Welcome to MDF Trader - $5 E-Mini Dow Futures Specialists

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MDF Trader specializes in computer based, numerical and technically driven, short-term derivatives trading models. In particular, we concentrate on the CME Group’s electronically traded $5 E-Mini Dow Futures hosted on their electronic trading platform.

On this site you will find information about many aspects of trading, including a fairly thorough introduction to futures and E-Mini Dow futures. Other topics include trade strategies, money management strategies, technical analysis, candlestick charting and pivot levels. We explain some benefits of trading E-Mini Dow futures, and discuss a range of subjects from common characteristics of successful traders to aspects of online brokerages.

Click here to view an example of the DSP
Systems Member's Area, where Daily Signals
are posted

E-Mini Dow futures

E-Mini Dow futures, based on the 30 Blue Chip stocks of the Dow Jones Industrial Average (DJIA) index, are highly leveraged and have a $5 multiplier. This means each contract held will return a profit or loss of $5 for every one point movement of the futures price. Mini Dow futures prices track with the DJIA during the cash session hours (daytime stock market hours) but continue trading overnight as well. Morning talk Shows often cite Dow futures prices as an indicator of trader sentiment before the opening bell.

E-Mini Dow Futures are ideally suited for short-term, leveraged trading. This includes day trading and intra-day trading. The high volume of contracts changing hands each day combined with fully electronic trade execution helps to ensure prompt and reliable order fills. However… while the liquidity and shear ease of trading these contracts is alluring, they can be a perilous trap for any trader lacking a well thought out, well tested and complete trading system. Additionally, a fundamental understanding of the concepts and rules of trading E-Mini Dow Futures is necessary.

MDF Trading Systems

All different types of traders, trading advice and systems can be found on the internet these days, ranging from stocks to options to futures to FOREX. Some services publish lists of “hot” stocks to invest in for the long-term. Some give swing trading advice for stocks, options and futures. A few services offer advice and/or systems for trading futures, including E-Mini Dow Futures.

Click here to learn more about the benefits of trading Mini Dow futures, and some things to consider

Our trading models are a little different, designed specifically, and only, for $5 E-Mini Dow futures. The DSP model, which calls for a single position each day, is offered as a subscription service. The CMPA model is offered as an e-book. It is based on 5 minute candlestick charts, and trades during normal market hours. CMPA is a true intra-day model.

Both models may be evaluated as complete trading systems, the foundations of which lie in principles of technical analysis and sound money/risk management. Simulated profit/loss results for each DSP system, based on actual daily data, are published on a daily basis.

DSP Trading System (Subscription Service)

15 - 30 Minutes Per Day

This simple to trade Daily Single-Position (DSP) trading system is built around trade and money management strategies geared to produce substantial point results while requiring only a small time obligation on part of the trader each day. If so inclined, a practiced trader could login to his/her DSP account each afternoon to view the Daily signals, and place appropriate trades in about 15 - 30 minutes. Clients can also opt to receive the Daily Signals Newsletter via Emial. The daily indicator signals are included in the email, along with the suggested Limit and Stop levels for the Trading session. (Please review our tems and conditions of use)

The DSP trade rules are based on technical analysis and a sort of “learning” evaluation engine. As the name suggests, the DSP calls for at most a single position per day. The money management strategy determines the number of contracts to hold for each day’s position.

Execution of the system is simple and straightforward

Step 1) The client simply logs into the secure member’s area of our site to view the trade indicators for the day. Or, if requested, the daily signals can be sent to the client’s email address at the start of each day’s trading session.

Step 2) It takes no more than a few minutes to examine the trade signals to determine if a trade is indicated. If so then the trader can determine the appropriate contract lot size, and place the appropriate orders with an online brokerage if desired. (We offer some information about the role of brokerages here.) Each day’s orders consist of a Market entry order, plus Stop and Limit orders to lock in profits and limit risk. Entries may be Long (buy) or Short (sell), or the system may indicate a “No Trade” day in which no entry is called for.

For a detailed description of the DSP system click here.
For a quick and simple user’s guide for the DSP system click here.
For model performance since January of 2007 click here.
To view an example of the DSP Systems Members' Area click here.
To subscribe to the DSP subscription service click here.

CMPA Trading System (E-Book)

The Candlestick Matrix-Modulation Pivot Analysis (CMPA) trading system is also custom designed to trade the electronic $5 E-Mini Dow Futures. This is an intra-day system which utilizes a live 5-minute price chart for the Mini Dow. It only trades during the normal cash session hours from 8:30 am to 3:00 pm CST.

Unlike the DSP subscription service, the CMPA trading system is offered for download as an e-book. All the tools necessary to interpret the price movements of the Mini Dow with this method are included. The book also includes valuable information about candlestick charting, pivot level analysis, market psychology, live trade implementation, money management and multiple trade day examples.

Trade Automation on the Ninja Trader Platform

One disadvantage of Intra-day trading of any system such as CMPA is the requirement for the trader to park himself or herself in front of a computer and continuously focus on live charts during cash session hours. This can be difficult, and the trader must have the discipline to stay focused throughout the day. Also, the trader must be available (free) to conduct such trading. However, many people hold "day" jobs which may unfortunately keep them from being able to day trade throughout the normal work day hours. Because of these concerns we have begun developing the CMPA trade strategies for partial and fully automated "algorithmic" trading on the Ninja Trader software platform. Ninja Trader software allows traders to program trade strategies, order entry and management for testing and live trade automation. The software is free to use for modeling/testing purposes, and we encourage traders to download it in order to familiarize themselves with its functionality. Some may wish to explore their own development of trading strategies as well. Live futures data feeds from CME are available through technologies and brokerages listed here.

Partially automated algorithmic trading simply means that a 5 minute chart of live YM data is displayed on the trader's computer screen, and the CMPA rules are followed (algorithms calculated) by the software, and each trade opportunity is marked in real time in the chart window as it develops. The trader may follow the trade signals which appear if desired.

Fully automated algorithmic trading is the next step beyond partially automated trading. The software not only recognizes and displays trade entries, limits and stops, but also places and manages trades according to the CMPA rules.

A very nice feature of Ninja Trader is its ability to test trade strategies in "SIM" (simulation) mode. In SIM mode the software will process and execute programmed trade strategies as if they were running on a real equity account, filling orders according to a "fill" algorithm and managing trade positions exactly as it would for a live equity account. The difference is that no real money changes hands. This feature allows for development and testing of trade ideas without risking real money. It also allows a trader to run a strategy or system in order to learn the operation of the software, and become knowledgable/profient at using a trading system before risking real money.

As we are programming the CMPA algorithms we are also updating the 1st edition strategies, and will release the 2nd edition of the CMPA e-book once all analysis and development are complete. All current registered owners of the 1st edition e-book will receive the 2nd edition delivered by email at no cost.

To learn more about the CMPA Trading System click here.
To purchase the CMPA Trading System e-book click here.

Disclaimer
Posting as required by CFTC - CFTC Rule 4.41
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Summary of our Terms of Use: The contents of this web site and any and all documents herein are the sole property of MDF Trader, and may not be reproduced, redistributed, lent or resold in original or edited format without prior written consent of the owner. All content supplied herein is intended purely for informational and educational purposes, and in no way or form constitutes a solicitation or offer to buy or sell any financial instrument of any kind, nor is the content supplied herein intended to encourage directly or indirectly any person or persons to do so. The reader fully accepts that the author is not an investment advisor, and that the information contained herein is simply a methodology which has been found by the author to be of value. Any choice made by the reader, based on the content herein, to risk real money trading in the financial markets is completely and solely the responsibility of the reader. Any losses or profits incurred based on any such decision are neither the responsibility of the author nor of anyone associated with the contents of this web site or any documents herein. The reader understands that trading of financial instruments such as stocks, options, futures, etc, involves considerable risk, and that past performance of any trading system or service is not an indicator of future performance. No representation of any kind is made that any account will experience profits or losses based on any information contained herein.

Most Recent Post	DSP System Performance	DSP 600 - 2000	DSP V1	DSP V2
1/15/12	(points won in 2012)	-79 pts	117 pts	133 pts
	(points won in 2011)	3,133 pts	2,012 pts	1,033 pts
	(points won in 2010)	644 pts	799 pts	(117) pts
	(points won in 2009)	1,231 pts	1,212 pts	1,012 pts