous 2 bars
  • Close/Open ratio calculations to identify momentum
  • Specific ratio thresholds for entry validation

Trend Confirmation System

Validates entries with moving average and trend strength

  • Exponential moving average for directional bias
  • ADX above minimum threshold requirement
  • Ensures trades align with prevailing trend

Trade Execution Logic

Entry Requirements

Long Entry

  • Specific close/open ratios across current and previous 2 bars
  • ADX above minimum threshold
  • Close above exponential moving average

Short Entry

  • Specific close/open ratios across current and previous 2 bars
  • ADX above minimum threshold
  • Close below exponential moving average

Exit Scenarios

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

View Actual Trading Results

Explore System 3 - Emerald 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.