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Nothing special not much change in it !!!! goto http://incometaxindiaefiling.gov.in and download the excel utility of ITR 4
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Swing Trade with smaller stoploss
Swing trading is a very profitable way of trading with a high RR but a trader faces a few problems in swing trading. One of the problems is a large stoploss in swing trades. Swing trades stops will normally be 70-75 points in Nifty and that makes swing trading difficult for traders. Other problem is gap up/down against our positions particularly in the initial stages of the trade. We have to find solutions to these problems. I have found following solution for me for large stoploss at entry.
The above chart shows swing buy level market in blue line based on 60 min chart. The stoploss for this trade is large and we have to see if we can take the trade on lower stops.
Second chart shows the same trade on 3 min timeframe.The swing buy level is same as 1st chart but it is on 3 min chart now. The following possibilities give good low risk entry.
1) When 3 min bar closes above the swing high level, we buy above hih of that bar and keep stoploss at low of the bar.
2) If a 3 min minor pivot low or even aggressive pivot low is nearby, we can keep our initial stoploss there.
3) Another way is buy above the first mph above he swing buy level with a stoploss at the immediate lower mpl.
4) If the any bar closes back below the swing buy level, the breakout is suspect. My experience is valid breakouts move fast in direction of the breakouts and dont look back to close below the swing buy level.
5) If none of the above is closeby, just take a buy above the high of the bar which closed above the swing buy level and keep a hard stop of 20 points from my entry price in Nifty.
The above has advantages of lower stops but it comes with disadvantages of a few whipsaws.But my experience shows that one may get 1 or max 2 whips before a good entry is achieved. So that is a trade off. Every trader should experiment with these stops and use them only if his backtest is satisfactory and he is comfortable using them.
Smart_trade
Swing trading is a very profitable way of trading with a high RR but a trader faces a few problems in swing trading. One of the problems is a large stoploss in swing trades. Swing trades stops will normally be 70-75 points in Nifty and that makes swing trading difficult for traders. Other problem is gap up/down against our positions particularly in the initial stages of the trade. We have to find solutions to these problems. I have found following solution for me for large stoploss at entry.
The above chart shows swing buy level market in blue line based on 60 min chart. The stoploss for this trade is large and we have to see if we can take the trade on lower stops.
Second chart shows the same trade on 3 min timeframe.The swing buy level is same as 1st chart but it is on 3 min chart now. The following possibilities give good low risk entry.
1) When 3 min bar closes above the swing high level, we buy above hih of that bar and keep stoploss at low of the bar.
2) If a 3 min minor pivot low or even aggressive pivot low is nearby, we can keep our initial stoploss there.
3) Another way is buy above the first mph above he swing buy level with a stoploss at the immediate lower mpl.
4) If the any bar closes back below the swing buy level, the breakout is suspect. My experience is valid breakouts move fast in direction of the breakouts and dont look back to close below the swing buy level.
5) If none of the above is closeby, just take a buy above the high of the bar which closed above the swing buy level and keep a hard stop of 20 points from my entry price in Nifty.
The above has advantages of lower stops but it comes with disadvantages of a few whipsaws.But my experience shows that one may get 1 or max 2 whips before a good entry is achieved. So that is a trade off. Every trader should experiment with these stops and use them only if his backtest is satisfactory and he is comfortable using them.
Smart_trade
The charts in the previous post showed last buy signal...the chart below shows last swing sell signal.
The swing sell on 60 min chart ( not posted ) is a red line. We take a short trade and exit with 15 points stoploss as the subsequent bar closed above the level.
The next entry shown on 3 min chart was clear and profitable.
Smart_trade
The swing sell on 60 min chart ( not posted ) is a red line. We take a short trade and exit with 15 points stoploss as the subsequent bar closed above the level.
The next entry shown on 3 min chart was clear and profitable.
Smart_trade
Swing Trade with smaller stoploss
Swing trading is a very profitable way of trading with a high RR but a trader faces a few problems in swing trading. One of the problems is a large stoploss in swing trades. Swing trades stops will normally be 70-75 points in Nifty and that makes swing trading difficult for traders. Other problem is gap up/down against our positions particularly in the initial stages of the trade. We have to find solutions to these problems. I have found following solution for me for large stoploss at entry.
The above chart shows swing buy level market in blue line based on 60 min chart. The stoploss for this trade is large and we have to see if we can take the trade on lower stops.
Second chart shows the same trade on 3 min timeframe.The swing buy level is same as 1st chart but it is on 3 min chart now. The following possibilities give good low risk entry.
1) When 3 min bar closes above the swing high level, we buy above hih of that bar and keep stoploss at low of the bar.
2) If a 3 min minor pivot low or even aggressive pivot low is nearby, we can keep our initial stoploss there.
3) Another way is buy above the first mph above he swing buy level with a stoploss at the immediate lower mpl.
4) If the any bar closes back below the swing buy level, the breakout is suspect. My experience is valid breakouts move fast in direction of the breakouts and dont look back to close below the swing buy level.
5) If none of the above is closeby, just take a buy above the high of the bar which closed above the swing buy level and keep a hard stop of 20 points from my entry price in Nifty.
The above has advantages of lower stops but it comes with disadvantages of a few whipsaws.But my experience shows that one may get 1 or max 2 whips before a good entry is achieved. So that is a trade off. Every trader should experiment with these stops and use them only if his backtest is satisfactory and he is comfortable using them.
Smart_trade
Swing trading is a very profitable way of trading with a high RR but a trader faces a few problems in swing trading. One of the problems is a large stoploss in swing trades. Swing trades stops will normally be 70-75 points in Nifty and that makes swing trading difficult for traders. Other problem is gap up/down against our positions particularly in the initial stages of the trade. We have to find solutions to these problems. I have found following solution for me for large stoploss at entry.
The above chart shows swing buy level market in blue line based on 60 min chart. The stoploss for this trade is large and we have to see if we can take the trade on lower stops.
Second chart shows the same trade on 3 min timeframe.The swing buy level is same as 1st chart but it is on 3 min chart now. The following possibilities give good low risk entry.
1) When 3 min bar closes above the swing high level, we buy above hih of that bar and keep stoploss at low of the bar.
2) If a 3 min minor pivot low or even aggressive pivot low is nearby, we can keep our initial stoploss there.
3) Another way is buy above the first mph above he swing buy level with a stoploss at the immediate lower mpl.
4) If the any bar closes back below the swing buy level, the breakout is suspect. My experience is valid breakouts move fast in direction of the breakouts and dont look back to close below the swing buy level.
5) If none of the above is closeby, just take a buy above the high of the bar which closed above the swing buy level and keep a hard stop of 20 points from my entry price in Nifty.
The above has advantages of lower stops but it comes with disadvantages of a few whipsaws.But my experience shows that one may get 1 or max 2 whips before a good entry is achieved. So that is a trade off. Every trader should experiment with these stops and use them only if his backtest is satisfactory and he is comfortable using them.
Smart_trade
As you said, the other problem in swing trade is gap opening against us, sir how do you do such preemptive management?
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I had posted earlier on this. It is the initial period of the trade or take off period which is more likely to give us gap open against us.. So on the entry day if the trade does not move more than 30-40 points in my direction I exit the trade at the close of the day and will try to get a fresh entry next day. Generally after we take a short trade and market refuses to go down strongly and at the time of closing it is just 10-12 points below my entry or 10-12 points above the entry but still not hit the stoploss. Such cases are most likely to give a gap up opening next day as the market is refusing to go down . So I exit the trade.
Once the market moves 30-40 points, it gives me a cushion that even if it opens 40-50 points gap up...still my loss is limited.
Smart_trade
Once the market moves 30-40 points, it gives me a cushion that even if it opens 40-50 points gap up...still my loss is limited.
Smart_trade
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