Introduction

eMESA is the first mechanical trading system designed specifically to be used in eSignal. More than 4,000 trades have been considered in development back tests reaching back to 1996 to ensure robust performance. When considering the hypothetical results below, we are sure you will agree that it is one of the most effective and profit-producing trading systems available.

eMESA uses the opening range breakout method first popularized by Tony Crabel in his 1990 book Day Trading with Short Term Price Patterns and Opening Range Breakout. Additionally, eMESA measures short-term volatility, as well as pattern and trend measures to provide dynamic adaptation of the entry stop. eMESA is easy to trade. It is always in the market -- both long and short. There is only one type of entry signal. That signal is a stop order placed "X" points away from the daily open. A reversal signal is given for the next day. Monitoring the price during the day is not necessary. eMESA holds positions overnight and until the reversal stop signal is reached.

While specifically characterized for the popular S&P e-mini index futures contract, eMESA can sucessfully be used on other indices such as:
Dow Jones Index
Russell Index
S&P 400 Midcap Index
Mini Value Line Index
NYFE Index
NASDAQ 100 Index
S&P Value Index
S&P Growth Index
The full size S&P Futures Index

Additionally, eMESA is an excellent tool to trade ETFs, such as the SPY, DIA and QQQ.

Because eMESA trades relative to the opening price, only day session data should be used. This is done by appending "=2" to the symbol name. For example, the correct symbol for the June 2003 e-mini contract is ES M3=2. eMESA contains EFS code for back testing. Perpetual Contracts are best used for back testing. The correct symbol for the e-mini perpetual contract is ES #F=2. You should change the number of shares to 50 (because the futures value is $50 per point) to get the correct back test results in dollars.

Trading eMESA is simple. The stop loss order for the next day's trading appears at the lower righthand corner of your price chart.  If you are already in a long position, just ignore a signal to buy because there is no need for another purchase unless you want to add to your position. Similarly, if you are already in a short position, just ignore a signal to sell.  You may also have the eMESA back test subgraph on your screen.  The same signals to buy or sell appear at the upper righthand corner of this subgraph.  The main difference is that the back test knows what position you are currently supposed to have, and so only the reversal signal is given.  Differences between the signals in the two subgraphs are only due to rounding in the calculations.

You have the full range of eSignal back test capabilities for examining the historical performance of eMESA.  The summary below demonstrates the outstanding profit generation of this trading system.

e MESA          Last 12 Months            2/28/02 - 2/21/03
E-Mini Performance Summary (no allowance for slippage and commission)