3-15 EMA Strategy for Swing, Positional Players

[taruntm]

Hi!

I came across a strategy where you use 3, 15 EOD EMA crossovers to get into Positional Trades. From backtest, there has been only one fake crossover till now and the system generated a buy on 16-March when Nifty was at 2687. Now, it has generated a Sell on 17-June when Nifty was at 4374!!!

There were a lot of small crossovers during the rangebound phase of November 08 -> March 09, but this strategy still earned atleast returns of 100 pts or so on Nifty during any trade.

Experts, please comment. I have a day Job, so find this a perfect fit for my needs!!!

The whole article explaining this strategy can be read at http://www.tradewithhunter.com/knowledge-base/14-shs-315-strategy-positional-trades

Regards

Tarun

 

[nareshch]

There were a lot of small crossovers during the rangebound phase of November 08 -> March 09, but this strategy still earned atleast returns of 100 pts or so on Nifty during any trade.

Dont Ever go with Visual back testing . try to back test the strategy and see whats the success ratio and RR . You need to use some ossilators for profit taking and avoid whipsaws.Then only this strategy can be profitable. Just saw some other post combining Ema cross over with Stochastics. it was an Intraday setup but you can still modify it to your postional needs.

Naresh

 

[taruntm]

Thanks Naresh.. Im not really sure how I should go about non-visual backtesting.. Also the guy who developed this strategy (Stockhunter from icharts forums - all credits to him) told me to keep things simple..On his website, people went short at EOD 4357 on a 315 crossover, and booked awesome profits on puts a few days back..

I have tried to combine Weekly RSI+RSI EMA with this as an oscillator...This indicator is called RSEX on icharts. I go in for a trade when Weekly RSEX and EOD 315 Align. Again the strategy is courtesy Stockhunter from icharts forums. His website is http://www.tradewithhunter.com/. A lot of information on RSEX is available in the icharts forums in this thread : http://www.icharts.in/forum/rsex-strategy-posted-on-popular-demand-t1358.html.

 

[nareshch]

Thanks Naresh.. Im not really sure how I should go about non-visual backtesting.. Also the guy who developed this strategy (Stockhunter from icharts forums - all credits to him) told me to keep things simple..On his website, people went short at EOD 4357 on a 315 crossover, and booked awesome profits on puts a few days back..

I have tried to combine Weekly RSI+RSI EMA with this as an oscillator...This indicator is called RSEX on icharts. I go in for a trade when Weekly RSEX and EOD 315 Align. Again the strategy is courtesy Stockhunter from icharts forums. His website is http://www.tradewithhunter.com/. A lot of information on RSEX is available in the icharts forums in this thread : http://www.icharts.in/forum/rsex-strategy-posted-on-popular-demand-t1358.html.

I know this strategy and I talked to stock hunter couple of times.

EMA crossovers works well in trending market ( Example : from 2800 - 4700 )
but what about their performance in Ranged markets.It will be pathetic. So you should be adding ossilators or any other supporting indicators to avoid whipsaws.
The problem is , you are checkign the figures /charts from nifty 2800 to 4700 .
But what about the tardes in range bpund market.

As you said the setup gave sell at 4357 and they are in huge profits and if nifty gaps up tomorrow , the postion may go to loss .

I am not saying this is a bad strategy

I am just saying use some confirmations / add ons to maximize your profits than whipsaw it . You can use the direction of weekly sthocastic also .If weekly stoc is bullish , then take only buy cross overs , if its bearish ,take sell .

try all options and you will get a very comfirtable trading setup .


Rsex is prone to More whipsaws and i am still testing it . will update you ina week .


Naresh

 

[taruntm]

Thanks Naresh!

Yes, RSEX is whipsawing a lot recently.. Do you have any suggestions to reduce the whipsaws?

As for weekly Stochs, should I be looking only for crossovers or crossover and break of 20/80 levels ? Havent really used Stochs much

 

[Nava]

I know this strategy and I talked to stock hunter couple of times.

EMA crossovers works well in trending market ( Example : from 2800 - 4700 )
but what about their performance in Ranged markets.It will be pathetic. So you should be adding ossilators or any other supporting indicators to avoid whipsaws.
The problem is , you are checkign the figures /charts from nifty 2800 to 4700 .
But what about the tardes in range bpund market.

As you said the setup gave sell at 4357 and they are in huge profits and if nifty gaps up tomorrow , the postion may go to loss .

I am not saying this is a bad strategy

I am just saying use some confirmations / add ons to maximize your profits than whipsaw it . You can use the direction of weekly sthocastic also .If weekly stoc is bullish , then take only buy cross overs , if its bearish ,take sell .

try all options and you will get a very comfirtable trading setup .


Rsex is prone to More whipsaws and i am still testing it . will update you ina week .


Naresh

Hi Naresh,

Can you suggest one good strategy for doing Position/Swing trading..?

 

[mrnakar]

Hi Tarun,
I think ur strategy work excellent ,
& should ur strategy generate again buy call on this friday 3rd July 2009 ?
Its for the confirmation of my judgement
if possible reply
thanks & regards
Mehul Nakar:thumb:

 

[Tradewithhunter]

Hi Tarun - this is Stockhunter. I saw one of my strategies being discussed here hence couldnt stop myself from posting my reply here.

315 strategy is definitely the simplest way of making money in stock markets provided you apply certain moneymanagement and profit booking rules. I am trying to explain these rules as part of my separate thread here in Traderji.

I also plan to share my other strategies here as we go along to benefit the large number of users here hoping they would make some money using my strategies.

Cheers
SH

 

[daitya]

can u give some more details about weekly rsi & its ema..means in terms of value..
Regards

 

[subratdas]

I am a new entrant in trading .
Can anyone help me understand how to use osciilator to avoid whipsaws in 315 strategy?

Thanx
Subratdas