Hello Friends!!
I am new to forum and since I want to share what I have, what I like & how I trade with all the legendary & fellow members.
I am into technical trading since last 1 year and learnt almost everything reading books and surfing forums containing technical analysis and systems by experts. What I liked most is the Moving averages. I lost a quite before learning TA. I decided to back test some the strategies on different parameters and different time-frames. Invested almost 3 months in finding out best system that will fit my style.
Finally, I found out better system to trade S&P CNX Nifty Futures( Indian National Stock Exchange Index Futures). Since everyone knows that trading in Nifty is easy but getting profit out of it is really difficult. Following is my method of trading which I follow since last 3 months and which is working well for me. I have tested this on some frontline stocks with good volatility, and there too it worked excellent. But I prefer to trade in only one instrument i.e. NIFTY FUTURES.
Basic Setup – 15 Minute Intraday Chart with minimum 30 days data backfill.
Indicators – 5 Days Exponential Moving Average (DEMA) & 21 DEMA. Optional Swing Setting with 0.10% setting for easy reference of Tops & Bottoms.
Strategy – Will go long when 5DEMA crosses 21 DEMA from below and will exit long as well as go short when 5DEMA crosses 21 DEMA from above. Simple System, that’s it! Please note that you will always carrying Long or Short positions once you entered in to the trade. If first trade is Go Long, Buy 1 Lot of Nifty and when there is reversal sell 1 lot which you are long and sell one more lot as a Short sale.
Stop Loss – There is in built stop loss in the system. You need to c/fd your positions till next crossover happens. Hence you will be with the market and with the on-going trend, just before it reverses. Also note that since markets are always volatile, you will get whipsawed very easily. Do not worry, system is back tested and you will surprise to see that maximum loss was just 83 points and consecutive loss (in 6 trades) was 231 points.
Profits – Well before following this practically, I did mock trading for 1 month and found excellent response from my strategy. However, practically doing overnight positional trades very initially difficult and I was getting carried always by analysts on TV channels. But as I decided stick to the charts and that paid me off. After 2-3 initial loss trades I got big profit and my account size started getting bigger.
It would be advisable to follow basic money management rules. Like I did, I started with initial capital of Rs 1, 00,000 and traded 150 Nifty at a time. No less and No more. Money management is crucial part of any strategy.
Also one thing is very important that do not close your positions on anticipation. It kills your profits as I have experienced that market moves against general predication. Do not predict market; be with it, wherever it goes.
Following is a summary of My Trades.
NO. OF TRADING SESSIONS 90
TOTAL TRADES 66
AVERAGE TRADE PER SESSION (R/OFF) 1
WINNING TRADES 26
LOSING TARDES 40
GROSS GAIN 3,012.33
GROSS LOSS 1,679.38
AVG GAIN PER TRADE 115.86
AVG LOSS PER TRADE 41.98
NET PROFIT 1,332.95
HIGHEST PROFIT IN A SINGLE TRADE 590.26
HIGHEST LOSS IN A SINGLE TRADE 82.83
CONSECUTIVE PROFIT TRADES 3
CONSECUTIVE PROFIT 693.27
CONSECUTIVE LOSS TRADES 6
CONSECUTIVE LOSS 231.47
I am also attaching my Trade summary in separate excel file. It will clear all doubts. Also note that there is some slippage cost, when there is a massive movement in Futures premium and discount overnight.
Brokerage Cost is taken as 0.05% + 0.02% statutory cost and same is calculated double i.e. 0.14% as normally trades are covered on the next day and resulting in to both side brokerage.
Since I am a new to technical trading my stategy may contain some weak points. I request all of the veteran members to go thru and advice me something I can improve for the benefit of all.
Thanks & Regards,
Dipesh
[email protected]
I am new to forum and since I want to share what I have, what I like & how I trade with all the legendary & fellow members.
I am into technical trading since last 1 year and learnt almost everything reading books and surfing forums containing technical analysis and systems by experts. What I liked most is the Moving averages. I lost a quite before learning TA. I decided to back test some the strategies on different parameters and different time-frames. Invested almost 3 months in finding out best system that will fit my style.
Finally, I found out better system to trade S&P CNX Nifty Futures( Indian National Stock Exchange Index Futures). Since everyone knows that trading in Nifty is easy but getting profit out of it is really difficult. Following is my method of trading which I follow since last 3 months and which is working well for me. I have tested this on some frontline stocks with good volatility, and there too it worked excellent. But I prefer to trade in only one instrument i.e. NIFTY FUTURES.
Basic Setup – 15 Minute Intraday Chart with minimum 30 days data backfill.
Indicators – 5 Days Exponential Moving Average (DEMA) & 21 DEMA. Optional Swing Setting with 0.10% setting for easy reference of Tops & Bottoms.
Strategy – Will go long when 5DEMA crosses 21 DEMA from below and will exit long as well as go short when 5DEMA crosses 21 DEMA from above. Simple System, that’s it! Please note that you will always carrying Long or Short positions once you entered in to the trade. If first trade is Go Long, Buy 1 Lot of Nifty and when there is reversal sell 1 lot which you are long and sell one more lot as a Short sale.
Stop Loss – There is in built stop loss in the system. You need to c/fd your positions till next crossover happens. Hence you will be with the market and with the on-going trend, just before it reverses. Also note that since markets are always volatile, you will get whipsawed very easily. Do not worry, system is back tested and you will surprise to see that maximum loss was just 83 points and consecutive loss (in 6 trades) was 231 points.
Profits – Well before following this practically, I did mock trading for 1 month and found excellent response from my strategy. However, practically doing overnight positional trades very initially difficult and I was getting carried always by analysts on TV channels. But as I decided stick to the charts and that paid me off. After 2-3 initial loss trades I got big profit and my account size started getting bigger.
It would be advisable to follow basic money management rules. Like I did, I started with initial capital of Rs 1, 00,000 and traded 150 Nifty at a time. No less and No more. Money management is crucial part of any strategy.
Also one thing is very important that do not close your positions on anticipation. It kills your profits as I have experienced that market moves against general predication. Do not predict market; be with it, wherever it goes.
Following is a summary of My Trades.
NO. OF TRADING SESSIONS 90
TOTAL TRADES 66
AVERAGE TRADE PER SESSION (R/OFF) 1
WINNING TRADES 26
LOSING TARDES 40
GROSS GAIN 3,012.33
GROSS LOSS 1,679.38
AVG GAIN PER TRADE 115.86
AVG LOSS PER TRADE 41.98
NET PROFIT 1,332.95
HIGHEST PROFIT IN A SINGLE TRADE 590.26
HIGHEST LOSS IN A SINGLE TRADE 82.83
CONSECUTIVE PROFIT TRADES 3
CONSECUTIVE PROFIT 693.27
CONSECUTIVE LOSS TRADES 6
CONSECUTIVE LOSS 231.47
I am also attaching my Trade summary in separate excel file. It will clear all doubts. Also note that there is some slippage cost, when there is a massive movement in Futures premium and discount overnight.
Brokerage Cost is taken as 0.05% + 0.02% statutory cost and same is calculated double i.e. 0.14% as normally trades are covered on the next day and resulting in to both side brokerage.
Since I am a new to technical trading my stategy may contain some weak points. I request all of the veteran members to go thru and advice me something I can improve for the benefit of all.
Thanks & Regards,
Dipesh
[email protected]
TBH I've stripped the CCI and RSI off my charts, one of the reasons I took the CCI off was the 'volatility' spikes he mentions, which used to confuse me. Great when you hear/watch someone trading in a manner not too disimilar from yourself though eh? 