Linkon's guppyBB system...!

[asnavale]

I have always wanted a system that caters to all kind of market conditions... And big criteria for such a system is that it should be easy to execute. There should be clarity in terms of direction... entry...exit... position sizing... take profit levels...

Its a tall ask and keeping in mind a starting capital of just 25 K for small traders... it becomes even more challenging...! so a stop loss of 12 K is the termination of the system...!

we will be dealing with options only and this enhances the risk as we will be on the buy side of options...so time is not our friend... taking periodic profit out is a must and ensuring strict adherance to stop loss is of utmost importance...

I plan to post the system this weekend...

till then need the help of a few good coders who can help me make the system into clear decission points... so that result is the same for all followers...

My system will concentrate only on nifty options and really have no idea how it'll perform on stock options...

If the coding is needed in Amibroker AFL then I can try to code your ideas into AFL.

-Anant

 

[linkon7]

If the coding is needed in Amibroker AFL then I can try to code your ideas into AFL.

-Anant

Andha kya mange.... do aankhe...!
( a blind man desires 2 eyes...!)

 

[sujittalukder]

Waiting for your write-up.
regards

 

[sprintravi75]

dear linkon sir,

thanks a lot. certainly your system will be of great help to small traders like me

regards
ravi

Waiting for your write-up.
regards

 

[DiwaliCrackers]

Hi Linkon,

I dont know how you are so kind to help every one...not in this thread but everywhere whether it is Ichimoku Kinko Hyo trading system or explaining Option Strategy or even sharing afl or even help any unknown identity, you are always ready with very much politeness and patience...I am really i big fan of you...


-DC

 

[linkon7]

Hi Linkon,

I dont know how you are so kind to help every one...not in this thread but everywhere whether it is Ichimoku Kinko Hyo trading system or explaining Option Strategy or even sharing afl or even help any unknown identity, you are always ready with very much politeness and patience...I am really i big fan of you...


-DC

trust me... only way to expand your knowledge is to share what every litle you know... every time you try to explain something to someone... every time the other person questions your beliefs... you learn something new or you are reinforcing your beliefs... thats a win-win situation...

If you look at people like AW10 or St-da or swing king... (the list is endless)..these peope know how to trade... but there are weak links in their methods that they try to evolve through discussions... every one of them are students of this market and they share with the same hope of learning or reinforcing their beliefs...:thumb:

 

[linkon7]

While we are still awaiting Anant's time, I want to reflect on a paradox that we have during trading...


Most of the time, we wait for confirmation before we act and that gives us poor trade location. Lets look at a data from the recent past. on 16th Feb, Nifty was on a up trend and nifty bounced from 5458 to 5508..it is a 50 point move from low to high.

We trade with the trend and typically, we wait for stoch to turn, for price bar to close and take out the trendline on stoch, take out the high of the high of the previous bar (5479.95) plus filter (if any) for our perfect entry.

For exit, we hold on the trade till stoch turns. some of us use trailing sl of the previous bar's low or current bar's low. some wait for full bar close.

however, what ever the method, this 50 point of up move was there for grab. While most of the traders managed a 8-10 point gross profit, some managed to make a loss even by waiting for a bar close.

This is very frustrating for most traders and all of us have faced this issue numerous amount of times where we executed the plan to near perfection and yet failed to grab a good chunk of the profit. We enter after 20 points from the bottom and exit after 20 points from the top, leaving us very little to show after brokerage.

Most indicators are derived from price action and this dependence on indicators to highlight the high probability trades are sometimes the reason for much frustration.

 

[linkon7]

The more savvy only-price-action traders have a different way of looking at the same block of data. They dont depend on indicators and trade according to price bars.

while they too recognize that we are still in a up trend and are waiting for ideal trade location. The doji is a good sign that there is indecision between bull-bears. They wait for the high of the doji plus filter (if any) to be taken out for their entry. They place sl at the low of the doji. After 2 up thrust bars, their face lits up when they see a hammer. The tail of the hammer is a strong signal that bulls are getting aggressive. They add more longs at the break of the hammer head+ filter and keep a strict stoploss at the low of the hammer plus filter. They let the trade develop. While some might move the stoploss to the low of bullish thrusting candle, others might keep their sl at the low of the hammer.

Either ways, both the sl gets hit and they too have very little to show in terms of capturing a chunk of the 50 point up move.

 

[linkon7]

Other that the few days when we have a open drive price just runs like mad in one direction from the word go... It becomes very difficult to trade. There is constant doubt in our mind as every bar that is forming has a equal chance of going against us. Only thing we can pray for is our stop loss doesn't get taken out and trade moves in our direction. There is no guarantee and there never will be. Fact is no method is perfect and acceptance of this fact is a big milestone in our quest for trading success. For every successful trade, we are not very happy as the next trade can go against us. For every failed trade, we are not sad as the next trade can be profitable.

Its not that i have found the holy grail and i can show a method that will ensure you can book your dream flat / car in the next 6 months of trading the method. My quest for improving my Grey areas continues and this thread is my attempt to open a discussion on trading the moving averages.

 

[jagankris]

Its not that i have found the holy grail and i can show a method that will ensure you can book your dream flat / car in the next 6 months of trading the method. My quest for improving my Grey areas continues and this thread is my attempt to open a discussion on trading the moving averages.

My Dream Car