SH's 315 Strategy - how to use if effectively

[unbeatable]

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!!

Good one .... You are right...

SH is clearly putting levels and EMAs during real time... It is upto people to check and speak where he posted wrong in profits....

But again coming to dynamic EMA , please answer to my previous post...

 

[unbeatable]

Karkani,

I think the Daily EMAs remain constant throughout the day...

It is other timeframes that keep changing as per the timing.

 

[rajatheroyal]

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 .....

You seem to be a Noob.Wasted my time replying to you.Do trade with some realmoney and you will know the difference.

 

[Tradewithhunter]

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!!

The above answer is absolutely correct for the question of whether EMAs change during the day if using RT EOD data.

Remember, 3 EMA is last 3 closing price weighted average. When you use Real Time EOD candle, the average is taken out of last 2 days closing price plus current days closing price. Since current days closing price is nothing but the current traded price, the EMAs will keep changing throughout the day as the current traded price moves. This is exactly why we enter at 3.25 PM crossover coz from thereon we can assume that closing price of current day wont change significantly.

Hope this explains the concept of dynamic EMAs.

Cheers
SH

 

[Tradewithhunter]

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.

Dear Naveen .. if you do not have real time dynamic candle... you can calculate it in a spreadsheet at 3.25 PM and enter accordingly.

I will try and create a spreadsheet and upload here where you can calculate 15 EMA and 3 EMA by inputting the traded price on any point in the day.

Cheers
SH

 

[unbeatable]

You seem to be a Noob.Wasted my time replying to you.Do trade with some realmoney and you will know the difference.

WOW.... How funny...

Frustration or something seem to make you blind from the fact that indices and price do not change according to paper or real money.... They remain the same irrespective .... Do they change in charts and when you trade in real money ?



Yes , atleast now you understood partly few things... You are wasting time not yours but others ..... You have some allergy to paper trading ans some apprehensions which makes you think that levels are diff on paper and real making others wonder that you have any separate paper trading terminal and real trading terminal....

You do backtesting you said before trading. I do paper trading real time before putting money....

 

[unbeatable]

The above answer is absolutely correct for the question of whether EMAs change during the day if using RT EOD data.

Remember, 3 EMA is last 3 closing price weighted average. When you use Real Time EOD candle, the average is taken out of last 2 days closing price plus current days closing price. Since current days closing price is nothing but the current traded price, the EMAs will keep changing throughout the day as the current traded price moves. This is exactly why we enter at 3.25 PM crossover coz from thereon we can assume that closing price of current day wont change significantly.

Hope this explains the concept of dynamic EMAs.

Cheers
SH

Does this mean one should wait till 3:25 to enter and not enter on opening even if you see the crossovers already happening.....

 

[Tradewithhunter]

Does this mean one should wait till 3:25 to enter and not enter on opening even if you see the crossovers already happening.....

Yes!

by the way mkts are at 5190 and 3 EMA is at 5160 for today. Neither Thursdays candle nor today's candle is touching 3 EMA.. thats a recipe for a sure shot short and hence I have shorted at 5190 (against 315 rules which says no shorting).

This is more of a personal trade and i would repeat again, not as per rules of 315.

I will cover this shorts and go long when 3 EMA is touched during the day (around 5170)

Cheers
SH

 

[Tradewithhunter]

how to handle the whipsaw happened between 7August to 24August 09.Plz reply as my queries are getting dumped in the worthless discussion of whether this strategy is good or not. If someone didnot like it,leave it man go ahead with other strategies,why waste time of urself as well others.

Dear Arti - In an attempt to avoid whipsaws, I can mix 5 other indicators here with 315 and make things more complicated. And still you will find the whipsaws will not get 100% eliminated. So my simple answer (which i have given many times in the past on this) is that you accept these whipsaws as business expense of 315. For each Whipsaw means a huge trend is around the corner waiting to be encashed. Whipsaws are necessary to keep traders humble and cautious.... nature's balancing act.

Whipsaws are like fools who come here and criticize this strategy blindly without first trying to assimilate it .. they are the nature's balancing act to all the wise traders here.

Cheers
SH

 

[Tradewithhunter]

whts wrong with his testing. kindly point out or accept it since u r a vendor

I am a vendor? :lol: Ok are you paying me per minute for explaining whats wrong with the backtesting?