System 4 - Ruby
Dual Moving Average Momentum with ADX Range Filter
A momentum-following day trading system for NQ futures on 5-minute bars that enters when price demonstrates strength above both a long-term SMA and short-term EMA, with the moving average spread and ADX within optimal ranges. Uses day-specific parameters optimized for each weekday.
Key Features
- Momentum confirmation via price above both moving averages
- Moving average spread must be within optimal range
- ADX range filter (must be between min and max thresholds)
- Fixed percentage-based profit targets and stop losses
- Session-based exits (no overnight positions)
Core Technical Components
Dual Moving Average Momentum
Price must be above/below both MAs to confirm directional momentum
- •Long-period SMA (e.g., 965 bars) for major trend
- •Short-period EMA (e.g., 14 bars) for entry timing
- •Both MAs must align with price direction
Moving Average Spread Filter
Percentage difference between the two MAs must be in sweet spot
- •Calculates percentage spread between long SMA and short EMA
- •Spread must be above minimum (trend established)
- •Spread must be below maximum (not overextended)
ADX Range Filter
ADX must be in optimal range - not too weak, not too strong
- •ADX above minimum threshold (sufficient trend)
- •ADX below maximum threshold (not exhausted)
- •Filters choppy and overextended market conditions
Trade Execution Logic
Entry Requirements
Long Entry
- →Close above both long SMA and short EMA
- →Percentage spread between SMA and EMA within min/max range
- →ADX within optimal range (above min, below max)
Short Entry
- →Close below both long SMA and short EMA
- →Percentage spread between SMA and EMA within min/max range
- →ADX within optimal range (above min, below max)
Exit Scenarios
- Fixed percentage profit target reached
- Fixed percentage stop loss triggered
- Price crosses back through long SMA
- End of session exit
View Actual Trading Results
Explore System 4 - Ruby 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.