In the July Paper Trader feature, "Buy high & sell low?" Andrew Strasman highlighted the 40-in20-out trading system. You can learn more about the system and how to follow it at www.40in20out.com. The rules for the 40-in-20-out strategy are the following:

1) Initial $ Risk set to 0.50% of $5,000,000 Account Size, or $25,000

2) Initial Position Size = Initial $ Risk / $ Value of 1 ATR (Average True Range over 20 Days)

3) Initiate new Long over the 40 day Highest High, new Short below the 40 day Lowest Low

4) Initial Hard Stop =  Initiation Price +/- 1 * 20-day ATR

5) Dynamic Trailing Stop = 20 Day Low/High; replaces Initial Stop as trades develop out

6)NO ADD-ONS (or pyramiding) of Winners, NO PARTIAL PROFIT TAKING

7)Rollover Rule: Roll entire Position 7-22 days before Expiration (depending on sector; monitor shift in Open Interest), adjusting Protective Stop for prevailing spread at the time; roll only if rules would have you in new position or close it out