SH's 315 Strategy - how to use if effectively

[Sukhi_Aatma]

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!!!

RK has explained it very nice... i thought of just adding one more point...
Suppose we are in a long trade then as SH315 being a trend following system. We actually do not exit the trend but just that particular trade position, if the price of particular scrip do not touch 3EMA at any given point in that day. We just reenter the trade when the prices touch 3EMA again and this can be done at any time during the following day(s) and we are back in trend again. And in this entire process we save yourself some good money.

@SH: Hope I am clear with my understanding of SH315.

All is Well
Sukhi Aatma

 

[nick721156]

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!!!

Dear friend,

nice explanation!!

Thanks once again.

Raju

 

[naveenvadavadagi]

Hi All,

Today as of now, there is a bullish 315 crossover of Nifty. :clap:


Lets see if this holds till 3.25. If yes, shall take position[long] as per the 315 rule.:clap::clap:

 

[Sukhi_Aatma]

HI SH,

I have tried to follow 315 (exactly as mentioned by you, but on equities).

The rule book says:

=> Previous close above 15EMA and 3EMA is above 15EMA on next day opening. ( pls correct me if I am wrong)

I am herewith attaching two charts
1) EOD of Maruti for 26th-02-2010.
2) IEOD of Maruti for 26th-02-2010.

The EOD chart plots 3EMA above 15EMA, where as
The IEOD chart shows 15EMA above 3EMA.

Now our SH315 says that take a position at 3:25 PM, and at this point when we see these two charts, EAM's on both charts (of same scrip) are exactly opposite.

Now:
=> Should it be a buy bcoz the EOD trend plots 3EMA above 15EMA or
=> Should it be a sell bcoz the IEOD trend plots 15EMA above 3EMA.

Can you please shed some light as to what should be our action.

All is Well
Sukhi Aatma

 

[Tradewithhunter]

HI SH,

I have tried to follow 315 (exactly as mentioned by you, but on equities).

The rule book says:

=> Previous close above 15EMA and 3EMA is above 15EMA on next day opening. ( pls correct me if I am wrong)

I am herewith attaching two charts
1) EOD of Maruti for 26th-02-2010.
2) IEOD of Maruti for 26th-02-2010.

The EOD chart plots 3EMA above 15EMA, where as
The IEOD chart shows 15EMA above 3EMA.

Now our SH315 says that take a position at 3:25 PM, and at this point when we see these two charts, EAM's on both charts (of same scrip) are exactly opposite.

Now:
=> Should it be a buy bcoz the EOD trend plots 3EMA above 15EMA or
=> Should it be a sell bcoz the IEOD trend plots 15EMA above 3EMA.

Can you please shed some light as to what should be our action.

All is Well
Sukhi Aatma

Sukhi - This is an EOD system hence no need to look at intraday charts.

Hence buy as per EOD.

Cheers
SH

 

[Tradewithhunter]

Hi SH,

Why 5% and 10% move? Is there any reason behind this? Shud we trade commodities Intra-day instead EOD?

Thks.

- Raj

Hi Raj,

I am an EOD trader.

I Have been buying copper at 326 for last 3 days (34 EMA support) and it closed at 333 yesterday. holding for targets 346.

5% and 10% are just aribtrary profit booking points for me. Usually after moving 10% from the entry point, commodities correct to test 34 EMA where you can re-enter again. By doing this your equity will never go in negative and you will still be able to catch 80% of the trend.

More later on commodities since I am still experimenting.

Cheers
SH

 

[vinst]

Funny,
Today (28-feb) I read an ad in BusinessLine selling SH315 system for Rs 2000 !

vin

 

[vinst]

Hi All,

Today as of now, there is a bullish 315 crossover of Nifty. :clap:


Lets see if this holds till 3.25. If yes, shall take position[long] as per the 315 rule.:clap::clap:

This time around for NF, 3 and 15 ema's whipsawed 1-2 times before bullish cross on 26th. though not a big loss.
vin

 

[Sukhi_Aatma]

Sukhi - This is an EOD system hence no need to look at intraday charts.

Hence buy as per EOD.

Cheers
SH

Hi SH,

Then the buy would happen at next day opening... which would again lead to gap ups/downs...

I also read you asking to look at charts at 3:25 PM (just near to market close) and follwing that system, I had the doubt raised in previous post of mine.

All is Well
Sukhi Aatma

 

[VJAY]

Funny,
Today (28-feb) I read an ad in BusinessLine selling SH315 system for Rs 2000 !

vin

IMO Many visiters of TJ started tip services and some are selling strategies which we got it free from some of our great mentors who doing selfless job to educate newbies like me...They are not traders....some months back i came to know about an option paid seminar @TN....they are selling strategy of ghosh sir's....!