Karthik's EOD Strategy...

[rh6996]

If next bar filter is applied (that is break of HL of trigger bar), should today's closing be considered for long entry in nifty fut?

Beware : I may be wrong !
Nifty gave a buy Signal on 27th Nov and the same is still on... a Sell signal on 21 dec was not triggered ! In between there were exits on not touching 3EMA and retracing to 10 EMA and closing above 3EMA for reentry! So anyone taking entry as per current signal for the first time in this upmove would be at a disadvantage.

 

[rh6996]

Can anyone post a SBI future chart showing EMA cross and ADX cross ! I find the move gives awesome returns, but one needs to exit at a predecided level. The reversals seems to come much later after a High or a Low is made thus taking away a lot of profits generated in the move. I could have done it myself (posting the chart) but there seems to be some problem in my MS Office.

 

[observer]

Beware : I may be wrong !
Nifty gave a buy Signal on 27th Nov and the same is still on... a Sell signal on 21 dec was not triggered ! In between there were exits on not touching 3EMA and retracing to 10 EMA and closing above 3EMA for reentry! So anyone taking entry as per current signal for the first time in this upmove would be at a disadvantage.

Thanks for the reply. Why do you consider it as a disadvantage at this point? Is it because it is just a re-entry as per the strategy?

 

[karthik_sri]

Karthik, So nice to see your strategy and even feel good to see that you gave full Credit to SH's (Tradewithhunter) 315 strategy for development of this one.
I had veru thoroughly followed 315 and on seeing this Strategy tried to compare the two. Looking at the charts with both the Strategies posted I find not much difference in the results. I did not do very fine calculations. But at times "310ADX" gives earlier entry or reversal and at times 315 gives earlier entry or reversal. Winner would not be either of the strategy but would matter more on the Trader trading them, his/her discipline and Money Management ! This is true for all strategies.
Karthik, I did notice in a few charts that at times ADX plus minus values are same and creates confusion when we are not in trade ! In such cases I have taken the previous Position of ADX as valid position..is this correct?

Hi RH,
As rightly said Money Management, no strategy is holy grail as of now to my knowledge!
Could u pls post some chart with example for your confusion related to ADX values are same which u hv shared.

 

[rh6996]

Thanks for the reply. Why do you consider it as a disadvantage at this point? Is it because it is just a re-entry as per the strategy?

If anyone using this strategy had entered earlier, he/she would be in a BIG profit and anyone entering LONG now would have is entry at much higher rate... just this entry level mismatch and nothing else !

 

[prabhsingh]

Prabh,
You would have entered the trade on 21.12.12 and on 24.12.12 the price was not touching 3EMA which means we have to exit from our trade the next day.

Karthik,

I hope when you say price not touching 3EMA you mean to say closing price of the day not touching 3EMA.Is this correct?

 

[rh6996]

Hi RH,
As rightly said Money Management, no strategy is holy grail as of now to my knowledge!
Could u pls post some chart with example for your confusion related to ADX values are same which u hv shared.

Its not really a confusion.. sort of observation I may say! In bharti airtel the values of ADX were : 26th Dec : +21 and -21

On 16th Oct, 3 ema crossed 10 ema but ADX was not favourable.....
On 2nd November +DI crossed -DI but the high of the bar was not breached subsequently. on 5th and 6th Nov the +DI went below again... on 7th it went up but again was not triggered..ultimately Long gets triggered on 13th November, above the high of 12th ! This long from 283 continued to a high of 311, and if 3ema exit was not taken to a high of ~341.
On 10th Dec 3EMA goes below 10 EMA but +DI is above -DI !
The +DI crosses below on 17th November but the Low does not get breached thereafter, hence Long signal continues. (Not looking at 3EMA exits, there were a couple with reentires)
On 20th dec +DI goes below -DI and below the low , and as 3EMA is already below 10 EMA we go short on 21st Dec.


Now on 26th December 3EMA goes above 10 EMA but +DI value is 21 and so it he -DI value 21, both are equal.

Shall try to post the image soon.

 

[karthik_sri]

Karthik,

I hope when you say price not touching 3EMA you mean to say closing price of the day not touching 3EMA.Is this correct?

Ultimately the Price only....The candle bar reflect the effect of price action only...ideally when u are in long the low price of the candle and when in short the high price of the candle...

 

[prabhsingh]

RH,

On 26th Dec,+DI and -DI are coming out to be 21.64 and 20.77.I dont know how you are getting 21.

 

[rh6996]

Top frame had +DI (black) and -DI (Red) ,and in the chart Thumbs up sign is where 3EMA goes above 10 EMA and Thumbs Down is where 3EMA goes below 10 EMA.

The verticle lines are where the DI values are same