System 10 - Zircon

TSI Momentum Crossover with Daily Range Filter

A swing trading system for NQ futures on 60-minute bars. Uses True Strength Index (TSI) with signal line crossover for momentum detection, combined with an NQ daily range filter to ensure sufficient market volatility. Features percentage-based risk management with break-even stop protection.

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

Key Features

  • True Strength Index (TSI) momentum oscillator
  • Signal line crossover for entry timing
  • NQ daily range filter (avg daily range >= 0.5%)
  • ATR increasing confirmation for momentum
  • Percentage-based profit targets and stop losses
  • Break-even stop protection after initial move

Core Technical Components

True Strength Index (TSI)

Double-smoothed momentum oscillator for trend detection

  • Measures price change momentum with double EMA smoothing
  • Long: TSI must be below -20 (oversold condition)
  • Short: TSI must be above +16 (overbought condition)
  • More stable than single-smoothed oscillators

Signal Line Crossover

Entry timing based on TSI signal line

  • Signal line is EMA of TSI
  • Long: TSI crosses above signal line
  • Short: TSI crosses below signal line
  • Confirms momentum shift direction

NQ Daily Range Filter

Ensures sufficient market volatility for profitable swings

  • Calculates average daily range (high - low) over lookback period
  • Requires avg daily range >= 0.5% of price
  • Filters out low-volatility choppy conditions
  • Only trades when market provides range opportunity

ATR Confirmation

Volatility expansion requirement

  • Current ATR must be rising (ATR > ATR[1])
  • Confirms volatility expansion on entry
  • Avoids entering during volatility contraction
  • Improves timing for swing trades

Trade Execution Logic

Entry Requirements

Long Entry

  • TSI crosses above signal line
  • TSI below -20 (oversold zone)
  • ATR rising (current > previous bar)
  • NQ daily range >= 0.5% average

Short Entry

  • TSI crosses below signal line
  • TSI above +16 (overbought zone)
  • ATR rising (current > previous bar)
  • NQ daily range >= 0.5% average

Exit Scenarios

  • Percentage-based profit target
  • Percentage-based stop loss
  • Break-even stop after reaching threshold
  • Positions held until target or stop hit

View Actual Trading Results

Explore System 10 - Zircon 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.