SH's 315 Strategy - how to use if effectively

[gkpc]

To me there seems no confusion!! A few people went short again yesterday at ~levels of 3EMA which was there when they exited and was as per one of the clarification by SH.. even if short was not initiated yesterday, today it should have been initiated at approx 5020!!! 3EMA was almost touched with price on 2/3 occassions!! So what is the confusion.. it basically about confidence level in the strategy and a Trader's own discipline!! Most of us here did not enter today out of FEAR!!! Fearing a whiplash!! Inspite of the fact that in this trade we had already booked a profit of around 90/100 points on 3EMA U! Those who did enter today could have even exited today itself with decent profit!! Just as so many seniors tell us : Its not the strategy but the trader matters most!! Be confident next time!! Here in such a scenario I think of rkkarnani's suggestion to enter options... those of us who were hesitant could have taken a little risk by entering out of money calls as said earlier we already had exited once on 3EMA not touching and booking around 100 points profit!!

 

[mangup]

I remember SH has told that if we are in position & waiting for exit, we should note 3 EMA value at the start of the day. Exit if diff betn day's open (at the start of the mkt) & the then 3 EMA value is greater by 30-40 pts, exit the position. Wait for prices to retraces till it touches the 3 EMA value which we have noted at the start of the day. This is all about exit.

On the similar lines, now coming to re-entry. We have exited short position yesterday just before day end seeing that 3 EMA is not touching day's high point. Now we are waiting for re-entry today. At the start of the day, we should note the 3 EMA value & wait till price touches that noted value. Once it touches that value during the course of the day we should take re-entry i.e. "Short".

When we opened today at 5052.00, 3 EMA was at 5078.02. This should be the re-entry level. Since prices not touched 5078.02 during the day, Short re-entry was not triggered at day open. When prices came down at 5000.00, at that time 3 EMA was at 5052, which touches the high point of our day. So at 5000, we entered short again.

I hope this is as per the rules. Still I request SH to clear the prevailing confusion.

Regards,

mangup

 

[jhonny.s]

looks like very successful strategy...

did anybody trading this strategy by using excel sheet provided in this thread or every body is using charts to trade this strategy....

I am pretty new to TA and charts and still in learning phase, by looking at excel sheet i was excited to try this strategy...

Thanks.

 

[Tradewithhunter]

Actually, you can calculate it "dynamically". 3EMA value is based on the Closing value which during the day is the Last Traded Price.
Anyways, In the morning I had 2 values when 3EMA will kiss the Candle.

--> First was at Price 5090 when Price would be equal to 3 EMA . This was possible if Market Opens Higher than 5090 (Very difficult) or If Market Opens lower than the candle (When we cover the Shorts) and market keeps on Rising to touch 3 EMA (At this time we again Enter Shorts i.e. Booked Profit and continuing our ride on the oscillator).
This is EASY and discussed a lot. This is what exactly we did yesterday.

--> Second was 5010 when Price will be less than 3 EMA(3EMA value will be 5050). This was possible if Market Opens lower than the candle (When we cover the Shorts) and market keeps on Going down so that the 3EMA value starts coming down and touches the point (or a bit below) where Candle Opened. The question was, in this case at what point do you Enter Shorts?

WOW ..this thread had actually become very active now ... too many posts within one day.

Achopra,

In the second situation enter during as soon as 3 EMA is touched i.e enter shorts at 5010

This is simple, I will make it a bit more complicated... what if market goes up again after hitting 5010 ... it will make 3 EMA go up again and you might end up in a situation where you have already shorted but at 3.25 PM you see candle is not touching 3 EMA ... (which means 2 days without 3 EMA touch hence tomorrow upmove possible).

Above is the worst case scenario, and in that case I would just hold the shorts (and buy some calls in case I want to encash any next day upmove to touch 3 EMA).

Thanksfully Nifty kept crashing after touching 3 EMA .....I am actually got shorts at 4995

Cheers
SH

 

[Tradewithhunter]

I remember SH has told that if we are in position & waiting for exit, we should note 3 EMA value at the start of the day. Exit if diff betn day's open (at the start of the mkt) & the then 3 EMA value is greater by 30-40 pts, exit the position. Wait for prices to retraces till it touches the 3 EMA value which we have noted at the start of the day. This is all about exit.

On the similar lines, now coming to re-entry. We have exited short position yesterday just before day end seeing that 3 EMA is not touching day's high point. Now we are waiting for re-entry today. At the start of the day, we should note the 3 EMA value & wait till price touches that noted value. Once it touches that value during the course of the day we should take re-entry i.e. "Short".

When we opened today at 5052.00, 3 EMA was at 5078.02. This should be the re-entry level. Since prices not touched 5078.02 during the day, Short re-entry was not triggered at day open. When prices came down at 5000.00, at that time 3 EMA was at 5052, which touches the high point of our day. So at 5000, we entered short again.

I hope this is as per the rules. Still I request SH to clear the prevailing confusion.

Regards,

mangup

Mangup - spot on !!

 

[NTrader42]

I remember SH has told that if we are in position & waiting for exit, we should note 3 EMA value at the start of the day. Exit if diff betn day's open (at the start of the mkt) & the then 3 EMA value is greater by 30-40 pts, exit the position. Wait for prices to retraces till it touches the 3 EMA value which we have noted at the start of the day. This is all about exit.

On the similar lines, now coming to re-entry. We have exited short position yesterday just before day end seeing that 3 EMA is not touching day's high point. Now we are waiting for re-entry today. At the start of the day, we should note the 3 EMA value & wait till price touches that noted value. Once it touches that value during the course of the day we should take re-entry i.e. "Short".

When we opened today at 5052.00, 3 EMA was at 5078.02. This should be the re-entry level. Since prices not touched 5078.02 during the day, Short re-entry was not triggered at day open. When prices came down at 5000.00, at that time 3 EMA was at 5052, which touches the high point of our day. So at 5000, we entered short again.

I hope this is as per the rules. Still I request SH to clear the prevailing confusion.

Regards,

mangup

WOW ..this thread had actually become very active now ... too many posts within one day.

Achopra,

In the second situation enter during as soon as 3 EMA is touched i.e enter shorts at 5010

This is simple, I will make it a bit more complicated... what if market goes up again after hitting 5010 ... it will make 3 EMA go up again and you might end up in a situation where you have already shorted but at 3.25 PM you see candle is not touching 3 EMA ... (which means 2 days without 3 EMA touch hence tomorrow upmove possible).

Above is the worst case scenario, and in that case I would just hold the shorts (and buy some calls in case I want to encash any next day upmove to touch 3 EMA).

Thanksfully Nifty kept crashing after touching 3 EMA .....I am actually got shorts at 4995

Cheers
SH

Thanks

The above 2 posts clear the concept of re-entry to a large extend.

To me there seems no confusion!! A few people went short again yesterday at ~levels of 3EMA which was there when they exited and was as per one of the clarification by SH.. even if short was not initiated yesterday, today it should have been initiated at approx 5020!!! 3EMA was almost touched with price on 2/3 occassions!! So what is the confusion.. it basically about confidence level in the strategy and a Trader's own discipline!! Most of us here did not enter today out of FEAR!!! Fearing a whiplash!! Inspite of the fact that in this trade we had already booked a profit of around 90/100 points on 3EMA U! Those who did enter today could have even exited today itself with decent profit!! Just as so many seniors tell us : Its not the strategy but the trader matters most!! Be confident next time!! Here in such a scenario I think of rkkarnani's suggestion to enter options... those of us who were hesitant could have taken a little risk by entering out of money calls as said earlier we already had exited once on 3EMA not touching and booking around 100 points profit!!

Yes, the confidence to trade the system is very important, it will come from

1. Understanding the system and all the possible scenarios clearly.

2. Experience of trading this system under many possible different conditions.

3. Proper risk / sizing as per our capital for calm execution and follow up.

Thanks

 

[achopraa]

WOW ..this thread had actually become very active now ... too many posts within one day.

Achopra,

In the second situation enter during as soon as 3 EMA is touched i.e enter shorts at 5010

This is simple, I will make it a bit more complicated... what if market goes up again after hitting 5010 ... it will make 3 EMA go up again and you might end up in a situation where you have already shorted but at 3.25 PM you see candle is not touching 3 EMA ... (which means 2 days without 3 EMA touch hence tomorrow upmove possible).

Above is the worst case scenario, and in that case I would just hold the shorts (and buy some calls in case I want to encash any next day upmove to touch 3 EMA).

Thanksfully Nifty kept crashing after touching 3 EMA .....I am actually got shorts at 4995

Cheers
SH

Last 3 trading days gave me so much of knowledge regarding the system & the market behavior.
I never before though the scenario of the 3EMA touching the candle in this manner but it only struck me before y'days training session.

I thank all the valuable contributors of this thread.
The mantra I take (and which has been iterated a 100 times in the whole thread) - TRUST THE SYSTEM

 

[Tradewithhunter]

Nifty at 4900 and 3 EMA at 4961

Booked shorts again .. entry at 4955-4960 range or 3 EMA touch ...

Cheers
SH

 

[jallanankit]

Nifty at 4900 and 3 EMA at 4961

Booked shorts again .. entry at 4955-4960 range or 3 EMA touch ...

Cheers
SH

NIce trade again..!!! :clap::clap:

Wat abt reverse trade.. GOing long from here till the EMA level..

 

[blackberry]

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