SH's 315 Strategy - how to use if effectively

[rkkarnani]

But the add is to be taken only when original position is in good profit. There is hardly any profit, if the system gives reverse signal.

Trade went long on 11 Oct close ~4980 (Went Long around 4990
On 13 Oct it opened away from 3 EMA ~ 5135 , I exited ~ 5119 ( a profit of ~100+ points0
Reentered on 13 th itself around close ~5070
Exited again on 17th Opening away form 3 EMA ~5148
Reentered the same day ~5120
Today it gapped down and retraced to touch 15 EMA hence added !
My position is in Profit hence I added. Maybe I have erred. Would be a good lesson for the future!

 

[rkkarnani]

Well thanks for reminding me to ADD only when Trade is in Good Profit... I have exited the ADD qty at 5047.80 Thanks again!!

 

[trader_boy]

Well thanks for reminding me to ADD only when Trade is in Good Profit... I have exited the ADD qty at 5047.80 Thanks again!!

but why did you exit your added position ....were you not in profit of approx. 180 points ...is that not good enough ?????

 

[columbus]

SLM,

My sincere advice is ,try OPTIONS instead of Equity or Futures.
But avoid Options after 20th (before Expiry) and choose futures.

Options take less capital.
In case of against the trend, the MAX loss is predetermined (Loss of
premium) in case of Options.This in not possible in Futures, it falls in the
category of MORE RISK AND MORE REWARD.

 

[rkkarnani]

but why did you exit your added position ....were you not in profit of approx. 180 points ...is that not good enough ?????

Did not consider my entries and exits!! The original Entry point was around 4990 and the Add was at ~5015, just 25/35 points in Profit!! I have understood it in this way only! One need not look at what he is earning in a Trade but how much the Trade has actually moved profitably at that point.
I usually take options as suggested by Columbus too but somehow missed to enter a just out of money call : 5100 CE l!!

 

[trader_boy]

So we dont add any lots just stick with our already opened long and wait for further signals right ?

 

[sibumajumdar]

Options take less capital.
In case of against the trend, the MAX loss is predetermined (Loss of
premium) in case of Options.This in not possible in Futures, it falls in the
category of MORE RISK AND MORE REWARD.

Columbus Sir,

I have modified SH's 315 method. Y'day Longed at 3.28hrs MNF-nov 1 lot @ 5064 and booked pft at 5122 today. As u suggested i Used fund for ITM option of 511 CE....booked pft @ now longed 5100PE..all of 0ct series..

today No entry at EOD if mkt remains high....

Plz comment @ guide me..Plz note my capital is only 20K....so iam using modified version of my own.

Anyway thanks to SH for his "jadui " strategy.....happy trading to all......SLMuncle

 

[mangup]

Dear Mr.Rkkarnani,

I understand that if we are in long position & on the day start if Daily candle is not touching 3 EMA then you have booked profits & entere again on touch of 3 EMA on the same day.

My query is -
1.How to decide on the distance away of open & 3 EMA value?
2.Is there any criterion on which we should deicide?
3.Is this exit needs to be done on day open or at 1525 hrs?

Kindly reply.

Regards

 

[Tradewithhunter]

Dear Mr.Rkkarnani,

I understand that if we are in long position & on the day start if Daily candle is not touching 3 EMA then you have booked profits & entere again on touch of 3 EMA on the same day.

My query is -
1.How to decide on the distance away of open & 3 EMA value?
2.Is there any criterion on which we should deicide?
3.Is this exit needs to be done on day open or at 1525 hrs?

Kindly reply.

Regards

Sorry to jump in here but its an interesting question and I would like to share when/how to book based on 3 EMA.

The thumb rule says that book profit at open if markt opens away from 3 EMA ....note 3 EMA value at the point of booking .. re-enter when that point is reached by NF.

It also depends on how big the gap is between 3 EMA and price .. I think I have explained this in the past also ... if the difference is only 20-30 points .. no point booking ...but if the difference is more than 50-60 points.. then it makes sense to book immediately and wait for a retracement.


The only tweak I have introduced is that if this gap away happens very early in the trend (i.e immediately after the entry signal of 315) ..and if the market has been in a congestion zone (i.e we have had 2-3 whips in the past) ... in this scenario mkts usually trend very strongly and can gap up and keep moving up (or visa versa) without retracing. In that scenario dont book at open .. wait for 3.25 PM and then book.

Mkts have clkosed above 5140 today so the 315 longs are in 150+ point profit.

Rkkarnani - yesterday was a good day to buy or ADD as if you see Nifty took support at 15 EMA and that 3 EMA was not touching yesterdays candle. So today an upmove was anticipated anyways ....

Cheers
SH

 

[rkkarnani]

Price touched 15 EMA again today!! Bought 5200 Call at 10:05P 10 LOTS!! a Max risk of Rs. 5100.00