SH's Intraday Strategy - ELH5

[sumosanammain]

SH, please request the members participating this thread to restrict their conversation regarding ELH5 only, that may help to convert this strategy into a system. Any conversation regarding margin/ broker may be stated in respective threads already running.
I would also request you to reply my ealier query (post no 602).
Thanks.

Another one of our friends who does not understand what bad money management can do to any good system, that you may have developed.

If entries and exits are all that you feel that define a system, best of luck to you, and I hope the markets are gentle with you.

This is my last post on this thread and if people still feel that 12 times leverage is their best bet, who am I to stop them from reaching their pot of gold sooner rather than later.

Best of luck guys.

 

[Tradewithhunter]

Thanks SH for your ELH5,:thumb: I think this strategy is also applicable for banknifty future, reliance, icici, dlf etc. both in cash and future. I am interested to know what should be SL and Target price For banknifty future
( for bank nifty ,I apply 40 POINTS ,is it correct?) and other stocks mentioned above.

Dear mmca - sorry your post missed my attention earlier.....

yes it should work on these scrips too...however I trade it for NF only.

Regarding SL and target, I started with 0.30% of the price as SL and target of Nifty (20 points of 6000 approx). However with the recent small range days of Nifty has made me review if the target/SL points should be linked to ATR of recent days and should be calculated based on that.

The advantage of using ATR for SL/targets is that it ensures we catch bigger targets when the markets are moving 100+ points everyday v/s smaller targets when markets are moving only 50 points daily..... (as you can see ..its easier to catch even 30 points when markets are moving 100 points daily and difficult to catch even 20 points when mkts are moving only 50 points daily)

I am working on this and we might change our FIXED 20 point SL/target logic going forward to a DYNAMIC ATR linked SL/target which allows us to profit if highly volatile and low volatile days as well.

But it will take atleast one more month before I can change my rules. If I am able to introduce that new rule, you can apply and calculate the SL/profit target for any scrip.

Cheers
SH

 

[VJAY]

Dear mmca - sorry your post missed my attention earlier.....

yes it should work on these scrips too...however I trade it for NF only.

Regarding SL and target, I started with 0.30% of the price as SL and target of Nifty (20 points of 6000 approx). However with the recent small range days of Nifty has made me review if the target/SL points should be linked to ATR of recent days and should be calculated based on that.

The advantage of using ATR for SL/targets is that it ensures we catch bigger targets when the markets are moving 100+ points everyday v/s smaller targets when markets are moving only 50 points daily..... (as you can see ..its easier to catch even 30 points when markets are moving 100 points daily and difficult to catch even 20 points when mkts are moving only 50 points daily)

I am working on this and we might change our FIXED 20 point SL/target logic going forward to a DYNAMIC ATR linked SL/target which allows us to profit if highly volatile and low volatile days as well.

But it will take atleast one more month before I can change my rules. If I am able to introduce that new rule, you can apply and calculate the SL/profit target for any scrip.

Cheers
SH

Dear SH,
Please share /introduce your new rule using ATR....its help to us backtest it using bar reply on AMI....so we can get results & confidence then try it in real with small qty..

 

[jayan12]

Dear mmca - sorry your post missed my attention earlier.....

yes it should work on these scrips too...however I trade it for NF only.

Regarding SL and target, I started with 0.30% of the price as SL and target of Nifty (20 points of 6000 approx). However with the recent small range days of Nifty has made me review if the target/SL points should be linked to ATR of recent days and should be calculated based on that.

The advantage of using ATR for SL/targets is that it ensures we catch bigger targets when the markets are moving 100+ points everyday v/s smaller targets when markets are moving only 50 points daily..... (as you can see ..its easier to catch even 30 points when markets are moving 100 points daily and difficult to catch even 20 points when mkts are moving only 50 points daily)


I am working on this and we might change our FIXED 20 point SL/target logic going forward to a DYNAMIC ATR linked SL/target which allows us to profit if highly volatile and low volatile days as well.

But it will take atleast one more month before I can change my rules. If I am able to introduce that new rule, you can apply and calculate the SL/profit target for any scrip.

Cheers
SH

ATR means? ..thanks

 

[TradeRaid]

thank god i was not trading with zerodha..today my positions uld have cut at 3.10 pm for 6064..i squared offend of day at 6074..uld hv lost 500 rs per lot if i was with zerodha

Hey Razr,

Where are you trading now?? Which online broker lets you take a position of nifty for 11000?? The leverage we get there is a tool for us to use when required.. Futures is already a leveraged tool and we can't take 9 lots of nifty for 1 lk in our account everytime and hope to make money.. Leverage is a 2 edged sword ... Even if you have 22 to 25k they let you hold nifty future position till 3.29 and overnight too... I got carried away with 100 times leverage on fx trading, made a lot of money fast and lost it all even faster.... we need to be smart about when to use leverage and when not too...

 

[razx5]

Hey Razr,

Where are you trading now?? Which online broker lets you take a position of nifty for 11000?? The leverage we get there is a tool for us to use when required.. Futures is already a leveraged tool and we can't take 9 lots of nifty for 1 lk in our account everytime and hope to make money.. Leverage is a 2 edged sword ... Even if you have 22 to 25k they let you hold nifty future position till 3.29 and overnight too... I got carried away with 100 times leverage on fx trading, made a lot of money fast and lost it all even faster.... we need to be smart about when to use leverage and when not too...

zerodha allows..go to brokers and demat matters section,zerodha fellow is there as member..u can ask him details..

 

[spacenoxx]

Hi SH,

Thanks a lot for putting up a good intrady system.

Unfortunately my first foray int the system looks like an Anti ELH5 Day Most triggers and the pull backs resulted in wrong trades/losses . Is it just me or was there a single Correct/Winning trigger today. I was following NF Dec as per Icharts intrady Premium.

regards,

Chaitanya

 

[aryabhatta]

mr.sumo,first u learn the concept of day trading, learn about margin requirments and the broker/subroker norms properly..even the xchange has fixed 5% margin requirment for trading intrady..i repeat its intraday..that means square off by 3.30 p.m..plus even for trading intraday as the all posiotions get squared off within theday itself no mtm payout is done..so the broker has full authority to allow clint trzaDe 12 times or even 20 times..as long as it is squared off eod..clients who trade in neat/bolt terminals can execute orders as their wish..no limit..no margin nothing..intrady margins r nothing but assurance for the broker..ya if u carforward without sufficient margins then broker has to bear the brunt although he can sell/buy it even without clients permission.. cheers

razx you've raised a very valid point I'm planning to approach 0dha with this problem hopefully they will give some more time for day traders to close positions before auto square off.

It seems the broker says he welcomes feedback about problems their customers are facing and this is a major concern.

Once things get organised I'm thinking we will approach 0dha as a group to give us some leeway to help resolve this issue. :rofl:

chat should be ready by 1st everyone :thumb:

 

[razx5]

razx you've raised a very valid point I'm planning to approach 0dha with this problem hopefully they will give some more time for day traders to close positions before auto square off.

It seems the broker says he welcomes feedback about problems their customers are facing and this is a major concern.

Once things get organised I'm thinking we will approach 0dha as a group to give us some leeway to help resolve this issue. :rofl:

chat should be ready by 1st everyone :thumb:

sure mate..i ul b there vth u

 

[pundit]

SH, please request the members participating this thread to restrict their conversation regarding ELH5 only, that may help to convert this strategy into a system. Any conversation regarding margin/ broker may be stated in respective threads already running.
I would also request you to reply my ealier query (post no 602).
Thanks.

I agree with MMCA