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

[manojkch]

Hi All,

Proof for the system.

Today
Nifty Futures may....

As per the calculation shown in above (or attached) image,

future opened above Pivot (2695).

So as per rule we need to check the values between 10:25-10:30 am.
The value was 2701-2703.

The value is between Pivot and R1.

Using normal method, R1: 2728.54 and using fibonacci, R1: 2708.16

Buy above any of these values say 2710 or 2731.

1% target for both these values are achieved.

Our pivot for today was 2679.32.

So as per rule we should sell only if price goes below this.

See the low for Nifty May (its 2680.15) just above our pivot.

So our sell didnt trigerred, but our buy trigerred and gave us a profit.

For all those who want to know how this system works, refer to the first post of this thread.

Thank you for the detail and lucid explanation. It will be useful if we can test this method every day... live.. and record the results for at least 3 months to see its profitability. I will request that someone should back test it ( may be on Amibroker / Metastock ) where one can do that for previous 3-6 months data and will will have results in hand to trade more confidently. I would have done that, but I am not a Tech Savvy hence find it difficult.

Thanks and regards
Manoj

 

[Nava]

Hi,

I tried four tradings using this method today. Three trades hit stoploss and only one sucess. Better to back test before put actual money.

Regards,
Nava,

 

[radha55]

Hi

Another proof for this system.

Today
Nifty Futures May

In the attached image above ( or attached image),

we can see that the pivot is at 2736.

If look at the value for futures of Nifty at 10:25 - 10:30 am, we see that the value is 2756 - 2759.

So as per rule, this value falls between pivot and R1.

Now R1 for fibonacci is : 2769
and
for normal is : 2792.

As per rule we should buy futures only if prices goes above 2769 or 2792 (depends upon which values u keep track of).

For today, fibonnaci values got trigerred.

Let say we buy at 2771. 0.75%=2791.7825

See the high for today its 2792. So our 0.75% target achived. However 1% target didnt achieved

Now take an example of normal method.
R1 : 2792.

As per rule we should buy futures only if prices goes above R1. But the price didnt go above our R1. So we are saved.

Now, after lunch market reversed.

So our next rule says we should sell only if price reaches below pivot.
So pivot is 2736.

As per rule, our sell got trigerred.

Suppose, we sell at 2732. 0.75% = 2711.51.

This target didnt got hit. low was 2722.

Stoploss is 2745.66.

Our stop loss got hit.

If calculate end of day

0.75% profit on buy
0.5% loss on sell.

so net profit comes to 0.25%.
half of which i think will go in brokerage.

So day ends in no profit no loss.

For all those who want to know how this system works, please refer to first post of this thread.

 

[radha55]

Hi,

I tried four tradings using this method today. Three trades hit stoploss and only one sucess. Better to back test before put actual money.

Regards,
Nava,

Hi,

Which were the scripts for which your stoploss got trigerred.

Try to trade in high volume stocks.

But yes, you can obviously do some paper trade first.

If i understand correctly, 3 * 0.5% = 1.5% loss
1 * 0.75% = 0.75% profit.

So net result is 0.75% loss.

 

[radha55]

Radha plz chk this when i want to open ur site my AV given me this msg:


Kaspersky
Internet Security 2009
Access denied
The requested URL could not be retrieved

URL:

http://pivottrading.110mb.com/pivot/pivot/pivot.html


Access to requested object is forbidden
Generated:
Tue Mar 17 01:01:09 2009
Kaspersky Internet Security 2009

Hi sumit,

I think you should add this site to you trusted site list for AV.

 

[Nava]

Hi,

Which were the scripts for which your stoploss got trigerred.

Try to trade in high volume stocks.

But yes, you can obviously do some paper trade first.

If i understand correctly, 3 * 0.5% = 1.5% loss
1 * 0.75% = 0.75% profit.

So net result is 0.75% loss.

Hi,

Thanks for your reply.
I tried the following scrips,

Herononda - 0.75% Target achived.
Maruti - 0.5% SL hit in Buy side trigger.
ONGC- 0.5% SL hit in Buy side trigger.
RELCOM- 0.5% SL hit in Buy side trigger.

The net loss will be little more if you consider brokerage.

I used the Normal values of Support & Resistance.
Could u suggest Which value will be more profitable in ur experience..? Normal value or Fibonacci value..?

 

[bandlab2]

Hi sumit,

I think you should add this site to you trusted site list for AV.

hi radha, one suggestion on yr website. it will help the users to find the buy/sell levels. provide another field, quote at 10:30 and click enter, it should calculate the buy/sell values after calculating if quote is above S1 below pivot, above S1 , below R1 blah blah..

also can you povide a excel with formulas?

i will do paper trade for nifty, RIL, SBI

 

[radha55]

hi radha, one suggestion on yr website. it will help the users to find the buy/sell levels. provide another field, quote at 10:30 and click enter, it should calculate the buy/sell values after calculating if quote is above S1 below pivot, above S1 , below R1 blah blah..

also can you povide a excel with formulas?

i will do paper trade for nifty, RIL, SBI

Will try this weekend......

 

[Nava]

bandlab2 & Radha,
I have attached an excel sheet for this method.

Setup:
1. Create your own porfolio in yahoo and link them in Sheet "Yahoo" using excel web qurey. This will fetch the real time 'last traded price' and 'time' from yahoo.

2. Copy and paste the previous day 'Bhavcopy' from naeindia.com in Sheet "Prev.Day" to get the previous day 'High' 'Low' "Close' price.

3. Buy and Sell Trigger price will be generated based on the different conditions.

3. If any of the trigger price of the scrip is closer to the 'Last trade price' then the particluar trigger will be automatically highlighted. Then we can place the order for the particular scrip.

4. We can set the required automatic refresh time in seconds.

5. We have to be remain logged in yahoo finance to get thre RT data.

Any qurey/comments/suggestion are welcome.

Regards,
Nava

 

[rajendrani]

bandlab2 & Radha,
I have attached an excel sheet for this method.

Setup:
1. Create your own porfolio in yahoo and link them in Sheet "Yahoo" using excel web qurey. This will fetch the real time 'last traded price' and 'time' from yahoo.

2. Copy and paste the previous day 'Bhavcopy' from naeindia.com in Sheet "Prev.Day" to get the previous day 'High' 'Low' "Close' price.

3. Buy and Sell Trigger price will be generated based on the different conditions.

3. If any of the trigger price of the scrip is closer to the 'Last trade price' then the particluar trigger will be automatically highlighted. Then we can place the order for the particular scrip.

4. We can set the required automatic refresh time in seconds.

5. We have to be remain logged in yahoo finance to get thre RT data.

Any qurey/comments/suggestion are welcome.

Regards,
Nava

Thank you very much for the excel file buddy, excellent work done.