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Wing's 11am Rule


The rule makes sense and I'd like to test it in a back tester and produce some stats that we could use as probability weightings when taking trades here. This rule doesn't lend itself to back testing a strategy as it is a directional bias and not an entry system. However we can produce probabilities of when this happens if we can quantify "trend" and put other time contraints on the rule.

I am thinking of just testing the first statement:
quote:
If the market makes a new low or new high for the session between 10:45 am and 11:10 am (eastern), then the direction bias is created for the day. Look for trend to be continued later in day in this direction.

So I'm thinking of running the tester and counting the number of times the respective markets close above/below the high/low made between 10:45 and 11:10 IF there was a NEW high/low made during this period.

What do you think?
Applys to the stock index futures, ES, NQ , ER

If the market makes a new low or new high for the session between 10:45 am and 11:10 am (eastern), then the direction bias is created for the day. Look for trend to be continued later in day in this direction.

If morning trend is DOWN and the market does not make a new low or high for the session between 10:45 am and 11:15 am, then the market is likely to reverse direction and the direction for the afternoon should be UP.

If morning trend is UP and the market does not make a new low or high for the trading session between 10:45 am and 11:15 am, then the market is likely to reverse direction and the direction for the afternoon should be DOWN.