Going With The 60min Flow!!!

[ThE HaMmEr]

Welcome to Traderji,Neeraj!

Saint

ohh thank u sir............u really are greaat saint......it is feeling lyk i have just been replied by god of share mkt.......am feeling so blessed.....i got through most of ur greaat "teach a man to fish" thread yesterday night..............till chart patterns.........i will try to revise nd start the trades with mini nifty from monday.........

 

[pakatil]

Saint,
I have a very basic doubt...actually not a doubt, but a basic non-understanding of a key factor here.....position sizing.

See...in the current trade, we added to our shorts at 4279, with 4360 as a stop. So, we risked 81 points...lets say we risk 1% of our capital on it.
Now we get another add at 4249, with the stop moving down to 4352...which is we risk 103 points.

Now, the risk from the earlier add (4279) still stands at 73 points, which makes the total outstanding risk of this trade at 176 points(73+103). Now in such a scenario, how do we position size???? (No, we cant position size a new entry by taking 173 pt risk for this position. Our earlier position of 1% risk would have at best come down to 0.85% risk on capital..and risking the leftover 0.15 odd % of cap for 103 pts would make the position really miniscule.)

I hope I am able to express my problem correctly...if yes, please let me know your views.

Thanks as always,
Rakesh.
ps: Due to this dilemma, I skipped taking an add at 4249.

Well, let me explain as I see this:

1. Short 4425, Avg 4425, SL 4508, Risk 83
2. Add 4324, Avg 4375, SL 4387, Risk 24
3. Add 4280, Avg 4343, SL 4360, Risk 51
4. Add 4246, Avg 4319, SL 4352, Risk 132

Yes comparatively risk has increased on 3rd Add. Think about the gains when newer PH are made below 4319.

BTW, pls note the Risk is not Add Point - SL. It is (Avg Price - SL) x No of Lots.

Cheers

ps: Me not added anything, limited Funds

 

[shanmugamkr]

Hi Saint,

I am a new member into this forum.........i have gone through this system......which is really good ..........and i would like to participate in this.,.........
Regards
KRS

 

[AmritaBasu]

this is not really an indiv stock thread but seeing that all of r short on the nifty and how the mkt shaped up towards the end on friday, could any of u say how disastrous it will be now that i am long on both balrampur chini and tatacomm

 

[ThE HaMmEr]

Satya,

Looking in terms of chart patterns can be worse for Saint's methodology. Attaching an example which covers many many patterns. (click on the image to enlarge)

[/URL][/IMG]

For Newcomers:
1. Minor Pivots are a concern only if trading NF. More so if trading DJI . Does not matters much (makes complicated) for stocks.
2. Attached below is another image. Download on your PC and use MS-Paint to mark minor & major pivots on all the patterns. It is a fun exercise.

[/URL][/IMG]

thanks my friend.........will practice it..........


greaat ppl out here.......hats off........bow to d greatest thread i have ever seen.......

 

[rakeshluthra430]

Hello

After trying to learn the method and doing a walk through I will be starting to trade the method, at this stage for me position sizing or the quantity to start with would be minimum possible i.e mini nifty. But eventually I will have to be prepared with answers to these questions..

So thanks a lot for bringing it up...

Here is how I would approach the question...

Rather than calculating with every move the number of points, I would look at on an average what is the distance from the entry to the reversal point, even from your above example we can aproximate it around 100 points.

Saint has indicated that the optimum number of adds on this method is 3. So we know before hand that maximum scaleup is 4 times.

Now when I would get into the first position, it has to be 1/4 of total position that can be created according to my risk profile...

Converting all that into figures, if I want to start with 1 lot of mini Nifty and do 3 adds, on an average the maximum risk per trade with 3 adds will be 8000.

Similarly starting with 1 lot of nifty, and adding 3 more the average risk would be about 20000 when I have all the 4 lots in place...

Ofcourse all these calculations don't take into account any black swan events...

Once again Thanks for bringing this up, very apt timing for me to know the answers...

Thanks

Hi,
Thanks a lot for your reply....but sorry, I think you didnt get the jist of my question.....the whole concept of risk/reward revolves around moving your volumes up and down as per the risk of a particular position.

Let us both wait for Saint or some other senior to provide an appropriate answer. Hope you dont mind...

Thanks,
Rakesh

 

[AmritaBasu]

hi RK Sir,

tatacomm is erstwhile vsnl btw i want to be an analyst like u guys. tell me what do i need as resources and where from do i begin

 

[Czar]

Lot of

Please gentlemen understand this is one of the master threads, Kindly try to find the relevant section / thread to post queries, will appreciate your understanding.

If you like to learn the system, kindly go thru the thread & try to learn silently, till you get the basics, also there are sub threads, to ask question about this & similar thread, hope you try & find them, thanks...

 

[ARMHM]

Saint,
I have a very basic doubt...actually not a doubt, but a basic non-understanding of a key factor here.....position sizing.

See...in the current trade, we added to our shorts at 4279, with 4360 as a stop. So, we risked 81 points...lets say we risk 1% of our capital on it.
Now we get another add at 4249, with the stop moving down to 4352...which is we risk 103 points.

Now, the risk from the earlier add (4279) still stands at 73 points, which makes the total outstanding risk of this trade at 176 points(73+103). Now in such a scenario, how do we position size???? (No, we cant position size a new entry by taking 173 pt risk for this position. Our earlier position of 1% risk would have at best come down to 0.85% risk on capital..and risking the leftover 0.15 odd % of cap for 103 pts would make the position really miniscule.)

I hope I am able to express my problem correctly...if yes, please let me know your views.

Thanks as always,
Rakesh.
ps: Due to this dilemma, I skipped taking an add at 4249.

It seems that you have missed the initial position which we shorted at 4425. Then additional shorting was done at 4324, 4280, 4240. The average comes to 4317.25. Stoploss is now at 4352 so we will have a loss (if nifty reverses) of only 34.75 points. Since nifty future close was 4230 we are riding on profit (notional) of 87 points. I think you got the point.

 

[tanewbie]

summary of the last Nifty trade

http://img329.imageshack.us/my.php?image=nf1209fk5.gif