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

[trade4joisar]

Charts from Dec 08 till Aug-11. You can find rest in above thread.

Dec08 - Oct09

Nov09 - Sep10

Oct10 - Aug11

It would be great if somebody can look @ these chart & put their comments.

 

[mangup]

Dear T4J,

As per ur suggestion you mean to say that when 3DMA crosses 3EMA, prices will move towards 15EMA otherwise it will continue sliding downwards in case of 315 sell crossover.

From the chart it seems that this 3DMA is horizontally shifted to lefted side by 3 period. It means this 3 DMA will lag 3EMA by 3 days i.e. todays (25th) 3EMA = 22nd's 3DMA.

If next 2 consequetive 3EMA upmoves will definately gives crossover in 3DMA & 3EMA. (I think this is what SH has suggested on exiting the short position).

I hope this is what u r saying. If yes, this suggestion is already backtested by vikrit & Ntrader42.

 

[manoharpillai]

45 ema could also support 315 to some extent on entry and exit ...have a look at this chart

 

[SACH2000]

Charts from Dec 08 till Aug-11. You can find rest in above thread.

Dec08 - Oct09

Nov09 - Sep10

Oct10 - Aug11

It would be great if somebody can look @ these chart & put their comments.

Thanx for giving new ideas. IMHO, we can make more profits with less of whipsaws if we just follow DMA crossover 3 ema ( go long if DMA crosses 3ema from below & vice versa). but lets get it backtested.

 

[vikrit]

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!!!

what rules for this breach we can apply for backtest? like if crossover tell to go long, and on next candle it open 11point up & going up, but at EOD it come down and close below where we entered then put condition to come out or continue it?

 

[vinst]

The DMA thing:
it is displaced to left. So, its signal would be available 3 bars later. always, for the last 3 bars, there is no display/value of DMA. Isn't it?

 

[vikrit]

The DMA thing:
it is displaced to left. So, its signal would be available 3 bars later. always, for the last 3 bars, there is no display/value of DMA. Isn't it?

always third last one having value. last two will not have any dma value in case of displacement of 3days left (-3).

 

[rahulr]

A list of rules for SH315, that I am considering

1. Go Long when ema3 > ema15
   
   
2. Go Short when ema3< ema15
   
   
3. Book Part/full profit (scale-out) when the price candle does not touch ema3, re-enter the position on the touch
   
   
4. Add quantity (scale-in) to a profitable position when it comes back and touches ema15
   
   
5. Exit full if ema3 goes in opposite direction of the trade for 2 days in running
   
   
6. Take a Short Term Trade in opposite direction (contra) when the candle does not touch ema3 for 2nd day in running.

I am not sure if the above is comprehensive list, please point out if i have left out a few things

Thanks

Hi NTrader,

Thanks for summarizing the rules. I have a query regarding exit strategy.
As per the rule above, Exit completely if 3 EMA goes in opposite direction for 2 consecutive days.
If say i sell and next 2 days the highs go above 3 EMA, shall i exit ? Or should the candle formed be completely above 3 EMA(both highs and lows above 3 EMA).

 

[timepass]

The DMA thing:
it is displaced to left. So, its signal would be available 3 bars later. always, for the last 3 bars, there is no display/value of DMA. Isn't it?

always third last one having value. last two will not have any dma value in case of displacement of 3days left (-3).

One sec guys, can you explain this displacement / period parameters of DMA so that I can maybe reproduce it in excel ?? Ok, I take 2 days old 3EMA as today's DMA, that's one parameter, but which one ? Is it the period or is it displacement ??

Here's 315 with 3dma (as I understood it) in excel for 2011. As you can see, there are too many whipsaws.

 

[vikrit]

One sec guys, can you explain this displacement / period parameters of DMA so that I can maybe reproduce it in excel ?? Ok, I take 2 days old 3EMA as today's DMA, that's one parameter, but which one ? Is it the period or is it displacement ??

Here's 315 with 3dma (as I understood it) in excel for 2011. As you can see, there are too many whipsaws.

didn't get ur question. what is mean by which one parameter.

if confusion in why 2days before values in case of dma(3), today will be count as 1, yesterday =2, day before yesterday=3 i.e. 2 days before. that day N-ema = today's N-dma(3), N can be any 3,15 anything.

in this chart, dma is positive means it is leading the ema. i.e. 2 days forward for dma(+3). in negative dma, we go backward, so use in excel for 3dma(-3) (considering same last one excel, in I4=F2) last two (I2,I3) will be filled only if filled new values. negative dma is lagging. last time i told you formula for leading dma.