Spec sheet № 11 of 13New YorkVWAP band fadeBeta
Dow Rubber Band: Dow futures VWAP reversion bot
When the Dow stretches too far from VWAP and snaps back inside its band, it trades the move back toward the middle.
In NinjaTrader as NY MYM VWAP Fade
Illustration of the entry rules, not a real or simulated trade and not a result. Hypothetical or simulated performance results have certain limitations (CFTC Rule 4.41). Read the full notice.
Who it's for
Traders who want a calm, one-trade-a-day mean-reversion setup on the Dow.
§ 01 How it trades
The rules, in order
- Builds a session VWAP from 6:00 PM ET with 1.5 standard-deviation bands.
- Short when the last 15-minute close was above the upper band and a red bar closes back below it. Long is the mirror at the lower band.
- Stop 1.5 standard deviations away, target equal to the risk.
- Takes the first signal only. Flat by 2:30 PM ET.
§ 02 Market context
Stretch, then snap back
Dow Rubber Band builds a session VWAP from 6:00 PM ET with bands 1.5 standard deviations wide. When the last 15-minute close was outside a band and the next bar closes back inside it, the bot trades back toward VWAP.
It takes the first signal of the day only, with a stop 1.5 standard deviations away and a target equal to the risk, and it is flat by 2:30 PM ET.
When this setup struggles
- Trend days, when price stays outside the band and the reversal never comes.
- Band re-entries that fail and move back out.
- Afternoon moves after 2:30 PM ET, which it doesn't trade.
§ 03 Risk and settings
Risk rules
- One trade per day.
- Daily loss limit, $500 by default, adjustable.
- Flat by 2:30 PM ET.
Before you turn it on
- Load it on a 15-minute MYM or YM chart.
- Defaults to 2 contracts. Change it to match your account.
- The daily loss limit defaults to $500 and is adjustable.
- One trade per day, window 9:45 AM to 2:30 PM ET.
Contract size and the other inputs are adjustable in the bot's settings. The defaults are the settings we tested with.
§ 04 Questions
Dow Rubber Band: common questions
How is it different from Night Owl?
Both fade VWAP-band stretches, but Dow Rubber Band trades MYM or YM in New York hours with 1.5σ bands and one trade a day. Night Owl trades MES overnight with 1σ bands.
How many contracts by default?
2. Adjust it before you enable the bot.
How many trades a day?
One. It takes the first signal only.
§ 05 Related
Similar bots in the lineup
Night Owl
Fades overnight stretches on the S&P micro. When price pokes outside its VWAP band and snaps back in, it trades back toward VWAP.
See the rules →New York · MES · ESGap Runner
When the S&P opens with a 20-point-plus gap that's still holding at 10:00 AM ET, it trades in the gap's direction.
See the rules →New York · MCLOil Rider
Rides crude oil's US-session trend: buys dips to a rising VWAP and sells rallies to a falling one.
See the rules →Get started
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