SH's 315 Strategy - how to make it more comfortable and profitable!!

[trade4joisar]

hello Vijay

@T4j

using displaced ema just highlights the turn on ema3, essentially it is the same rule as proposed by SH for exit on getting an adverse turn on ema3

Thanks

Thanks for your comments.

If you see crossing DMA by 3 EMA, it first goes down & then started moving towards 15 EMA.

So i think it gives signal before adverse turn on ema3

 

[timepass]

Hello T4J, I looked up the 45EMA thing and tried out nifty spot in Excel. To test the buy/sell signal, I added a column which compared today's closing with yesterday's signal. The result wasn't very encouraging.

Now, this 3DMA thing, I looked up the definition of DMA, and would like to try it out in excel. So can you please explain the parameters to use in excel ?? What is period and displacement??

Or do I simply compare 3ema of day before yesterday with today's 15 ema ??
Thanks

I was looking @ few other strategy for supporting 315 & found one good way.

I have added DMA (Displaced Moving Average) with following values
period = 3
Displacement = 3

So whenever 3 EMA crosses DMA, it means now its time kiss 15 EMA. I know there is no 100% results but atleast we will get some help to increase profit with 315 strategy.

 

[trade4joisar]

Now, this 3DMA thing, I looked up the definition of DMA, and would like to try it out in excel. So can you please explain the parameters to use in excel ?? What is period and displacement??

Or do I simply compare 3ema of day before yesterday with today's 15 ema ??
Thanks

Actually i am also not good @ excel, i have selected DMA 3 in chart & then found this observation.

 

[vikrit]

Thanks for your comments.

If you see crossing DMA by 3 EMA, it first goes down & then started moving towards 15 EMA.

So i think it gives signal before adverse turn on ema3

i am also working/studying displacement ma's, but still no finite thing came up.

what is your idea for dma? how to use it in 315? i didnt get it fully b/c you just circled crossover where afterwards 3ema touched 15ema. is it based on some rule?

 

[vikrit]

Hello T4J, I looked up the 45EMA thing and tried out nifty spot in Excel. To test the buy/sell signal, I added a column which compared today's closing with yesterday's signal. The result wasn't very encouraging.


Now, this 3DMA thing, I looked up the definition of DMA, and would like to try it out in excel. So can you please explain the parameters to use in excel ?? What is period and displacement??

Or do I simply compare 3ema of day before yesterday with today's 15 ema ??
Thanks

how this calculation can be beneficial for backtest or trading. plz if possible explain.
IMO mostly positional systems give mixed results by this.


abt DMA, just use 2 days before ema for 3 day displacement.. like in your excel if avg in F column then put in I2 =F4

 

[timepass]

how this calculation can be beneficial for backtest or trading. plz if possible explain.
IMO mostly positional systems give mixed results by this.


abt DMA, just use 2 days before ema for 3 day displacement.. like in your excel if avg in F column then put in I2 =F4

I did that. Getting funny results, nothing compared to what T4J showed. Maybe one needs another parameter, T3J had 2 parameters - displacement and period..

PS : How does one save an excel chart to image ??

 

[amol_gh123]

I my self is a big fan of 315 for its simplicity.. till now was following on icharts.in ... looking at this thread thought of creating excel sheet for original strategy... but what the hell... its giving me negative results ... that too more than -800 points.... how could it be.???? i know i must have done some mistake... attached is the sheet....

http://www.4shared.com/document/0FTWkSg0/NIFTY_FUTURES_315_TRADING_Resu.html

rules are simple:
1) Long when 3 EMA>15EMA , exit on close price not touching 3 ema or reverse crossover.
2) Exactly opposite for short

Values I have taken are from Nifty historical data for futures and consider the close value & not the Last traded price....

help really appreciated...

...Amol

 

[lokanathpai]

Posted: Fri Apr 03, 2009 8:03 pm Post subject: SH's 315 Strategy - Positional Trades
Hi Guys,

Thought to share a strategy which with my fellow traders here on icharts. I have named it the '315' theory.

This is not exactly a swing strategy but more of positional in nature hence sometimes trades might run for a couple of months. The objective of positionals are to catch big moves by staying with the trend , adding positions to a winning trade (pyramiding) and let the trades run until the markets are trending.

If you are a patient trader who can sleep with winning (or losing) positions overnight.. read on.... nervous/intraday traders.. stop reading now

Ok .. coming to how to trade 315 theory....

We need to plot period 3 EMA and period 15 EMA on EOD charts (hence the name 315).

Entry - Enter longs whenever 3 EMA crosses above 15 EMA and enter short when the opposite happen.

Pyramids (adds) - Positions should be added only if the initial position is in profit. NEVER add positions to a losing trade and average in this strategy. Add positions whenever the EOD candle touches the 15 EMA after trending away in your favour for a while. MAx pyramidying allowed is 1 initial position + 1 add + a add. Dont pyramid the 4th time 15 EMA is touched.

Stop Loss - There is no level specific stop losses here. The stop loss for a long trade is when the EMAs signal a short trade. So you end up closing shorts and opening longs. In case you have pyramided positions... keep your SL at the entry point of the last pyramid.

Profit booking zones - A good spot to book profit is when you see the current EOD candle is placed away from 3 EMA line. If that doesnt happen, let the markets run until an opposite crossover happens.

Whipsaws - whipsaws would happen in this strategy however they will be much less than any other strategy (even RSEX). However, just one good trade will be enough to cover any losses due to 2-3 whipsaws (even if the whipsaws are consecutive.

Do a visual backtest of this if you want on EOD charts to gain confidence. Start with small mini nifties to test this system. As per this system, the last buy signal was given on 16/03/09 at 2774 with no adds done as yet. And we are at 3220 right now

Cheers
SH

 

[rkkarnani]

I my self is a big fan of 315 for its simplicity.. till now was following on icharts.in ... looking at this thread thought of creating excel sheet for original strategy... but what the hell... its giving me negative results ... that too more than -800 points.... how could it be.???? i know i must have done some mistake... attached is the sheet....

http://www.4shared.com/document/0FTWkSg0/NIFTY_FUTURES_315_TRADING_Resu.html

rules are simple:
1) Long when 3 EMA>15EMA , exit on close price not touching 3 ema or reverse crossover.
2) Exactly opposite for short

Values I have taken are from Nifty historical data for futures and consider the close value & not the Last traded price....

help really appreciated...

...Amol

Amol... just had a glance at your Excel sheet... I am not much versed with working of the spreadsheets, but what I gather from it is that you have tried to make the "Rules" of 315 all mechanical.. though a very good effor but in real time it does not work like this!!
The Exit when price does not touch 3EMA is decided when the market opens hence it is not possible to decide about it from the EOD data!! Seems such small things might have affected the results!! Also a Price bar and 3EMA may just not touch by a difference of say 5 points.. your excel sheet will show it as EXIT but in actual trading we are NOT exiting here!!
You seem to be very well versed with Excel sheet.. how about posting a Sheet with just normal 315 entires on crossover. i.e. entering on close on the day of crossover!! If possible also include results : If we enter on breach of High or Low of the Crossover bar by a filter say 11 points!!!

 

[trade4joisar]

i am also working/studying displacement ma's, but still no finite thing came up.

what is your idea for dma? how to use it in 315? i didnt get it fully b/c you just circled crossover where afterwards 3ema touched 15ema. is it based on some rule?

This thread started by Rk to make 315 (i.e. magic strategy :thumb more profitable.
Thanks RK.

So i am just searching few other things which can be added as a rule (ofcourse after back testing & all agree with that).

3 ema not crossed DMA yet. Here you can see how 3 ema reacts after crossing DMA.

I am using iCharts.in software for charting.

DMA settings in iCharts.in

Here i have only data from 1st Dec 2008. I will backtest & will publish results here.