Hi Robin,
I must appreciate your keen interest & valuable suggestions. The only intention to start this thread is to trade nifty future in more disciplined and mechanical way so that over longer period you not only be a effective trader but your portfolio should also appreciate more than any otherway. i have come across number of blind traders trading nifty. they are buying or selling against trend and eventually end up with large losses and ultimetely stop trading. I also receive lots of messages in my messanger as i am posting in yahoo group NIFTYFUTURE since one year asking that i have shorted nifty or bought nifty and my position is having a loss of 300-400 points now what to do ? should i hold my position ? will market recover or fall further ? etc. So i thought & started this thread. You are more matured and technical person than others but please understand and do not take it wrong. it is not important how the levels are calculated as i feel it is my own proprietory method and will not prefer to share. As i also told in my earlier message that this is my model of mechanical system. what ever system it may be as long as it generates money you should be following. This is my model of trading. The best way to judge whether to follow mechanical system or not is to compare your own trading result with this kind of system after 6 months or a year. if you earned more than the system, than probably no changes is needed in your trading style or if there is vase difference than one should look seriously to their trading style.
Now as long as your suggestion is concern -
1) If We Take The Levels And Apply It To The Days Closing Price( Rather Than Changing The Posns Intraday) No Of Loss Trades Reduce Considerably.
yes if we can apply on closing prices, no of loss trades reduces considerably but at the same time either we may not get in to the trends early. because in case of short covering, market some times move up so fast so we have to wait till next day to take an entry and if market opens with gap, than we may also loose some points. So in general, I think overall result will not have much impact.
2) In An Uptrend We Should Not Take The Short Posns(we Should Just Exit Our Longs Whenever The Support Is Breached At The Closing And Then Wait For The Next Buy Signal That Is When The Resistance Is Breached)we Can Avoid A Lot Of Loss Trades
My model is testing each and every signal. if we wait to take short position for second level, than again our entry will late. so again there are both possibility. if you wait than you can avoid some loss making trades in uptrend or you can get late entry incase of reversal. one can also use nifty opitons. e.g. if you are having a good profit say 200 or 300 points in your position, you can invest part of your profit to hedge by buying put or call options so incase if market reverses till we exit our position, some part of gain can be protected
Thanks. please share your views
I am also inviting all other members for active participation to share their views, doubts etc.
Vinod
Hello Mr Vinod And All Members
I Would Like To Appreciate The Initiative And Effort To Start And Continue This Thread. This Thread Has The Potential To Become A Leading Platform For Learning And Sharing The Knowledge Of Nifty Future Trading Where New Members Can B Nurtured And Cautioned About The Traps Of The Market. At The Same Time We Can Come To The Common Conclusion Of The Most Effective Way Of Trading.
Over A Period Of Time However I Found That The Aim And Potential Of This Thread Is Gradually Diluting.if Discussions , Doubts And Their Clarifiacations Are Not Forthcoming This Thread I Fear Will B Reduced To A Place Where Mr Vinod Will Give The Levels And The Rest Of Us Will Just Read And Follow.
At This Point I Will Request Mr Vinod To Please Intervene And Clarify The Aim Of This Thread.
Mr Vinod I Will Again Request U To Please Clarify That "how Are The Levels Calculated" And What Other Factors Do U Take Into Consideration Other Than Pivot Points? In Case U Do Not Wish 2 Divulge The Same Please Mention It. My Reservation In That Case Will Only B That New Members Will Not At All B Benefited By Ur Experience And Will Get Into Being Dependent Forever.
As Far As My Wish To Contribute Goes:
I Had Tested The Pivot System For Each Day Since Nov 2004
A Few Observations(...suggestions):
1) If We Take The Levels And Apply It To The Days Closing Price( Rather Than Changing The Posns Intraday) No Of Loss Trades Reduce Considerably.
2) In An Uptrend We Should Not Take The Short Posns(we Should Just Exit Our Longs Whenever The Support Is Breached At The Closing And Then Wait For The Next Buy Signal That Is When The Resistance Is Breached)we Can Avoid A Lot Of Loss Trades.
Regards
Robin
