Nifty Futures Trading

[segul]

hi all,

would like to show a simple strategy for intraday trading.actually was discussing this strategy with asish sir and he told me to post some charts here.this system mainly works on 15min chart and the trade is managed in 1min and 5 min chart.when a 15min high cracks from below u go long and when 15mins low cracks from above u go short.

when u come down to lower timeframe, say, 1 min or 3 min chart normally 15min hi lo will be an important pivot hi or lo on these timeframe.

after the trade is initiated 50% of the positions is targetted to 127%,138%,161%,205%,261% of the previous move (this has to be back tested yourself and choose some realistic targets,this target must neither be very far nor very near) and for other 50% position stop is trailed at every previous 15min low or high,as the case may be.when this stop hits, reverse trade is taken and followed accordingly.2 point filter for the stop above the 15min hi or low is given when there is a countertrend activity in the previous 15min bar.

have posted 1 min chart with an overlay of 15 min hi low for last 3 trading sessions.have also given points earned per day.but one has to back test this strategy by hand to get a proper idea of it.though on range bound days u feel like u are overtrading,total performance of the system is quite good at the end of the month(u have check on your own to really believe it).

regards.

 

[Laksh]

Hi Segul,
Nice post. Which broker are you using to get 1 point brokerge and which s/w for your charts? I use 5paisa. My round trip brokerage comes to about 7-8 points including STT etc. With this kind of brokerage I would probably keep on losing or may be will breakeven at best. Would appreciate your reply.

In this thread I have also noticed Uashis taking very small profits of about 10-15 points or even less. I don't think such propfit taking would be profitable without very low brokerage. Which broker are you using Ashisbabu?

Laksh

 

[segul]

hi laksh,

use reliance money.it comes to a round figure of around 2 points for 1 complete trade.it is tough to trade on this platform(instatrade) but have got used to it .only because of low brokerage, still trading here.

regards

 

[milkyblack]

hi all,

would like to show a simple strategy for intraday trading.actually was discussing this strategy with asish sir and he told me to post some charts here.this system mainly works on 15min chart and the trade is managed in 1min and 5 min chart.when a 15min high cracks from below u go long and when 15mins low cracks from above u go short.

when u come down to lower timeframe, say, 1 min or 3 min chart normally 15min hi lo will be an important pivot hi or lo on these timeframe.

after the trade is initiated 50% of the positions is targetted to 127%,138%,161%,205%,261% of the previous move (this has to be back tested yourself and choose some realistic targets,this target must neither be very far nor very near) and for other 50% position stop is trailed at every previous 15min low or high,as the case may be.when this stop hits, reverse trade is taken and followed accordingly.2 point filter for the stop above the 15min hi or low is given when there is a countertrend activity in the previous 15min bar.

have posted 1 min chart with an overlay of 15 min hi low for last 3 trading sessions.have also given points earned per day.but one has to back test this strategy by hand to get a proper idea of it.though on range bound days u feel like u are overtrading,total performance of the system is quite good at the end of the month(u have check on your own to really believe it).

regards.

Hi Segul,

Nice finding. I myself have traded with this 15 mins... as you mentioned on range bound market it gives many whipsaws... there were few days when this 15 mins has given a Net loss of 60 to 80 points i.e Rs. 6000 to 8000/-(taking 2 lots) on one day... way too much for intraday right? And I myself have incurred those ... sticking to the rules... The reasons...
1. Market Ranged those days
2. The SL of 15 mins is far and if hit few times then losses are good enough to make profitable day to a loss making one! I do not remember when but if able to find out there was a day when there was 60+ pts profit which turned into 60- pts coz of too much volatile day.
3. Volatile day... I do not remember the day again, but it was an expiry day and the next day again loss making day! (Good loss when considered for day trade).

Now at the same time this method works wonders on trending days... can give you a profit of 100pts sometimes... and 30 pts most of the time

So not bad right???

But now lets see why it works to give profits?
1. Market trends
2. Less volatile
3. SL is not hit frequently(because of above reasons)

And the day is profitable!!!!
But in a trending day even a 5 min works! And better than the 15 mins as... one gets to catch the move early(most of the times)... trade pivot to pivot on 5 mins... helps you to take less trades and earn more!!! But again on trending days!!!
But at the same time... 5min also works on trending days!!! And 5 gives better profits than 15...
So basically its all abt the market to trend to follow the rules of 5/15/30/60 or anything!
When the 1st bar is formed no one knows if the market will trade or trend! But with experience one will do day trade following 5/15/... and will ONLY (most of the times) trade on the trending days using these rules... other days either not trade or will give benefit to trading market and will use different rules even to extract +ve pts out of the market!
As nothing better than experience in market!
I have also tried this EMA on 3min NF and worked wonders on trending days!

Let me tell you I am not discouraging this method(as I am no one to do so) but I am just sharing my experience... even I do not understand if the market is going to trend or trade...I come to know only after market hours!!!!
I follow Saint's pivot 5 min to trade with 60 min as reference... This reduces many false trades... but at the same time misses many good moves! But as Saint says money missed is better than money lost!

Thanks a lot for sharing your views!

All the Best!

Regards

 

[Smart_trade]

+57 on this one,equiv.to +171 on x3 positions

Saint

+57 points on average on initial posn in a day trade is great Saint.But 57 x 3=171 will be right only if you had added 2 more positions to the initial posns as you do in yr 60 min thread. So we say that average 57 points on initial posn and we all are very happy and contented with that.Hope you don't mind my pointing it out to you.

Looking forward very eagerly to a new thread from you after closing of -----Teach a man to fish "thread.

Best wishes for yr practical and profitable trading systems.Would like to have few more from you so that we can practice them.

 

[segul]

Hi Segul,

Nice finding. I myself have traded with this 15 mins... as you mentioned on range bound market it gives many whipsaws... there were few days when this 15 mins has given a Net loss of 60 to 80 points i.e Rs. 6000 to 8000/-(taking 2 lots) on one day... way too much for intraday right? And I myself have incurred those ... sticking to the rules... The reasons...
1. Market Ranged those days
2. The SL of 15 mins is far and if hit few times then losses are good enough to make profitable day to a loss making one! I do not remember when but if able to find out there was a day when there was 60+ pts profit which turned into 60- pts coz of too much volatile day.
3. Volatile day... I do not remember the day again, but it was an expiry day and the next day again loss making day! (Good loss when considered for day trade).

Now at the same time this method works wonders on trending days... can give you a profit of 100pts sometimes... and 30 pts most of the time

So not bad right???

But now lets see why it works to give profits?
1. Market trends
2. Less volatile
3. SL is not hit frequently(because of above reasons)

And the day is profitable!!!!
But in a trending day even a 5 min works! And better than the 15 mins as... one gets to catch the move early(most of the times)... trade pivot to pivot on 5 mins... helps you to take less trades and earn more!!! But again on trending days!!!
But at the same time... 5min also works on trending days!!! And 5 gives better profits than 15...
So basically its all abt the market to trend to follow the rules of 5/15/30/60 or anything!
When the 1st bar is formed no one knows if the market will trade or trend! But with experience one will do day trade following 5/15/... and will ONLY (most of the times) trade on the trending days using these rules... other days either not trade or will give benefit to trading market and will use different rules even to extract +ve pts out of the market!
As nothing better than experience in market!
I have also tried this EMA on 3min NF and worked wonders on trending days!

Let me tell you I am not discouraging this method(as I am no one to do so) but I am just sharing my experience... even I do not understand if the market is going to trend or trade...I come to know only after market hours!!!!
I follow Saint's pivot 5 min to trade with 60 min as reference... This reduces many false trades... but at the same time misses many good moves! But as Saint says money missed is better than money lost!

Thanks a lot for sharing your views!

All the Best!

Regards

thanx mb for sharing ur views.
yes,true when u put 15 mins low or high as a hard stop just after u take a trade and donot manage it, u will surely have many loss days,maybe loss days may outnumber profitable days in a month.but that is what i said in my post u use 15min hi lo as a trigger for ur entries and then manage it on 1 min and 5min chart. i mean to say use highs and lows of 5min bars and ph and pl on 1 min chart or u can also use a timing trigger.say u r in a trade for 5-8 mins and trade is not going in ur favour dump the trade and look for a new one.by keeping these in mind u can reduce a lot of negative trades.

this is a little bit modification of saint sirs teachings.that is u take a higher timeframe chart as a perspective chart and based on that trade on a lower timeframe.that is to say if u are a 1min chart trader u look at 15 min or 5min chart as a perspective chart and trade 1min pivots but here in this system what i use is the perspective chart to trigger the entries and then come back to 1 min and 5min and follow the trade.why 15 min chart as trigger?because my personal finding is that the flow of a direction on 15min chart is the best for intraday.it absorbs the right amount of volitility,not too less or not too much more.if on a 30min or 60min chart,the previous bar hi lo eats up a lot counter trend moves and 5min and 10min chart gives no room for consolidation for a trend. this is just my observativon. this idea might differ from person to person. ofcouse there will be wipsaws here too but that is part of every system. but sure u will have to do lots and lots of digging into charts to get a correct workable formula to maintain stops at right level at right time.

regards.

 

[Saint]

+57 points on average on initial posn in a day trade is great Saint.But 57 x 3=171 will be right only if you had added 2 more positions to the initial posns as you do in yr 60 min thread. So we say that average 57 points on initial posn and we all are very happy and contented with that.Hope you don't mind my pointing it out to you.

Looking forward very eagerly to a new thread from you after closing of -----Teach a man to fish "thread.

Best wishes for yr practical and profitable trading systems.Would like to have few more from you so that we can practice them.

Sorry abt inability to post .......moves were too quick.Had entered into a posn,and added twice and what I gave was the average.

It therefore is +171pts.....and if it were +57pts,I would not be at all bothered to say so......very happy and contented with the gains,although I feel I should have added once more.

And sometimes,depending on the trade,and its juiciness,looking at all risk management,etc.......I may take on x3 in one go.

Believe me when I tell you that x3 is exactly that....the initial posn may vary.Yours may be 1lotx3,mine might be 6 lots x3,and Asish's may be 25 lots x3.


But thanx again for pointing it out.

Saint

 

[uasish]

Hi Segul,
Nice post. Which broker are you using to get 1 point brokerge and which s/w for your charts? I use 5paisa. My round trip brokerage comes to about 7-8 points including STT etc. With this kind of brokerage I would probably keep on losing or may be will breakeven at best. Would appreciate your reply.

In this thread I have also noticed Uashis taking very small profits of about 10-15 points or even less. I don't think such propfit taking would be profitable without very low brokerage. Which broker are you using Ashisbabu?

Laksh

Lalith Babu,

Plz look into this,if satisfied talk over Telephone from Tamluk.
http://www.traderji.com/brokers-demat-matters/21449-r-k-global-issues.html
Hope your Health is OK.

Asish

N.B. I am still with Indiabulls.

 

[uasish]

hi all,

would like to show a simple strategy for intraday trading.actually was discussing this strategy with asish sir and he told me to post some charts here.this system mainly works on 15min chart and the trade is managed in 1min and 5 min chart.when a 15min high cracks from below u go long and when 15mins low cracks from above u go short.

when u come down to lower timeframe, say, 1 min or 3 min chart normally 15min hi lo will be an important pivot hi or lo on these timeframe.

after the trade is initiated 50% of the positions is targetted to 127%,138%,161%,205%,261% of the previous move (this has to be back tested yourself and choose some realistic targets,this target must neither be very far nor very near) and for other 50% position stop is trailed at every previous 15min low or high,as the case may be.when this stop hits, reverse trade is taken and followed accordingly.2 point filter for the stop above the 15min hi or low is given when there is a countertrend activity in the previous 15min bar.

have posted 1 min chart with an overlay of 15 min hi low for last 3 trading sessions.have also given points earned per day.but one has to back test this strategy by hand to get a proper idea of it.though on range bound days u feel like u are overtrading,total performance of the system is quite good at the end of the month(u have check on your own to really believe it).

regards.

Very nice of you to post it here,we can discuss here,so others can also chip in with there constructive views

 

[Smart_trade]

Sorry abt inability to post .......moves were too quick.Had entered into a posn,and added twice and what I gave was the average.

It therefore is +171pts.....and if it were +57pts,I would not be at all bothered to say so......very happy and contented with the gains,although I feel I should have added once more.

And sometimes,depending on the trade,and its juiciness,looking at all risk management,etc.......I may take on x3 in one go.

Believe me when I tell you that x3 is exactly that....the initial posn may vary.Yours may be 1lotx3,mine might be 6 lots x3,and Asish's may be 25 lots x3.

But thanx again for pointing it out

Saint

Doubt cleared,Saint.Believe your every word.Fully understand the difficulty in posting trades while trading and appreciate the efforts you take to educate
us.Keep up the good work.