Pivot Based Trading - Profit Daily - 1:2 risk reward ratio

[suresh1_1]

Hi All,

I want to introduce a very simple way of trading.

Everyone is aware of Pivots in charts.

You need to calculate pivots using

After the pivot is calculated the resistance and support levels are found.

Resistance and support are of two types (using normal method and using fibonacci method.)

You can use any one of them. Both gives good result. Stick to any one method.

The system is as follows, please give your feedback and suggestions.

1. Open http : // pivottrading . 110mb . com
2. Enter previous day high, low and close for any scrip.
3. Pivot is an important value here.
4. Look at the price of stock/underlying at 10:25-10:30 am. (half hour after market opens)
5. For Resistance and support values, you can choose normal values or fibonacci values. Both give good results. It depends upon you which suits you.
6. There are various scenarios which can occur.
-----1. The price is below the Pivot but above S1.
--------In this scenario, you should buy the stock/underlying above Pivot (If price reaches above Pivot) and short sell below S1(if the prcies goes below S1).
----2. The price is above Pivot but below R1.
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and short sell below Pivot(if the price goes below Pivot).
----3. The price is very near to pivot (+/- 0.1%)
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and short sell below S1(if the price reaches below S1).
----4. The price is between R1 and R2.
--------In this scenario, you should buy the stock/underlying above R2 (if the price reaches above R2) and short sell below Pivot(if the price reaches below Pivot). the important here is not to sell below R1. You must sell below Pivot.
----5. The price is between S1 and S2.
--------In this scenario, you should buy the stock/underlying above Pivot (if the price reaches above Pivot) and short sell below S2(if the price reaches below S2). The important here is not to buy above S1, buy only above pivot.
----6. The price is between S2 and S3.
--------Same rule applies as rule 5. Buy above pivot, short sell below S3.
----7. The price is between R2 and R3.
--------Same rule applies as rule 4. Buy above R3, short sell below Pivot.

Keep the profit, stoploss as below

Profit : 0.75% - 1%
Stoploss : 0.5%

I will be tracking Nifty Futures Daily here. You can read them daily

 

[suresh1_1]

15th July 2009

Nifty Futures Analysis for today.

At 10:30 the price of Nifty Futures was between R1 and Pivot,

So we buy above R1. (4159)

1% Target = 4200
2% Target = 4242

So profit for today = 2%.

 

[suresh1_1]

16th July 2009

No calls triggered.

Entire day price was between Pivot and R1.

 

[suresh1_1]

17th July 2009

Nifty Futures Profit for Today 17th July 2009.

Nifty Futures was around 4270-4285. at 10:25-10:30 am.

This is between R1 and R2.

So as per rule , we buy above R2(4334) and sell below Pivot(4236).

Buy triggered at R2 at 11:30 am.

1% Target = 4377 (target achieved) at 1:45 pm.

Total profit for day = 43 points.

Profit of 2000+ with one lot of Nifty.

 

[suresh1_1]

20th July 2009

Nifty Futures Profit for 20th July 2009

At 10:25 - 10:30 am the price of Nifty Futures was around 4407-4420.

This is between Pivot(4345.73) and R1(4435).

So, as per rule, we buy above R1 and sell below Pivot.

Buy at R1 trigerred at 11:40 am.

0.5% stoploss = 4412 (not hit)

1% Target = 4479 (achieved at 1:00pm)
1.5% Taregt = 4501 (achieved at 1:40 pm)

Total Profit for today = 1.5% = 66 points

Profit of 3000+ with one lot of Nifty.

 

[suresh1_1]

21st July 2009

Nifty Futures Profit for today 21st July 2009.

Price of Nifty Futures at 10:25 - 10:30 am was 4460-4474.

This is between Pivot(4478) and S1 (4438).

So as per rule, we should buy above Pivot and sell below S1.

Buy above Pivot(4478) triggered at 10:53 am.

0.5% Target = 4500.39 (achieved) at 11:06 am.
0.75% Target = 4511.585 ( not achieved) high was 4508. and it reversed from there.

So total profit for today = 0.5% = 22 points.

Profit of 1000+ with one lot of Nifty

 

[suresh1_1]

22nd July 2009

Nifty Futures Profit for Today 22nd July 2009.

At 10:25-10:30 am, Nifty Futures was 4519-4530.

This is between R1(4508.2) and R2(4543.05).

So, as per rule, we buy above R2(4508) and sell below Pivot(4473.15).

Buy at R1(4543) at 11:05 am.

0.5% Target = 4565.715 (achieved at 11:15am)
0.75% Target = 4577.07(not achieved)

Now sell triggered at Pivot ( 4473.15) at 12:39 pm.
0.5% Target = 4450.635(achieved at 12:52 pm)
0.75% Target = 4439.4525 (achieved at 12:59 pm)
1% Target = 4428.27(achieved at 1:02 pm)
1.5% Target = 4405.905(achieved at 1:40 pm)

Total Profit for today = 0.5 + 1.5 = 2%. 88points.

Profit of 4000+ with one lot of Nifty.

 

[suresh1_1]

23rd July 2009

Nifty Futures Profit for today 23rd July 2009

The price of Nifty Futures at 10:25 - 10:30 am was around 4500 - 4510.

This is between Pivot(4453) and R1 (4520).

So we buy above R1 and Sell below pivot.

During entire day, market was moving in the range of R1 and Pivot.

Nifty Futures made a low of 4455 (see this carefully. it is very important). It didnt go below our Pivot, so we are saved from going short.

Till 2:15 pm, the price of Nifty Futures was between Pivot and R1.

At 2:20 pm, the buy triggered at R1(4520).

0.5% Target = 4542.6 (achieved at 2:54pm).

Finally Nifty Futures closed at 4539. This is still our buy level.

Total profit for today = 0.5% = 22 points.

Profit of 1000+ with one lot of Nifty.

 

[suresh1_1]

24th July 2009

Nifty Futures profit for Today 24th July 2009

Nifty Futures at 10:25 - 10:30 was 4530-4540.

This is between Pivot(4512) and R1(4547).

So we buy above R1 and sell below pivot.

Sell below pivot triggered at 11:35 am.

0.5% stoploss = 4534.56 (stoploss hit at 12:20 pm).

Now , after some time market went up and crossed R1(4547).

So buy triggered at R1(4547) at 1:20 pm.

0.5% Target = 4569.735 (achieved) at 1:40pm

0.75% Target = 4581.1025(achieved at 1:50pm)

Total Profit for today = -0.5 + 0.75 = 0.25% = 11 points.

Profit of 500+ with one lot of Nifty.

 

[suresh1_1]

27th July 2009

Nifty Futures Profit for today 27th July 2009.

At 10:25 - 10:30 am, the price of nifty futures was around 4590-4595.

This is between Pivot(4556.65) and R1(4607).

So as per rule, we buy above R1 and sell below Pivot.

The buy above R1(4608) triggered at 11:10 am.

But the high for today was 4610.

0.5% stoploss = 4584.96 (hit).

Now sell triggered at Pivot(4556) at 12:48 pm.
0.5% Target = 4533.22 (achieved) at 1:01 pm.
0.75% Target = 4521.83 (not achieved).

So profit = 0.5%.

Total profit for today = -0.5 + 0.5 = 0% = 0 points.

 

[suresh1_1]

28th July 2009

Nifty Futures Profit for Today 28th July 2009.

At 10:25-10:30 am, the price of Nifty Futures was around 4545 -4552.

This is between Pivot(4570.6) and S1(4531.2).

So as per rule, we sell below S1 and buy above Pivot(4570)

Buy above Pivot(4570) triggered at 12:45 pm.

0.5% Target = 4592.85 (achieved)
0.75% Target = 4604.275(achieved).

Total Profit for today = 0.75% = 33 points.

Profit of 1500+ with one lot of Nifty

 

[suresh1_1]

29th July 2009

Nifty Futures Profit for Today 29th July 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4560-4570.

This is very near to Pivot.

So as per rule, we buy above R1(4604) and sell below S1.(4531)

Sell triggered at 11:44 am at S1(4531).

0.5% Target = 4508.345(achievd)
0.75% Target = 4497.0175(achieved)
1% Target = 4485.69(achieved)
1.5% Target = 4463.035(achieved)
2% Target = 4440.38(achieved)

Low for today was 4415.

Total Profit for today = 2% = 88 points.

Profit of 4000+ with one lot of Nifty.

 

[suresh1_1]

30th July 2009

Nifty Futures (August Series) profit for today 30th July 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4485 - 4495.

This is between Pivot(4509) and S1(4436).

So as per rule, we sell below S1 and buy above Pivot.

Buy above Pivot(4509) triggered at 10:52.

0.5% Target = 4531.545 (achieved)
0.75% Target = 4542.8175 (achieved)
1% Target = 4554.09 (achieved)
1.5% Target = 4576.635 (achieved).

See the high for today its 4579.

Market reversed from 4579.

Our trailing stoploss at 1% Target gets hit (4574).

So profit for today = 1% = 44 points.

Profit of 2000+ with one lot of Nifty.

 

[suresh1_1]

31st July 2009

Nifty Futures Profit for 31st July 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4660 - 4665.

This is between R2(4642.15) and R3(4704.8).

So as per rule, we buy above R3 and sell below Pivot.

No calls triggered during entire day.

 

[suresh1_1]

3rd August 2009

Nifty Futures Profit for today 3rd August 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4649 - 4659.

This is between Pivot(4633.38) and R1(4681.66).

So as per rule, we sell below Pivot(4633) and buy above R1(4681).

Sell triggered at 10:39 am.

0.5% stoploss = 4656.165 (hit).

Sell triggered again at 12:32 am,

0.5% stoploss = 4656 (hit)

Now, buy triggered at R1(4681) at 1:47 pm.

0.75% Target = 4716.1075 (achieved)
1% Target = 4727.81 (achieved).

Total profit for today = -0.5 -0.5 + 1 = 0% = 0 points.

No profit No loss

 

[suresh1_1]

12th August 2009

Nifty Futures Profit for Today 12th August 2009.

At 10:25 - 10:30, the price of Nifty Futures was around 4423 - 4433.

This is between Pivot(4459.18) and S1(4403.36).

So as per rule we buy above Pivot and sell below S1.

Sell below S1(4403) triggered at 11:05 am.

0.5% Target = 4380.985(achieved)
0.75% Target = 4369.9775 (achieved)
1% Target = 4358.97 (achieved).

After this price went till 4351. and reversed.

Total Profit for today = 1% = 44 points.

Profit of 2000+ with one lot of Nifty.

 

[suresh1_1]

20th August 2009

Nifty Futures Profit for 20th August 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4470 - 4480.

This is between R1(4458) and R2(4530).

So we buy above R2 and sell below Pivot.

No trade triggered today.

 

[suresh1_1]

21st August 2009

Nifty Futures Profit for 21st August 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4410 - 4420.

This is between S1(4429) and Pivot (4466.68).

So we buy above Pivot and sell below S1.

buy above Pivot trigerred at 12:44pm.

0.5% Target = 4488.33 (achieved)
1% Target = 4510.66 (achieved)
1.5% Target = 4532.99 (achieved).

High was 4546.

We generally keep difference of 0.5% between target and stoploss.

when 1.5% target was achieved we keep next target as 2% and trailing stoploss at 1.5%.

So when market reversed after reaching 4546 our stoploss got hit.

So profit = 1.5% = 66 points.

Profit of 3000+ with one lot of Nifty.

 

[suresh1_1]

24th August 2009

Nifty Futures Profit for 24th August 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4605 - 4615.

this is between R1(4589.89) and R2(4643).

So we above R2 and sell below Pivot.

Buy above R2 triggered at 11:55 am.

0.5% Target = 4666.215 (achieved). High was 4667.9

So total profit for today = 0.5% = 22 points.

Profit of 1000+ with one lot of Nifty.

Note that it was a quick reverse from 4667, so it is quite possible that many have not got chance to book profit or keep trailing stoploss.

 

[suresh1_1]

25th August 2009

Nifty Futures Profit for 25th Aug 2009.

At 10:25 - 10:30, the price of Nifty Futures was around 4630-4636.

This is very near to Pivot(4636).

So we buy above R1(4683) and sell below S1(4605.34).

Sell below S1(4605) triggered at 11:08 am.

0.5% Target = 4581.975(achieved) see the low 4581.60.

See the high its 4681 (our R1 is 4683).

Total profit = 0.5%.

Profit of 1000+ with one lot of Nifty.

Note : Those who waited for more profit, this trade turned up in loss.