SH's 315 Strategy - how to use if effectively

[unbeatable]

Arti,

Though I cannot explain you very clear like SH does , my understanding is as follows:

In his first post SH has mentioned that one has to exit the position when Current day candle is not touching 3 EMA bcos it is expected to correct from that level to touch 3 EMA again in near future.... So that we will get good chances of earning more profit by re-entering at lower levels....

Your point is also correct... But the strategy says you have to go long when crossover happens... Now when 3 EMA is above 15 EMA and if Current Day candle is not touching 3 EMA , it means trend is upwards but Nifty is expected to correct itself to touch 3 EMA which given us opportunity to enter at lower levels..... It doesnt matter even if it goes down after touching 3 EMA bcos the trend is upwards and we are not anticipating it to correct more than this....

You can reverse your position if the EMA crossback again in opposite dir which you can use as SAR...

This is my understanding ... Let SH confirm it...

 

[rkkarnani]

Have a doubt,why we add when candle touches 3ema,it may go further down also,as we add when 15ema is touched. In EOD charts many times its came down after touching 3ema(of course went up also)

We DONOT add when price touches 3EMA!!! In case we had exited our position, we 'reenter' here!!! We only add at 15EMA "if our original trade is in PROFIT"!!!

 

[arti]

We DONOT add when price touches 3EMA!!! In case we had exited our position, we 'reenter' here!!! We only add at 15EMA "if our original trade is in PROFIT"!!!

But why to reenter at higher level?.Like if will see EOD charts,many times after touching 3ema,it went down for consecutive days.

 

[unbeatable]

But why to reenter at higher level?.Like if will see EOD charts,many times after touching 3ema,it went down for consecutive days.

Arti,

We are not re-entering at higher level but we are exiting at higher levels(when candle is not touching 3 EMA) and re-entering at lower levels (When Candle is touching 3 EMA)..... We get this difference as profit.....

Now if you are sure that everytime when candle touches 3 EMA , it will dip down further then you can wait till it corrects more but there is no method to exactly know the bottom in any TA exactly... We can only get additional profit by exiting and reentering but this doesnt mean we are exactly entering at the bottom

 

[Tradewithhunter]

Arti,

We are not re-entering at higher level but we are exiting at higher levels(when candle is not touching 3 EMA) and re-entering at lower levels (When Candle is touching 3 EMA)..... We get this difference as profit.....

Now if you are sure that everytime when candle touches 3 EMA , it will dip down further then you can wait till it corrects more but there is no method to exactly know the bottom in any TA exactly... We can only get additional profit by exiting and reentering but this doesnt mean we are exactly entering at the bottom

Absolutely correct, there will be times when after touching 3 EMA it can continue correcting and touch 15 EMA. However there will also be times when after touching 3 EMA it continues to go up without touching 15 EMA at all....

Cheers
SH

 

[Tradewithhunter]

Dear SH,

You and Mr. Unbeatable are doing nice job for posting current positions in Nifty. But, there are lot of follower in this thread who are doing Positional Trading.

I can post stocks which is giving buy signal based on EOD using 315 system.

If you give me a permission, i will post all the signals and will also post daily updates on those active stocks.

This activity will improve my trading ability in positional trading and also it will be the live demo of 315 for other followers.

Please suggest.:thumb::thumb::thumb:

Dear Hardik,

I would keep this thread away from posting many stocks as the intention of this thread is just to focus on Nifty so that people can gradually learn the technicalities and smaller points of this strategy properly.

However, your idea is excellent. I am planning to start a separate thread where we can track other active stocks ... probably a few from the 20 stocks that I track currently. And then whoever is interested in whichever stock can keep coming there to see updates.

Alternatively, you can start a separate thread where you can post all bullish/bearish 315 crossovers everyday and track them as per your plan... you just need an auto EOD scanner....

Does this sound ok?

Cheers
SH

 

[Tradewithhunter]

DEAR SH,
I agree, elobrating beyond a point to doubting thomases serves no purpose. Every effective idea will have doubting thomas/mindles critic near and about it. Attending to them will dilute your focus and energy.We must distinguish between geniune traders seeking clarifications and psuedu traders.
In his prayers King goerge the fifth used to say " LORD GIVE ME THE STRENGTH TO CHANGE THINGS I CAN CHANGE. LORD GIVE THE PATIENCE TO BEAR THINGS I CANNOT CHANGE AND MY LORD GIVE ME THE WISDOM TO UNDERSTAND THE DIFFERENCE {i.e between what i can change and what i cann't}.
THUMPS UP TO YOU SH.

By the way, it seems the doubting Thomas has now been banned by the TJ administrators (under his ID it says 'banned')

Thanks TJ administrators, now we can focus on some constructive discussions here :clapping:

Cheers
SH

 

[hardikvithlani]

Its good idea to keep separate threads for all active stocks.

I don't have any EOD scanner as of now. I'm using Icharts & Chartnexus for chartreading.

You are requested to suggest me a EOD scanner.

Thanks

Hardik

Dear Hardik,

I would keep this thread away from posting many stocks as the intention of this thread is just to focus on Nifty so that people can gradually learn the technicalities and smaller points of this strategy properly.

However, your idea is excellent. I am planning to start a separate thread where we can track other active stocks ... probably a few from the 20 stocks that I track currently. And then whoever is interested in whichever stock can keep coming there to see updates.

Alternatively, you can start a separate thread where you can post all bullish/bearish 315 crossovers everyday and track them as per your plan... you just need an auto EOD scanner....

Does this sound ok?

Cheers
SH

 

[arti]

Yeah i saw that in chart that many times after touching 3ema it goes up,but if it goes down,let say for 3consecutive days,then what should i do.There can be two cases: -
1. It will touch 15ema and bounce back.In this case will add at 15ema touch isnt it?

2.It gets bearish cross at 15ema,so then will have to SAR.Will have gud amount of loss.

Sorry am just trying to absorb this system as I cannot do intraday(with full attention),so this system may help me.

Absolutely correct, there will be times when after touching 3 EMA it can continue correcting and touch 15 EMA. However there will also be times when after touching 3 EMA it continues to go up without touching 15 EMA at all....

Cheers
SH

 

[rkkarnani]

Yeah i saw that in chart that many times after touching 3ema it goes up,but if it goes down,let say for 3consecutive days,then what should i do.There can be two cases: -
1. It will touch 15ema and bounce back.In this case will add at 15ema touch isnt it?

2.It gets bearish cross at 15ema,so then will have to SAR.Will have gud amount of loss.

Sorry am just trying to absorb this system as I cannot do intraday(with full attention),so this system may help me.

Scenario 2 are there in this system and take away a lot of our profits!! No way we can avoid it if we follow the rules of trading. We have to innovate as per our own trading comfort by exiting part quantities at ceratin profits or exiting if in a Long trade price closes below 15 EMA but EMAs donot give a reversal crossover for Short!!
Take a look at 2 extreme scenarios!;
we are long on 6th January 2009, we exit on Open as price is not touching 3EMA, Price comes down and touches both 3 and 15 EMA, we reenter our original position and also Add at 15 EMA, at close price continues to go southward and closes much below 15 EMA... BUT 3EMA is still above 15EMA...we do not know what it would do the next day!! We can either exit all or part qty of our Longs. It reverses to Short next day!!

Now look at 25th to 30th Nov 2009!!!!
Very prudently SH opened only 50% Shorts on 27th Nov.(Remeber his post to this effect)
My $0.02 : (Take it for what it is worth)
Accept these whiplashes as part of this system and go through charts of last 2+ years to device a strategy for 'yourself' and then paper trade it for a Month in the Present before actually trading it with real money!!!