Midnight Runner - a new project to make $500 a month trading overnight

[Mojo]

The majority of new options traders are working full time and have limited access to the market during the day. This new project "midnight runner" is designed to teach those very people how to trade and with the goal to make $500 a month all the while building and improving their skills needed to become great option traders.

What I'm going to do over the next several weeks is to break down step-by-step my process to examine, create, and execute a new futures trading system that will run from midnight to 8 AM. (Not coincidentally, this is also a period of time in which we will see an increasing volatility as the influence of the US financial markets decline against Europe and Asia.)

Everyone is invited to participate; all that I ask is that you ask questions and do your homework!

DISCLAIMER: because this project is public it's important for everyone to be reminded that this is for paper trading only, is not a solicitation to buy or sell any security, is for education only, no support is provided or implied, and I may be buying or selling the same securities at any point without notice. You are responsible for your trades alone and should not trade with any capital that you cannot afford to lose. Options and futures trading is not for everyone and may not be appropriate for you or your investment goals. Please consult with your financial adviser, attorney, and accountant before ever trading with real money.

[Mojo]

OK, here we go! Here's the first lesson of this new project. Its going to require about an hour of homework so set aside some quiet time. Here is the video:

http://www.insanemoney.com/videos/MR...20Lesson1.html

[bobmapes]

Mojo,

Looking forward to more on this project.

[Mojo]

OK, have you guys taken a look at the video? If so, please email me your spreadsheet for data collection over the past twenty days.... Once I get them I will compare with mine, post corrections, and proceed to the next step...

Thanks,

Mojo

[jiba]

Mojo, thanks again. Couple of questions, where can I go to get your email or can you pm it to me?

Also when gathering the data which data point do we use for the open of the night. On my TOS chart I have 14:00 that is not highlighted by extended hours and 14:10 that is highlighted or do we use the 14:30?

Sorry I guess I'm new to all this so I just wanted to get you the right data.

Thanks

[Mojo]

Sorry I've been offline so long.... I'm just getting started on twice a day infusion and its kicking my tail. Fortunately I get the weekends off so after sleeping 22 hours I'm ready to go!

OK, to your questions:
1) mojo @ insane money dot com
2) The night open should be the 4:15pm close or the 4:30pm open (which should be the same).

Glad to see you are participating and thanks to those that have sent in your homework. I've got several replies heading out your way!

Mojo

[Mojo]

Alright, I think I've gotten everyone's spreadsheets.... There are some data discrepancies but nothing really significant...

We are working to establish the characteristics of the overnight market so that we can uncover its patterns and take advantage of them to make $$$.

Here's the next task:

1) Calculate the average range of movement for the evening session (abs of (high - low)).
2) What percentage of our moves in the last 30 trading sessions have been "up"?
3) What percentage of our moves in the last 30 trading sessions have been "down"?
4) What's the average range for "up" moves?
5) What's the average range for "down" moves?
6) Sort each session by the total range from smallest to highest....

Fire away with any questions on your calculation and spreadsheets AND continue to update your data. Remember - the more data the better!

[Mojo]

I'm getting several questions relating to data -
1) Which overnight session goes with which day session? For consistency's sake, Monday with Monday Overnight, Tues w/ Tues Overnight, Wed w/ Wednesday Overnight, Thur w/ Thurs Overnight, and Fri w/ Sunday Overnight.

2) Why are we measuring the absolute value of the move? Wouldn't it be better to measure the height of the downward moves and upward moves? We are going to be measuring all three starting with the ABS.

3) How are we supposed to be measuring the overnight Open, Overnight Low, Overnight High, and Overnight Close? This can be confusing when you are looking back at your bars.... For example I use the @YM 15 min chart so my overnight session start is 'open' of the 4:45pm bar ET (because the futures market is closed for settlement between 4:15 and 4:30 AND the time on the bar is the 'closing time') to the 'close' of the 9:30am bar ET the following day (except for Friday). High and Low of the overnight is the high and low between the 'open' above and 'close' above.

Hope that helps!

Mojo

PS - I'm up $200 for the month so far on this trade.

[jiba]

Do you want us to send you our summarized sheets or do we maintain them on our own?

Thanks

S