Karthik's EOD Strategy...

[akxsat]

I have tested adding another EMA of 30 period (EMA30) to filter the Noise

The rest of the rules remains same as it is mentioned in page 1 of this post. A little modification and just summarised for the benefit of all.

Setup:

EMA : 3, 10 & 30
ADX : 14

Entry:

for Long/Buy: EMA3 crossover EMA10 & EMA30
After crossover please see that the sequence is like EMA30 then EMA 10 and last EMA3
ADX: +DI > -DI

for Short/Sell: Vice versa of Buy setup

No Trade if any of the above condition is not met.

I have attached futures chart of ABB.

http://i.imgur.com/NTou06K.png

1). The 3EMA crossover on 10EMA happened on 19.10.12 & +DI > -DI
2). 22.10.12 the ADX crossover happened and -DI > +DI
3). But 3EMA crossover on 30EMA didnt happened
4). On 23.10.12 3EMA crossover on 30EMA happened.
5). The main condition of sequence didnt happened on 23.10.12 i.e 30, 10, 3 the values from Higher to Lower.
6). On 25.10.12 the same happened i.e EMA30 was above all the EMAS, EMA10 below EMA30 and above EMA3, and EMA3 was below the other two EMA's.
7). The low of 25.10.12 is 746.35 and we enter on low of 746.35

SL: we keep EMA30 as SL (which means the signal day)
Exit: Price not touching 3EMA or some fixed % according to the risk taking appetite

In the next few threads I will explain you how this filter has avoided Whipsaw with charts!

Karthik

First, thanks for the excellent trading method.

I have a doubt in Stoploss, pls chk the image.
BPCL fut
on 17.12.12 - 30EMA = 346.56 and low = 346.15

and the next day 18.12.12 low made 344.20

so is it stoploss triggered or our stoploss is 344.20

pls clear my doubt...

 

[priyabalan]

This same strategy seems to be working on 60mins time frame for quick bucks. One should book profits quickly say Rs1500-Rs2000. I traded in 2 stocks today with this and earned 2900. Of course trading for a day is not sufficient. Let's see if it delivers consistently in 60 mins TF. Thanks to Karthick for this strategy.

regards
priya

 

[anup]

This same strategy seems to be working on 60mins time frame for quick bucks. One should book profits quickly say Rs1500-Rs2000. I traded in 2 stocks today with this and earned 2900. Of course trading for a day is not sufficient. Let's see if it delivers consistently in 60 mins TF. Thanks to Karthick for this strategy.

regards
priya

good, you are testing on different time frame

 

[karthik_sri]

First, thanks for the excellent trading method.

I have a doubt in Stoploss, pls chk the image.
BPCL fut
on 17.12.12 - 30EMA = 346.56 and low = 346.15

and the next day 18.12.12 low made 344.20

so is it stoploss triggered or our stoploss is 344.20

pls clear my doubt...

Hi Akxsat,
Since you have not mentioned when you have taken the buy on BPCL, the buy signal on Dec'12 happened on 5th Dec'12 with the condition of EMA & ADX met. The buy signal was generated on 05.12.12 with High 361.15 & Low 350.55 The SL would be 339.92 (which is 30EMA) The buy order trigerred on 06.12.12 and on 07.12.12 the price was not touching 3EMA which means we should exit or sell our holding on next day.

The next signal generated on 28.12.12 (High 365, Low 348, SL 348.25 (30EMA)). The buy order trigerred on 02.01.13 and the scrip was in uptrend and on 21.01.13 the price was not touching 3EMA which means we have exit or sell our holding. We exit on 22.01.13 with decent profits.

In both the above Trades SL was not hit. SL part I have clarified and marked in the chart also.

http://i.imgur.com/PKB8AFN.png

 

[coolabhi99]

This same strategy seems to be working on 60mins time frame for quick bucks. One should book profits quickly say Rs1500-Rs2000. I traded in 2 stocks today with this and earned 2900. Of course trading for a day is not sufficient. Let's see if it delivers consistently in 60 mins TF. Thanks to Karthick for this strategy.

regards
priya

Can u please tell which were the trades you took?? It would be a learning for everyone.

 

[prabhsingh]

This same strategy seems to be working on 60mins time frame for quick bucks. One should book profits quickly say Rs1500-Rs2000. I traded in 2 stocks today with this and earned 2900. Of course trading for a day is not sufficient. Let's see if it delivers consistently in 60 mins TF. Thanks to Karthick for this strategy.

regards
priya

Kindly can you post the charts for those 2 stocks.

 

[akxsat]

ok... thanks.. i got it now.

Hi Akxsat,
Since you have not mentioned when you have taken the buy on BPCL, the buy signal on Dec'12 happened on 5th Dec'12 with the condition of EMA & ADX met. The buy signal was generated on 05.12.12 with High 361.15 & Low 350.55 The SL would be 339.92 (which is 30EMA) The buy order trigerred on 06.12.12 and on 07.12.12 the price was not touching 3EMA which means we should exit or sell our holding on next day.

The next signal generated on 28.12.12 (High 365, Low 348, SL 348.25 (30EMA)). The buy order trigerred on 02.01.13 and the scrip was in uptrend and on 21.01.13 the price was not touching 3EMA which means we have exit or sell our holding. We exit on 22.01.13 with decent profits.

In both the above Trades SL was not hit. SL part I have clarified and marked in the chart also.

http://i.imgur.com/PKB8AFN.png

 

[observer]

Correct me if I am wrong. By the time the 3 and 10 ema moves over 30ema, the adx(14) would have already crossed. So adx(14) as a filter becomes ineffective with 3>10>30 or vice-versa strategy.

 

[akxsat]

Bajaj Auto Fut Sell below: 2028

 

[akxsat]

Dear Mr.Karthick,

I thank u from the bottom of my heart,
coz i have gone many stocks with this method, simply superb...

for me it is very useful. I checked only for EOD.

Once again Thank u.

akxsat