no one going to earn even single rupee day trading

[rajputz]

i will test and tell u about Stochastic later but i use rsi indicator in similar fashion so got easily what u were trying to tell , so i m sharing my rsi set up .


ok now test this setup

use rsi (30) i.e., 3o period relative strength index and buy when rsi(30) > 55 and exit when it comes below 55.i.e., rsi(30)<55

similarly short when rsi( 30) < 45 and exit when rsi(30) >45

believe it or not it works fantastic and is suited to all time frames , u can use it in 1 minute 2minute , 3,4,5 ................ as well as in daily and weekly time frames .


i have made this setup by continuous testing and experimentation only .

the main problem working with RSI is at the time of breakouts. breakouts that are not expected.

for eg. consider an example. the RSI is at 48 entered from the overbought region to the selling region now. a person is trying to sell here. and at the particular moment the stock starts moving in the opposite direction and the breakout occurs. at that time the RSI indicators change their values. what i mean is that when you entered the sell trade the RSI was Entering from above to below. but as soon as the breakout occurs, you notice that the new rsi values formed are totally different now. the same position u entered that time is now showing the RSI entering the buy region from below to above.

this is serious problem i have faced of RSI at time of breakouts.

 

[rajputz]

the stochastics setups i have told about 91 and 8 is reliable as it avoids breakouts....cause mostly breakouts occur in the waves formed in region 60-85 and 40-15.....so when we buy or sell the breakout has already occured. if our direction of trading is right then we may catch the right breakout in our expected direction with target achieving more then .50% without risk..

but to be on the safer side i always use stoploss....it saves my capital from being at risk of reversal or any bad news and keeps me in game....

 

[rajputz]

one thing i forgot to mention that i have tested in the system.

when the market or the stock is fluctuating, means it is going up or down accoding to stochastic then it is fine.

but some times we dont have a range bound market and mostly the price is either going up or going down.

so it is always necessary to decide weather the stock you are buying and selling is going upside or downside. cause of the region: -


1. when the market is range bound we can make both the deals of buy and sell on the stock according to stochastic.

2. when the price is following single direction then only enter buy if uptrend, and only enter sell if downtrend according to stochastic. in one sided market do not enter into opposite trade.

reason being that when the price is in uptrend, the share price remains sideways with falling stochastics, and rises or breakouts upside with rising stochastics and vice-versa
when the price is in downtrend it doesnot goes up with rising stochastic, but falss or breakouts more to downside with stochastics coming down.

at these times the 92 and 8 stochastic doesnt work. either of them work and trade in that direction only

 

[abhiwhy]

the main problem working with RSI is at the time of breakouts. breakouts that are not expected.

for eg. consider an example. the RSI is at 48 entered from the overbought region to the selling region now. a person is trying to sell here. and at the particular moment the stock starts moving in the opposite direction and the breakout occurs. at that time the RSI indicators change their values.

what i mean is that when you entered the sell trade the RSI was Entering from above to below.

but as soon as the breakout occurs, you notice that the new rsi values formed are totally different now. the same position u entered that time is now showing the RSI entering the buy region from below to above.

this is serious problem i have faced of RSI at time of breakouts.

i think u didn't got me correctly i was telling u to buy in already overbought zone that is rsi(30)>55 , and exit as the overbought market starts to cool down .

same is true in terms of shorting also .

it may seem craziness to buy overbought and sell oversold but i observed out of total major move of market most happen in already overbought zone and opposite in case of fall.

here i m attaching an image for the same .

its ril chart in 5 min for 5 days take a look

one more good thing about the system is that it do not give any signal in rangebound markets and gives signal only in trendy or directional market , so it is trading and filtering system in itself .

 

[abhiwhy]

this is for those who are telling only advanced and sophisticated trading systems can earn , see this performance of world's most simple technical trading set up .
no complications at all , use just 55 period simple moving average and see how profitable it could be .

attached nifty 5 min chart with 5 day back fill .

no special setup no filtering , buy when price above than 55 sma and short below 55 sma , exit whenever u think u have got enough , or any other proper stop.

regards

 

[columbus]

this is for those who are telling only advanced and sophisticated trading systems can earn , see this performance of world's most simple technical trading set up .
no complications at all , use just 55 period simple moving average and see how profitable it could be .

attached nifty 5 min chart with 5 day back fill .

no special setup no filtering , buy when price above than 55 sma and short below 55 sma , exit whenever u think u have got enough , or any other proper stop.

regards

Hi Abhi,

Most of the day traders get losses not because of FAULTY
setups but because of faulty mindsets.(Greediness)

 

[rajputz]

Hi Abhi,

Most of the day traders get losses not because of FAULTY
setups but because of faulty minds.(Greediness)

as abhi rightly said in his very first start of the topic....


LACK OF DISCIPLINE

 

[SREENAN]

Hi Abhi,
WOW....Thanks once again for your patient and long reply on my Stock selection/Indices
Doubts
Thanks
Sreenan

 

[Rkji]

well

i saw a guy using rsi 5 10 setting...when 5 cuts 10 & is above go long or vice versa...still need to test it for intraday


regards,
rishi

 

[prasadam]

well said Abhi & columbus.:thumb:

this is for those who are telling only advanced and sophisticated trading systems can earn , see this performance of world's most simple technical trading set up .
no complications at all , use just 55 period simple moving average and see how profitable it could be .

attached nifty 5 min chart with 5 day back fill .

no special setup no filtering , buy when price above than 55 sma and short below 55 sma , exit whenever u think u have got enough , or any other proper stop.

regards

Hi Abhi,

Most of the day traders get losses not because of FAULTY
setups but because of faulty mindsets.(Greediness)