SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

Thanks SH for the rules.

Pl see this chart.

entered short on close of bar 2

next day, at some point it was in profit and at some point it touched prev close which is SL. So shall we stop here? or wait for another day? how do we define, 'once we are in profit'? is it on EOD basis or intraday? if its EOD we might make a bigger hole in the pocket. If its intraday, then we might be stopping out unnecessarily, market may reverse. for every trade, we will be touching entry point even same day or next day. so what should be done?

ok, assuming we give it another day. then we would have stopped out at bar 5. if we had not followed this SL, then we ould have made a loss at close of bar 14. there was no chance to exit in between

is this correct?

Very good question bandlab, I am really impressed. As you can see in my post for 'effective SL', i use the entry point as SL once the markets have swung a considerable bit in my favour... to quanitfy 'considerable bit' I use 100 points as a yardstick... so in your example yes we would be stopped out at bar 5 and not bar 2.

However if on bar 5 first our SL was hit and then previous days lows were breached, we would have entered shorts again at that point. This new point now becomes our initial entry point.

However coming back to this case, you can see how on bar 5 once our SL was hit and markets eventually reversed saving us a whipsaw.

Cheers
SH

 

[Tradewithhunter]

OK - yesterday markets gapped up at 4490 and within first 15 mins shot up to 4520.... Since the EOD candle wasnt touching 3 EMA at that point and markets were clearly overbought, I chose to book at 4520 (as per effective profit booking rule) and waited for an entry to be made again at 3 EMA touch.

3 EMA touch happened later when markets fell to 4432 later in the day so I entered again with my original SL 4392. SL got hit later in the day and I exited.

Net result of this swing trade:

Longed at 4392 booked at 4508 on 20th July : profit 116 points
Longed again at 4468 booked at 4520 yesterday: profit 52 points
Longed again at 4432 exited at 4392 SL : Loss 40 points.

Net 128 points profit.

Now empty handed waiting to go long on previous days highs breach or to go short on 315 bearish crossover whichever comes first.

just discussing Nifty here as an example though i trade DLF, RIL & ICICIBank as well using 315.

Cheers
SH

 

[bandlab2]

OK - yesterday markets gapped up at 4490 and within first 15 mins shot up to 4520.... Since the EOD candle wasnt touching 3 EMA at that point and markets were clearly overbought, I chose to book at 4520 (as per effective profit booking rule) and waited for an entry to be made again at 3 EMA touch.

3 EMA touch happened later when markets fell to 4432 later in the day so I entered again with my original SL 4392. SL got hit later in the day and I exited.

Net result of this swing trade:

Longed at 4392 booked at 4508 on 20th July : profit 116 points
Longed again at 4468 booked at 4520 yesterday: profit 52 points
Longed again at 4432 exited at 4392 SL : Loss 40 points.

Net 128 points profit.

Now empty handed waiting to go long on previous days highs breach or to go short on 315 bearish crossover whichever comes first.

just discussing Nifty here as an example though i trade DLF, RIL & ICICIBank as well using 315.

Cheers
SH

do u use any filters? if you had used some 10 points filter yr SL would have been avaoided an made another 100 points profit instead of 50 rs loss. but gap up/down is not in our hand. things could go eitherway

 

[amar_gr]

As of EOD today the 3D Ema value I am getting is 4435 , while today's low was 4438, so ema not touching according to my charts.. .

Any idea why the values are differing for the same ema period. ?

Cheers
Amar.

Hi SH,

Awaiting yr inputs on my query. Thanks in advance.

Amar.

 

[Tradewithhunter]

do u use any filters? if you had used some 10 points filter yr SL would have been avaoided an made another 100 points profit instead of 50 rs loss. but gap up/down is not in our hand. things could go eitherway

Hi Bandlab,

No i do not use filters since this strategy is not based on pivots. However this is still and evolving strategy and I will keep innovating with it to keep it ahead of the curve.

Cheers
SH

 

[sanjay_arora]

@tradewithhunter

Seems to be a very nice strategy. I understand it only conceptually. Was not able to test it myself, as am a newbie in Amibroker, but I will get there soon.

However, I do have a question. Would it not be possible to label a period as trending up, trending down, trending sideways etc. and run the strategy only in trending upwards/downwards markets? Would it not decrease the whipsaw based losses?

I believe it should be possible. Would you and other people care to comment?

 

[Tradewithhunter]

Hi SH,

Awaiting yr inputs on my query. Thanks in advance.

Amar.

Hi Amar - Sorry wasn't sure if the query was directed to me..

Its strange it showed different values.. for me the 3 EMA was definitely touched during the day... however i look at the charts and dont exactly check the values... if the candlestick is appearing to be touching the 3 EMA I jump back in.

Cheers
SH

 

[Tradewithhunter]

@tradewithhunter

Seems to be a very nice strategy. I understand it only conceptually. Was not able to test it myself, as am a newbie in Amibroker, but I will get there soon.

However, I do have a question. Would it not be possible to label a period as trending up, trending down, trending sideways etc. and run the strategy only in trending upwards/downwards markets? Would it not decrease the whipsaw based losses?

I believe it should be possible. Would you and other people care to comment?

Hi Sanjay,

Very good question.

You can label a period as trending and non -trending based on different indicators available like ADX etc however I do not use them.

For me 15 EMA is my indicator.. an upward sloping 15 EMA means uptrend and downward sloping 15 EMA means downtrend. A flat 15 EMA means no trend.

Different traders (with different time frames) use different period EMAs for this ... one of my friend uses 22 EMA, a positional trader of mine uses 50 EMA to define a trend.. so its upto individuals.

What ideas do you have, would love to know them.

Cheers
SH

 

[puneet_gaur2k1]

Dear All,

Please validate the list of scripts given fresh bulish crossover signal according to the 315 crossover strategy.

Please comment ...

 

[spiritunit]

Puneet, you collected some good 315 strategy stocks, but lots of them are very low volumes, have to be careful with these kind of shares, also found some good volume shares with 315 strategy in excel, thanks for the report. How did you find these stocks with 315?