SH's 315 Strategy - how to use if effectively

[galrani]

is 315 doing fine with BNF ???

Finally i have met a person who is trading bnf 315 :clap:

I trade only in NF and BNF. The main reason being liquidity and the margins.

For individual stocks the margin is nearly double the margin for NF / BNF. So can go for higher lots with my limited capital.

Rgds
Shiva

 

[kiranjakka]

hey can somebody update nifty chart with ema here

 

[kcsusha]

EMA3 shows 5396 and EMA 15 shows 5438. That means we are still in

sell mode. But the market has galloped from 5280 levels on 22/6/11

to 5480 levels today 24/6/11. We have missed a cool 200 points rally.

How to plug this lacunae in this system so that we can catch the

trend as early as possible.

 

[DPHSAI]

OK - so here we go.

The first step is to understand what is 315 .. its advatages and disadvantages.

The second step is to understand some rules I have derived to use it effectively. Rules are related to effective entries, effective SL management, effective profit bookings, effective re-entries and in the end effective money management or effective safeguarding the capital.

In this post I would focus on step 1 i.e what is 315 etc.

315 Strategy for swing trading

315 is a simple swing technique which tries to identify a trend very early. In this strategy we use only EMAs name EMA 3 & EMA 15 (hence the name 315).

People ask me why EMA 3 and EMA 15 .... for me last 3 days define the immediate average price ... to find the slightly longer term trend i use the factor of 5. This is becuase 5 has an interesting relevance to markets.... we have approx 5 hours of trading everyday, 5 trading days in a week, almost 5 trading weeks in a month .... So I simply multiple 3 by 5 to get my 15 EMA which defines my medium term average price.

Now in simple terms, if our immediate average price is higher than the medium term average price that means we are entering in a bull swing ... and visa versa. Hence the strategy entries are:

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

Advantages of following 315 strategy

1. A simple technique using just 2 EMAs, no other oscilattors or indicators required. NO advanced charting softwares required.

2. System is based on following the ULTIMATE indicator available i.e price action.

3. Keeps a trader in the trend, lets the full swing to complete. Never gets a trader against the trend.

4. Since we are just following price action, we dont need to worry about divergences etc.

Disadvantages of 315 Strategy

1. Works brilliantly in a trending market but can whipsaw in extremely ranging markets. However this can be overcome by certain rules and money management to be explained later in this thread.



So this is what the strategy is folks, do some chart reading and see how it works on EOD charts. Do post any questions you have here.

I will come back to talk about Step 2 again.

Keep an eye on Nifty charts, 315 is going to generate a signal soon... dont miss.

Cheers
SH:thumb:

Please send me if it finish

 

[rkkarnani]

Its just for your knowledge ( as i m trading Piramal Health 315). It gave buy signal today... check the pic attached...PIRAMAL HEALTH One can go long

Pls correct me seniors if I m wrong...

Regards

Piramal health is a buy as per 315 Strategy!! Whether to go long or not is also dependent on the stocks past performance. In case your study of historical data for 18 to 24 months shows that 315 is good for this stock , yes, it has given a Buy signal today!

BTW, chart posted in that of Cash stock and not futures, you cannot go short in Cash shares if a Sell signal is generated.

 

[rkkarnani]

EMA3 shows 5396 and EMA 15 shows 5438. That means we are still in

sell mode. But the market has galloped from 5280 levels on 22/6/11

to 5480 levels today 24/6/11. We have missed a cool 200 points rally.

How to plug this lacunae in this system so that we can catch the

trend as early as possible.

kcsusha, Dont think there is a way to plug this, what you call a "lacunae".. fact is that we know about move only after it happens... we do not try to predict the market..... In its pure form there is no way out... for adding more filter, indicators etc. it has to be per an individual Trades choice... I know a few who trade this strategy but have tweeked as per there own rules.

If you go into a bit detailed rules of this strategy.. exit and reentry etc. you will find it to be a good one... recently, price was opening above or on the 3EMA continously on 17th, 20th,21st and 22nd.. on 23rd it opened away from 3 EMA in our trades direction... many trades following the exit rule exited at open on 23rd and reentered again on 3 EMA touch...moreover even a few exit part quantity at a certain level and this move was from 5486 to 5181 , a whooping 300 points as per low and over 220 points on closing basis too! Today was a day to "add' on 15 EMA touch.. many have done it and "meek" people like me took position in Options!! It is all upto an individual trader.
Writing so much for a simple question is only because I genuinely believe that 'adding' more indicators or oscillators is going to ruin the simplicity of this strategy which according to me is its strength!!
You would agree that we would be talking differently if the market moves "down" 150 points on Monday!!!
The strategy is profitable as have been posted by scores of people here you should try to understand whether the strategy suits your trading temperament or not... Happy trading!!!

 

[s0058350]

hi how can we see commodity charts online,becoz in icharts its not working,will 315 strategy work in commodity too

 

[sunny_cool]

Piramal health is a buy as per 315 Strategy!! Whether to go long or not is also dependent on the stocks past performance. In case your study of historical data for 18 to 24 months shows that 315 is good for this stock , yes, it has given a Buy signal today!

BTW, chart posted in that of Cash stock and not futures, you cannot go short in Cash shares if a Sell signal is generated.

Sir do you know any software that can give EOD data for futures...right now i m using Chart nexus and only get cash data....

Regards

 

[rkkarnani]

Sir do you know any software that can give EOD data for futures...right now i m using Chart nexus and only get cash data....

Regards

No idea friend, try to Google it or maybe someone using it may respond to your query.
Have been told that on Traderji there are threads discussing how to download EOD data for all Cash and Futures stocks from NSE. Look for it.

 

[looser]

Sir do you know any software that can give EOD data for futures...right now i m using Chart nexus and only get cash data....

Regards

u ppl r trying to earn in 1000's and dont want to spend in 100's. this is same as a military man fighting with stick at the boeder.

IBC costs- 600 Rs
realstocksdata.com -500 Rs

just be better equipped :clapping: