Emini S&P 500, Russell 2000, DOW and Nasdaq 100 Futures Charts.

1. Once the SBV indicator has advanced above plus 33% (the SBV indicator will show red), wait for it to decline below that level, then enter a short position;
2. Once the SBV indicator has dropped below minus 33% (the SBV indicator will now show green), wait for it to rally above that level, then enter a long position;

   It is very important to use a stop-loss strategy – particularly for intraday trades. In our system, we applied the following rules to recognize when a false signal occurred (and thus to cut our losses short):
    

3. If we are presently in a long position and prices start to decline, we will take a loss once the SBV indicator has dropped below minus 33%. This rule may also be used to open initiate a new short position;
    
4. If we are currently in a short position and prices start to advance, we will take a loss once the SBV indicator has advanced above plus 33%. This rule may also be used to initiate a new long position.
   
   We have added the following rules to protect profits and cut losses:
5. Use a eight-point gain as the pre-determined, satisfactory profit target;
6. Exit positions by the end of the session;
   
   Additional rule we use for the first trade in session:
7. Since the price trend could be under the influence of the night futures trading after the market opens, we do not open a first trade for the session by #3 and #4 rules;
   
   Additional recommended rule for the last trade in session:
8. We refrain from opening a trade if less than an hour remains until market close.

A number of additional rules could be added to the system depending on personal trading style and risk tolerance, and we strongly believe that any system should be adjusted to a trader's personal trading needs.

For instance: Setting a stop loss level at 1 point would reduce loses from -5.70 points to -3.10 points and would increase the total gain from +1.60 to +4.60 points by the end of the session in the example below