SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
Ok - let me do it to avoid anyone else doing it which can lead to more questions and confusions ...
It will be a quick short and sweet summary of the rules without going into specific examples. These are the current rules I am following.
Entries
Simple 3 EMA and 15 EMA crossovers at 3.25 PM on daily charts.
Stoploss
No pre-defined stoploss per se. Exit current position and open opposite positions if the opposite crossover happens.
Profit booking
4 different points where profit should be booked
1. 3 EMA not touching rule - This applies only when a gap up or gap down has happened in the favour of our 315 trade. Exit on day open and re-enter whenever 3 EMA is touched (that day itself or next day whenever 3 EMA is touched). The difference between 3 EMA and price should be enough to prompt the booking. As a thumb rule, I book only if that difference is greater than 50 points
2. 3 EMA moves adversely for two consecutive day - We exit shorts if 3 EMA has moved up on two consecutive days. Re-enter shorts on the day when 3 EMA starts moving down. Positions to be exited or entered at 3.25 PM
3. Nifty moves in 'greater fool's zone' - The greater fool's zone is explained under a different thread. We book futures and buy options to lock in profits. After this, if nifty continues the trend, option will continue to make money. If nifty reverses towards 15 EMA ... exit can be done when point 2 above happens. The greater fools zone can be touchedat any time during the day
4. 315 opposite crossover - This is the basic entry rule. book profits if opposite crossover happens and open opposite position.
Pyramiding/Adds
If the original position has moved in good profits already and nifty pulls back during the trend to 15 EMA ...more positions can be added anytime during the day at 15 EMA ..... this is a discretionary rule and not mandatory to ADD always.
Position Sizing
As posted by Trade4joisar above .... you can alter your position size depending on how the markets have recently behaved with 315
Cheers
SH
It will be a quick short and sweet summary of the rules without going into specific examples. These are the current rules I am following.
Entries
Simple 3 EMA and 15 EMA crossovers at 3.25 PM on daily charts.
Stoploss
No pre-defined stoploss per se. Exit current position and open opposite positions if the opposite crossover happens.
Profit booking
4 different points where profit should be booked
1. 3 EMA not touching rule - This applies only when a gap up or gap down has happened in the favour of our 315 trade. Exit on day open and re-enter whenever 3 EMA is touched (that day itself or next day whenever 3 EMA is touched). The difference between 3 EMA and price should be enough to prompt the booking. As a thumb rule, I book only if that difference is greater than 50 points
2. 3 EMA moves adversely for two consecutive day - We exit shorts if 3 EMA has moved up on two consecutive days. Re-enter shorts on the day when 3 EMA starts moving down. Positions to be exited or entered at 3.25 PM
3. Nifty moves in 'greater fool's zone' - The greater fool's zone is explained under a different thread. We book futures and buy options to lock in profits. After this, if nifty continues the trend, option will continue to make money. If nifty reverses towards 15 EMA ... exit can be done when point 2 above happens. The greater fools zone can be touchedat any time during the day
4. 315 opposite crossover - This is the basic entry rule. book profits if opposite crossover happens and open opposite position.
Pyramiding/Adds
If the original position has moved in good profits already and nifty pulls back during the trend to 15 EMA ...more positions can be added anytime during the day at 15 EMA ..... this is a discretionary rule and not mandatory to ADD always.
Position Sizing
As posted by Trade4joisar above .... you can alter your position size depending on how the markets have recently behaved with 315
Cheers
SH
2. 3 EMA moves adversely for two consecutive day - We exit shorts if 3 EMA has moved up on two consecutive days. Re-enter shorts on the day when 3 EMA starts moving down. Positions to be exited or entered at 3.25 PM
Dear TWH,
About Re-enter....we reenter shorts if 3 ema starts moving down...here we wait for 2 consecutive days?or even next day ema starts move down(means todays ema value lower than yesterdays ema) we reenter shorts?.....
Dear TWH,
About Re-enter....we reenter shorts if 3 ema starts moving down...here we wait for 2 consecutive days?or even next day ema starts move down(means todays ema value lower than yesterdays ema) we reenter shorts?.....
Hi TWH,
As per one of the rules posted on page 3
As per Friday's EOD charts the prices have retraced close to 15 EMA after giving swing profit of all most 300 points. There have been profit booking close to 4560 levels. Now, can we add more shorts here?
Uploaded with ImageShack.us
As per one of the rules posted on page 3
As per Friday's EOD charts the prices have retraced close to 15 EMA after giving swing profit of all most 300 points. There have been profit booking close to 4560 levels. Now, can we add more shorts here?
Uploaded with ImageShack.us
Hi TWH,
As per one of the rules posted on page 3
As per Friday's EOD charts the prices have retraced close to 15 EMA after giving swing profit of all most 300 points. There have been profit booking close to 4560 levels. Now, can we add more shorts here?
Uploaded with ImageShack.us
As per one of the rules posted on page 3
As per Friday's EOD charts the prices have retraced close to 15 EMA after giving swing profit of all most 300 points. There have been profit booking close to 4560 levels. Now, can we add more shorts here?
Uploaded with ImageShack.us
next move would depend on it.
Similar threads
-
Help Needed : Modified SH's 315 Strategy with Supertrend
- Started by Profittaker
- Replies: 2
-
-
-
SH's 315 Strategy - how to make it more comfortable and profitable!!
- Started by rkkarnani
- Replies: 260
-
