Three and Three Strategy

Discover the 'Three and Three Strategy' for ES futures and other markets. This algo strategy identifies 3-month uptrends & 3-week downtrends, then buys on a dow

Published · Updated · Methodology: Technical Indicators

Part of: Algorithmic & Automated Trading

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily bars
  • Markets: ES Futures (Mini S&P), NQ (Nasdaq 100 Futures), RTY (Russell 2000 Futures), E-mini micros, Gold, Oil

Source video

Decoded from: Algo Trading - Mini S&P Strategy That Works by Algo Trading With Kevin Davey — watch the original

Key timestamps:

  • 0:08 - Introduction to ES strategy
  • 2:09 - Strategy name and core concept (Three and Three)
  • 2:20 - Long entry condition explained
  • 2:44 - Short entry condition explained
  • 3:18 - Daily bars and testing period
  • 3:30 - Varying profit target and look back length
  • 4:00 - Robustness check results
  • 4:20 - Equity curve without stop loss
  • 5:00 - Walk forward testing results

Strategy overview

Algorithmic trading turns a discretionary idea into a fixed set of rules a computer can test and execute without hesitation. This entry decodes a video from Kevin Davey — a systematic futures trader and educator — presenting a compact daily-bar strategy for the E-mini S&P 500 (ES) that he calls "Three and Three."

What sets this clip apart from other automated approaches is less the pattern itself than how it is examined. The setup is deliberately minimal: it runs on daily price bars, is built from the bars themselves rather than a stack of indicators, and defines both a long and a short entry condition. The part the video dwells on is robustness — walking through how the strategy behaves as its two main dials, the profit target and the look-back length, are varied across a range rather than fixed at a single "best" combination. That emphasis reflects a systematic-trading mindset in which an edge is only worth pursuing if it survives across settings, not just at the one that happens to look good in hindsight.

No entry rules were extracted for this page, and the "Mini S&P strategy that works" framing comes from the video's own title rather than any independent result — treat it as a single-source demonstration on one instrument. To see exactly how the long and short conditions are defined and which parameter ranges are tested, the original Kevin Davey video is the reference; the concept hub on this page covers the broader ground of turning simple mechanical patterns into automated, testable systems.

Topics

three and three strategy · trading strategy · pine script · tradingview strategy · es futures strategy · nq futures strategy · gold trading strategy · oil trading strategy · daily timeframe strategy · technical indicators · swing trading

Frequently asked questions

What is the Three and Three strategy?

It's a rule-based strategy for the E-mini S&P 500 presented by Kevin Davey on his Algo Trading channel. The video runs it on daily bars with a defined long and short entry condition; the specific rules behind the name are laid out in the source video itself.

What market and timeframe does this strategy use?

As presented, it trades the E-mini S&P 500 (ES) futures contract on daily bars, making it a slower, once-per-day pattern rather than an intraday setup.

Why does the video vary the profit target and look-back length?

Testing a strategy across a range of parameter values — rather than a single fixed setting — is a common robustness check: it shows whether an edge holds broadly or depends on one lucky combination. The video walks through this for the profit target and the look-back length.

How can I evaluate a strategy like this before trading it?

Backtest it on historical daily data and, ideally, confirm it holds up across different parameter settings and time periods rather than a single tuned combination. Strategy Decoder catalogs strategies like this one from their video sources so you can study the concept and test it on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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