SH's 315 Strategy - how to use if effectively

[niksos]

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 .

I in a way agree with raj, trade strategies based on ema crossover do not work if ur trading off a small time frame of charts.. such system would break even or run into profits if you trade off the daily or weekly charts... make sure you have tight stops but again your risk appetite should be large if ur trading the daily and weekly charts..
All the best guys
Nik.

 

[rajatheroyal]

I in a way agree with raj, trade strategies based on ema crossover do not work if ur trading off a small time frame of charts.. such system would break even or run into profits if you trade off the daily or weekly charts... make sure you have tight stops but again your risk appetite should be large if ur trading the daily and weekly charts..
All the best guys
Nik.

well said :clapping:.You know this only when you have experience of Backtesting lot of strategies in different timeframes.

 

[Tradewithhunter]

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.

Dear Yesfive,

You have to book profits when you see the current days candle not touching 3 EMA. The way i booked at 5170.. later in the day NF moved to 5200+ levels and pulled 3 EMA slightly to barely touch it at candle's lowest point. However NF came down again to close below 5200 leaving 3 EMA not touching the candle.

As I had posted on Thursday, I am empty handed and will go long only when 3 EMA is touched next week.

Cheers
SH

 

[Tradewithhunter]

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 ???????

Dear unbeatable,

You have to exit at the open price/current price rather than waiting whole day.

Cheers
SH

 

[Tradewithhunter]

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 .

:rofl: made my day :rofl:

As Dale Carnegie said - Any fool can criticize, condemn and complain... and most fools do!

 

[Tradewithhunter]

I in a way agree with raj, trade strategies based on ema crossover do not work if ur trading off a small time frame of charts.. such system would break even or run into profits if you trade off the daily or weekly charts... make sure you have tight stops but again your risk appetite should be large if ur trading the daily and weekly charts..
All the best guys
Nik.

Dear Niksos - at the start of this thread I have clearly mentioned this is not a strategy to be applied to anything less than daily time frames.

And I dont mind trading a system that either breaks even or run into profits .. its a win win for a trader. :thumb:

Cheers
SH

 

[rajatheroyal]

As Dale Carnegie said - Any fool can criticize, condemn and complain... and most fools do!

You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.

Abraham Lincoln

Here is the report.
http://img23.imageshack.us/img23/2130/ec800x600.jpg


Have a look at your wonderful equity curve :lol:

You are trading for a Paperprofit of 22% per annum with a drawdown of 30% and calling others fool.

here is the report link.

http://www.multiupload.com/7XKHR2W7C9

 

[paulosraja]

I am very new to this business, Thanks for usefull method to make money. and i have a doubt is this method applicable for Nifty to come conclusion about trend.

 

[ag_fx]

You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.

Abraham Lincoln

Here is the report.
http://img23.imageshack.us/img23/2130/ec800x600.jpg

Have a look at your wonderful equity curve :lol:

You are trading for a Paperprofit of 22% per annum with a drawdown of 30% and calling others fool.

here is the report link.

Raja,

Though, I myself am not a follower of this method but I can safely vouch that there are serious mistakes in your analysis and results. The graphs that you have posted are seriously wrong in interpretation. From what I know of this method so far, your exits and reentries are wrong most of the times. I dont have sufficient time to post the corrections to your analysis, but I would recommend you to reconsider and recheck it. Preferably, dont try to build an AFL for it coz this method, does have some bit of discretion.


Coming to your other view that EMA/MA crossovers do not work. I would strongly vote against it. There are plenty successful MA crossover based systems that are present out there. Like rkkarni has said before, with proper MM and SL and risk apetite, the crossovers system do work very well. Add to it the fact that TWH posts his trades here, I wont doubt the intent here. ''

Just my 2 cents.

Best Regards

 

[rajatheroyal]

Raja,

Though, I myself am not a follower of this method but I can safely vouch that there are serious mistakes in your analysis and results. The graphs that you have posted are seriously wrong in interpretation. From what I know of this method so far, your exits and reentries are wrong most of the times. I dont have sufficient time to post the corrections to your analysis, but I would recommend you to reconsider and recheck it. Preferably, dont try to build an AFL for it coz this method, does have some bit of discretion.


Coming to your other view that EMA/MA crossovers do not work. I would strongly vote against it. There are plenty successful MA crossover based systems that are present out there. Like rkkarni has said before, with proper MM and SL and risk apetite, the crossovers system do work very well. Add to it the fact that TWH posts his trades here, I wont doubt the intent here. ''

Just my 2 cents.

Best Regards

Kindly let me know what is wrong in the chart, so that i can correct and come out with correct report.


If this is a complete rule based system , why it should not work automatically

If this is a discretionary method, then i have already told that Moving averages can be used discretionarily, my point was that mechanically it doesnt work thats all.

Everybody blaming on moneymangement and risk management for a losing strategy.
Monymangement is indeed very important but it has become an overheated issue people dont even look for a logic in their strategy and if they lose they start blaming on money management and psychology.

All i can say "Numbers Dont Lie" if you find mistakes in trades tell me i will correct it and still am confident that i can prove that overall its a losing system,if at all it is a system.

PS:The idea behind this method is not bad,with some modifications and traded discretionarily it should work.But mechanically it doesnt.