Comfortable profits from trading Nifty.

[gmt900]

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.

I have understood the principles of "ADD" rule, protecting the capital and the stop loss rule. It will take some time to internalise.
I have question :
315 strategy has given a buy signal on 27 Nov when nifty spot EOD was 5727.45. Till today there is no reverse signal. Today nifty spot EOD is 5950.85. There is already profit of 223 points. If nifty continues this run for a month or more as a lot of people are talking about, I may not get a chance to enter the trade. I have 6100C baught at 62, but that will not be consolation enough.
Another question is apart from AmiBroker, are there any simpler softwares which could used by a newbie like me who is not adept at using softwares.
Of course, I will try to learn AmiBroker, but in the meantime can I use something simpler apart from TAME which will not give real time EOD data?
Regards

 

[jamit_05]

You will observe that these adds do not work well in Nifty. Sep '12 moved 600 points and gave no adds. I think the add rule was tuned for stocks that have a wider swing. What are you gonna do?

Even the stop loss could be tightened by almost half.

There are a few questions you need to get answered, before you worry about profits just yet.

 

[gmt900]

You will observe that these adds do not work well in Nifty. Sep '12 moved 600 points and gave no adds. I think the add rule was tuned for stocks that have a wider swing. What are you gonna do?

Even the stop loss could be tightened by almost half.

There are a few questions you need to get answered, before you worry about profits just yet.

I don't intend to use 315 strategy for stocks. I will decide on the stop loss taking into account my MM requirements.
What are the questions you would like me to answer?

 

[jamit_05]

I don't intend to use 315 strategy for stocks. I will decide on the stop loss taking into account my MM requirements.
What are the questions you would like me to answer?

You will use 315 for Nifty. I understand. But 315 is very bad at giving adds in Nifty. How are you gonna change 315 to give adds?

To set a Stop Loss one has to understand the tendency of a given chart.

 

[gmt900]

You will use 315 for Nifty. I understand. But 315 is very bad at giving adds in Nifty. How are you gonna change 315 to give adds?

To set a Stop Loss one has to understand the tendency of a given chart.

I will have to scratch my head alittle longer to think of a solution for ADDs. Again, for stop loss I guess I will have to learn on the job.

 

[jamit_05]

I will have to scratch my head alittle longer to think of a solution for ADDs. Again, for stop loss I guess I will have to learn on the job.

First things first.

How do you choose to take entry... the issue with tame and all?

Intraday tame chart has no correlation to Daily tame chart.

 

[gmt900]

First things first.

How do you choose to take entry... the issue with tame and all?

Intraday tame chart has no correlation to Daily tame chart.

I have no choice but to take an entry next day since I don't have any software which would give me real time data.

 

[jamit_05]

I have no choice but to take an entry next day since I don't have any software which would give me real time data.

I too think so.

Now that it is settled lets go to the next point: SL

315 keeps a SL of 100 points, if triggered re-entry is above previous HOD. Does it seem practical to you? Go through the chart and see a few examples.

 

[sgr]

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 ?

There are excel files created by members to track 315 crossover.
I think you have to manually feed EOD price everyday.
Check following links for files.

http://www.traderji.com/technical-a...gy-how-use-if-effectively-551.html#post700105

http://www.traderji.com/technical-a...gy-how-use-if-effectively-556.html#post711617

 

[gmt900]

I too think so.

Now that it is settled lets go to the next point: SL

315 keeps a SL of 100 points, if triggered re-entry is above previous HOD. Does it seem practical to you? Go through the chart and see a few examples.

Drawdown is more than 100 points only once in 2010 and it is twice and thrice in 2011 and 2012 respectively.
Profit in 2010, 2011 and 2012 is 1070, 1576 and more than 489 points respectively.
Obviously, it does not make sense to keep 100 points stop loss. In fact, even if you don't use stop loss you are likely make a profit of 500 points or more.
If you trade with one lot of nifty, that will be rs 25,000 per year. The investment for one lot will be about 30,000 + mtm required during drawdown which would be 50,000 for 100 points.
I don't know whether my analysis is too simplistic but based on three years' backtesting it appears to be true
Since I will be taking action on the trade next day after getting the signal,
I suppose I will have to use the opening NF value ( and not EOD ).