Patterns and Technicals

[pkamalesh]

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

Sure buddy...will continue the current XLS upto a month...lets watch the results then....thank u soo much for your participation and inputs..thanks again

 

[pkamalesh]

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

Sir i dont think there is a mention of the SAR in this thread anywhere...

Any ways SAR is stop and reverse....You will find its use in saint sir's 30 minute flow..plzz check that thread ...and BTW welcome to TJ

 

[unforgettableboy]

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

thanx kamlesh for reply it would be really helpful if u give me the direct link to saint 30 min flow.

 

[unforgettableboy]

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

correction saint's SIR 30 min flow

 

[bandlab2]

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

Go To Equity, Day Traing forum. it will be on top

 

[pakatil]

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

Hi Kamalesh,

Got curious about this method. Hv done some backtesting for Aug & Sep.

Day's High & Low till 3 PM and Close @ 3 PM is considered. Close above 80 % or below 20 % of the Range, signals Buy / Sell. SL is Next Days Opening Bar high / low, +/- 20 for Sell/Buy. If SL is not hit, square up @ 10.30 Bar close.

Hope my perception is OK. Here are the Results.

Will delete this, if this is disturbing your thread.

Cheers

 

[unforgettableboy]

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

THANX bundlab2 but i want to learn about SAR LEVEL if u can give me the post and page no.(cause every post has 300...pages how i will find) where i can learn about SAR level. thanx again

 

[AW10]

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

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

RKKarnani, You are right. In my backtest, I did use the NIFTY futures EOD data [posted by another user in the thread (sorry I forgot the name/id)]. But, I have not used any kind of weighted calculation.

I have adjused the entry price and exit price by +/- few points on the EOD close and open. This few points is also a variable in my sheet mentioned as slippage (cell L21). .This adjustment is done against the position to be conservative. For eg.. In long trade, I have added 5 points (assumed slippage points) to close price to ensure that my entry is sloppy and mkt is selling my even at 5 points above the close. Same goes for exit, that mkt exit for long position is 5 points below the mkt open..

Many people may not agree with this.. but IMO, If this strategy is giving me good result with sloppy entry and exit.. Then it is going to give me better result with right entry/exit levels. So I am happy with this approach. By changing L21 cell, you can change the slippage to higher number or ZERO.

IMO, we need to understand that backtesting can never reflect the real market . so somewhere we got to draw the line to avoid ANALYSIS PARALYSIS and move on to next step.

Trading is always the game of probability so we depend on risk management and position size at this stage.


Happy Trading.

 

[rkkarnani]

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

RKKarnani, You are right. In my backtest, I did use the NIFTY futures EOD data [posted by another user in the thread (sorry I forgot the name/id)]. But, I have not used any kind of weighted calculation.
I have adjused the entry price and exit price by +/- few points on the EOD close and open. This few points is also a variable in my sheet mentioned as slippage (cell L21). .This adjustment is done against the position to be conservative. For eg.. In long trade, I have added 5 points (assumed slippage points) to close price to ensure that my entry is sloppy and mkt is selling my even at 5 points above the close. Same goes for exit, that mkt exit for long position is 5 points below the mkt open..

Many people may not agree with this.. but IMO, If this strategy is giving me good result with sloppy entry and exit.. Then it is going to give me better result with right entry/exit levels. So I am happy with this approach. By changing L21 cell, you can change the slippage to higher number or ZERO.

IMO, we need to understand that backtesting can never reflect the real market . so somewhere we got to draw the line to avoid ANALYSIS PARALYSIS and move on to next step.

Trading is always the game of probability so we depend on risk management and position size at this stage.


Happy Trading.

AW, I do know that you have not used any weighted calculations. You will find a difference in actual last traded price and the price at which it is shown as 'close' in EOD data. The official price notified by by the exchange is a weighted close. Hence my presumption that the results arrived at by using the 'close' price in EOD data may not reflect the true picture. At times it may also be favourable to us and at other times adverse too.
The method is worth giving a shot no doubt. Anyone not wary of taking an overnight open position should first go through some historical charts and finalise the entry exit time.
AW, IMO , position sizing is a bit difficult in this setup as we do not know the 'risk' our trade is in. We cannot predefine a SL as the future (next days opening) is unknown. Any input about how to limit our risk shall really make this method excellent...superb. Welcome suggestions from all.
CCMB420 has in a PM suggested to use 3 PM close as entry and exit at open next day. He has not specified any SL between 3 and 3.30
I am also testing something similar as posted by 'pakatil'. Shall post it if the results are good.
Thanks AW, need further input from you too.

 

[pkamalesh]

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

Guys wish u a very happy and profitable new year.....