SH's 315 Strategy - how to use if effectively

[msri]

Dear SH sir,
I am waiting for your reply from you for my query
msri

 

[vinst]

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

book profits within first few minutes of the day.

vin

 

[mysticalrun]

Nifty at 4920 .. thats another 145 points profit :lol:

I have booked 50% profits and will carry rest 50% to tomorrow.

Cheers
SH

sir according to your theory we bookrd profit at opening bell aroubd 5002 when 3 ema not touching. then how you booked at 4920 , later in the day?

 

[Tradewithhunter]

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

MSRI - your questions is around money managements which depends on your trading style. You need to assess the overall risk of the trade before getting into the trade i.e you need to calculate how much loss you are ready to bear if the 315 trade whipsaws.

Do not trade in stock futures unless you can take Rs 5000 to Rs 10000 loss per trade.

Stick to Nifty.

Cheers
SH

 

[msri]

Thank you very much for the response and advice
msri

 

[nick721156]

MSRI -

Do not trade in stock futures unless you can take Rs 5000 to Rs 10000 loss per trade.

Stick to Nifty.

Cheers
SH

Dear SH,

By Nifty, you mean Nifty Futures ? In Nifty Futures, what should be the maximum loss per trade per lot? I just want your view. I am new to futures and (am) trying to use your method for Nifty Futures.

Regards,

Raju

 

[vssoma]

Dear SH,

By Nifty, you mean Nifty Futures ? In Nifty Futures, what should be the maximum loss per trade per lot? I just want your view. I am new to futures and (am) trying to use your method for Nifty Futures.

Regards,

Raju

maximum

 

[Tradewithhunter]

Dear SH,

By Nifty, you mean Nifty Futures ? In Nifty Futures, what should be the maximum loss per trade per lot? I just want your view. I am new to futures and (am) trying to use your method for Nifty Futures.

Regards,

Raju

Raju - it depends on the day when the crossover has happened. If that day is a small candle day you will get an entry very close to 15 EMA. However if that day is a big candle/wide range bar, you will end up entering away from 15 EMA which means larger potential loss if the signal whipsaws.

Cheers
SH

 

[nick721156]

Raju - it depends on the day when the crossover has happened. If that day is a small candle day you will get an entry very close to 15 EMA. However if that day is a big candle/wide range bar, you will end up entering away from 15 EMA which means larger potential loss if the signal whipsaws.

Cheers
SH

Dear SH,

Thanks for your views.

Regards,

Raju

 

[mysticalrun]

sir according to your theory we bookrd profit at opening bell aroubd 5002 when 3 ema not touching. then how you booked at 4920 , later in the day?

sir,


i am still waiting for your answer.

regards