SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
Yes SH, there should be some modification; As commodity market remain open longer than Equity. Pls help.
Rgds
Rgds
Hi SH,
Could you pls suggest a good strategy for commodities trading. We can't apply SH315 to commodities as it is. Its generating more whipsaw/false signals due to volatile nature of commodities. We need to have some modifications in SH315 before applying it. I tried some combinations as using 10 ema instead of 15ema.
But I think we can still modify it further. I am confused
. Can you suggest some other options?
Thks.
-Raj
Could you pls suggest a good strategy for commodities trading. We can't apply SH315 to commodities as it is. Its generating more whipsaw/false signals due to volatile nature of commodities. We need to have some modifications in SH315 before applying it. I tried some combinations as using 10 ema instead of 15ema.
But I think we can still modify it further. I am confused
. Can you suggest some other options?Thks.
-Raj
The values of 3 or 15 EMAs are derived from the "closing" price, hence you must wait for the price to close before deciding on reversing your position!! The EMAs can be totally different at opening and at close!!! We jump in when the price opens with a gap and we see that 3 EMA is above but it may close much lower thus reverting to the original status of the EMA (3 below 15)
This happened today (22Feb 2010) itself. 3 EMA had crossed above 15 EMA and remained above for a long long time!!! And just see the EMAs at close!! # has gomne below 15!!!
This happened today (22Feb 2010) itself. 3 EMA had crossed above 15 EMA and remained above for a long long time!!! And just see the EMAs at close!! # has gomne below 15!!!
Try 5 & 34 EMA crossovers for commodities EOD. Book 50% when you get 5% move in your favour... book rest when you get 10% move ... wait for next crossover.
I am trading copper on EOD ... bought copper recently at 326, booked 50% at 341 ... holding rest which i will exit if bearish crossover happens or at 356.
Cheers
SH
Dear SH & other friends,
I have a query regarding 315 rule, which is stated below.
Entry :
Entries are simple, you wait for a candle to close above 15 EMA, next candle to open and see if 3 EMA is above 15 EMA or not. If the answer is 'Yes' you go long. For shorts you need an exact opposite setup.
I am attaching a chart of ICICI bank. Bullish crossover took place on 16/02/2010. According to the entry rule, we should make an entry if 3EMA is above 15EMA on open. On 17/02/2010, candle opened at, say, 840 and also 3EMA was above 15EMA. According to the rule we should make Entry and we made, too. Again, the Exit rule is that one should EXIT if opening is away from 3EMA. On 17/02/2010, opening is away 3EMA. These two things seem to be contradicting.
I am confusing a bit. Grateful, if someone clarifies it.
With regards,
Raju
I have a query regarding 315 rule, which is stated below.
Entry :
Entries are simple, you wait for a candle to close above 15 EMA, next candle to open and see if 3 EMA is above 15 EMA or not. If the answer is 'Yes' you go long. For shorts you need an exact opposite setup.
I am attaching a chart of ICICI bank. Bullish crossover took place on 16/02/2010. According to the entry rule, we should make an entry if 3EMA is above 15EMA on open. On 17/02/2010, candle opened at, say, 840 and also 3EMA was above 15EMA. According to the rule we should make Entry and we made, too. Again, the Exit rule is that one should EXIT if opening is away from 3EMA. On 17/02/2010, opening is away 3EMA. These two things seem to be contradicting.
I am confusing a bit. Grateful, if someone clarifies it.
With regards,
Raju
Last edited:
My understanding about the system here is to Enter at "CLOSE" when we are sure that the 3 EMA will remain above 15 EMA, say at 3.28 PM.
So you enter on 16th at close at ~836.
On 17th mkt opens at 840, you may or may not book profit as the move is small, but if you are mechanical and exit your long at 840, you reenter at Price touching or coming near 3 EMA say ~833/834
Next day 18th same thing is repeated, u exit at 840 and enter at ~837
On 19th Price opens below 3 EMA, you have nothing to do but wait for a crossover to reverse, ofcourse if your trade was in profit from your entry levels you would contemplate adding positions on retrecement to 15 EMA, but such was not the case here!!
On 22nd Price opens at 845, u exit and reenter at ~832
(You now have some accumulated profits) If you are a daringtrader you may wish to add!!
Price opens at ~15 EMA you may add, otherwise no action taken on 23 till date!!!
So you enter on 16th at close at ~836.
On 17th mkt opens at 840, you may or may not book profit as the move is small, but if you are mechanical and exit your long at 840, you reenter at Price touching or coming near 3 EMA say ~833/834
Next day 18th same thing is repeated, u exit at 840 and enter at ~837
On 19th Price opens below 3 EMA, you have nothing to do but wait for a crossover to reverse, ofcourse if your trade was in profit from your entry levels you would contemplate adding positions on retrecement to 15 EMA, but such was not the case here!!
On 22nd Price opens at 845, u exit and reenter at ~832
(You now have some accumulated profits) If you are a daringtrader you may wish to add!!
Price opens at ~15 EMA you may add, otherwise no action taken on 23 till date!!!
Similar threads
-
Help Needed : Modified SH's 315 Strategy with Supertrend
- Started by Profittaker
- Replies: 2
-
-
-
SH's 315 Strategy - how to make it more comfortable and profitable!!
- Started by rkkarnani
- Replies: 260
-
