Comfortable profits from trading Nifty.

[jamit_05]

This might sound too elementary, but I will try and explain what I mean by Tricky.
On TAME, I am looking at intraday chart of 5 min interval with e3 and e15 plotted on it. At 3.15 pm, suppose the difference between e3 and e15 is too close (say 1to 5 points ), does one reverse or let the trade ride?

Let me explain the importance of back-testing

It gives us an assurance, a real proof, that if we follow a certain rule we have an advantage. That rule puts us in a situation which we know how to manipulate such that we are profitable. For ex. e3>e15, go long.

Now, if the rule be changed then it will have new challenges. For starters, if you are looking at a 5 min chart to make a decision then you are going intraday. And that, my friend, is the murkiest of all waters.

I suggest, either follow 315 to the dot or not at all. Do not make any modification to the original method. Even if the signal is by 0.10 points... take it.

regards.

 

[jamit_05]

Accepting this unknown is what trading is all about

Cheers
:thumb:

Really well said.

The level of honesty in this acceptance decides the level of a trader.

 

[gmt900]

Let me explain the importance of back-testing

It gives us an assurance, a real proof, that if we follow a certain rule we have an advantage. That rule puts us in a situation which we know how to manipulate such that we are profitable. For ex. e3>e15, go long.

Now, if the rule be changed then it will have new challenges. For starters, if you are looking at a 5 min chart to make a decision then you are going intraday. And that, my friend, is the murkiest of all waters.

I suggest, either follow 315 to the dot or not at all. Do not make any modification to the original method. Even if the signal is by 0.10 points... take it.

regards.

I have a problem in using TAME chart while deciding to take action at 3.15 pm.
I have a historical daily chart with e3 and e15 plotted. But, I have to refer to intraday chart for checking whether there is crossover of e3 and e15 at 3.15. How do I tackle this ?

 

[jamit_05]

I have a problem in using TAME chart while deciding to take action at 3.15 pm.
I have a historical daily chart with e3 and e15 plotted. But, I have to refer to intraday chart for checking whether there is crossover of e3 and e15 at 3.15. How do I tackle this ?

I am glad you are bringing up practical problems.

Daily chart in TAME gets updated EOD.
Intraday chart in TAME has no meaning as per our current method.

You could either learn a new software Or you could change your entry method.

Now you are entering at 3.25 p.m. ;
You could change to enter the next morning.

 

[gmt900]

I am glad you are bringing up practical problems.

Daily chart in TAME gets updated EOD.
Intraday chart in TAME has no meaning as per our current method.

You could either learn a new software Or you could change your entry method.

Now you are entering at 3.25 p.m. ;
You could change to enter the next morning.

Thanks !
I think there is merit in PartTime Trader's suggestion that I decide on cut off figure of difference between e3 and e15 to take action rather than following the rule strictly, since that may lead to more whipsaws.
I am going through the initial posts of SH's thread to understand the nuances of 315 method. Hence , I will not follow gurmy's method for now.

 

[PartTime_Trader]

Thanks !
I think there is merit in PartTime Trader's suggestion that I decide on cut off figure of difference between e3 and e15 to take action rather than following the rule strictly, since that may lead to more whipsaws.
I am going through the initial posts of SH's thread to understand the nuances of 315 method. Hence , I will not follow gurmy's method for now.

Hello Sir

This kind of padding of values is termed as using buffer or filters.

Using Buffer/Filter helps in most of the cases, but there are 2 drawbacks one should be aware of.

1. Padding with too high a value, makes the system less profitable, as adding buffer makes the entry / exit late by certain points, this way we avoid few whipsaws but give back some points on every trade (both winning and losing ones). So choosing a optimum value of filter is very important. In your case you are thinking of applying this filter to a derivative of price (Moving Average value) so choose a very small value (1-3) points, if applied directly to price it can be a higher one (10-20) points.
   
   
2. If we are using these buffers/filters just to postpone the decision making (i.e. for mental issues) we will keep debating inside our head (indecision) about the value for this buffer (we are just shifting this decision making point into future and it becomes one another parameter for hesitation)

Once you decide the value of buffer, stick to it for all entries/exits.

(btw you will not be changing any rules, its just that the current value of buffer/filter used is zero

Cheers
:thumb:

 

[jamit_05]

The problem is intraday TAME charts starts with the first tick of the day. Hence, there is no correlation between intraday and daily crossovers.

 

[jamit_05]

GMT900,

Two additional, and important, rules have been mentioned in original 315 thread. One is of stoploss and other of add. See if you get them.

regards.

 

[gmt900]

GMT900,

Two additional, and important, rules have been mentioned in original 315 thread. One is of stoploss and other of add. See if you get them.

regards.

That is exactly what I am trying to learn.
While I have very limited or no experience trading NF, I have found 315 to be a very interesting system.
While I mentioned that my goal is to make Rs 10000 pm with a trading capital of 2 lakhs, I have no problem if that goal is achieved over a period of six months or even a year ( I mean Rs 60000 or 120000 over six months or one year)

 

[jamit_05]

That is exactly what I am trying to learn.
While I have very limited or no experience trading NF, I have found 315 to be a very interesting system.
While I mentioned that my goal is to make Rs 10000 pm with a trading capital of 2 lakhs, I have no problem if that goal is achieved over a period of six months or even a year ( I mean Rs 60000 or 120000 over six months or one year)

I am really happy with your attitude. This is the sort of thing the market rewards.

You find the system to be interesting is a good start. And you are patient and content. Great going.
Folks usually get all coiled up calculating the profit, and forget to actually appreciate the beauty behind a system. Its efficiency of design.