SH's 315 Strategy - how to use if effectively

[rkkarnani]

Still riding profits on this strategy in TATA STEEL.!!!!!!

Longed TATA STEEL ON 16-12-2009 at closing price of around 558 levels as it was giving a close above 15 day EMA.
The crossover took on the next day and .....
Todays price is around 615......Still holding longs.....

Great going indeed!!! :thumb:
However as per Rules put down by TH, it was advisable that you entered the trade a bit higher BUT only on crossover!!! The crossover maynot have happened at all!!! On15th b4 crossover u entered at 558, yo wud hv entered at ~564 on 17th, when crossover was confirmed at close!!! Just my $0.02 !!
On 21st, the 3EMA was slanting down and the close was below 15EMA, though by only a few paise....we did not go short and awaited for the crossover the next day to confirm short!!!
It is not to criticise your action or trade, but just mentioned so that others are not 'misled' into taking a trade on price closing above or below 15EMA!!'
Cheers and all the best!!

 

[rajatheroyal]

Guys dont waste your time in moving averages they dont work if followed mechanically.
Moving averages are useful for discretionary trading to have a feel of the trend thats all.
This 3 and 15 ema and just buying and selling at crossovers will cause you all to blow up your accounts unless you are papertrading .

 

[yesfive]

sir, i'm using ur 315 strategy, this system Dec 23 given buy signal for nifty fut.
i bought 1 lot. i have little confution ln 3ema beacause it is a variable.
next day Dec 24 nifty fut 5160 went to hight up to 5179 and come down and trading.
3ema varies and gone up and dow the low point of nifty fut.End of the trading day
shows like 3ema was't touch the low or body of the candle of nifty fut.i dont know whether i have to hold the position or would have booked profit during end of the day.
kindly clear my confution.

 

[feelbullish]

Point taken Mr.Karnani...

But as you can see as nifty's chart was sloping downwards and tata steel was almost trading saideways....

So as soon as i felt nifty would trade higher, the first to be longed was tata steel...

Also on that day when dollar index gave a upward breakout...it was trading sideways instead of going down....

Also it was on a trendline support (lows connecting 04-11-09 and 11-12-09)

Also u can see an upsurge in volumes on the entry day

So jst twisted the theory a bit by anticipating the crossover a day in advance .......

Happy trading to all and have a wonderful year ahead.........

 

[rkkarnani]

Point taken Mr.Karnani...

But as you can see as nifty's chart was sloping downwards and tata steel was almost trading saideways....

So as soon as i felt nifty would trade higher, the first to be longed was tata steel...

Also on that day when dollar index gave a upward breakout...it was trading sideways instead of going down....

Also it was on a trendline support (lows connecting 04-11-09 and 11-12-09)

Also u can see an upsurge in volumes on the entry day

So jst twisted the theory a bit by anticipating the crossover a day in advance .......

Happy trading to all and have a wonderful year ahead.........

So we can say that you were not trading the 315 Strategy 'alone'!! My reason was just to point out the anomaly so that others folowing the 315 system do not get confused!!!
All the best!! Cheers!!

 

[feelbullish]

The market is such that one has to be flexible and not mechanical....

 

[rkkarnani]

The market is such that one has to be flexible and not mechanical....

Everyone has their own views!! :thumb:
I feel market at present is such that you remove the "I" from your trades and be as mechanical as possible!!!
All the best!!!!!!!!!!!!!

 

[rajatheroyal]

So we can say that you were not trading the 315 Strategy 'alone'!! My reason was just to point out the anomaly so that others folowing the 315 system do not get confused!!!
All the best!! Cheers!!

Karnani sir you think this 315 traded alone makes money ?

 

[unbeatable]

SH,

Thanks a lot for your strategy once again ...

I have few queries regarding exit

YOU have said that one has to exit positions if the candle does not touch 3 day EMA. Should we check whether opening price is touching 3 EMA or should we wait whole day and then check 3 day EMA is touched or not before exiting positions ???????

 

[rkkarnani]

Karnani sir you think this 315 traded alone makes money ?

No it does not make money in its raw form...however if you add a few more 'rules' to it, it does!! As SH is doing it, whenever there is a big Gap up opening above 3EMA he exits and a few more... add to it : some money management as per individuals risk appetite and it would go a long way in giving decent returns in this strategy alone!! I as my own principle of trading avoid any discreationary trades when trading a system!!! hence my objection is not to why one should look at other indicators while trading this system, its simply fine if the same is done 'always' , i.e. if it is made as a part of the rule!!! Most systems which have a RRR in our favour would give positive resulta ONLY when traded with discipline and mechanically!!! Again would add that this is 'my' $0.02!!!
Important : I have not yet traded this strategy as my Historical analysis has ended and is in forward test mode. I find it quiet attractive. The only hesitancy is due to keeping positions open overnight. I had stopped Positional trades since a loooong time, have been doing only intraday hence its taking more time to attune my attitude to positional trades once again!! I am sure to trade 'options' in NF based on this Strategy with a few more inputs!!
All the very best!!
-R K Karnani