SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

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 - Simple answer is, you do not Exit until 315 is bullish ... even after 4 down days after entry...

Cheers
SH

 

[observer]

Do we close out position, when the bar makes a High/low than our enrty point/stop loss during the day or when the closing is High/low than our enrty point/stop loss?
The above is in relation to capital protection.

Also if the price moves against our SL, do we close the ADDed position, or the entry point as well?

Thanks

 

[Tradewithhunter]

Do we close out position, when the bar makes a High/low than our enrty point/stop loss during the day or when the closing is High/low than our enrty point/stop loss?
The above is in relation to capital protection.

Also if the price moves against our SL, do we close the ADDed position, or the entry point as well?

Thanks

Sorry pls can you rephrase your question and probably give an example.. I am unable to understand the question here.

Cheers
SH

 

[observer]

Let me try to rephrase. After entering at bullish crossover, the price has gone up by 5%. The next bar we may ADD if the price moves higher. But do we ADD when the high of the previous bar is breached during the day or does the bar have to close higher than the previous bar?
Assume we have ADDed, if the next bar breaches our SL during day, do we sell just the added position and continue with our initial position?

I hope I am clear, else there is some confusion in my understanding the SL strategy. Please clarify if possible.

Thanks

 

[Tradewithhunter]

Let me try to rephrase. After entering at bullish crossover, the price has gone up by 5%. The next bar we may ADD if the price moves higher. But do we ADD when the high of the previous bar is breached during the day or does the bar have to close higher than the previous bar?
Assume we have ADDed, if the next bar breaches our SL during day, do we sell just the added position and continue with our initial position?

I hope I am clear, else there is some confusion in my understanding the SL strategy. Please clarify if possible.

Thanks

OK - yes there seems to be some misunderstanding in the SL strategy.

Basically, under protecting capital... I had said that once your first trade moves in decent profit... you can put SL at your entry point and wait .. there can now be 2 scenarios:

1) SL might not get hit and market keeps moving in our favour. We continue to hold initial position and ADD when 15 EMA is tested. HOpefully by this time 15 EMA would have moved above our entry point so our SL is not hit even when price retests 15 EMA.

2) SL get hit next day/coming days as price corrects towards 15 EMA. In this scenario 15 EMA will be lower than our entry point and hence SL gets hit before we can ADD. 315 may still be bullish. This is where we enter again only when previous days highs are breached.

Hope this clarifies.

Cheers
SH

 

[Tradewithhunter]

Yesterday Nifty futures gave an 'Book Profits' candle on EOD for bulls and now 3 EMA has been tested so a 're-entry' signal.

Cheers
SH

 

[Mangafreakz]

@SH
Can u please once confirm according to 3-15 , when was the last Buy signal given on Nifty Futures. Also hows your trading going, hope its all well
Thanks.

 

[observer]

SH, I was referring to this
"Originally Posted by Tradewithhunter
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."

After booking profit, why did you choose to re-enter at 4040? I guess you re-entered on the same day?
Do we exit as soon as SL price is hit during the day?

Thanks

 

[Tradewithhunter]

@SH
Can u please once confirm according to 3-15 , when was the last Buy signal given on Nifty Futures. Also hows your trading going, hope its all well
Thanks.

Managafreakz - NF gave a buy as per 315 on 10/11/09 at around closing price of 4875. Yesterday Exit candle given at 5062 and today entry again at 5025.

Trading is going very well, the wins in the stock markets motivate me to right in forums like these. 315 is only one of my strategies that I use for swing trading. There are many other strategies that I use for trading.

By god's grace, people associated with me who trade with me are also enjoying profits with me everyday.

Cheers
SH

 

[rkkarnani]

Thanks SH for the rules.

Pl see this chart.

entered short on close of bar 2

next day, at some point it was in profit and at some point it touched prev close which is SL. So shall we stop here? or wait for another day? how do we define, 'once we are in profit'? is it on EOD basis or intraday? if its EOD we might make a bigger hole in the pocket. If its intraday, then we might be stopping out unnecessarily, market may reverse. for every trade, we will be touching entry point even same day or next day. so what should be done?

ok, assuming we give it another day. then we would have stopped out at bar 5.

In the present example, wouldnt we exit our short at 4, as the bar seems not to be touching EMA3!!!!