What is AVALON ?
The AVALON Strategy© is a long-term end of day (EOD) trading strategy.
It is designed around an algorithm that generates entry and exit signals according to price movements of the S&P 500 stock index.
What makes the AVALON strategy so special for traders?
By reinvesting profits, the AVALON strategy performs exceptionally well. Reinvestment, also called compound interest, works particularly effectively with long-lasting trades. Unlike other trading strategies, AVALON exploits long-lasting trends for as long as possible. Trades can last for several months.
With the AVALON Backtester the AVALON strategy has an online backtest app that makes the performance transparent and understandable before licensing. You can easily run through all relevant scenarios. As a result, you receive all important information about the performance the AVALON S&P 500 futures trading strategy would have delivered in the past. And all of this always in comparison to a buy & hold strategy in the S&P 500 stock index.
All data relevant for the performance can be retrieved for individual time periods and is not limited to a few performance periods or screenshots.
Furthermore, you can query net performance data including taxes for all instruments, which makes the AVALON-Backtester quite unique.
Almost 6 decades backtesting period
Compared to many other providers, the AVALON strategy has a backtesting period of almost 60 years. During this period, AVALON has proven itself in many crises.
The only thing you have to do is to check once a day your free trading software (AVALON-NT) to see if there is an entry or exit signal. Time required: 1 minute.
The entry and exit is done manually at the broker of your choice. For an entry or exit you should calculate about 5 minutes.
For a Rollover 10 minutes.
The AVALON S&P 500 futures trading strategy makes an average of 3.75 trades per year. A trade takes 42 days on average (1962 until today).
Contract- and Stop loss calculation
If an entry signal is detected, use the free online AVALON contract calculator to calculate the required number of units depending on the selected risk and margin requirements. The contract calculator also calculates the best stop prices for you automatically.
Since when is the AVALON strategy in live operation?
The AVALON S&P 500 futures trading strategy is the result of more than 12 years of trading experience. The final version of the strategy has been in live operation since 02/01/2019.
For which investors is the AVALON S&P 500 futures trading strategy best suited?
The AVALON strategy is can be learned by all investors due to its simple usage. However, you should familiarize yourself with the functionality and risks of futures in advance.
A free online course on futures can be found directly at the Chicago Mercantile Exchange (CME): Course: Introduction to Futures
Read our article on Margin, Leverage and Risk: Leverage of S&P500 E-Mini Futures compared to ETF’s
Read our article on Rollover: Rollover a Micro E-Mini
Futures belong to the category of leveraged products that can lead to high profits, but also to high losses or even total loss of the invested capital. Therefore, always only invest capital that you do not need for your livelihood or for your retirement!
Which instruments of the S&P 500 can be traded with AVALON?
The AVALON S&P 500 futures trading strategy is qualified for the following instruments:
E-Mini S&P 500 future, Micro E-Mini S&P 500 future, Index CFD S&P500.
What capital is required to trade AVALON?
We recommend a minimum amount of $8.600 (Status Sept. 2021). About $4,300 for trading a Micro E-Mini contract and about $,4300 as a reserve for possible failed trades.
You can also trade a CFD contract as an alternative. Since here the point value is only $1 (Micro E-Mini $5), you will only need 1/5 of the capital, i.e. $1,720.