Nifty Futures Trading Part 2 (Positional)

[amar_gr]

Many thanks to Sunil for pointing me to this thread.

I have been trying my hand at trading with the ACD method for about 4 weeks now. Primarily on Nifty Futures for intraday trades only. (also paper trading Gold futures, looks quite promising on paper yet).

I have been using the 30m OR and switched to 20m OR a since few days ago.
I noticed you have been using the 10m OR, can I have your suggestions on which OR time frame can give best results for intraday trades. Whats your experience with the 10m OR ? Also can you share your thoughts and overall experience with the ACD system for trading Nifty Futures.

Often I find the Risk reward is not too good, though eventually the trade does turn out to be profitable. The past two days have been treacherous. I ended up taking both the A & C trades in anticipation of a good move, got ripped royally. Haven't seen such choppiness in a while.

Your thought of starting an thread on ACD is good, I am looking forward to that thread. I am not sure whether my small experience is good to contribute
to the thread, but if needed, I will be glad to contribute in my small way.

Regards
Amar

 

[parttimetrader]

Hi DumDum - Thanks for your posting(s). May I ask what software you are using for your charts? I am going to invest in MetaStock 10, as I only use software for EOD analysis for positional trades (For intra-day I trust my screen reading), and was wondering if there was another more worthy software? Advanced GET is awesome, and I have seen it in action, but it costs 7x Metastock, and requires skills beyond my current capability to fully exploit; so that's kinda ruled out. I realize that TA skills are more important than the charting software, but a good package can't hurt.

My own Nifty positional view is that there is a bullish divergence between the oscillators and the price, but no confirmation yet. As of today, I would trade long every time and as long as the Nifty (Cash) is above 2810, and be short below that - Keeping it simple. All I do is adjust this level in my mind - as of today it is 2810. I don't want to wait till 2850-2870, miss the 50-70 points, buy on the breakout, and risk it being false, and get stopped out (on a gap-down)!!!

What does everybody here think?

 

[dumdum20008]

Many thanks to Sunil for pointing me to this thread.

I have been trying my hand at trading with the ACD method for about 4 weeks now. Primarily on Nifty Futures for intraday trades only. (also paper trading Gold futures, looks quite promising on paper yet).

I have been using the 30m OR and switched to 20m OR a since few days ago.
I noticed you have been using the 10m OR, can I have your suggestions on which OR time frame can give best results for intraday trades. Whats your experience with the 10m OR ? Also can you share your thoughts and overall experience with the ACD system for trading Nifty Futures.

Often I find the Risk reward is not too good, though eventually the trade does turn out to be profitable. The past two days have been treacherous. I ended up taking both the A & C trades in anticipation of a good move, got ripped royally. Haven't seen such choppiness in a while.

Your thought of starting an thread on ACD is good, I am looking forward to that thread. I am not sure whether my small experience is good to contribute
to the thread, but if needed, I will be glad to contribute in my small way.

Regards
Amar

thanx amar for sharing views here, before i start separate ACD thread (perhaps tonight or 2maro noon), you can see these links for more info-findings from my side. One most important conclusion which arises is that Risk reward ratio will be good if
1) not too lengthy time OR used, 10 min is good.
2) (OR+- A value) does not consume more than 35-40% of prevailing ATR (10)
you see i avoided to trade last 2 days because of this.

http://www.traderji.com/derivatives...trading-part-2-positional-565.html#post270249
http://www.traderji.com/derivatives...trading-part-2-positional-569.html#post272203

much result depend upon A value for nifty , which im using 10. we can think of reducing it to 7 or may choose to vary according to OR.
i mean, on normal OR of 10-15 points A-value can be setted 10 and on high OR of 15-30 points A-value can be setted low to 7or 5.
Even on high OR days ( as yesterday), which consume more than 60% of ATR including A-values, we can think of mirroring the ACD system--but that will be just discarding the system. Will discuss/experiment in ACD thread soon.

 

[dumdum20008]

Hi DumDum - Thanks for your posting(s). May I ask what software you are using for your charts?

charts are made on Sharekhan's Trade tiger terminal.

 

[praveen taneja]

dear vjay,aman
sincerely appreciate both your reply's,extremely sorry couldnt post earlier as i was travelling..
praveen bhai'kaise ho,is haftein lagta hein nifty ki bajegi...

all the best.
found a couple of interesting things on the charts will post it tonight.

Thnx I am fin bro
Just came from Shirdi yday night
Yes me too feel bahut khel khel liya ab ek baar nifty ka bhurta banane ka time aa gaya Lets see 2600 agan or 2870 carefully

 

[amar_gr]

thanx amar for sharing views here, before i start separate ACD thread (perhaps tonight or 2maro noon), you can see these links for more info-findings from my side. One most important conclusion which arises is that Risk reward ratio will be good if
1) not too lengthy time OR used, 10 min is good.
2) (OR+- A value) does not consume more than 35-40% of prevailing ATR (10)
you see i avoided to trade last 2 days because of this.

http://www.traderji.com/derivatives...trading-part-2-positional-565.html#post270249
http://www.traderji.com/derivatives...trading-part-2-positional-569.html#post272203

much result depend upon A value for nifty , which im using 10. we can think of reducing it to 7 or may choose to vary according to OR.
i mean, on normal OR of 10-15 points A-value can be setted 10 and on high OR of 15-30 points A-value can be setted low to 7or 5.
Even on high OR days ( as yesterday), which consume more than 60% of ATR including A-values, we can think of mirroring the ACD system--but that will be just discarding the system. Will discuss/experiment in ACD thread soon.

Many thanks for suggesting the 10m OR. I will try to switch to that from now on for Nifty. Incidentally today's 10m OR on Nifty Fut turned out to be profitable.
For the ATR i have been using the 10day average ATR. For the A value I use 10% of ATR and 15% for C value. So my values for today were A=8.5 & C=12.75. Am I right in this method or should I use constant values instead of varying them daily ?

I have some more queries;
1. Have you tried the ACD method with Gold Futures ?
Gold appears to be a very good candidate for ACD system, It has an average OR (30m) of 40-55 pts, while the daily range currently is 280-320pts.
Typically the A-Good level can reach 50% of the days ATR leaving about 50 to 60 points to be exploited.
2. What are your thoughts/experiences on using ACD for position trading Nifty/Gold.
I still have not fully understood the 3 day rolling pivot concept for swing trading. Do you have any thoughts on this.
3. I have been keeping a track of the days no line, but have not been able to use it profitably. Is this no line useful in current days scenario.

Regards
Amar

 

[amar_gr]

charts are made on Sharekhan's Trade tiger terminal.

Your charts are very elegantly detailed with arrows & text. Which image editing s/w do you use to overlay details ?

I have tried using Photoshop but somehow find it kind of clumsy for this job.

Regards
Amar

 

[dumdum20008]

Many thanks for suggesting the 10m OR. I will try to switch to that from now on for Nifty. Incidentally today's 10m OR on Nifty Fut turned out to be profitable.
For the ATR i have been using the 10day average ATR. For the A value I use 10% of ATR and 15% for C value. So my values for today were A=8.5 & C=12.75. Am I right in this method or should I use constant values instead of varying them daily ?

I have some more queries;
1. Have you tried the ACD method with Gold Futures ?
Gold appears to be a very good candidate for ACD system, It has an average OR (30m) of 40-55 pts, while the daily range currently is 280-320pts.
Typically the A-Good level can reach 50% of the days ATR leaving about 50 to 60 points to be exploited.
2. What are your thoughts/experiences on using ACD for position trading Nifty/Gold.
I still have not fully understood the 3 day rolling pivot concept for swing trading. Do you have any thoughts on this.
3. I have been keeping a track of the days no line, but have not been able to use it profitably. Is this no line useful in current days scenario.

Regards
Amar

you are going right but A and C values i think should be same as its index/stock, for commodities these are different as per fisher's book.
I too consider much about incorporating ATR(10) value in deciding possible range, but yet to find a working macro type stop/exit that can be calculated as easily as OR.
1) I dont trade any commodity nor any stock, but deffinitely gold and crude are best candidate for ACD.
2)Yes Nifty positinal trade can be done with minor modification, and we should focus on it.
3)What is " days no line" ? i could not got meaning.

please share your views now on ACD thread

http://www.traderji.com/derivatives/26424-trading-nf-acd-system.html

Your charts are very elegantly detailed with arrows & text. Which image editing s/w do you use to overlay details ?

I have tried using Photoshop but somehow find it kind of clumsy for this job.

Regards
Amar

Hehe its simple MS paint.

 

[amar_gr]

you are going right but A and C values i think should be same as its index/stock, for commodities these are different as per fisher's book.
I too consider much about incorporating ATR(10) value in deciding possible range, but yet to find a working macro type stop/exit that can be calculated as easily as OR.
1) I dont trade any commodity nor any stock, but deffinitely gold and crude are best candidate for ACD.
2)Yes Nifty positinal trade can be done with minor modification, and we should focus on it.
3)What is " days no line" ? i could not got meaning.

please share your views now on ACD thread

http://www.traderji.com/derivatives/26424-trading-nf-acd-system.html



Hehe its simple MS paint.

My mistake I used an incorrect term i meant "macro ACD number line". I am also looking forward to your inputs on the Nifty positional trade with the ACD system.

I have not been too happy with MS Paint, but that s/w was the last thing I thought anybody would be using. Warrants a fresh look from my side.

Regards
Amar

 

[dumdum20008]

My mistake I used an incorrect term i meant "macro ACD number line". I am also looking forward to your inputs on the Nifty positional trade with the ACD system.

I have not been too happy with MS Paint, but that s/w was the last thing I thought anybody would be using. Warrants a fresh look from my side.

Regards
Amar

hehe,
i have not gone thru Macro ACD chapter yet, but have some idea about that because i read an article on this somewhere.
paint is good for light work.
but for more artistc "Artrage" and for littile advance "Gimp" can be used.