SH's 315 Strategy - how to use if effectively

[mayur553]

I guess Bajaj went into bearish corssover 2 days back.. SBI went in to bearish crossover yesteday..

 

[ppmatkari]

Darn i shorted SBI future @ 2131 now at 2144, looks like i m gonna get whipsawed in my 1st trade, placed stop loss at 2155.

 

[mayur553]

even i was goin to buy a put option.. but it seems there aint any volume in SBI stock options..

 

[Tradewithhunter]

Darn i shorted SBI future @ 2131 now at 2144, looks like i m gonna get whipsawed in my 1st trade, placed stop loss at 2155.

Hi - Please hold onto your nerves until you see a clear bullish crossover and then dont be afraid to go long again. Remember.. the chances of getting a big move after a whipsaw doubles!

Cheers
SH

 

[linuxguy]

Hello sir,

I read:

1 Enter Long when 3 EMA goes above 15 EMA
2 Enter Short when 3 EMA goes below 15 EMA

And seemed so simple.

1) I inferred that with the software like chartnexus that I have that gets updated daily at 7 pm, I could see if the 3 EMA has crossed 15 EMA and buy a stock the next day if the next day price is above the price that gave 3 EMA above 15 EMA signal.
( As of now, I only trade in delivery, have never traded in F&O, and am trying to apply 315 to taking delivery of stocks that give this signal.)

However as I delved deeper into the thread, it started getting confusing for a newbie that I am.
For example, in reply to a question you say:

What I meant by candle close was that we should not jump into trade at 12 noon just becuase at that point a crossover is visible.. this is becuase by the day end the price can reverse and there might not be any crossover visisble then by day end. At close to day end, lets say at 3.25 PM just before the market close, if you see 3 EMA crossing 15 EMA the trades should be opened immediately.

2) So do you mean that even if I get 315 signal on chartnexus today, I wait until after 3 next day and see if the price of stock at that time keeps the 3 EMA above 15 EMA?
Or do you mean that even if the 3EMA crosses 15 EMA any time during the day, I wait until after 3 p.m. and see if that crossover is sustained and then buy?

3) And since we are considering two EMAs, how does closing of candle above 15 EMA bear with this?



Seems like I am asking too many questions, but please help me out.
Thank you.

 

[ppmatkari]

Hi - Please hold onto your nerves until you see a clear bullish crossover and then dont be afraid to go long again. Remember.. the chances of getting a big move after a whipsaw doubles!

Cheers
SH

what i learnt from my first trade using this system is that choosing the time to enter is very crucial. I made a mistake by entering at the time when market was at a days low & to my horror or bad luck just when i was placing a futures order, market had begun its upswing so my limit order got executed in no time. What i would like to know is how far do you keep a stop loss in such whipsaw situation? I kept approx 5% of margin paid but i guess that was on a little higher side because i was expecting high fluctuation but overall trend to be negative. overall trend was negative but unfortunately SBI had a news after which it just kept on going higher & ended on a +ve note up about 3%+ from its days low.

As for reentering i was quite -vely biased about nifty so to avoid any further whipsaws i decided to stay out on futures front. Fortunately my biased view helped me in options to recover my lost money.

 

[Tradewithhunter]

Hello sir,

I read:


And seemed so simple.

1) I inferred that with the software like chartnexus that I have that gets updated daily at 7 pm, I could see if the 3 EMA has crossed 15 EMA and buy a stock the next day if the next day price is above the price that gave 3 EMA above 15 EMA signal.
( As of now, I only trade in delivery, have never traded in F&O, and am trying to apply 315 to taking delivery of stocks that give this signal.)

However as I delved deeper into the thread, it started getting confusing for a newbie that I am.
For example, in reply to a question you say:



2) So do you mean that even if I get 315 signal on chartnexus today, I wait until after 3 next day and see if the price of stock at that time keeps the 3 EMA above 15 EMA?
Or do you mean that even if the 3EMA crosses 15 EMA any time during the day, I wait until after 3 p.m. and see if that crossover is sustained and then buy?

3) And since we are considering two EMAs, how does closing of candle above 15 EMA bear with this?



Seems like I am asking too many questions, but please help me out.
Thank you.

Hi,

I use a software that updates real time i.e i do not have to wait until 7 PM to see how todays EOD candle or EMAs are looking. My EOD candle is real time and so are the 3 EMA and 15 EMA .... since the EOD candle keeps changing shape as market goes up and down during the day .. the 3 EMA and 15 EMA also keeps changing.

I wait until 3.25 PM to see how the 3 EMA and 15 EMA are finally closing for the day. If i see any crossover, i immediately open the trade assuming no wild movements in the last 5 minutes.

Hope this answers your question.

Cheers
SH

 

[linuxguy]

Hi,

I use a software that updates real time i.e i do not have to wait until 7 PM to see how todays EOD candle or EMAs are looking. My EOD candle is real time and so are the 3 EMA and 15 EMA .... since the EOD candle keeps changing shape as market goes up and down during the day .. the 3 EMA and 15 EMA also keeps changing.

I wait until 3.25 PM to see how the 3 EMA and 15 EMA are finally closing for the day. If i see any crossover, i immediately open the trade assuming no wild movements in the last 5 minutes.

Hope this answers your question.

Cheers
SH

Thank you very much sir.
Now I can study your entry exit rules.
And it seems I need to subscribe to some RT data.

 

[Tradewithhunter]

Please confirm Axis Bank , SBI & BAjaj Auto are on the brink of giving sell signal......am i right?

Bajaj Auto gave sell signal on 21st October at 1473 .. now its trading at 1369.

Axis Bank gave sell on 26th Oct at 967 .. now its trading at 915.

SBI gave a sell on 27th Oct at 2202 .. now its trading at 2194.

no whipsaws in any of these yet, Bajaj Auto and Axis in nice profits !

Cheers
SH

 

[Mangafreakz]

@SH
You track the Top 20 active securities for your futures trades? Also BNF had triggered sail on 27th i think , can u please confirm as i am still learning your strategy.
Thanks.