SH's Intraday Strategy - ELH5
- Thread starter Tradewithhunter
- Start date
Great going guys !
Imho the most imp rule in the strategy is the "stop for the day after two consecutive losses" rule.
This is just so imp, early on in my career i would trade throughout the day hoping to atleast b/e at the EOD, I thought then if i follow the rules and take all trades in accordnce with my rules i would come out ahead and that was the best way to build my a/c.
It took me a long time to realize that i was wrong in that assumption. All strategies are designed to work only during a certain type of market phase like trending, ranging, breakout, news-related etc. You can not have a strategy which is designed to profit in every type of market condition ..... its just not possible.
So if you have a couple of losers in a row it means the market is not in sync with the the type of strategy ur trading so its best to cut back early and live to fight another day.
That's why i think SH's two consecutive loss rule is of critical importance. I wish he had a rule for of "stop trading for x number of days if you have y consecutive loss days". this will prevent losses when markets go into a period of consolidation for a number of days.
Imho the most imp rule in the strategy is the "stop for the day after two consecutive losses" rule.
This is just so imp, early on in my career i would trade throughout the day hoping to atleast b/e at the EOD, I thought then if i follow the rules and take all trades in accordnce with my rules i would come out ahead and that was the best way to build my a/c.
It took me a long time to realize that i was wrong in that assumption. All strategies are designed to work only during a certain type of market phase like trending, ranging, breakout, news-related etc. You can not have a strategy which is designed to profit in every type of market condition ..... its just not possible.
So if you have a couple of losers in a row it means the market is not in sync with the the type of strategy ur trading so its best to cut back early and live to fight another day.
That's why i think SH's two consecutive loss rule is of critical importance. I wish he had a rule for of "stop trading for x number of days if you have y consecutive loss days". this will prevent losses when markets go into a period of consolidation for a number of days.
Yes, in intraday - one bad day can put you out of the game... and I have seen bad days when trades keep failing one after the other .....so if an intraday strategy is not working today ...dont fight the market ... wait for next day.
If the intraday strategy is net net in loss after 15 days/month ... you dump the strategy and stop trading ...
I use a mathematical risk management rule to ensure my trades come down with losses while they go up with profits. This makes sure I am making most when the going is good but losing less during adverse times.
The simple rule is : Lets say I start with one lot per trade and I am risking 40 points per day per lot (20 points x 2 consecutive SLs)
- I would trade one lot till the time I have not made 400 points net profit.
- After I have made 400 points, I increase my position size to 2 lots per until I have earned 800 points per lot
- Once I have made 800 points, I would increase my position size to 3 lots per trade until I have made 1200 points
- If in case I have a bad run, It would need 10 loss days to bring my profit down from 1200 points to below 800 points. If that happens, My position sizing will automatically become 2 lot again.
and so on .... do you get the idea?
By any chance if you start trading and lose 400 points .. you dump the strategy and stop intraday until you can afford to risk more. :lol:
Cheers
SH
If the intraday strategy is net net in loss after 15 days/month ... you dump the strategy and stop trading ...
I use a mathematical risk management rule to ensure my trades come down with losses while they go up with profits. This makes sure I am making most when the going is good but losing less during adverse times.
The simple rule is : Lets say I start with one lot per trade and I am risking 40 points per day per lot (20 points x 2 consecutive SLs)
- I would trade one lot till the time I have not made 400 points net profit.
- After I have made 400 points, I increase my position size to 2 lots per until I have earned 800 points per lot
- Once I have made 800 points, I would increase my position size to 3 lots per trade until I have made 1200 points
- If in case I have a bad run, It would need 10 loss days to bring my profit down from 1200 points to below 800 points. If that happens, My position sizing will automatically become 2 lot again.
and so on .... do you get the idea?
By any chance if you start trading and lose 400 points .. you dump the strategy and stop intraday until you can afford to risk more. :lol:
Cheers
SH
Hi Frnds,
Can SH or someone please clarify abt whether i have marked the triggers and entries correctly in the following image?
http://img641.imageshack.us/img641/7140/nf13122010.jpg
I have taken this from icharts premium and its 10th Dec 2010 Nifty Fut. Correct me, if i am wrong.
please clarify Whether the markings(trigger/entry/exit) are correct.
Thanks,
...summasumma
Last edited:
Yes, in intraday - one bad day can put you out of the game... and I have seen bad days when trades keep failing one after the other .....so if an intraday strategy is not working today ...dont fight the market ... wait for next day.
If the intraday strategy is net net in loss after 15 days/month ... you dump the strategy and stop trading ...
I use a mathematical risk management rule to ensure my trades come down with losses while they go up with profits. This makes sure I am making most when the going is good but losing less during adverse times.
The simple rule is : Lets say I start with one lot per trade and I am risking 40 points per day per lot (20 points x 2 consecutive SLs)
- I would trade one lot till the time I have not made 400 points net profit.
- After I have made 400 points, I increase my position size to 2 lots per until I have earned 800 points per lot
- Once I have made 800 points, I would increase my position size to 3 lots per trade until I have made 1200 points
- If in case I have a bad run, It would need 10 loss days to bring my profit down from 1200 points to below 800 points. If that happens, My position sizing will automatically become 2 lot again.
and so on .... do you get the idea?
By any chance if you start trading and lose 400 points .. you dump the strategy and stop intraday until you can afford to risk more. :lol:
Cheers
SH
If the intraday strategy is net net in loss after 15 days/month ... you dump the strategy and stop trading ...
I use a mathematical risk management rule to ensure my trades come down with losses while they go up with profits. This makes sure I am making most when the going is good but losing less during adverse times.
The simple rule is : Lets say I start with one lot per trade and I am risking 40 points per day per lot (20 points x 2 consecutive SLs)
- I would trade one lot till the time I have not made 400 points net profit.
- After I have made 400 points, I increase my position size to 2 lots per until I have earned 800 points per lot
- Once I have made 800 points, I would increase my position size to 3 lots per trade until I have made 1200 points
- If in case I have a bad run, It would need 10 loss days to bring my profit down from 1200 points to below 800 points. If that happens, My position sizing will automatically become 2 lot again.
and so on .... do you get the idea?
By any chance if you start trading and lose 400 points .. you dump the strategy and stop intraday until you can afford to risk more. :lol:
Cheers
SH
1 lot x 400 points = Total 400 points
ADD 2 lots x 400 points = 800 plus previous 400 = 1200 points
ADD 3 lots x 400 points = 1200 plus previous 1200 = 2400 points
and so on.....
Now let assume we are trading 4 lots ... it will take me 10 losing days to give up 4 x 40 x 10 = 1600 points.
Lets say after 5 days my profit comes below 1700 points for example..I will be trading 3 lots from thereon....
another 5 losing days and my overall profit will be left as 1000 points .. so I come back to 2 lots again ...and so on...
If I profit and my points go up above 1200 again ...my position size increases to 3 lots again....
Cheers
SH
ADD 2 lots x 400 points = 800 plus previous 400 = 1200 points
ADD 3 lots x 400 points = 1200 plus previous 1200 = 2400 points
and so on.....
Now let assume we are trading 4 lots ... it will take me 10 losing days to give up 4 x 40 x 10 = 1600 points.
Lets say after 5 days my profit comes below 1700 points for example..I will be trading 3 lots from thereon....
another 5 losing days and my overall profit will be left as 1000 points .. so I come back to 2 lots again ...and so on...
If I profit and my points go up above 1200 again ...my position size increases to 3 lots again....
Cheers
SH
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