Linkon's Day trading Strategy...!
- Thread starter linkon7
- Start date
After a ranged but positive week, the Indian market closed on a happy note, assisted by some good global cues. The market appeared to be rewarding the good Q1 results which were declared through this week. And experts are optimistic that the Nifty could touch new highs in the coming days. This week's performance was good and the numbers are: Sensex up 2.2% and Nifty up 2%. BSE Smallcap index was up 2.7% and CNX Midcap index up 3.2% over the week. BSE Metal index was up 2.3%, BSE IT index up 5%, BSE CD index down 0.5% and BSE Auto index up 2.9%.
CUES--
--Nifty August future premium converted in to discount of 0.4 points so cost of carry decreased.
--Nifty open interest increased by 10 lacs suggests short addition. (Total OI now at 2.40 cr)
--Nifty calls added 11 lacs and puts added 19 lacs in open interest.
--Nifty open interest put-call ratio is at 0.98.
--4500 puts had open interest of 22 lacs and 4700 calls had open interest of 32 lacs, so 4500 and 4700 will be important levels to watch for.
--India VIX closed at 39.21, increased by 4% suggests instability.
-- sgx nifty opened at 4660, which was also the high, made a low of 4617 and is currently trading at 4650...
-- crude is at 69.7
-- dollar vrs Rs is at 48.24
--Nifty August future premium converted in to discount of 0.4 points so cost of carry decreased.
--Nifty open interest increased by 10 lacs suggests short addition. (Total OI now at 2.40 cr)
--Nifty calls added 11 lacs and puts added 19 lacs in open interest.
--Nifty open interest put-call ratio is at 0.98.
--4500 puts had open interest of 22 lacs and 4700 calls had open interest of 32 lacs, so 4500 and 4700 will be important levels to watch for.
--India VIX closed at 39.21, increased by 4% suggests instability.
-- sgx nifty opened at 4660, which was also the high, made a low of 4617 and is currently trading at 4650...
-- crude is at 69.7
-- dollar vrs Rs is at 48.24
It was an important day for the Indian market as the Nifty touched 4700 and closed above it for the first time since June 6, 2008. After a quiet opening, the market continued to rally, although briefly coming into the negative territory. Sensex shut shop at 15924, up 253 points and Nifty at 4711, up 74 points from the previous close. CNX Midcap index and BSE Smallcap index were both up 1.7%. The market breadth was positive with advances at 866 against declines of 398 on the NSE. Top Nifty gainers included Hindalco, Mahindra & Mahindra and HCL Technologies while losers included Suzlon Energy, Hindustan Unilever and BPCL.
CUES--
--Nifty August future discount converted in to premium of 3 points so cost of carry increased.
--Nifty open interest increased by 6 lacs suggests long addition. (Total OI now at 2.46 cr)
--Nifty calls added 9 lacs and puts added 12 lacs in open interest.
--Nifty open interest put-call ratio is at 1.01.
--4500 puts had open interest of 24 lacs and 5000 calls had open interest of 20 lacs, so 4500 and 5000 will be important levels to watch for.
--India VIX closed at 40.65, increased by 3% suggests instability.
-- SGX nifty opened at 4777.5, which is the high of the day....and is currently trading at 4715, which is the low of the day.
-- crude at 71.5
-- dollar v Rs at 47.5
--Nifty August future discount converted in to premium of 3 points so cost of carry increased.
--Nifty open interest increased by 6 lacs suggests long addition. (Total OI now at 2.46 cr)
--Nifty calls added 9 lacs and puts added 12 lacs in open interest.
--Nifty open interest put-call ratio is at 1.01.
--4500 puts had open interest of 24 lacs and 5000 calls had open interest of 20 lacs, so 4500 and 5000 will be important levels to watch for.
--India VIX closed at 40.65, increased by 3% suggests instability.
-- SGX nifty opened at 4777.5, which is the high of the day....and is currently trading at 4715, which is the low of the day.
-- crude at 71.5
-- dollar v Rs at 47.5
I have been testing this method for some time and found the following results:
The average loss is about 7.5 points
the average gain is about 21 points
risk reward ratio is 2.8
out of 217 trades, 157 are winners, so that's a strike rate of 72%
On a trending day, this system is god... but on a trendless day, this system still gives about 25-30 points if all the trades are attempted...in lower TF of 1 min or 2 min....
The average loss is about 7.5 points
the average gain is about 21 points
risk reward ratio is 2.8
out of 217 trades, 157 are winners, so that's a strike rate of 72%
On a trending day, this system is god... but on a trendless day, this system still gives about 25-30 points if all the trades are attempted...in lower TF of 1 min or 2 min....
4th August
We opened gap down.
10.35 buy triggered at 4690
St at 4688
10.51, reversed. At 4688
St at 92, 90, 88, 87
Reversal triggeredat 87
Sl at 7980
11.33 Reversed at 84
Sl 88
Reversed at 85
St at 95
12.08, Sl hit
Short triggered at 91
12.22, Reversed at 4701
12.32, reversed again at 4693
This is whipsawing like crazy
12.43, reversed at 4698
1.00 reversed at 4695
1.22, reversed at 92
1.36, reversed again at 4691
Finally a direction.
2.26, sl hit at 4668
Short triggered at 62
2.50, sl hit againat 4654
2.59, short trigger hit again at 4649
Sl at 55
3.07, exited at 56
Placed a buy trigger at 63 and a short trigger at 48
Exited at 92
Summary
2 Rs per trade is the brokerage....
Traded in 1 min Tf, And still got whipped so badly...
We opened gap down.
10.35 buy triggered at 4690
St at 4688
10.51, reversed. At 4688
St at 92, 90, 88, 87
Reversal triggeredat 87
Sl at 7980
11.33 Reversed at 84
Sl 88
Reversed at 85
St at 95
12.08, Sl hit
Short triggered at 91
12.22, Reversed at 4701
12.32, reversed again at 4693
This is whipsawing like crazy
12.43, reversed at 4698
1.00 reversed at 4695
1.22, reversed at 92
1.36, reversed again at 4691
Finally a direction.
2.26, sl hit at 4668
Short triggered at 62
2.50, sl hit againat 4654
2.59, short trigger hit again at 4649
Sl at 55
3.07, exited at 56
Placed a buy trigger at 63 and a short trigger at 48
Exited at 92
Summary
Code:
5 -58 63
trade entry SAR profit loss win
buy 4690 4688 -4 -4
sell 4688 4687 -1 -1
buy 4687 4684 -5 -5
sell 4684 4685 -3 -3
buy 4685 4695 8 8
sell 4691 4701 -12 -12
buy 4701 4693 -10 -10
sell 4693 4698 -7 -7
buy 4698 4695 -5 -5
sell 4695 4692 1 1
buy 4692 4691 -3 -3
sell 4691 4668 21 21
sell 4662 4654 6 6
sell 4649 4655 -8 -8
buy 4663 4692 27 27Traded in 1 min Tf, And still got whipped so badly...
It was a choppy day of trade that closed on a quiet note. Sensex shut shop at 15830, down 93 points and Nifty at 4680, down 30 points from the previous close. CNX Midcap index was down 0.40% and BSE Smallcap index was up 0.32%. The market breadth was negative with advances at 622 against declines of 627 on the BSE. Top Nifty gainers included BPCL, HUL and Hindalco while losers were Tata Power, Cipla and ONGC.
Linkon,
After you're done with your 30 day evaluation, perhaps you can come up with a filter to modify your technique for those days that might be choppy?
That way you don't have to go through Whipsaws.constantly throughout the day....never ever forget that markets are in congestion about 80% of the time(give or take a few).
Regards
Shreenath
After you're done with your 30 day evaluation, perhaps you can come up with a filter to modify your technique for those days that might be choppy?
That way you don't have to go through Whipsaws.constantly throughout the day....never ever forget that markets are in congestion about 80% of the time(give or take a few).
Regards
Shreenath
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