Hi pride,
after copy pasting the afl from the word doucument into formula editor and saving it with a name, then tools, apply indicator on to a spare sheet on the chart workbook, which will immediately display the dhiraj. then close formula editor right click on the chart pane and select parameters. the parameters displayed are as follows:
1. background colour: set it as per the color u like - default is black
2. show/hide range lines - will toggle dayh,dayl,preh preL, 1015 h and 1015L. i keep this in hide as there is no need for it other than at times if u need to know those values for your own purpose in which case switch it on note the values and switch it off, this reduces cluttering of lines on the chart.
3. show trade lines
these are to be kept on - so that u can see the calulated buy above, short below, take profit and stoploss values, but if for any reason u want to hide it u can do so.
4. show markers
the buy/short arrows and get-ready to buy/short (advance warning of an impending entry crossover) triangles can be hidden or displayed. its up to u whether to diisplay these or not as once u are watching the screen u can see the price crossovers over the trade lines, this reduces cluttering if hidden. close to entry crossover a triangle is generated so u can put the order accordingly. this also answers the question of MRAGAISH who cannot put both orders at same time, so when he gets the get ready warning, he can know whether its buy trade or short trade (only can can usually trigger at the same time. very rare for both to be together in which case must go with the trend or better not to trade that one)
5. synchronize buy/short with foreign index.
this is a very important feature for intraday trading. that is whenever index goes up u take long trades only and when index goes down u can take short trade only.
example: reliance is nifty heavy weight, so whenever reliance goes down nifty will go down pulling the other nifty stocks with it. so even if tatasteel had been up, if nifty is down, it will also start going down, so its very risky to take a long trade on tatasteel while the nifty is bearish. If you keep this parameter on, it will not give u a long entry signal on tatasteel (green up arrow) even if the price crosses buy price line.
if this feature is switched off, then all the buy/short signals irrespective of index direction will be given. I keep this on as i never trade against the index.
now u can also select with which index to club this feature. at the last there is a parameter - foreign index bargraph. from this u can select, nsei for nifty, or cnxit for it stocks, or cnxmidcp for midcap stocks etc. for example u are trading infosys, then u must use cnxit as the index as it is to do more with this index than nifty. likewise while trading midcap, u must select midcap index and sbin with bank index. i have also added
reliance here because for example nifty can come down if reliance goes down, so when trading nifty u may compare with reliance etc.
there is a bar graph at the bottom which reflect the sentiment of the index u selected, red for bearish, grey for flat and green for bullish.
6.volume minimum
this is a feature to filter out liquid stocks. if this volume level is increased like for example 10000, then while scan and explore, it will select only those stocks which have traded 10000 plus. if you RT data feed does not give volume info, then keep this as Zero
7. volume maximum
keep this to the maximum
8. price range min.
filter to avoid penny stocks. i set it as 150, meaning it will select only those stocks above Rs.150 for trading. u can select any value of stocks.
9. price range maxi.
same as price range minimum but for upper limit of the stock value. Rs. 3000 or 5000.
or 300 etc. for example if u need to select between stocks having price range between 150 to 300 then keep minimum at 150 and max at 300 and when scanned or explored, it will select only those stocks within the price range for trading.
if u are not bothered with the price then keep minimum at 1 and maximum price at maximum.
8.percentage change minimum
to filter out gainers /losers - for example if the general trend of the stock market is up, then if u specify let us say stock which have gained 1 percent or more then if you keep +1 on this and maximum on the percentage change max parameters, then when exploring, it selects only stocks within these parameters.
i ususally keep min at minus -25 and max setting for percentage at +25
9. take profit percentage set.
dhiraj suggests take profit percentage as 0.5 percent of the entry price. but with this feature u can increase or decrease this value and the afl will use these to calculate the take profit. default is 0.5 which I use.
10. stoploss percent set.
dhiraj recommends 1 percent as the draw down, but using this parameter u can reduce or increase the stoploss value. I personally use 0.5 percent as i feel the draw down is too much.
11. get ready warning percentage.
this feature allows u to adjust the distance to the entry point for warning of an impending entry crossover so u can be prepared for the entry in advance. in explorer u have a get ready column, a green "R" in this column means get ready for Buy in the stock and red "R" means get ready to short in the stock. get ready means to prepare your order and put it as stoploss at the buy or short price in advance and doesnt mean to take position immediately.
for example while exploring, if green R is generated on tatasteel, then selecet tatasteel chart, look at the buyprice line value and put a stoploss buy order which will get executed exactly at the buy price after which u can watch the stoploss or take profit line crossovers to exit the trade.
11. Trade only from set no.
buy specifying the trade no. here the system will start generating entry order equal to or above the setting. for example if u set it as 2, then the first entry crossover will not generate an entry signal it will generate entry signal only from the second cross over onwards.
12. time to generate trade signals.
the system starts plotting the lines only from 1015am onwards as the 1015 am High and low is required for caluculation so until then, u dont see any lines on the chart other than the candles. Now with this feature u can restrict your trading time (in 24 hours format(HH)(MM)(SS) after which the system will not generate any new entry signal. I have set it as 141500 (2-15PM) as default as I feel the markets direction is unpredictable from 2-30PM onwards (may be big profit or may be stoploss).
U can change this up to 153000 (meaning 3-30pm) or reduce it to any time from 101500 to 153000 (HHMMSS) u like.
This afl filters out as per the above parameters those stocks which meet the parameters when used as scan or explore. Better as explorer, and also use as indicator.
the above parameters are common to all the stocks except the foreign index which may be set to the index where the stock belongs for more accuracy otherwise keep it on nifty.
Hope this clarifies all the doubts
best regards
vinod
