Hello Friends
I did minutely learn the 2652 way of trading which Dhiraj had shared with all (way back in Dec 2008-Jan 2009 time frame). I would first of all thank him for the good heartedness to share his indigenous method with all, I had one scenario which I wanted to share with you and get your expert advise on:
Scenario:
------------------------
Today (31st October 2013), At around 10:16AM, i looked at the High and Low of ICICIBANK on NSE (high and low from 9:15
AM to 10:15 AM), the High was at 9:43AM and i took value of Close =1101.75 and the Low was at 10:08 AM and i took value
of Low = 1089.3, the Previous High (30th Oct 2013) = 1106.9 and Previous Low = 1079.4, Difference of Prev. High - Prev. Low
= 27.5. I placed a Sell Order with (Sell = 1089.85, Buy = 1084.41, Stop Loss = 1100.74) and a simultaneous Buy Order with (Buy = 1101.2, Sell = 1106.7, Stop Loss = 1090.19)
As you had explained,
Sell Buy Stop Loss Buy Sell Stop Loss
1101.75 -11.9 = 1089.85 0.5% below 1089.85 = 1084.41 1% above 1089.85 = 1100.74 1089.3 + 11.9 = 1101.2 0.5% above 1101.2 = 1106.70 1% below 1101.2 = 1090.19
RESELL
Sell Buy Stop Loss
1101.75 -11.9 = 1089.85 0.8% below 1089.85 = 1081.13 1% above 1089.85 = 1100.74
Result: I placed both the orders (Capital amount 8,00,000 ) at 10:25AM (as I took about 10 minutes to do the calculations and enter the Sell and Buy orders into software system) and then I waited. At 11:06AM, my Sell Order was executed (the Close price at 11:06AM was 1088.65), so i sold a total of 734 shares (800000/1089.85 = 734). I cancelled the Buy order immediately and waited.At 12:53 PM, the Stop Loss was triggered and i sold the 734 shares for a loss at 807943.16, so the net loss is 807943.16-800000 = 7943.16. Then again i put a ReSell Order (Sell=1089.85, Buy = 1081.13, Stop Loss Buy - 1100.74) at 1:00pm (took around 6-7 minutes for entering order into system) Then again i put a ReSell Order with values but the Sell Price is never reached till end of day(3:30PM)
Please answer my following questions and help me in this case:
1. Are all the values correct, which i used and for placing the Sell and Buy Orders ?
2. It takes a lot of time (after 10:15AM) to do the calculations and place the orders, is it to be done manually or is there some automated way ?
3. When i have a loss in a Sell Order(Stop Loss Triggered), then said i should place a Resell order; in such a case do i also have to place the opposite trade also (Re Buy order?) Also, When i have a loss in a Buy Order(Stop Loss Triggered), then said i should place a Re Buy order; in such a case do i also have to place the opposite trade also (Re Sell order?)
4. I am getting all my values and data from the NSE website chart, the URL of which is below http://nseindia.com/ChartApp/install/charts/mainpage.jsp
Is this the right chart (1 min chart) which i should be looking at for get my figures?
5. In the above mentioned 1 minute chart, for a particular point of time there is a Open, High, Low, Close. Which value should i use (For eg. at 9:43 AM in the URL chart, it shows Open = 1100.2, High = 1101.8, Low = 1100.0, Close = 1101.75), which value out of these 4 values should i take as High between 9:15AM and 10:15AM )
6. This is a basic question which might sound silly (i have not yet got my Zerodha Trading A/C activated so i do not have the order entry screens in front of me and i am forgetting quite a bit from my past experience). If i take the example of the Sell Order (Sell, Buy, Stop Loss) first i place a Sell order and while placing the Buy Order (within the Buy Order screen itself ) do we have option of setting/giving value to Stop Loss? That means the Buy value (1084.41) and Stop Loss Value (1100.74) can be entered as part of one order ?
So does that mean, at 10:15 AM i went ahead and placed 2 orders as part of Short Sell (Sell and Buy (with inbuilt option for Stop Loss) and 2 orders as part of Long Buy (Buy and Sell (with inbuilt option for Stop Loss)). So in total there are 4 seperate orders which i have to place at 10:15AM ? Is that correct ?
I did minutely learn the 2652 way of trading which Dhiraj had shared with all (way back in Dec 2008-Jan 2009 time frame). I would first of all thank him for the good heartedness to share his indigenous method with all, I had one scenario which I wanted to share with you and get your expert advise on:
Scenario:
------------------------
Today (31st October 2013), At around 10:16AM, i looked at the High and Low of ICICIBANK on NSE (high and low from 9:15
AM to 10:15 AM), the High was at 9:43AM and i took value of Close =1101.75 and the Low was at 10:08 AM and i took value
of Low = 1089.3, the Previous High (30th Oct 2013) = 1106.9 and Previous Low = 1079.4, Difference of Prev. High - Prev. Low
= 27.5. I placed a Sell Order with (Sell = 1089.85, Buy = 1084.41, Stop Loss = 1100.74) and a simultaneous Buy Order with (Buy = 1101.2, Sell = 1106.7, Stop Loss = 1090.19)
As you had explained,
Sell Buy Stop Loss Buy Sell Stop Loss
1101.75 -11.9 = 1089.85 0.5% below 1089.85 = 1084.41 1% above 1089.85 = 1100.74 1089.3 + 11.9 = 1101.2 0.5% above 1101.2 = 1106.70 1% below 1101.2 = 1090.19
RESELL
Sell Buy Stop Loss
1101.75 -11.9 = 1089.85 0.8% below 1089.85 = 1081.13 1% above 1089.85 = 1100.74
Result: I placed both the orders (Capital amount 8,00,000 ) at 10:25AM (as I took about 10 minutes to do the calculations and enter the Sell and Buy orders into software system) and then I waited. At 11:06AM, my Sell Order was executed (the Close price at 11:06AM was 1088.65), so i sold a total of 734 shares (800000/1089.85 = 734). I cancelled the Buy order immediately and waited.At 12:53 PM, the Stop Loss was triggered and i sold the 734 shares for a loss at 807943.16, so the net loss is 807943.16-800000 = 7943.16. Then again i put a ReSell Order (Sell=1089.85, Buy = 1081.13, Stop Loss Buy - 1100.74) at 1:00pm (took around 6-7 minutes for entering order into system) Then again i put a ReSell Order with values but the Sell Price is never reached till end of day(3:30PM)
Please answer my following questions and help me in this case:
1. Are all the values correct, which i used and for placing the Sell and Buy Orders ?
2. It takes a lot of time (after 10:15AM) to do the calculations and place the orders, is it to be done manually or is there some automated way ?
3. When i have a loss in a Sell Order(Stop Loss Triggered), then said i should place a Resell order; in such a case do i also have to place the opposite trade also (Re Buy order?) Also, When i have a loss in a Buy Order(Stop Loss Triggered), then said i should place a Re Buy order; in such a case do i also have to place the opposite trade also (Re Sell order?)
4. I am getting all my values and data from the NSE website chart, the URL of which is below http://nseindia.com/ChartApp/install/charts/mainpage.jsp
Is this the right chart (1 min chart) which i should be looking at for get my figures?
5. In the above mentioned 1 minute chart, for a particular point of time there is a Open, High, Low, Close. Which value should i use (For eg. at 9:43 AM in the URL chart, it shows Open = 1100.2, High = 1101.8, Low = 1100.0, Close = 1101.75), which value out of these 4 values should i take as High between 9:15AM and 10:15AM )
6. This is a basic question which might sound silly (i have not yet got my Zerodha Trading A/C activated so i do not have the order entry screens in front of me and i am forgetting quite a bit from my past experience). If i take the example of the Sell Order (Sell, Buy, Stop Loss) first i place a Sell order and while placing the Buy Order (within the Buy Order screen itself ) do we have option of setting/giving value to Stop Loss? That means the Buy value (1084.41) and Stop Loss Value (1100.74) can be entered as part of one order ?
So does that mean, at 10:15 AM i went ahead and placed 2 orders as part of Short Sell (Sell and Buy (with inbuilt option for Stop Loss) and 2 orders as part of Long Buy (Buy and Sell (with inbuilt option for Stop Loss)). So in total there are 4 seperate orders which i have to place at 10:15AM ? Is that correct ?
