SH's 315 Strategy - how to use if effectively

[amol_gh123]

Hi SH,

First let me give you warm regards and thanks for sharing simple, but effective, 315 strategy. I have gone through 315-thread and able to understand most part of the strategy, but still there are certain gaps I am encountering in understanding the technique.
1) As I am aware that 315 is at its best, when used with futures contract. But for futures there always an expiry date. How would I take the call when the contract comes near to expiry date.
For e.g.(not actual data)
Nifty Futures on 22-Jan is @ 4900 and we are in long position. The expiry for the contract is on 29-Jan. Suppose 3 EMA is not touched on 26-Jan and we sell out our positions on the same day.
Now should we go ahead with trade on next day(27-Jan), if 3 EMA is touched, knowing the fact expiry is after 2 days or should we go ahead with next months futures contract?

2) After the expiry of contract, we need to start with new positions. How would we get into positions if EMA cross-over has happened in last month's contract?
For e.g.
Nifty Futures on 25-Jan is @ 4900 and we are in long position. The expiry for the contract is on 29-Jan. Suppose 3 EMA is not touched till 29-Jan and because of expiry we are out of the positions with some profit.
Now we need to get into trade for Feb contracts. What should be the approach to go long or short, if EMA cross-over happened in Jan-contract. Is it, straight-a-way, when 3 EMA is touched again and 3 EMA is above 15-EMA?

Really appreciate and thanks for your efforts.

 

[Tradewithhunter]

Hi SH,

First let me give you warm regards and thanks for sharing simple, but effective, 315 strategy. I have gone through 315-thread and able to understand most part of the strategy, but still there are certain gaps I am encountering in understanding the technique.
1) As I am aware that 315 is at its best, when used with futures contract. But for futures there always an expiry date. How would I take the call when the contract comes near to expiry date.
For e.g.(not actual data)
Nifty Futures on 22-Jan is @ 4900 and we are in long position. The expiry for the contract is on 29-Jan. Suppose 3 EMA is not touched on 26-Jan and we sell out our positions on the same day.
Now should we go ahead with trade on next day(27-Jan), if 3 EMA is touched, knowing the fact expiry is after 2 days or should we go ahead with next months futures contract?

2) After the expiry of contract, we need to start with new positions. How would we get into positions if EMA cross-over has happened in last month's contract?
For e.g.
Nifty Futures on 25-Jan is @ 4900 and we are in long position. The expiry for the contract is on 29-Jan. Suppose 3 EMA is not touched till 29-Jan and because of expiry we are out of the positions with some profit.
Now we need to get into trade for Feb contracts. What should be the approach to go long or short, if EMA cross-over happened in Jan-contract. Is it, straight-a-way, when 3 EMA is touched again and 3 EMA is above 15-EMA?

Really appreciate and thanks for your efforts.

Dear Amol,

Please see my responses below.

1. You can rollover to next month on 26th Jan if the cost of carry is not too large i.e the price of next months future is close to current month future.

2. Monthly expiry has no impact on our positions except that every month end we need to close current month position and immediately open similar position in next month series. Nifty futures charts are not contract specific.

Cheers
SH

 

[Tradewithhunter]

Dear Friend,

I have just started reading this thread. I have some confusion. The basic strategy mentioned here is 3EMA crossing over or below 15EMA for entry or exit. Which 02 EMAs shall I need to use - 3EMA & 15 EMA or 3EMA & 5EMA? Because, in point no. 6, it is said that, " you just need to plot 3 EMA and 5 EMA."

Please clarify this point.

Regards,

Raju

Dear Raju,

Sorry must be a typo .. we trade based on 3 EMA and 15 EMA.

Cheers
SH

 

[raj_usb]

Hi,

One solution cud be to roll-over to next contract on expiry day in last hour of trade. Follow next month contract frm next day.

- Raj

 

[raj_usb]

Dear Raju,

Sorry must be a typo .. we trade based on 3 EMA and 15 EMA.

Cheers
SH

Hi SH,

Cud u pls edit point 6 in ur post. It causing un-necessary confusion. Also pls answer to my previous posts.

Thank you.

- Raj

 

[max_icmpl]

ANYBODY WHO CAN GIVE ME AN AFL FOR AMIBROKER WHICH CAN GIVE ME BUY SELL CALLS FOR JUST 0.17%-0.2% PROFIT IN DAY TRADES...CAN ANYBODY PLEASE DO THAT FOR ME....I M DAY TRADER ie JOBBER.....PLEASE.......
I JUST NEED 50 PAISE PROFIT FOR A STOCK OF RS 300......

 

[slah04]

SH,

request you to clarify on my previous post.

slah

 

[arti]

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[amol_gh123]

Hi SH,

Thanks for replying to my previous queries :thumb:

I am attaching a Nifty 3-month EOD daily chart. As you can see in the chart we could have earn good amount of profit if we could have sell the 2nd long @ around 5300 level. But as per strategy there was never an instance where 3 EMA is not touched. After that EMA cross-over happens and we need to sell our longs @ around same buy level. Is there any work-around to avoid this, I mean exiting the position even if 3 EMA is touched, but there is a huge gap down between opening price and 3 EMA.

 

[Tradewithhunter]

Hi SH,

Thanks for replying to my previous queries :thumb:

I am attaching a Nifty 3-month EOD daily chart. As you can see in the chart we could have earn good amount of profit if we could have sell the 2nd long @ around 5300 level. But as per strategy there was never an instance where 3 EMA is not touched. After that EMA cross-over happens and we need to sell our longs @ around same buy level. Is there any work-around to avoid this, I mean exiting the position even if 3 EMA is touched, but there is a huge gap down between opening price and 3 EMA.

Sorry - if 3 EMA is being touched by the candle... we cannot book profits as per the rules.

Cheers
SH