Best way of day trading - 2652 theory of trading

[sachinsamani]

Sunil Bhai,

Scenario 6 today in nifty future......

 

[Sunil]

Sunil Bhai,

Scenario 6 today in nifty future......

Yup, that's right...

Dhiraj, I need you to throw more light here.
From what I read in your first post, describing the theory part, if the first trade triggered is on long side, for example, then we should ignore the oposite sell side order.
Now if our long order hits SL, and there's no second attempt of that buy level, we end the day in loss.

But, I have come across certain days (called them Scenario 6 in EXcel file) when the opposite sell side trade gets triggered & hits enhanced target.

Today was the second such instance.
After 10:35, we had two orders ready:
Buy at 3141.05
Sell at 3104.95

The buy order got triggered first but hit SL 3109.60
As per your Post # 1 theory part, we have to ignore the sell part, when buy order gets triggered.
But, today was the second instance where the opposite trade (sell, in today's case) gets triggered & hits enhanced target to end the day in breakeven or with small profit....

What's your experience with this rule?
Do we ignore the opposite trade or do we take it if the level is reached?

Also, sticking with the theory part, if today's is considered to be a loss-making day (considering only buy order as sole transaction for today), then tomorrow should not be loosing one...!!!

 

[dhiraj11378]

Yup, that's right...

Dhiraj, I need you to throw more light here.
From what I read in your first post, describing the theory part, if the first trade triggered is on long side, for example, then we should ignore the oposite sell side order.
Now if our long order hits SL, and there's no second attempt of that buy level, we end the day in loss.

But, I have come across certain days (called them Scenario 6 in EXcel file) when the opposite sell side trade gets triggered & hits enhanced target.

Today was the second such instance.
After 10:35, we had two orders ready:
Buy at 3141.05
Sell at 3104.95

The buy order got triggered first but hit SL 3109.60
As per your Post # 1 theory part, we have to ignore the sell part, when buy order gets triggered.
But, today was the second instance where the opposite trade (sell, in today's case) gets triggered & hits enhanced target to end the day in breakeven or with small profit....

What's your experience with this rule?
Do we ignore the opposite trade or do we take it if the level is reached?

Also, sticking with the theory part, if today's is considered to be a loss-making day (considering only buy order as sole transaction foor today), then tomorrow should not be loosing one...!!!

no sunil, i think today is also a profit day
u must avoid trade in the same direction or opposite direction only when u have earned profit .
if u have a loss on one side and if on opposite side trade is triggered then u must go in , doubling the amount . ( DOUBLING THE MAOUNT WILL MAKE UP FOR LOSS AND ALSO WILL EARN PROFIT .MARGIN U MAY KEEP 0.5 OR 0.8 PERCENT , THATS UP TO U )
if in my theory part if there is mistake in my writing in regards to this point then do tell me which portion and wll make the needed changes

 

[lalpar]

Thanks Dhiraj for the system and thanks Sunil for excel sheet ...Will test the system for next 6 months and get back!!!

 

[bandlab2]

today i have traded nifty. first orde loss, 2n one profit. but dint double ue to MM.

stocks mentioned above are for futures or spot ? i prefe to do in futures. may be i can do 1 nifty and 1 stock like RIL

 

[v_sadanand]

bro how many days u tried this???
In real or paper trade???
asking for curosity dont take otherwise pls .god bless u n hav a nice trading life ahead

Hi Dhiraj
Your strategy is good and i appreciate that it is generating a profit of 1000-3000 per day.
Could you please explain the values again. I want to apply it and give it a try.

Thanks bro !!!
Vishu

 

[tirtha]

Dhirajji.....

There is no doubt that the strategy works fine and it has helped me in generation profit for the last couple of days but..... only negative aspect which I feel is the risk to reward ratio which is not even 1:1

Thanks for the strategy

 

[jhaveri_n]

sohan; can u add a export/save button to save the results as excel or notepad or whateve is easy for you. most of the times we go out o the screen, then we lose the results. i egularly use this site and is very handy, appreciate you effort buddy

Hi There, you need not worry of going to the website, add details to the sheet here, you can refer to the values any time you need them.

 

[dhiraj11378]

Dhirajji.....

There is no doubt that the strategy works fine and it has helped me in generation profit for the last couple of days but..... only negative aspect which I feel is the risk to reward ratio which is not even 1:1

Thanks for the strategy

hi tirtha
nice too read that ur trading with this method
regarding risk reward ratio its up to the person , just read my the below post which i had posted earlier .
i think that to get a profit margin of 0.5 percent is less risky then to get a profit of one percent because in that one percent phase there is tremendous movement of price.sometimes i do use risk reward ratio 1:1 .
mostly reliance is the best stock for this is suppose .
i vary my profit margins from 0.5 percent 1 percent .
do write if there are any querries

 

[dhiraj11378]

Hi Dhiraj
Your strategy is good and i appreciate that it is generating a profit of 1000-3000 per day.
Could you please explain the values again. I want to apply it and give it a try.

Thanks bro !!!
Vishu

------


hi vishal this i had posted earlier and am writing for u
read it carefully and paper trade it and then only get in.
in simple words
if or reliance days high on monday id 1245 and days low is 1185
then the values i take for the next day of trading is
1) 0.433* ( high - low)=0.433*60= 25.98
2)0.7666*(high- low)=45.99
3)1.355*(high-low)=81.3
taking this three values i trade the next day at 10.15
if at that time days at 10.15 relance has high of 1205 and low of 1187 , then days range is less than 25.98 points my strategy will be
sell below 1205-25.98=1179.02 profit of just 0.5 percent
buy above 1187+25.98=1212.98 profit of just 0.5 percent
(if high - low is greater then 25.98 and less then 45.99 then u must use 45.99 as the breakout value and if the days high - low at 10.15 is more than 45.99 and less than 81.3 then u must go for 81.3 as the value)
i put a stop loss of one percent for any of the orders one percent above the sell below or one percent below the buy above price
now suppose the price goes in a single stroke to 0.5 percent profit then its a net profit ,if stop loss price is hit i make a loss of one percent .but then again i put my prder back doubling the amount (if i had sold 50,000 shares at sell below ar 1179.02 then i will place a order of 1 lakh shares of sell below 1179.02 and modify my buy order from 0.5 percent to 0.7(may be 0.8) percent down from 1179.02.If suppose u make net loss of one percent ,then on the next day u must double the value of shares for sell below or buy using any of the three values given above.
some people keep a stop loss of 0.7 to 0.8 percent or some wait for two minutes after theit sell below or buy above order is triggered and exit if the profit order is not struck.
its simple, IF NOT TODAY, DEFINATELY TOMORROW.
Its best thing u start with small amount for a particular share so that u can easily double it .
take around twenty stocks like reliance, rel cap. ongc, , tata power, abb, infys,wipro,hdfc, hdfc bank,icici bank, ,bhel, LnT ,
which have good volume and best for trading
happy trading