Patterns and Technicals

[rkkarnani]

Re: Trading only one hour in a day !!!!!

Dear bandlab....Let me reiterate that i have used nifty spot and not nifty futures for the calculations...Regarding the open prices...if u are an experienced trader u must be knowing that the previous days closing and the current days opening are more or less the same...Even if we have a gap up and gap down the opening and the closing are almost same...i have verified the opening prices again and they are perfect...guess u dint check them..anyways as i have already told you this was just a practical model of how this system works and not a perfect one yet...I have assumed to exit NEAR the high or near the NEAR the low the next day....This profit booking also should be a function of the amount of risk (in terms of time to be waited before booking profit) and this might vary from person to person....what i have also mentioned ealier is that we now need to find out ways to exit with the maximum profits...even at the cost of extending the time frame....

Kamlesh, Did not know that you have used Nifty Spot rates. Seems I overlooked it, if it was mentioned by you.
About open and close rates in Nifty Spot.....please note that as a rule the previous days close is taken as next days open In Nifty Spot, this level is not the 'actual' rate at which the market opens. Frankly u cannot analyse this system of trading one hour only with Nifty Spot Data. Please do it with NF and repost the results.
Kamlesh , do try to answer my doubts too as and when time permits.

we now need to find out ways to exit with the maximum profits...even at the cost of extending the time frame.... : Kamlesh , if we go in this direction then the very purpose of this thread is defeated. Think!!!!!!!!

 

[pkamalesh]

Re: Trading only one hour in a day !!!!!

sir..sorry for that mistake....i too realized my mistake (of spot nifty)....doing the calculation now..will post in 30 minutes...and sir by extending time frames i meant in a few occasions when we get a difference of say only 5 points at the open we can wait for a direction...sir will answer your queries very soon now..sorry for troubling u..

 

[pkamalesh]

Re: Trading only one hour in a day !!!!!

PK, Do reply rkk's queries, seems very valid doubts. I have the same. Frankly, was laughing reading that you have calculated the lowest price at which to exit whenever you are short and at highest when u are long... If you could do that u wont waste your time here. Do give a serious though to it...it is not possible not by any stretch of imagination.
I am trading such system successfully, a bit different though, sorry cannot discuss finer details.

dear ccmb...thanks very much for your frankness and good to know that you have a very good syatem and u use that very very succesfully..thanks again..

 

[pkamalesh]

Re: Trading only one hour in a day !!!!!

Kamlesh, What you have projected is not achievable in actual trades. You sell today and you have shown that as being bought at the lowest rates the next day.
Two things :
One : You cannot know before hand the low of the next day hence cannot exit at that level.
Two: The level you exit may come at any time hence the veru purpose of trading for an hour only is defeated.

Taking the figures for 20th November,
O: 2634.20
H: 2634.20
L: 2502.90
C: 2553.15

You have shown the Trade as SELL, where as you are showing the difference as 38.72% which would come to 61.73 :: 38.27 ,beyond 70-30 rule. Its more likely that we shall have no trade as the close is not within 30% of the days range from the high or low.

The range is : 2634.20 - 2502.90= 131.30*30%=39.40
We go long if the price closes > 2634.20-39.40= 2594.80
We go short if the price closes < 2502.90+39.40= 2542.30
The price closes at 2553, which does not fulfil our crieteria for either Long or Short.

Have responded as per my understanding and would be happy to be contradicted and corrected.

Dear rk sir...for the queries that you have asked...yes, we do keep in mind that we trade only upto 10.30 max...i guess we can compromise on the profits part of it...so what do we do???? yes, we trust the system because of the obvious reason that it atleast shows us the direction for the next day if not the points that we are going to gain....ok so we can go ahead and take a position at 3 or 3.15 and strictly close it by or before 10.30 what ever we get or lose....sir if you could add more to this it would be great..

 

[pkamalesh]

Re: Trading only one hour in a day !!!!!

Hi posting the same spread sheet with NF values...the outcome isnt that good when we exit exactly at the open or at the close but as i couldnt get the values at 10.30 or 3.15 cant say if the points gained are trustworthy....just have a look and plzz give ur inputs..

 

[rkkarnani]

Re: Trading only one hour in a day !!!!!

PK, Do reply rkk's queries, seems very valid doubts. I have the same. Frankly, was laughing reading that you have calculated the lowest price at which to exit whenever you are short and at highest when u are long... If you could do that u wont waste your time here. Do give a serious though to it...it is not possible not by any stretch of imagination.
I am trading such system successfully, a bit different though, sorry cannot discuss finer details.

Hi Shravan, I have always liked your posts which are not very frequent. I really liked the ones which showed how disciplined you are in trading and I respect you for the same. Here I also know that it is neither practicle nor possible to exit at highest point when long and lowest when short. It was a genuine error by someone trying to learn things and also sharing it. Kamlesh did er, and its okay to be direct and tell him that he is wrong but please do it a bit softly, instead of 'laughing' at him. As you are trading something similar , please post some pointers in this regard if not the entire system. I have no complaint as to why not you share your system her....I know not all can be Saints in this world.

 

[rkkarnani]

Re: Trading only one hour in a day !!!!!

Pk, Its not a valid result if you did it with Nifty Spot. As per S&P the Indices are shown at the same level of opening as closed the previous trading session. So in many cases your opening price would be the highest or lowest in Nifty Spot where as the same was never traded on that day.
If we extend the time period then this thread is reduced to like any other thread for trading Nifty, nothing unique about it. Yes, a NEW entry strategy is there with the risk of carrying the position overnight. But it is over a long period never loosing that I can assure you as I have trade an almost same type of entry mechanism.

Thanks Shravan, this post seems more your kind! I agree Nifty Spot shall show incorrect results. Thanks for agreeing that the ENTRY strategy as per close is okay, why not give some more hints to make the system atleast worth a trial for paper trading.
Expect more positives from you.
Thanks.
-R K Karnani

 

[bandlab2]

Re: Trading only one hour in a day !!!!!

Hi posting the same spread sheet with NF values...the outcome isnt that good when we exit exactly at the open or at the close but as i couldnt get the values at 10.30 or 3.15 cant say if the points gained are trustworthy....just have a look and plzz give ur inputs..

thanks kamalesh and appreciate your work. dont look at the P/L column just yet, as we all know last 3 weeks market is mostly range bound, less voumes, less volatile. not many huge gap ups/downs. data is only 3 weeks, i think over a long run it should give decent gains as back-tested by AW sir (see prev posts)

i am comfortable with exit at next day open. if you extend it beyond then there are other strategies/methods/techniques to be followed which are beyond the scope of this thread

let us watch this one more month, we will see some good results. expect markets to be volatile in jan due to earning results

 

[rkkarnani]

Re: Trading only one hour in a day !!!!!

thanks kamalesh and appreciate your work. dont look at the P/L column just yet, as we all know last 3 weeks market is mostly range bound, less voumes, less volatile. not many huge gap ups/downs. data is only 3 weeks, i think over a long run it should give decent gains as back-tested by AW sir (see prev posts)

i am comfortable with exit at next day open. if you extend it beyond then there are other strategies/methods/techniques to be followed which are beyond the scope of this thread

let us watch this one more month, we will see some good results. expect markets to be volatile in jan due to earning results

Agree fully with you bandlab, almost fully.. We need to look at the P/L coloumn and try to fine tune the strategy to make it less 'loosing' one in range bound market. The strategy will give decent returns over a long run but we need to have a level of comfort trading it otherwise we may end up exiting the trades when a few losses are incurred.
We need extensive back tests as done by AW10. I presume that the data analysed by AW10 was EOD data and if I am not wrong the closing price is not the actual last traded price but the weighted average of last 30 minutes, so the results may vary. On a few days the fiugre may be against us and on other ocassions it would be in our favour. All said , no doubt the results are worth giving a serious shot at the strategy.

 

[unforgettableboy]

Re: Trading only one hour in a day !!!!!

hi pkamlesh i m new to traderji forum looking very useful site. i was reading ur posts looks nice what i not understand is the word 'SAR LEVEL' could you please tell me what is this in simple terms or give me the link to know what is SAR LEVEL. thanx