SH's 315 Strategy - how to use if effectively

[observer]

TH, thanks for the reply.

One more query, when the price moves away from the 3ema, we could book profits.
"As soon as 3 EMA is touched we jump back into our initiaal position. So in a way we stay with our position..."

Here, are we not creating a NEW position (in mid trend)? If the trend does not continue and ema's crossover after some bars, most likely, wont it be a loss from the NEW position?

Thanks

 

[Tradewithhunter]

Friend, Its not 3EMA touching 15 EMA to initiate ADD.... the price has to retrace to 15 EMA or touch it for a valid ADD!!! As explained by TH, I stand corrected, we cannot preempt the 15EMA level as the same shall be dynamic in the bar under formation!!! The ADD will be slightly a discertionary level and differ very minor from trader to trader!!! Though personally I feel that if possible we should have some 'fixed' rule for the ADD!!!

TH, I did try to analyse from 2007 July ,I have data from that period, I genuinely faced a dillemma where and if to ADD, the right side being visible was colouring my views and hence my trades!!! Though I can say that just eye-balling the charts tells me that the system should be profitable!!!

TH, Any input about ADD shall be appreciated!!
Regards
-Shravan

Yes Sorry I didnt notice, ADD is when price retraces to 15 EMA and not 3 EMA touching 15 EMA.

Shravan - As i said my rule is 'fixed' indeed for ADDs, a visual test of 15 EMA by price. However for this one needs real time data with real time EMAs as well on EOD time frames.

The only other rule on ADDS is that I add only when my previous position is in good profits (i.e trending markets). By this I ensure I am not adding any additional risk to my capital while I pyramid.

I do not ADD at around the same level where I initially entered previously (rangebound markets).

Please do not push me to define a % or value to add for reasons I have already explained. As a smart trader you can improvise. If you are not still comfortable, I would say forget ADDs altogether .. just enter once and trail your SL once position moves in profits.

Cheers
SH

 

[observer]

TH, could you please clarify my post no. 267, sorry to bother you.

Thanks

 

[Tradewithhunter]

TH, thanks for the reply.

One more query, when the price moves away from the 3ema, we could book profits.
"As soon as 3 EMA is touched we jump back into our initiaal position. So in a way we stay with our position..."

Here, are we not creating a NEW position (in mid trend)? If the trend does not continue and ema's crossover after some bars, most likely, wont it be a loss from the NEW position?

Thanks

Dear Observer,

Sorry for I missed to respond to your post earlier.

Basically, when we Exit when 3 EMA is not touched by price and re-enter again when 3 EMA is touched.. in a way we are just entering back into our initial position which is Swing in nature after making some short term profit by exiting higher entering again lower... so its not a NEW position.

For eg, its like I buy at 5000 believing markets will touch 5800 in a mid term however next 2-3 days markets rally and we suddenly have a huge gap up at 5500 .. I can be still bullish for 5800 however since my 3 EMA is still around 5300 I know markets can correct now from 5500.. go down and touch 3 EMA at around 5300 and then can continue to march ahead to touch 5800.. I am just trying to catch this small correction as well so when markets actually touch 5800 I have a 1000 point profit instead of 800 points profit.

If markets keep on correcting after i enter at 5300 and a bearish crossover happens at 4800 .. I will breakeven since I had already booked 200 points profit by exiting at 5500 and buying back at 5300. Whereas If I had not done it .. I would have been left with a loss of 200 points (Bought at 5000 sold at 4800).

If when i sell at 5500 and markets dont correct at all and go and hit 5800 .. I have no issues since I have still made 500 points profits.

So its beneficial in all ways ... whether markets reverse or continue the main trend. It just helps in reducing the risk and capturing a larger profit at the same time.

Hope this helps.

Also, you can call me Stockhunter or 'SH', Tradewithhunter is not my alias but something else (Forum rules dont allow me to tell what since it might get seen as advertising).

Cheers
SH

 

[Tradewithhunter]

Some scrips that have generated a 315 buy/sell in last few of days:

Bullish - Nifty, ICICI Bank, Reliance, IDBI, IFCI, SBIN, RelCapital.

Bearish - DLF, Unitech, Suzlon, RCOM continue to stay bearish.

Cheers
SH

 

[spiritunit]

SH,

I know this is a wonderful strategy, but I need help while if 315 happens in this way, what should I do? Where to exit?

As you can see after 4 bars in green, 4 bars in red, but still the 315 is alive.

 

[spiritunit]

Have you find intraday strategy using this method? (ref. thread http://www.traderji.com/technical-a...egy-how-use-if-effectively-12.html#post347461)

 

[ramesh innani]

Please use daily charts for 315 and not intraday charts

 

[spiritunit]

Please use daily charts for 315 and not intraday charts

Sorry, forget to say, its not intraday chart, its Nifty daily chart...

 

[linuxguy]

Hello Sir,
you say:

By the way - If you check my post on 7th July morning I had mentioned that people should look out for a signal generated that day. That day a short signal was generated so shorted before days close at around 4190.

315 crossover happened on July 6th. But you say look out for signal generated on 7th. Is this according to your rule that we should wait for candle to close above/below 15 EMA, then let next candle open and see if 3 EMA above/below 15 EMA?

Alterntaively, if it gaps down and keeps falling... we can apply the mini flow formula.. put an SL (not SAR) at open price + filter and book when we feel it has fallen enough.
SH

I may have missed out on something, but I didnt come across anything about filter and I didnt quite understand this strategy. What I believe is that once I entered short, I should square my position when I get a reverse 315 ( i.e. supposing there are no EXIT and RE-ENTRY signals)
Please explain.
Thank you.