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

[manojkch]

I already mentioned profit % and stop loss percent in my first post.

Profit % : 0.75% - 1%
Stoploss : 0.5%.

The idea is if resistance is broken, it will go somewhere near next resistance (little lower than that)
So keeping 0.75% is safe.
1% is little less safe. But i have observed in market like the markets on friday even this is easily achieved.

Stop loss of 0.5% is necessary because i think if the price crosses pivot or resistance and reverse back then the chance of it crossing the pivot or resistance back is very less.

The beauty of this system is profit is more and risk is less. You keep small stoploss. I am still new, i cannot comment on this but i think so.

Thanks for your reply. But I didn't find it in your first post hence asked. I think you are referring to Title of the Thread " Pivot Based Trading - 1:2 risk reward ratio (Risk less Profit more)"

Regards.

manoj

 

[columbus]

I didnt backtested it.

But i am tracking this since last few days. I found 0.75% is almost always available.

I do found that 0.5% stoploss also gets hit. But the chances are rare.

I however didnt kept record of it, so i cant provide it here.

I will try to record this provided i get time.

The important factor here is to enter market only after 10:25 - 10:30 am. Generally all emotions get finished by this this time. So we can enter with our calculation.

Hi Radha,
The method of entry is similar to DHIRAJ'S,where he advocates taking position between 10.15~10.45.

 

[radha55]

Thanks for your reply. But I didn't find it in your first post hence asked. I think you are referring to Title of the Thread " Pivot Based Trading - 1:2 risk reward ratio (Risk less Profit more)"

Regards.

manoj

Sorry Manoj,

I think i missed that in my first post.

I have updated the post.

I updated on the website, and i thought i have mentioned here as well.

 

[radha55]

Hi Radha,
The method of entry is similar to DHIRAJ'S,where he advocates taking position between 10.15~10.45.

May be. I choosed this time frame, because i think during initial time frame many jitter occurs in the market. Market is driven by sentiments during the first half hour.

In former's method, 10:15 ~ 10:45 am is taken, because we need that days value to calculate prices.

In this method, we calculate purely on previous days value.

Just my view.

 

[radha55]

Hi All,

Need to update one idea here.

If suppose we purchase 100 shares of Reliance by using the pivot method at
http: // pivottrading .110. com
and we get
Pivot : 1100
R1 : 1200
S1 : 1000
then,

If we buy the shares at 1103, then our 0.75% target comes to 1111.25.
1% target comes to 1114.

I would suggest to sell 50 shares at 0.75% target
25 shares at 1% target
and keep the 25 shares for large profit as per once apetite with trailing stoploss of 0.9%. i.e 0.9% of 1103 (1112.9).

With this we cover our 50% profit at 0.75%
25% profit at 1%
and rest for more profit.

Do reply about this idea.

 

[qualitycore]

Good work thanks for the efforts and observation.... Have to experiment it and check for some days....

 

[radha55]

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.

 

[HEM]

mod please deleate it.

 

[HEM]

Hi All,

I want to introduce a very simple way of trading.

Everyone is aware of Pivots in charts.

It is very difficult to track real time pivot on intraday charts during trading hours.

After surfing lot of site and struggling, i found the way to calculate pivot based on previous day values.

After the pivot is calculated the resistance and support levels are found.

Resistance and support are of two types (using normal method and using fibonacci method.)

You can use any one of them. Both gives good result. Stick to any one method.

The system is as follows, please give your feedback and suggestions.

1. Firstly log to http : // pivottrading . 110mb . com (remove spaces)
2. Enter previous day high, low and close for any scrip.
3. Pivot is an important value here.
4. Look at the price of stock/underlying at 10:25-10:30 am. (half hour after market opens)
5. For Resistance and support values, you can choose normal values or fibonacci values. Both give good results. It depends upon you which suits you.
6. There are various scenarios which can occur.
-----1. The price is below the Pivot but above S1.
--------In this scenario, you should buy the stock/underlying above Pivot (If price reaches above Pivot) and sell below S1(if the prcies goes below S1).
----2. The price is above Pivot but below R1.
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below Pivot(if the price goes below Pivot).
----3. The price is very near to pivot (+/- 0.02%)
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below S1(if the price reaches below S1).
----4. The price is between R1 and R2.
--------In this scenario, you should buy the stock/underlying above R2 (if the price reaches above R2) and sell below Pivot(if the price reaches below Pivot). the important here is not to sell below R1. You must sell below Pivot.
----5. The price is between S1 and S2.
--------In this scenario, you should buy the stock/underlying above Pivot (if the price reaches above Pivot) and sell below S2(if the price reaches below S2). The important here is not to buy above S1, buy only above pivot.
----6. The price is between S2 and S3.
--------Same rule applies as rule 5. Buy above pivot sell below S3.
----7. The price is between R2 and R3.
--------Same rule applies as rule 4. Buy above R3 sell below Pivot.

Keep the profit, stoploss as below

Profit : 0.75% - 1%
Stoploss : 0.5%

Please please do reply with your suggestions.
I hope many of you already knows this.
No theory can become 99% successful without people's suggestions.
Do reply with your valuable comments.

radha ,thanks to begin a very good thread on piviot based trading. :clapping:

radha you said that you want to introduce a very simple way of trading.
i am full agree with you because the most important factor of succesful trading is very simple to simplest way of trading.
the very simple way of trading will give us more and more profit but complicated will not give.

Regards,
Hemant

 

[sumitro]

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