SH's 315 Strategy - how to use if effectively

[linuxguy]

Tried quotetracker, cant get it working. Will try icharts paid one.

Thank you.

 

[tradenifty]

Hi Stockhunter

I do not have internet in my office. I have mobile gprs only. Can i put Nifty eod data in excel sheet, calculate 3 and 15 ema, and at 3:25 pm put Nifty live eod data, plot chart and look for ema crossover for entry? will it be correct?

 

[Tradewithhunter]

Hi Stockhunter

I do not have internet in my office. I have mobile gprs only. Can i put Nifty eod data in excel sheet, calculate 3 and 15 ema, and at 3:25 pm put Nifty live eod data, plot chart and look for ema crossover for entry? will it be correct?

Hi Tradenifty,

If you know the right formula for calculating EMAs and have tested by generating excel charts and comparing with normal charts ..... then you can use this method too.

Cheers
SH

 

[drshajikt]

dear tradewithhunter,

you advise to short a stock when price comes below 3ema and 3 ema crosses below 15ema. i hope you are talking about stock futures, otherwise how could you short a stock and carry the position beyond a day. please explain and pardon me for my ignorance

thanks in advance

drshajikt

 

[ppmatkari]

dear tradewithhunter,

you advise to short a stock when price comes below 3ema and 3 ema crosses below 15ema. i hope you are talking about stock futures, otherwise how could you short a stock and carry the position beyond a day. please explain and pardon me for my ignorance

thanks in advance

drshajikt

Yes it means shorting futures. Another way is to buy a at the money put option (recommended only if you have prev experience in option trading)

 

[tradenifty]

Hi Stockhunter,

Thanks for your reply. I have an another question. I have understood that I make an entry on 315 ema crossover at 3:25 p.m. However, the day when 3ema is not touched do i exit at 3:25 p.m. Also, the day when 3ema is touched do i reenter at 3:25 p.m. ?

 

[linuxguy]

Hello sir,
First of all I would like to thank you for answering all my queries patiently and guiding me.
Now I have reached a point where I am studying stop losses.
You say:

Please take the current example now, I shorted at 4190, booked at 3930, re-entered shorts at 4040. Now when 4190 was hit again on 15/07/2009 I exited my shorts and waitied for a 'ADD' signal to get generated. 315 stayed bearish even when markets went upto 4236 close on 15/07 & 16/7 (hence no longs) but it didnt generate any 'ADD short' signal by breaching previous days lows.

Heres the chart of your trades ( Hope I have got it right)

1)So you shorted, booked, re-entered, hit SL and exited and waited for "ADD SHORT" signal. Now as 3EMA is below 15EMA, in this case, what I understand is ADD SHORT would be given by "breaching previous days low". So, on 15th, if low of 14th was breached, you would have shorted. Similarly, on 16th, if low of 15th was breached, you would have shorted. Or does it mean that low of 14th is the point for next addition as long as 315 is bearish?


2)And hows you approach when 315 is generated, remains positive for 1or 2 days and again reverses?
Do you go long, and then "exit and go short simultaneously" on the day of reversal?
Thank you again for your guidance.

 

[Tradewithhunter]

dear tradewithhunter,

you advise to short a stock when price comes below 3ema and 3 ema crosses below 15ema. i hope you are talking about stock futures, otherwise how could you short a stock and carry the position beyond a day. please explain and pardon me for my ignorance

thanks in advance

drshajikt

yes you can short only in futures.

 

[Tradewithhunter]

Hi Stockhunter,

Thanks for your reply. I have an another question. I have understood that I make an entry on 315 ema crossover at 3:25 p.m. However, the day when 3ema is not touched do i exit at 3:25 p.m. Also, the day when 3ema is touched do i reenter at 3:25 p.m. ?

No you should not wait for 3.25 for Exit .. you should exit as soon as you see current days candle not touching 3 EMA.

Cheers

 

[Tradewithhunter]

Hello sir,
First of all I would like to thank you for answering all my queries patiently and guiding me.
Now I have reached a point where I am studying stop losses.
You say:


Heres the chart of your trades ( Hope I have got it right)

1)So you shorted, booked, re-entered, hit SL and exited and waited for "ADD SHORT" signal. Now as 3EMA is below 15EMA, in this case, what I understand is ADD SHORT would be given by "breaching previous days low". So, on 15th, if low of 14th was breached, you would have shorted. Similarly, on 16th, if low of 15th was breached, you would have shorted. Or does it mean that low of 14th is the point for next addition as long as 315 is bearish?


2)And hows you approach when 315 is generated, remains positive for 1or 2 days and again reverses?
Do you go long, and then "exit and go short simultaneously" on the day of reversal?
Thank you again for your guidance.

Linuxguy,

answers are:

1. Immediate previos day is what matter ... so if on 16th low of 15th is breached we go short again. 14th low becomes irrelevant.

2. Yeah I reverse and go short immediately. I keep doing it no matter how many times i get whipsawed.

Cheers
SH