The Amber Strategy

A systematic, rule-based approach to trading NQ futures with proven results spanning 6 years (5 years backtested + 1 year live)

Overview

The Amber strategy is a fully automated EasyLanguage trading system designed specifically for NQ (E-mini NASDAQ-100) futures. Developed and refined over multiple market cycles, this strategy uses a unique weekday-specific optimization approach where each trading day (Monday through Friday) has its own finely-tuned parameters.

This innovative approach recognizes that market behavior varies by day of the week. Monday's market dynamics differ from Wednesday's, which differ from Friday's. By optimizing parameters for each weekday separately, Amber adapts to these cyclical patterns while maintaining the same core logic across all days.

Unlike discretionary approaches that rely on emotion and subjective interpretation, Amber uses objective, rules-based signals to enter and exit trades. This systematic approach ensures consistency and removes the psychological challenges that plague most traders.

Key Features

Selective Trading

Only 26% time in market. The strategy waits patiently for high-probability setups rather than forcing trades.

Consistent Edge

60.0% win rate with 1.85 profit factor (after costs) means the strategy makes $1.85 for every $1 risked over the long term.

Risk Management

Built-in stop losses and position sizing rules protect capital while allowing profits to run on winning trades.

Fully Automated

EasyLanguage script handles everything - signal generation, order placement, and trade management - no manual intervention required.

Core Technical Components

Amber combines three proven technical indicators into a cohesive system. Each component serves a specific purpose, and all must align for a trade signal to be generated.

1. Supertrend Indicator (Trend Direction)

The Supertrend indicator identifies the prevailing trend using dynamic upper and lower bands calculated from the median price and ATR (Average True Range). When price crosses above the upper band, the trend is bullish. When price crosses below the lower band, the trend is bearish.

Upper Band = Median Price + (Multiplier × ATR)
Lower Band = Median Price - (Multiplier × ATR)

Note: The Supertrend length and multiplier are optimized separately for each weekday and for long vs. short setups.

2. EMA (Price Confirmation)

A fast Exponential Moving Average confirms price momentum. For long trades, price must be above the EMA. For short trades, price must be below the EMA. This ensures we're trading with momentum, not against it. Period length is optimized separately for each weekday.

3. ADX (Trend Strength Filter)

The Average Directional Index (ADX) measures trend strength. Amber requires ADX to be within specific thresholds (not too weak, not too strong) and rising. This filters out choppy markets and ensures we enter when trends are developing, not exhausted.

✓ ADX must be above minimum threshold (trend present)
✓ ADX must be below maximum threshold (trend not overextended)
✓ ADX must be rising (trend strengthening)

Trade Execution Logic

Entry Requirements

All of the following conditions must be true simultaneously for a trade entry:

For Long Entries:
• Current day of week matches (each day has separate parameters)
• Time is within the allowed entry window for that day
• Supertrend indicates bullish trend (price above upper band)
• Price is above the EMA (momentum confirmation)
• ADX is within the specified range (trend strength appropriate)
• ADX is rising (trend gaining strength)
• No existing position or only short position (to allow flipping)
For Short Entries:
• Current day of week matches (each day has separate parameters)
• Time is within the allowed entry window for that day
• Supertrend indicates bearish trend (price below lower band)
• Price is below the EMA (momentum confirmation)
• ADX is within the specified range (trend strength appropriate)
• ADX is rising (trend gaining strength)
• No existing position or only long position (to allow flipping)

Exit Management

Each trade has three possible exit scenarios:

1. Stop Loss (Risk Control)

Calculated as Entry Price ± (ATR × Stop Loss Multiplier). This limits maximum loss on any single trade. The ATR-based approach adapts to current volatility - wider stops in volatile markets, tighter in quiet markets.

2. Take Profit (Profit Target)

Calculated as Entry Price ± (ATR × Take Profit Multiplier). Locks in gains when price reaches the target. The profit target is typically larger than the stop loss, ensuring positive risk-reward ratios.

3. Session Exit (Time-Based)

All positions are closed by a specific time each day (varies by weekday). This prevents holding positions overnight and reduces gap risk. The strategy starts fresh each trading session.

Weekday-Specific Optimization

Each trading day has independently optimized parameters:

  • Monday - Different Supertrend settings, ADX thresholds, and time windows
  • Tuesday - Optimized for mid-week momentum patterns
  • Wednesday - Tuned for mid-week reversal or continuation setups
  • Thursday - Adjusted for late-week positioning
  • Friday - Optimized for end-of-week profit-taking and position squaring

This weekday optimization was derived from analyzing 6 years of NQ futures data (2020-2025) and identifying repeating patterns based on day of the week.

EasyLanguage Implementation

The Amber strategy is delivered as a complete EasyLanguage script compatible with TradeStation and MultiCharts. The code is professionally written, well-commented, and optimized for performance.

What You Get:

  • Complete EasyLanguage source code with full commenting
  • Strategy (.ELD) file ready to import into TradeStation or MultiCharts
  • Detailed installation and configuration guide
  • Recommended settings and parameter explanations
  • Technical support for installation and setup

The strategy is designed to run on standard intraday NQ charts with specific bar intervals. Once loaded and configured, it can be set to auto-execute trades or simply generate visual signals for manual execution.

Installation Guide

Step 1: Import the Strategy

In TradeStation or MultiCharts, go to File → Import → EasyLanguage and select the provided .ELD file. The strategy and all required functions will be automatically imported into your platform.

Step 2: Configure Chart Settings

Create a new chart for the @NQ symbol with the recommended bar interval and session times. Detailed chart settings are provided in the installation documentation.

Step 3: Apply the Strategy

Right-click the chart, select Insert Strategy, and choose "Amber" from the list. Use the default parameters initially - these are the settings that produced the verified results.

Step 4: Enable Automation (Optional)

If you want fully automated trading, enable Strategy Automation in your platform settings. The strategy will then automatically submit orders to your broker when signals are generated.

Step 5: Monitor and Manage

Track your live performance and compare to the verified results. The strategy handles all trade management, but you should monitor your account for any platform-related issues or connectivity problems.

Platform Requirements

  • Platform: TradeStation (version 9.5 or higher) or MultiCharts (version 11 or higher)
  • Data Feed: Real-time or delayed NQ futures data from your broker
  • Broker: Any futures broker supported by your platform (examples: Optimus, AMP, Interactive Brokers)
  • Capital: Minimum $25,000-$50,000 recommended for NQ, or $10,000+ for MNQ

Important Notes

Past performance is not indicative of future results. While the Amber strategy has demonstrated consistent profitability across verified trades spanning 6 years (5 years backtested + 1 year live), all trading involves risk. Market conditions can change, and drawdowns are a normal part of systematic trading.

The verified results include slippage (0.01%) and commissions ($2 per NQ contract, $0.4 per MNQ contract) to provide realistic expectations. Your actual results may vary based on execution quality, broker commissions, and market conditions.

We recommend starting with paper trading or small position sizes to verify the strategy operates correctly in your specific platform and broker environment before scaling up to full size.

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