Day Trading Stocks & Futures

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

There are so many threads here in the forum about how to trade that simple MAs, so why do people even post to you? MA = Holy grail = ??? = Hmm

MA is not a holy grail...it is just a decision support system but how one manages his trade on MA that makes it a profitable system. There are few traders who trade Swift which is a MA based system and make 10-12 % in a month....and on various scrips.

Smart_trade

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

Not sure Danbhai, I was even surprised . But I have heard sometimes traders mention MA21 as holy grail even ST had mentioned once.

This MA system is prone to whipsaws too that is the sad part :|, but haven't come across any other system that can avoid whipsaws yet, so following this only so far, lets see how it goes .

21 MA line is called a holy grail because in any timeframe the market has a natural tendency to come near 21 MA and touch it before advancing/declining further....so just that nomenclature.

ST

 

[DanPickUp]

re: Day trading Nifty & Banknifty Futures

Not sure Danbhai, I was even surprised . But I have heard sometimes traders mention MA21 as holy grail even ST had mentioned once.

This MA system is prone to whipsaws too that is the sad part :|, but haven't come across any other system that can avoid whipsaws yet, so following this only so far, lets see how it goes .

As long as you really are, and I mean: Really are convinced about that MA believes, so let it be and do not question it.

In case you may are not: Look out for an add with an other TA indicator like: Momentum.

Or let me post it like this: Price Action with MA or Price action with Momentum. Choice is open and discussion is open. Take care old friend / DanPickUp

 

[Tlahuicole]

re: Day trading Nifty & Banknifty Futures

MA is not a holy grail...it is just a decision support system but how one manages his trade on MA that makes it a profitable system. There are few traders who trade Swift which is a MA based system and make 10-12 % in a month....and on various scrips.

Smart_trade

ST,

I accept, MA is just to trade to be in higher tf direction. But, certain principles have helped me very much.

The 10 to 12 % you are saying is just entering as per rules for swift, I am aware of a guy who trades your swift system and makes well beyond 20% each month.

I asked him what he does extra other than others who follow swift methodology, he said he closes as soon as the trade break out is failed and exits when prices touch MA line, he also uses ema 21 to identify early reversal and exit soon.

BTW, do you still trade swift system? I have heard that swift system works excellent for BNF rather than NF as some scripts respect even aggressive pivots better and BNF is one among them. I think I read this swift rule compilation book only.

Also, after consolidation we wait for breakout trade right, at that time we should not enter on all pivots but any pivot that is outside BB(20,2). My cousin taught me this. This helped me avoid 20% whipsaw trades.

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

Not sure Danbhai, I was even surprised . But I have heard sometimes traders mention MA21 as holy grail even ST had mentioned once.

This MA system is prone to whipsaws too that is the sad part :|, but haven't come across any other system that can avoid whipsaws yet, so following this only so far, lets see how it goes .

Swift is a pivot based system which uses MA to decide the direction in which we are going to take trades.So it is different fro traditional MA based methods such as MA crossover etc

Convince yourself about a system by backtesting before you start trading it. If you dont have confidence in the system which you trade, the best system in the world will not make money for you.

ST

 

[DanPickUp]

re: Day trading Nifty & Banknifty Futures

MA is not a holy grail...it is just a decision support system but how one manages his trade on MA that makes it a profitable system. There are few traders who trade Swift which is a MA based system and make 10-12 % in a month....and on various scrips.

Smart_trade

Dear ST

I am clear that MA can be valued and spotted on from any angel in trading. As you have gone through my option thread, you even saw that I gave an example of how MA can be used, never talked about before in this forum.

So my post was meant to keep on the discussion about how MA can be used in what ever way. Some time we have to ask questions a bit out of the box to keep the discussion going on. Take care / DanPickUp

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

I dont trade Swift now as I have a much better and more profitable methods now...but the basics of trading remain same.And Swift has some beautiful stuff in it.

For sideways days use some ideas from Pratap's VWAP method...it is worth its weight in gold.

ST

 

[Tlahuicole]

re: Day trading Nifty & Banknifty Futures

Swift is a pivot based system which uses MA to decide the direction in which we are going to take trades.So it is different fro traditional MA based methods such as MA crossover etc

Convince yourself about a system by backtesting before you start trading it. If you dont have confidence in the system which you trade, the best system in the world will not make money for you.

ST

Yeah I back tested it, for last 2 yr intraday data and it works well for me ST bro .

I am confident on this system. I pmed you my ideas on the system remember? that one this is, happy with this so far.

And did you notice Ravibhai thread became a technical thread today unlike a politics thread.

 

[DanPickUp]

re: Day trading Nifty & Banknifty Futures

@ST

Would it make sense to open a new thread about new dangers we face in trading? Did you follow this or did you even hear about this: Velocity Logic?

It may have not reached your market, but it will. So a thread about such critical events are needed to inform new traders in advance about it. Do we open such a thread now?

http://www.zerohedge.com/news/2014-01-06/what-velocity-logic-event

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

@ST

Would it make sense to open a new thread about new dangers we face in trading? Did you follow this or did you even hear about this: Velocity Logic?

It may have not reached your market, but it will. So a thread about such critical events are needed to inform new traders in advance about it. Do we open such a thread now?

http://www.zerohedge.com/news/2014-01-06/what-velocity-logic-event

Dan,

Not familiar with this but if someone can start a thread on it, it will be informative.

ST