SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
I use Amibroker and Investbulls for RT data... this is what the software has as close and my ema values depend on it... so I accept it.... I dont know whether it is last traded price or closing price....It hardly matters if you continue to stick to one....
I am not following this system so dont know the number of max whipsaws but any known holy grail system will give you whipsaws in a ranging sideways market...but if you stick to it then it will return back the losses when the trend starts...
I am not following this system so dont know the number of max whipsaws but any known holy grail system will give you whipsaws in a ranging sideways market...but if you stick to it then it will return back the losses when the trend starts...
SH has started more threads, where this and other strategies are combined to enhance returns!
Whipsaws are market movement things... no one can predict it!! More the volatality more the whips!!! No one can answer the last "why" in your post!!
All we can do is to find out ways to minimise the whips and the same was done to a great extent by Tradewithunter when he suggested exits on 2 consecutive contramoves by 3EMA!!
Whipsaws are market movement things... no one can predict it!! More the volatality more the whips!!! No one can answer the last "why" in your post!!
All we can do is to find out ways to minimise the whips and the same was done to a great extent by Tradewithunter when he suggested exits on 2 consecutive contramoves by 3EMA!!
Dear Tradewithhunter,
THANKS A LOT for your simple and proven strategy... I have studied almost all the posts again and again to get myself more and more clear about this theory. Here are my conclusions, Please correct me if I am wrong:
1) This strategy is for EOD (Swing) Trading.
2) In absence of Ichart and Sherkhan terminal, I use intraday data with the chart of 'daily' time frame in Aibroker... Hope this is correct.
3) We will make NEW POSITION at the cross over... We will LONG if (i) candle closes above 15 EMA and (ii) 3 EMA croses 15 EMA from Lower side. (i.e. 3 EMA is greater than 15 EMA). In the same way, we will 'SHORT' if (i) candle closes below 15 EMA and (ii) If 3 EMA crosses 15 EMA from Upside. (i.e. 3 EMA is lower than 15 EMA).
4) Cross overs will be confirmed at around 3:25. (i.e. when market is about to close)
5) Initially, Stop loss for the Fresh Positions is Opposite Cross Over. Once market moves in the direction of tread for at-least 100 points, our (trailing) stop loss will be our entry price.
6) We will exit (fully or partially) when the candle is significantly away form 3 EMA... (Here significant means, the gap should be at least of 1% - 2%, correct?) This exit will be made on the opening market without waiting for the market to close.
7) We will re-enter when Candle touches the 03 EMA. For safe re-entry, enter only when the candle breaches the High (if the Original Trade is Long) or Low (if the original trade is 'Short') of the previous candle...
8) We will 'ADD' when price touches 15 EMA and 3 EMA is (for LONG) Above / (for SHRT) Below the 15 EMA or 3 EMA has kissed 15 EMA. We will 'ADD' only if (i) the next day candle breaches High (for Long) or Low (for Short) of the previous day candle and (ii) We will 'ADD' only if our original trade is in profit of at-least 100 points This ADD will be done at the current market price without waiting for market to close. Do not ADD at around the same level where initially entered previously (range bound markets).
9) Weekly 315 EMA can be used to define trend...
Please correct me if I am wrong anywhere or if I have missed any important basic rule(s).
Thanks a lot..
THANKS A LOT for your simple and proven strategy... I have studied almost all the posts again and again to get myself more and more clear about this theory. Here are my conclusions, Please correct me if I am wrong:
1) This strategy is for EOD (Swing) Trading.
2) In absence of Ichart and Sherkhan terminal, I use intraday data with the chart of 'daily' time frame in Aibroker... Hope this is correct.
3) We will make NEW POSITION at the cross over... We will LONG if (i) candle closes above 15 EMA and (ii) 3 EMA croses 15 EMA from Lower side. (i.e. 3 EMA is greater than 15 EMA). In the same way, we will 'SHORT' if (i) candle closes below 15 EMA and (ii) If 3 EMA crosses 15 EMA from Upside. (i.e. 3 EMA is lower than 15 EMA).
4) Cross overs will be confirmed at around 3:25. (i.e. when market is about to close)
5) Initially, Stop loss for the Fresh Positions is Opposite Cross Over. Once market moves in the direction of tread for at-least 100 points, our (trailing) stop loss will be our entry price.
6) We will exit (fully or partially) when the candle is significantly away form 3 EMA... (Here significant means, the gap should be at least of 1% - 2%, correct?) This exit will be made on the opening market without waiting for the market to close.
7) We will re-enter when Candle touches the 03 EMA. For safe re-entry, enter only when the candle breaches the High (if the Original Trade is Long) or Low (if the original trade is 'Short') of the previous candle...
8) We will 'ADD' when price touches 15 EMA and 3 EMA is (for LONG) Above / (for SHRT) Below the 15 EMA or 3 EMA has kissed 15 EMA. We will 'ADD' only if (i) the next day candle breaches High (for Long) or Low (for Short) of the previous day candle and (ii) We will 'ADD' only if our original trade is in profit of at-least 100 points This ADD will be done at the current market price without waiting for market to close. Do not ADD at around the same level where initially entered previously (range bound markets).
9) Weekly 315 EMA can be used to define trend...
Please correct me if I am wrong anywhere or if I have missed any important basic rule(s).
Thanks a lot..
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