SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

Hi SH,

A quick question. Will you go for adding another lot if today's high crosses over yesterday's high and stay long ? The other condition for adding new lot (candle touching the 15EMA has occurred for NIFTY I suppose). Since there is volatility I was wondering whether adding another lot is a prudent action or not. Thanks.

No I will not be doing an ADD.

Remember the pre-requisite of an ADD is when your original position is in good profits then only you can think of an ADD... my original position is not in profit yet and hence I dont want to add to my overall risk.

Cheers
SH

 

[Tradewithhunter]

ICICIBANK has given a sell signal on 315 few days back and is now getting resisted at 15 EMA.... a chance to go short with small risk or buy puts or write calls.... with expiry close i would recommend writing calls!

Already holding NF longs so the ICICI shorts and NF longs kind of hedge each other.

Cheers
SH

 

[Tradewithhunter]

NF dipped and is back to 15 EMA again .... holding longs for tomorrow.

ICICI Bank went up today while 3 EMA was not touched by the candle.. shorted more OTM calls in the morning and still holding them for tomorrow.

Cheers
SH

 

[Tradewithhunter]

Nifty on EOD in realtime has moved to bearish zone .. if NIfty closes below 5215 today we will have a bearish crossover on 315.

Holding ICICI shorts as hedge right now.

Cheers
SH

 

[feelbullish]

Hey bro shall we make the ema's as 3 and 18 as the mkt timings have gone up by an hour to approx 6 hours.

Awaiting your reply.....

 

[rh6996]

Hey bro shall we make the ema's as 3 and 18 as the mkt timings have gone up by an hour to approx 6 hours.

Awaiting your reply.....

Hi Feelbullish!!! What an intelligent question!!! But just see what SH had written at the beginning of the thread :

People ask me why EMA 3 and EMA 15 .... for me last 3 days define the immediate average price ... to find the slightly longer term trend i use the factor of 5. This is becuase 5 has an interesting relevance to markets.... we have approx 5 hours of trading everyday, 5 trading days in a week, almost 5 trading weeks in a month .... So I simply multiple 3 by 5 to get my 15 EMA which defines my medium term average price.

I almost laughed aloud!!!!

5 Trading weeks in a month!!!

Well he qualified his statement by saying "almost"!!!

SH was dishing out free stuff so one 'questioned' him how did he get 5 weeks in a months!! (Daan kee bachhiya ke daant nahee gine jaate)

So you see its all approximate!!! 3 and 15 works irrespective of the reasons there may be!!!! The most significant reason would be that it worked 'historically!!!

Moreover we are not trading intraday or hourly charts so it does not matter if the trading time is enhanced!!!

 

[Tradewithhunter]

Hi Feelbullish!!! What an intelligent question!!! But just see what SH had written at the beginning of the thread :



I almost laughed aloud!!!!

5 Trading weeks in a month!!!

Well he qualified his statement by saying "almost"!!!

SH was dishing out free stuff so one 'questioned' him how did he get 5 weeks in a months!! (Daan kee bachhiya ke daant nahee gine jaate)

So you see its all approximate!!! 3 and 15 works irrespective of the reasons there may be!!!! The most significant reason would be that it worked 'historically!!!

Moreover we are not trading intraday or hourly charts so it does not matter if the trading time is enhanced!!!

Dear rh6996,

Yes i qualified my statement by saying 'almost' since its not always complete 5 weeks... but its not always complete 4 weeks.. its between 4 weeks and 5 weeks... Check out December 2009 .. a shade less than 5 weeks!

Anyways, I had my logic of picking 3 & 15 which i tried to share rather than using an arbitrary number !

Cheers
SH

 

[Tradewithhunter]

Nifty on EOD in realtime has moved to bearish zone .. if NIfty closes below 5215 today we will have a bearish crossover on 315.

Holding ICICI shorts as hedge right now.

Cheers
SH

NIfty closed at 5085 yesterday, 315 bearish signal was confirmed and I have reversed to shorts in Nifty at 5083 levels.

Longs were at 5262 levels hence this gave a loss of 199 points ! Got saved by ICICI shorts ... (have also been holding IFCI & Unitech & shorts in my portfolio and SAIL still long)

So 5 positions in my portfolio now are:

IFCI shorts
Unitech Shorts
NIfty Shorts
ICICIBank Shorts
SAIL Longs

Cheers
SH

 

[Tradewithhunter]

NIfty closed at 5085 yesterday, 315 bearish signal was confirmed and I have reversed to shorts in Nifty at 5083 levels.

Longs were at 5262 levels hence this gave a loss of 199 points ! Got saved by ICICI shorts ... (have also been holding IFCI & Unitech & shorts in my portfolio and SAIL still long)

So 5 positions in my portfolio now are:

IFCI shorts
Unitech Shorts
NIfty Shorts
ICICIBank Shorts
SAIL Longs

Cheers
SH

NF now at 5083 .. 3 EMA not being touched... booked NF at 5083 here (100 point profit) . Will reenter at 3 EMA touch.

Other shorts in stocks being booked too as per 3 EMA rule. Fantastic day !! :rofl:

Cheers
SH

 

[observer]

Why are you still long in SAIL?
I took position in SAIL but got whipsawed twice (last two days), overall SAIL was not looking weak, so closed my position at loss.