SH's 315 Strategy - how to use if effectively

[bipangs]

Originally Posted by Tradewithhunter
Nifty sell holds valid, 15 EMA kiss on Monday was a good 'add' point.

Cheers
SH

Dear SH,
Shouldnt we have waited for a candle to move lower than this present candle, to validate the add position?or should we weigh the situation, any rules?
Thanks in advance

Dear SH,
Kindly reply to my query..I was confused about this add at 12 EMA.
Thanks

 

[vinst]

Hi Vinst

Thanks for your reply. However my question still remains unanswered.

My question was when should profits be booked? This snapshot was taken at the beginning of the trading day.

Should we wait till end of the day (just before close) to close the position? However it's possible that by that time candle is touching 3 EMA (because price could have moved up and touched the candle). Or should we take profit as soon as we see this type of candle (i.e candle away from 3 EMA).?

TH is quite clear on the time of entry but not about the time of exit ( or maybe i missed that part).

Don't wait for end of day to book profit, profit-booking occurs mostly at the opening.

vin

 

[msri]

Dear Sir
On 19th May 2010 I went on short of SBI -FUT with one lot at the close of market for Rs. 2215/- as 3EMA was bearish with 15 EMA and touching the candle. The whole day it gave bearish signal. I entered only at the end as per rules. On the next day , 20th May, the market opened with gap up, so also SBI and even the price crossed the 15 EMA line with green candle. I waited as 3EMA was still bearish touching the candle throughout the day. But the MTM loss was mounting up heavily as price was going up, I exited my position at near close of the day taking a loss of 15 points at 2230/-, eventhough no exit signal was generated. Today morning also it is slightly bearish, but the price is going up.
Please comment on my trade on the following:
1. In such a voltaile market condition whether my action was correct?
2. How and where to place stop loss in such a situations to safeguard the capital?
3. How to recognise the whipsaw early eventhough clear bearish signal was generated on the previous day?
4. Or else SBI is unsuitable for this strategy.
Reagrds
msri

 

[trading4p]

Don't wait for end of day to book profit, profit-booking occurs mostly at the opening.

vin

Thanks Vin.

I was of the same opinion. Just wanted to confirm if everybody else was exiting the same way. Thanks for validating this. And thanks to SH for providing such a simple but profitable strategy.

 

[Tradewithhunter]

Dear SH,
Kindly reply to my query..I was confused about this add at 12 EMA.
Thanks

The ADD was at 15 EMA touch and not 12 EMA.

Cheers
SH

 

[Tradewithhunter]

Thanks Vin.

I was of the same opinion. Just wanted to confirm if everybody else was exiting the same way. Thanks for validating this. And thanks to SH for providing such a simple but profitable strategy.

trading4p - for US indeces, trade 534 instead of 315.

However for US stocks, 315 is good enough.

Cheers
SH

 

[trading4p]

trading4p - for US indeces, trade 534 instead of 315.

However for US stocks, 315 is good enough.

Cheers
SH

Thanks SH.

Any reason why 534 is better for US indices?. This particular example is for an ETF. Should that be considered as a stock or as an index?

 

[prabit]

My observation is that when there is gapup/down opening price be away from 3ema,later price touch 3ema.

 

[prabit]

riginally Posted by trading4p
Hi Vinst

Thanks for your reply. However my question still remains unanswered.

My question was when should profits be booked? This snapshot was taken at the beginning of the trading day.

Should we wait till end of the day (just before close) to close the position? However it's possible that by that time candle is touching 3 EMA (because price could have moved up and touched the candle). Or should we take profit as soon as we see this type of candle (i.e candle away from 3 EMA).?

TH is quite clear on the time of entry but not about the time of exit ( or maybe i missed that part)."


My observation is that when there is gapup/down opening, price be away from 3ema, that is the time to book profit, later price touch 3ema

 

[sk_cbe]

Today only i,ve seen yr thread nice to note I'll try and let u know theresults thankx in advacne