Linkon's Day trading Strategy...!

[linkon7]

2. Also, below on the ambibroker code, you have the concept of pl dot.Is it also Guppy's work or someone else's?
Thanks so much
Shreenath

Pldot is based on Drummond geometry.
The concept goes like this. Every bar has a high low and the close. All the info are important. It tells us how high buyers are willing to pay and how low sellers are willing to sell and who won the battle for that time period (close). So the average of this is the pivot that's used by all floor traders and calculate the mean for the next bar.

pldot is just that mean. (high+low+close) / 3 and plotted on the guppy chart to give me a sense of timing. I coloured it orange for a down trend and aqua for an uptrend.

When ever this mean rises, strength is shifting to the bulls and vice versa.

 

[linkon7]

This is how the chart looks now.... Its a buy above 4495 and short below 4449...

 

[Rajadhiraj]

• The problem was not with the systems. It was with myself.
  
  
• Then the only way out is to keep it simple and stupid. Something that i can trade without thinking.
  
  
• So all i have to do is go through the motion of trade like a machine and law of average will take care of the profit. No discretion - no brain work.

Hello Linkon

You have got the above part right :thumb:

But the scheme of things you are trying to use dosen't seems simple to me

Also there seems to be lot of scope for discretion and lots of thinking / decision making involved with your implementation.

You know what to do, you just have to do it.

 

[linkon7]

Hello Linkon

You have got the above part right :thumb:

But the scheme of things you are trying to use dosen't seems simple to me

Also there seems to be lot of scope for discretion and lots of thinking / decision making involved with your implementation.

You know what to do, you just have to do it.

As faith establishes on the system, thinking /decision making will come down. Bottom line is... when the bar is red , i go short, i dont hold a long with the hope that it'll turn blue. Thats the simplicity.

Only decission making is when the bars are yellow... There is no harm if i give it some room to return to profit. but when the colour change, then its a reversal, no more room left...

 

[Rajadhiraj]

As faith establishes on the system, thinking /decision making will come down. Bottom line is... when the bar is red , i go short, i dont hold a long with the hope that it'll turn blue. Thats the simplicity.

Only decission making is when the bars are yellow... There is no harm if i give it some room to return to profit. but when the colour change, then its a reversal, no more room left...

Do you have extra stuff on your charts? If yes, why do you need it? Requirement for confirmation from other indicators is the starting point for hesitation.

Rules can be simple or complex but there should be zero scope for any thinking/decision making during the trading day.

 

[linkon7]

Do you have extra stuff on your charts? If yes, why do you need it? Requirement for confirmation from other indicators is the starting point for hesitation.

Rules can be simple or complex but there should be zero scope for any thinking/decision making during the trading day.

True. But it also reinforces your belief that the trade is in the right direction. Sometimes, we take opinion of a few persons before we decide. Something like a panel of judges telling me the direction to trade.

"When is doubt..get out...." rule helps a lot....

 

[Rajadhiraj]

True. But it also reinforces your belief that the trade is in the right direction.
Sometimes , we take opinion of a few persons before we decide. Something like a panel of judges telling me the direction to trade.

Why not make it Everytime. Why not make it a part of rules. If you keep the recipe open ended, there is a probability that you will not be able to make consistent decisions

"When is doubt..get out...." rule helps a lot....

No problem as long as this is also be a part of the rules

Whatever you have to use make it consistent and clearly defined.

 

[linkon7]

The market saw a lackluster session and closed weak (on higher volumes) on account of poor global cues. But the market recorded the third highest turnover ever of Rs 1.47 lakh crore. Sensex shut shop at 15173, down 158 points and Nifty at 4513, down 50 points from the previous close. CNX Midcap index was down 0.78% and BSE Smallcap index was down 1.46%. The market breadth was negative with advances at 426 against declines of 826 on the BSE. Top Nifty gainers included TCS, PNB and Jindal Steel while losers were DLF, Tata Steel and Sun Pharmaceuticals.

 

[linkon7]

Why not make it Everytime. Why not make it a part of rules. If you keep the recipe open ended, there is a probability that you will not be able to make consistent decisions

No problem as long as this is also be a part of the rules

Whatever you have to use make it consistent and clearly defined.

hmm...! Maybe i should make it part of the rules, to give it more consistency... Point taken....:clapping:

 

[Shreenath]

Linkon,
I"m very familiar with Drummond Geometry. But I wondered whether it was Guppy who used it to create GMMA or you just happened to combine it.....
I'm not sure whether ALL floor traders use it. I thought the floor trader's pivot was calculated by something else. I don't use it perse but a very good description of the pivot is in John Carter's Mastering the trade.

Thanks so much
Shreenath

Pldot is based on Drummond geometry.
The concept goes like this. Every bar has a high low and the close. All the info are important. It tells us how high buyers are willing to pay and how low sellers are willing to sell and who won the battle for that time period (close). So the average of this is the pivot that's used by all floor traders and calculate the mean for the next bar.

pldot is just that mean. (high+low+close) / 3 and plotted on the guppy chart to give me a sense of timing. I coloured it orange for a down trend and aqua for an uptrend.

When ever this mean rises, strength is shifting to the bulls and vice versa.