SH's 315 Strategy - how to use if effectively

[naveenvadavadagi]

They remain constant through out the day. the EMA5 is weighted avg of LAST 3 days close price. todays close price will come in tomorow calculation.

however, at 3:15 PM, you can take a chance and enter the trade in anticipation if you think there would be a cross-over

Hi,

Thanks for the information. But let me know any other method or calculation to anticipate the crossover or any formula we can use for confirmation of crossover. Please suggest.

Also suggest if we can confirm by using the pivot points etc.

Regards,

Naveen.

 

[forestflower]

Dear SH,
Let me begin by thanking you for sharing this strategy with the trading community. People like Saint,yourself and others of your ilk should be appreciated, encouraged and thanked profusely for sharing their knowledge for the benefit of others.
It requires character to share your workstyle, accomadate ignorance, answer queries,trade live, take criticism as well as refine your theories all without any personnel payoff.
I trade a couple of strategies and have allotted 25% of my trading capital to this strategy, although I must say that I am reading this system along with stochastics{with Demark's theory of overbought and oversold levels}.It helped avoid the last whipsaw.
I believe the purpose of contributing to a thread should be to refine, finetune,
evolve and perhaps optimise a strategy with your intellect,observation and practical experience rather than poke holes or laugh it off.Any serious trader would first trade a promising system, understand it's dynamics and then comment.
Please appreciate that no system is perfect and without whipsaws. A newly appointed police commissioner was asked by the press"How do you propose to eliminate crime" to which he replied 'Crime cannot be eliminated, it can only be minimised". Similarly in trading whipsaws cannot be eliminated,they can only be minimised through disciplined application of a trading system.
And for poeple who are new to this system and are learning to apply the same let me quote from the Shastras "WHENEVER YOU ACQUIRE NEW KNOWLEDGE, YOU ARE THEN REQUIRED TO MAKE MISTAKES IN ORDER TO UNDERSTAND THE KNOWLEDGE FULLY". Remember the operative word is "YOU ARE REQUIRED"{Recall learning to walk.Riding a bike etc}
Edison once said "IN LIFE THERE ARE NO MISTAKES,ONLY LESSONS. GROWTH IS A PROCESS OF TRAIL AND ERROR EXPERIMENTATION"
This post is in response to RAJ the royals comments which I find distasteful and not in the spirit of the forum and detest the same.

I once again thank and appreciate the efforts of people like SH. We are with you buddy, you rock. GOD BLESS YOU

 

[rajatheroyal]

Dear SH,
Let me begin by thanking you for sharing this strategy with the trading community. People like Saint,yourself and others of your ilk should be appreciated, encouraged and thanked profusely for sharing their knowledge for the benefit of others.
It requires character to share your workstyle, accomadate ignorance, answer queries,trade live, take criticism as well as refine your theories all without any personnel payoff.
I trade a couple of strategies and have allotted 25% of my trading capital to this strategy, although I must say that I am reading this system along with stochastics{with Demark's theory of overbought and oversold levels}.It helped avoid the last whipsaw.
I believe the purpose of contributing to a thread should be to refine, finetune,
evolve and perhaps optimise a strategy with your intellect,observation and practical experience rather than poke holes or laugh it off.Any serious trader would first trade a promising system, understand it's dynamics and then comment.
Please appreciate that no system is perfect and without whipsaws. A newly appointed police commissioner was asked by the press"How do you propose to eliminate crime" to which he replied 'Crime cannot be eliminated, it can only be minimised". Similarly in trading whipsaws cannot be eliminated,they can only be minimised through disciplined application of a trading system.
And for poeple who are new to this system and are learning to apply the same let me quote from the Shastras "WHENEVER YOU ACQUIRE NEW KNOWLEDGE, YOU ARE THEN REQUIRED TO MAKE MISTAKES IN ORDER TO UNDERSTAND THE KNOWLEDGE FULLY". Remember the operative word is "YOU ARE REQUIRED"{Recall learning to walk.Riding a bike etc}
Edison once said "IN LIFE THERE ARE NO MISTAKES,ONLY LESSONS. GROWTH IS A PROCESS OF TRAIL AND ERROR EXPERIMENTATION"
This post is in response to RAJ the royals comments which I find distasteful and not in the spirit of the forum and detest the same.

I once again thank and appreciate the efforts of people like SH. We are with you buddy, you rock. GOD BLESS YOU

Why dont u guys take at a look at the backtest report and point out the mistakes if any that would be correct way to learn.

.

 

[naveenvadavadagi]

Dear SH/TH,

I have the following doubts. Please clarify.

1. As you can see the 3X15 cross-over took place on 23.12.2009 at 5050. Please let me know if we can see this crossover live, in the chart during the trading hours if we subscribe to the EOD service providers.

2. If not as mentioned above, will this cross over takes place during the last half an hour of trading i,e 3PM -3.30PM.

3. If not both the above mentioned, any other strategy or formulae, or any pivot based calculations shall be used for the crossover with or without referring to the chart.

4. Or we need to wait till the end of the day and shall enter only the next day once the cross-over is confirmed.

Please clarify the above.

Regards,

Naveen.

 

[unbeatable]

Yes i agree it works for paper traders.

Nice,

Do you agree here whether you do not know how to paper trade or do real trade.... None would get your liner above saying it works in paper trade...

Do you put real money on 1st trade when you hear of some strategy....

Anyhow in that case I think , it wouldn't work for people who post charts like you may be....

 

[rajatheroyal]

Nice,

Do you agree here whether you do not know how to paper trade or do real trade.... None would get your liner above saying it works in paper trade...

Yes i agree i dont have experience in paper trading,are you any expert in it?.

Do you put real money on 1st trade when you hear of some strategy....

I dont put realmoney on others strategies without backtesting it.

Anyhow in that case I think , it wouldn't work for people who post charts like you may be....

:lol: funniest joke..So it works only for people who dont know how to post charts

 

[rkkarnani]

Originally Posted by unbeatable
SH,

One more doubt regarding 3day and 15 day EMA...

Will these change during the course of day or will they remain the same throughout the day from the opening.

For Example , at opening of day at 10:00 AM , if the 3EMA is 5150 and 15 EMA is 5120 , will they remain the same even at the end of day i.e. 15:15 or does it change as the time goes on ??

They remain constant through out the day. the EMA5 is weighted avg of LAST 3 days close price. todays close price will come in tomorow calculation.

however, at 3:15 PM, you can take a chance and enter the trade in anticipation if you think there would be a cross-over

Well I differ a little from the views of Bandlab!!

The EMA's for the previous day are consttant (BTW, EMA's are different from Weighted averages) during the present day BUT the EMA's for 'today' are dynamic during the formation of the current BAR, i.e. todays bar!! The EMA level would fluctuate as per the last traded price in Real Time!!
At 3.28 you can see where the EMA's for the day are and take your decision!!!
SH had at places explained this. He is entering, or reentering at 3EMA or Adding at 15 EMA. The Price might be touching the 3 EMA when he reentered or touching the 15 EMA when he added, but the same may not 'continue' to remain at 3EMA or 15 EMA when we see the EOD chart as the price by then might have moved and closed away form the previous level!! Why this happens is very logical as we are plotting the 3 or 15 EMA of the "Closing" price!!
In case we were plotting the EMA's of High or Low, then we would find that the EMA for the curent day would remain constant till the High or the Low changes!!! But in case of EMA of CLOSE, the levels of EMA's change every time the Chart refreshes and a new closing price is displayed!!!
I am very sure that I am correct, but would be happy to get the errors pointed out in my understanding so that I too learn!!

 

[unbeatable]

Yes i agree i dont have experience in paper trading,are you any expert in it?.




I dont put realmoney on others strategies without backtesting it.



:lol: funniest joke..So it works only for people who dont know how to post charts

Yes It is as funny as the paper trading joke you said.... It is hilarious when you start to believe that the same trading when done in real would fail , So are there any separate indexes for paper traders and real traders....You think mathematics changes here ..... May be atleast in that case , learn paper trading and then speak something about it if you think it is an art with some non-nse cues .....

Do you have maths separate on paper and account ? Give an example

Coming to your last point , Yes , it works for people who don't know to post incorrect charts .....

 

[rkkarnani]

RtheR, Not goin into the merits or demerits of this strategy I would like to comment as follows. You may have your own valid reasons for ridiculing this Strategy, but one thing I am sure about : This strategy cannot be 'back tested" in any System Tester" for the simple reason that it is not entirely 'mechanical'!! There are certain aspects like exiting when 3EMA is not touching, reentering at 3 EMA or adding at 15 EMA are not totally mechanical!!! These entries are being made as per the 3 and 15 EMA's of the RT chart which has 'dynamic' values of the EMA, whereas when we system test the strategy we are getting the results as per closing price for the day!!!
Though it may sound like a sermon but do rethink whether the post from you about Fooloing People etc. was in good taste!! TH/SH is not here touting this strategy to "SELL" it!!! so why wud he 'fool' people, what for!! Well this is my view and am willing to accept it that it may be wrong!!!
All the best!!

 

[unbeatable]

Well I differ a little from the views of Bandlab!!

The EMA's for the previous day are consttant (BTW, EMA's are different from Weighted averages) during the present day BUT the EMA's for 'today' are dynamic during the formation of the current BAR, i.e. todays bar!! The EMA level would fluctuate as per the last traded price in Real Time!!
At 3.28 you can see where the EMA's for the day are and take your decision!!!
SH had at places explained this. He is entering, or reentering at 3EMA or Adding at 15 EMA. The Price might be touching the 3 EMA when he reentered or touching the 15 EMA when he added, but the same may not 'continue' to remain at 3EMA or 15 EMA when we see the EOD chart as the price by then might have moved and closed away form the previous level!! Why this happens is very logical as we are plotting the 3 or 15 EMA of the "Closing" price!!
In case we were plotting the EMA's of High or Low, then we would find that the EMA for the curent day would remain constant till the High or the Low changes!!! But in case of EMA of CLOSE, the levels of EMA's change every time the Chart refreshes and a new closing price is displayed!!!
I am very sure that I am correct, but would be happy to get the errors pointed out in my understanding so that I too learn!!

Hi Karkani,

I think SH and others have already mentioned that 3 day EMA and 5 day EMA remain the same till the EOD as they are calculated only on the previous few days and not current day's levels....

Only the next day ,I think the EMA would again change based on today's closing price is 3:30