5-Day Positional System (F&O)

[johnnypareek]

Any discussion is more than welcomed.
And true the pattern does suggest that we should wait and watch, atleast there is positive divergence.
But again, this system goes against the most basic principle of technical analysis that one should never try to catch a falling knife.
But hey, that is just how it is.
And I am repeatedly asking fellow traders not to take a position based on these calls.
At best this system is still in beta testing.
Good work though.

Hey,

No offense Bhai. Thanks for your kind words.

johnnypareek at yahoo.com

 

[bigbullinside]

Now for today's trigger.
1. NMDC (Sell) (165.7)
* The closing price is of futures, as we will be tracking these prices.

Triggers so far:
View attachment 18449

 

[rkkarnani]

With your NMDC Short call it does seem to be a CONTRA system. Watching keenly!

 

[gunsho]

Well, I should have mentioned that this was a contra trading system.
The buy/sell signal itself is based on the script being oversold/overbought.

In such range bound markets contra might show good performance. One system discussed in another thread, who has contra trades, gave decent on contra while whipsaws on their normal trades . In simple words, contra trades in any trend system will work nicely on range bound market.

It is a good to have a system based on contra so that, when you find market range bound do only that . I donno if you have thought in this angle, but good start. :thumb:

 

[gunsho]

2. There is no stop loss for this system as it is a time based strategy with a holding period of 5 days.

Looks little scary (atleast to me. In an entire year, we might get good trends 2/3 times. But without stop loss, a single contra trade taken and market starts trending, could close our trading account in 5 days. Don't you think it is possible?

 

[johnnypareek]

In such range bound markets contra might show good performance. One system discussed in another thread, who has contra trades, gave decent on contra while whipsaws on their normal trades . In simple words, contra trades in any trend system will work nicely on range bound market.

It is a good to have a system based on contra so that, when you find market range bound do only that . I donno if you have thought in this angle, but good start. :thumb:

Bro check my previous reply

 

[bigbullinside]

Looks little scary (atleast to me. In an entire year, we might get good trends 2/3 times. But without stop loss, a single contra trade taken and market starts trending, could close our trading account in 5 days. Don't you think it is possible?

You are absolutely right my friend.
The thing that you are talking about happened in January, where I was getting 6-7 short calls everyday.
It would have wiped my entire capital with a no stop loss strategy.
To somewhat filter these kind of situations, I have some theories in mind that I will share as we go along.

 

[bigbullinside]

The image says % Returns, but it is just the return calculated on per lot basis.

 

[shivangi77]

 

[dusmantparida512]

My view is to close short position & go long on Indusind...............