Pivot Based Trading - 1:2 risk reward ratio (Risk less Profit more)

[radha55]

In practical terms how do we execute this strategy? What do we do when it goes up .5%. We hold it for 1%. As it moves up beyond .5% we shift stops to .5%. The strategy on paper does not say whether it came down to .5% before moving up again towards 1%. The same happens between 1% and 1.5%. When exactly do we shift stops when it moves beyond .5%. How much beyond .5% do we wait before moving stops?. The most critical question would be the .5% stage. What happens if it hits .5% and then comes down? On paper we would have booked a profit of .5% but in reality we would be waiting for it to go beyond .5% to shift our stops.
Ideally, if we trade two lots or more, book 50% profits at .5% and hold the balance with trailing stops. Instead of one lot of Nifty, two lots of mini offer you more flexibility. That way you can book one lot at the minimum profit of .5% and hold the balance at entry price and trail if Nifty moves in your direction.

You are right, how do we change stops.

See its very simple.

lets say u buy at 1000.
0.5 = 1005
1% = 1010
1.5% = 1015.

Now when price crosses 1005. wait till it moves little above 1005 say 1007(if u r willing to make more profit. but if you are happy with 0.5% you can book it.)
when price reaches 1007, you can change your stoploss to 1005.
Same applies between 1010 - 1015.

Basically all these depends upon your patience and risk.

Many people dont take risk and they blindly keep 0.5% target. once it is achieved they are happy.

Some want to take risk, so they carefully watch for 0.5% target. Once it is achieved they wait for 0.1% more upmove or for 3-4 min and change their stoploss to 0.5%. waiting for 1% target.

 

[prabit]

You are right, how do we change stops.

See its very simple.

lets say u buy at 1000.
0.5 = 1005
1% = 1010
1.5% = 1015.

Now when price crosses 1005. wait till it moves little above 1005 say 1007(if u r willing to make more profit. but if you are happy with 0.5% you can book it.)
when price reaches 1007, you can change your stoploss to 1005.
Same applies between 1010 - 1015.

Basically all these depends upon your patience and risk.

Many people dont take risk and they blindly keep 0.5% target. once it is achieved they are happy.

Some want to take risk, so they carefully watch for 0.5% target. Once it is achieved they wait for 0.1% more upmove or for 3-4 min and change their stoploss to 0.5%. waiting for 1% target.

Well Radha, I don't find it that simple. In this case say price reach 1005 and for next target we wait to see it reach it 1007 and then put stoploss,but it may happen it touches 1006 and come back to 1003, then 999 and starts going down.Also it may touch 1005 and come down below . Now in this case if we put a limit order at 1005, we can book profit otherwise we lose a profitable trade and this will have a negative psychological effect.
So what is best option. Trader.trend has raised a very interesting issue.
Let us discuss.
Regards
prabit

 

[trader.trends]

prabit
My suggestion would be start with .5% stops and aim for .5% as the first level profit. At current levels that gives 20 points on NF. At 20 points book 50%t and hold the balance with stops at entry price+brokerage. That way if the market reverses, you are still in profit. At 1% book another 25% and shift the balance 25% to .5% profit level and either ride for the rest of the day or book wherever you are comfortable

If NF entry is at 4600(4 lots of Mini) stops at 4580 and first level profit at 4620. If 4620 is achieved book 50% (say 2 lots of Mini) and keep stops of 4604 (entry price+brokerage) for the balance 2 lots. Next aim is 4640. If 4640 is hit shed 1 lot there and move the stops for the balance one lot to 4620 and ride the rest of the day. I am saying this because Radha has said in one the earlier post that .5% profit occurs on most days. Intraday trading is always tricky. Take quick profits (at least part) when you see them. Often many initially profitable trades have turned sour by waiting for bigger returns

 

[radha55]

Well Radha, I don't find it that simple. In this case say price reach 1005 and for next target we wait to see it reach it 1007 and then put stoploss,but it may happen it touches 1006 and come back to 1003, then 999 and starts going down.Also it may touch 1005 and come down below . Now in this case if we put a limit order at 1005, we can book profit otherwise we lose a profitable trade and this will have a negative psychological effect.
So what is best option. Trader.trend has raised a very interesting issue.
Let us discuss.
Regards
prabit

I learnt one thing on first day of my trading.

and I would say that here.

Risk is directly proportional to Profit

There is no system in world which can provide u profit very easy.

If you are not greedy and if you are not willing to take risk, then you may keep a sell order at 0.5% as soon as your buy is placed.

With this even if price touches 1005, you will in 0.5% profit.

 

[radha55]

Nifty Futures profit for 8th September 2009.



At 10:25 - 10:30 am, the price of Nifty Futures was around 4800 - 4805.



This is between Pivot(4764.93) and R1(4835.86).



So we buy above R1 and sell below Pivot.



Buy above R1 triggered.



Target not achieved but stoploss gets hit.



Loss for today = 0.5% = 23 point.



Loss of 1000+ with one lot of Nifty

 

[arnavk]

Yesterday was day when trading with Camarilla would have given profit whereas with normal pivots it was a loss making day. I did my trade using normal pivot and lost 23 points exactly as mentioned by Radha.

Cheers

 

[radha55]

Nifty Futures profit for 11th September 2009.

At 10:25 - 10:30am, the price of Nifty Futures was around 4824-4834.

This is very near to Pivot (4837).

So we buy above R1 and sell below S1.

No calls triggered.

 

[SIVASANKARAN K]

still I have not tried this method I wiil come back to you with results soon sir . thanking you

 

[doctorrahul]

Camerilla pivots for nifty intraday futures 22-9-09

Intraday Nifty futures camerilla pivots for 22-9-2009


H4 5004 - LONG BREAKOUT

H3 4991 - SHORT

H2 4987

H1 4982

L1 4974

L2 4970

L3 4965 - LONG

L4 4952 - SHORT BREAKOUT

 

[doctorrahul]

Today was a H4 long breakout day.


CAMERILLA PIVOTS FOR 23/9/09 NIFTY INTRADAY FUTURES



H4 5072 - LONG BREAKOUT

H3 5052 - SHORT

H2 5045

H1 5038

L1 5024

L2 5017

L3 5010 - LONG

L4 4989 - SHORT BREAKOUT

happy trading !!