SH's 315 Strategy - how to use if effectively

[akrsrivastava]

I managed to avoid the short because I had placed a SL short order at 5610, 10 points below the day low of 30th Oct. (the day on which the short signal had been generated). With the market being rangebound for so many sessions I was apprehensive of a whipsaw and therefore I had placed this kind of a SL short order. I will follow a similar plan for Monday where I will place a SL buy order at around 5755-5760.

 

[ritesh.bafna88]

in a bullish trend we look at the close/low to be near or at EMA 15 to enter... if this is correct... then in a bearish trend we need to refer open\high or close\low for shortsell...??

same way in a bullish trend we look at the close/low to be near or at EMA 3 to make additional buy.... if this is correct then in a bearish trend we need to refer open\high or close\low for additional shortsell??

m i right...?

please guide... thanks

 

[akrsrivastava]

I had asked this question earlier but had not got any response. So I am reposting my question.

I am confused about the ADD rule which states that if my original trade is in profit, then I can add when price retouches 15 EMA. However this rule conflicts with the revised exit strategy rule which SH had suggested, as per which we should exit positions if 3 EMA moves opposite to our trade for two days. For price to touch 15 EMA, the 3 EMA would need to move opposite to our trade for at least a few sessions which means that by the time price touches 15 EMA , we would have already exited our positions. Thus the 15 EMA touch becomes more of a re-entry signal than an ADD signal.

Please let me know if I am incorrect in my observation. How do I reconcile these two seemingly opposing rules?

Thanks,
Amit

 

[prst]

Yeah because this is a Trend Following Method and right now the market is not trending.. It's consolidating and correcting.. It's rangebound and it's meant to give whipsaws in any kind of trend following methods.. Check the thread named "Trend Reversal?" in this same forum (Technical Analysis) to know about the same..

Cheers

i guess we can combine indicators to filter out whipsaws to some extent.

 

[mangup]

I had asked this question earlier but had not got any response. So I am reposting my question.

I am confused about the ADD rule which states that if my original trade is in profit, then I can add when price retouches 15 EMA. However this rule conflicts with the revised exit strategy rule which SH had suggested, as per which we should exit positions if 3 EMA moves opposite to our trade for two days. For price to touch 15 EMA, the 3 EMA would need to move opposite to our trade for at least a few sessions which means that by the time price touches 15 EMA , we would have already exited our positions. Thus the 15 EMA touch becomes more of a re-entry signal than an ADD signal.

Please let me know if I am incorrect in my observation. How do I reconcile these two seemingly opposing rules?

Thanks,
Amit

See, U consider a situation where there is big diff bet 3 EMA & 15EMA...means prices are much much above 15 ema. Now prices start moving in opp direction. SH has given the exit rule of 3EMA moving in opp direction for 2 days to give exit from the long. In this situation it may take 4-5 days to reach 15 ema which will signal ADD.

 

[dashr]

No Mangup. That is a re-entry, not an add.

Add can be initiated at 3EMA(daily) or 15EMA(shorter timeframe). The shorter timeframe could be hourly. I personally add at 3EMA and it works out awesome. Last week I was able to short Nifty at the high of the day as per the 3EMA add. Exact high, felt great(eventhough turned out to be a whipsaw).

So, today you could add at 5734. Enter today's ATP as today's close price to calculate 3EMA for today. So, I enter 5748(today's ATP) in the close column, this gives me today's 3EMA as 5734. I am not putting in an order yet as the position is not in profit. Will wait for atleast a 80 points profit before adding to longs.

 

[rkkarnani]

No Mangup. That is a re-entry, not an add.

Add can be initiated at 3EMA(daily) or 15EMA(shorter timeframe). The shorter timeframe could be hourly. I personally add at 3EMA and it works out awesome. Last week I was able to short Nifty at the high of the day as per the 3EMA add. Exact high, felt great(eventhough turned out to be a whipsaw).

So, today you could add at 5734. Enter today's ATP as today's close price to calculate 3EMA for today. So, I enter 5748(today's ATP) in the close column, this gives me today's 3EMA as 5734. I am not putting in an order yet as the position is not in profit. Will wait for atleast a 80 points profit before adding to longs.

This "add at 3EMA(daily) or 15EMA(shorter timeframe)" is this as per original strategy suggested by SH (TWH) or its something tweeked by you?

 

[dashr]

I don't think it is from original 315 strategy. Could be from another one of SH's strategy. Don't remember. Anyway, works well for me.

Backtest before you try.

 

[prabhsingh]

Kindly can anybody share the latest 315 afl please or direct towards post where it can be copied.

 

[akrsrivastava]

See, U consider a situation where there is big diff bet 3 EMA & 15EMA...means prices are much much above 15 ema. Now prices start moving in opp direction. SH has given the exit rule of 3EMA moving in opp direction for 2 days to give exit from the long. In this situation it may take 4-5 days to reach 15 ema which will signal ADD.

Actually it would not be an ADD , it would be a re-entry because we already exited position when 3 EMA started moving counter to our trade for two days. So I come to my original question. When do we ADD/Pyramid?