Best way of day trading - 2652 theory of trading

[Sunil]

yash did u ever came across senario 4 , ie 1st trdae hit a SL and then again that trade is trig for enhanced targets with double quantity and that too hits SL ?

on such day what should we do . stop trading for that day or wait for another trade to trig in the opposite direction

Started observing / trading this method since 4-Dec...
till date, such scenario has happened only once - on 13-Jan....

first; buy order gets triggered but hits SL
second; buy order at same level gets triggered again, and hits SL again (2x qty)
third; modified sell order gets triggered, this time it hits target (2x qty)

so, gross loss = 1% + (2*1%) = 3% from first two trades
and gross profit = 2*0.82% = 1.64%

day ends in loss = 3% - 1.64% = 1.36% + brok, etc

i take this as a normal loss-making day, and for next day (14-Jan), I plan for 2x qty for first trade....
luckily, on 14-Jan, first trade hits enhanced target and loss recovered plus both days' target achieved

 

[Sunil]

Hello Dhiraj

i am trading nifty fut using ur system at first by mistake i was taking high lows of nifty spot to trade in nifty futures

and then when i found that we need to take high lows of nifty futures i corrected it

but what i found is the days when u'll had loss ie 19th and 20th ie Monday and Tuesday , i had profit , i was taking high lows of nifty spot until then i dint knew about ur posting in traderji

In 8 days of trading nifty fut ( ALL 8 DAYS WERE IN PROFIT ) , only on friday 29th Jan i started taking high lows of futures rest all days i took values from nifty spot

this is just my observation , i think this system may work even more better if we take values of nifty spot to trade in nifty futures , i just found this by mistake i may be wrong but i will test this with both values spot and fut and then we can get a clear picture

Sunil bandlab any of you have observed this ?

Spot's high & low values are irrational... one of them will be very close to previous day's closing.... (this is due to a policy maintained by NSE on index calculation)....
so, your calculations are bound to go haywire if u stick with Spot's figures - no doubt about that.
Please avoid nifty spot's values.

 

[Sunil]

hi columbus ,
only thing i want to clear is that just keep ur source of highs and lows the same for all days .
for cash u can get from nse wesite or trading terminal ( wrong tick numbers )
or cash chart numbers .
for futures high and low of futures wrong tick or futures chart .
but do not take one values from charts andnext day go in for charts values .

i do understand your point of taking highs and lows taking from charts is precise , but i think it works for both the values .

dhiraj

following charts would be very tough for someone who trades this system in more than 4 stocks - he/she will have to open that many chart pages along with the market-watch window.
so, as dhiraj said, go with the one you are comfy - AND STICK TO THAT SOURCE FOR ALL DAYS....

 

[Sunil]

If you can make more than 3 points at this level of nifty you
will be in GREEN in case of either Nifty or Minifty.So it is
wise to trade in Nifty futures than Mini because of Brokerage
,STT and others.

100 futures = 2 Nifty lots = 5 Mini lots

If you take Nifty futures an overall gain of 6 (3*2)points will see you
in GREEN whereas 15 (3*5)points are required to be made to see
yourself in GREEN in case of Mini.

I think this is only for those whose brokers charge brokerage as a fixed amount per lot

else, I don't think there's any difference at all COST wise....

 

[Sunil]

I dont think that i am bighearted because i am brought up by a much big hearted person that my mother and learnt fron her
i will ask her to read ur post.
She will be delighted
thank you sir
dhiraj

one of the most heart-warming messages I have come across in my one year with this forum....

no words from our side are enough to express our gratitude, Dhiraj....

GOD BLESS YOU

 

[columbus]

Yes ,there is problem by going by Market Watch alone.For example
according to Marketwatch Nifty Low (before 1015) was 2738 ,but
according to chart it was 2762.

following charts would be very tough for someone who trades this system in more than 4 stocks - he/she will have to open that many chart pages along with the market-watch window.
so, as dhiraj said, go with the one you are comfy - AND STICK TO THAT SOURCE FOR ALL DAYS....

Welcome Back.

Sometimes MARKET WATCH highs and lows are not REALISTIC.

 

[columbus]

I think this is only for those whose brokers charge brokerage as a fixed amount per lot

else, I don't think there's any difference at all COST wise....

Now ,I recalculated once again and found NO DIFFERENCE whatsoever.(which
negates my previous statement).

A factor of 2.5 separates Nifty from Mini (50/20).For same entry and exit for
both lots the profit factor remains 2.5.

 

[Sunil]

Welcome Back.

Though not in full fitness yet - may have to avoid "normal" trading for rest of week....
Thankfully and by grace of the ALMIGHTY, fever did not rose/spread much...

A HEARTFELT THANKS TO ALL OF YOU, WHO PRAYED FOR ME AND ESPECIALLY FOR MY YOUNG FAMILY....
Happy to see that there are "feelings" in this virtual world too....

but i will try to trade this method ONLY for rest of week, as it involves less stress/attention.

 

[Sunil]

hi sachin
hope u had a good trading week.
i always wait for ur posts .
u ,sunil, bandlab sohan along with others had added value to this thread since start .
sachin can u get 20-day average trade range of nifty futures for me
this will help to predict the probability of nifty breaking 0.433 factor(if not broken at 10.15 ) the next day .
suppose 20 day avrg range is of 100 points
then within that range or a bit higher of that range there is high percentage chance that nifty will break 0.433 factor .( we can increase our tagets )
but one odd day the range is around 180 to 200 ponts the percent of nifty breaking 0.433 factor is less for higher targets
what u feel on this .
sunil your comment is awaited .
all members please comment
happy weekend sachin
dhiraj

Dhiraj, please wait till weekend - I maintain daily record of nifty, (spot + fut) but for latest dates, I'll be able to do it only after some more days.

I think data till 19-Jan must be there in the file which is in my swing trading thread.

 

[Sunil]

Hi Dhiraj

Many thanks for sharing out your system. Indeed a very straightforward system. It's always the simple systems that works the best, few things to look at and remember.

My sincere appreciation for sharing it with fellow traders. Your sharing spirit is indeed commendable.

Recently I have come across a similar style of trading (after a string of losses and a overall bad bad year) and have had fairly good results for a few weeks now. The trading method is the ACD system by Mark Fisher outlined in his book - The Logical Trader.

I am not sure if you have come across this system, but the trading styles being similar, maybe you can get pointers to help you to furthur increase your profits and especially avoid/reduce on any losing trades.

Personally I have been trading Nifty Futures with this system for about three weeks. I have been able to cut down on my losers and have had fair no of profitable trades.

To illustrate a trading setup, as I write this, Nifty Fut is likely to have reversal today on sustaining above 2805 which could result in a significant upmove with a potential to carry forward the trade for good overnight gains.

Regards
Amar

Amar,
this same ACD system is being illustrated by dumdum in this thread

even i was surprised to see that INITIAL orders' levels were nearly same...
there seems to be no apparent connect, but will see over weekend... by then, dumdum would have initiated his new ACD thread.