SH's Intraday Strategy - ELH5

[jtrader]

SH sir,
we need to work out sum small tweak/adj/modify rule in this i feel..because our 60% to 70% points is being eaten by brok & taxes..

In this method, three aspects are there effecting cost & efficiency..so the possibilities are :

1. Either Decrease the brokerage---which shall be beyond control
2. Either Decrease the number of trades.
3. Either Increase the profit tgt marginally or to full gear to get advantage of
trending days by doing sum trailing methodology..

So aspect 1 being beyond control, we can workout on aspect 2 or aspect 3 or BOTH to increase the efficiency of system..

Thanx in advance sir...

I have back tested this strategy in MT4 for 2010 and it needs improvement. I know backtesting cannot be 100% accurate but because of simple rules of this strategy it is easy to do.

This strategy was a break even strategy for 2010 when you consider the above costs you have mentioned. There have been many months where it has made 100 to 120 points but when you include the commsions/brokerage/taxes... only few points are left.

Again please do not backfire on me.... please look and do the backtesting.... you can download the MT4 and data from sites like xtb.in

I would agree with Vikas and others that there needs to be improvement on this strategy....

 

[aryabhatta]

In trading there will be winning months and losing months, there will also be winning yrs and losing yrs ... what matters is you are profitable on average over the long run.

No strategy can generate consistent profits every month, its just not possible, if it were the case the trader would be the richest man in the world in a few short years ..... literally.

So we should always keep that in mind but at the same time as Jtrader and others have suggested try to improve or technique at every opportunity.

i made a post before about the effects of brokerage, it seems now many members are realising what i mean to say then.

anway we can do the following things to improve ELH5

1)pay lower brokerage ........ it seems justrade activ gold is cheaper than 0d by upto 40%. Kamalkishore has calculatd that upto 8 lots justrade requires just 1.5 points to b/e as compared to around 2.7 for 0d. Consider changing to justtrade

2)the elh5 strategy is great in keeping losses small, the full sl is rarely hit and the logic of the strategy is sound, the only thing is it sure cuts losses small but it doesnt let winners run. I think a possible improvement would be to work out a strategy to let winners run. Its really hard on small tf's to get a high hit rate ..... its just not possible because of the noise on small tf's but when ur right you should let it run. this pays for all the many losses.

IMHO I feel this could be a possible further consideration for improvement of already a great strategy

 

[sumosanammain]

In trading there will be winning months and losing months, there will also be winning yrs and losing yrs ... what matters is you are profitable on average over the long run.

No strategy can generate consistent profits every month, its just not possible, if it were the case the trader would be the richest man in the world in a few short years ..... literally.

So we should always keep that in mind but at the same time as Jtrader and others have suggested try to improve or technique at every opportunity.

i made a post before about the effects of brokerage, it seems now many members are realising what i mean to say then.

anway we can do the following things to improve ELH5

1)pay lower brokerage ........ it seems justrade activ gold is cheaper than 0d by upto 40%. Kamalkishore has calculatd that upto 8 lots justrade requires just 1.5 points to b/e as compared to around 2.7 for 0d. Consider changing to justtrade

2)the elh5 strategy is great in keeping losses small, the full sl is rarely hit and the logic of the strategy is sound, the only thing is it sure cuts losses small but it doesnt let winners run. I think a possible improvement would be to work out a strategy to let winners run. Its really hard on small tf's to get a high hit rate ..... its just not possible because of the noise on small tf's but when ur right you should let it run. this pays for all the many losses.

IMHO I feel this could be a possible further consideration for improvement of already a great strategy

Now where did you get the idea, that there will be loosing years in active trading?

Do you realize the effect of even a few losing months?

If you feel that an actively trading strategy is going to give you losing years, then my friend, you are SEVERELY on the wrong track.

I can understand that statement for a system that takes 5 trades a year... but a system that trades more than an average of 600 times in a year, and gives you a losing year, and you are still going to continue to trade it the next year, then GOD alone can help you.

As for your statement, that there is no system that gives a profit every month, then again, you lack the knowledge to develop such a system.

I have discarded more than 10 systems that are profitable every month for years, but have problems like the system has too many trades in a day or week, or the system requires very active modification of orders, or if the number of losers in a row is beyond my comfort zone. But still each and every month is a winner on those systems.

Yes, even if you make 75 points per month net, over a period of a few years you will be very rich. And yes, people have achieved that stage.

So, I would say that you are just finding justification to stay with a system that has far more losses than your comfort zone.

Just look at this month. If you cant make money in such a nice trending month, there is something wrong. You have to accept this fact.

I am not saying the system is bad. Just that you cannot say, oh, nothing better than this is possible, so lets continue with this system.

 

[Tradewithhunter]

Dear Friends - ELH5 is an intraday scalping system.... with every scalping system you need to find a lowest brokerage house....

One of the ways we can capture the big moves are that once our position moves in 20 points profit ... we put our trailing SL to our entry point and let our positions run (specially if this trade is entered in the last hour given that the last hour moves are usually large uni-directional moves).

There is one other way I am contemplating... I have observed that quite often when a strong intraday move comes... we miss major part of that move since we are waiting for the candles to pullback to EMAH etc.... I am trying to figure out a way around this ....

Sumo - Will appreciate if you could post some of your consistent profitable system that you have discarded in the past here in TJ ... I am not an intraday player however I am sure a lot of other users will have time, patience and a bigger comfort zone than you to stick to such a system. Would love to see you prove an intraday system to be consistently profitable month on month ... :thumb:

Cheers
SH

 

[vikas2659]

Friends, i could not trade yesterday also but going through the charts CAREFULLY, i identified the following trades..
Ist trade + 20 on short side
2nd trade -20 on short side
3rd trade + 20 on long side (2.25 candle)
4th trade + 20 on long side ( 2.55 candle low there is 5712 but even assuming that it was bot @ 5714-5715 the target was done in the very next candle at 3.pm)...so all in all we had 4 trades with net result of 40..anybody actually traded has upper hand on me to modify the result..

Date Profit/Loss Total
January 03, 2011 -10 -10 ( 2 trades)
January 04, 2011 +70 +60 ( 6 trades)
January 05, 2011 +6 +67 ( 3 trades)
January 06, 2011 +40 +107 ( 2 trades)
January 07, 2011 -4 +103 ( 3 trades)
January 10, 2011 -36 +67 (2 trades)
January 11, 2011 +36 +103 (3 trades)
January 12, 2011 +29 +132 (3 trades)
January 13, 2011 +51 +183 (5 trades)
January 14, 2011 0 +183 (4trades)
January 17, 2011 -4 +179 (3 trades)
January 18, 2011 -26 +153 (2 trades)
January 19, 2011 -22 +131 (2 trades)
January 20, 2011 +40 +171 (4 trades)

 

[sumosanammain]

Dear Friends - ELH5 is an intraday scalping system.... with every scalping system you need to find a lowest brokerage house....

One of the ways we can capture the big moves are that once our position moves in 20 points profit ... we put our trailing SL to our entry point and let our positions run (specially if this trade is entered in the last hour given that the last hour moves are usually large uni-directional moves).

There is one other way I am contemplating... I have observed that quite often when a strong intraday move comes... we miss major part of that move since we are waiting for the candles to pullback to EMAH etc.... I am trying to figure out a way around this ....

Sumo - Will appreciate if you could post some of your consistent profitable system that you have discarded in the past here in TJ ... I am not an intraday player however I am sure a lot of other users will have time, patience and a bigger comfort zone than you to stick to such a system. Would love to see you prove an intraday system to be consistently profitable month on month ... :thumb:

Cheers
SH

I would , but none of them come with buy and sell arrows, and would involve considerable amount of interpretation, which is difficult for new traders. And the effort required from my side would be too huge as I can see how much time you are devoting to the followers of your system. I wont be there to answer their queries.

 

[VJAY]

I would , but none of them come with buy and sell arrows, and would involve considerable amount of interpretation, which is difficult for new traders. And the effort required from my side would be too huge as I can see how much time you are devoting to the followers of your system. I wont be there to answer their queries.

No problem...but you first post your method with properly rules which help without giving any Q & A......but it must be profitable one

 

[sumosanammain]

No problem...but you first post your method with properly rules which help without giving any Q & A......but it must be profitable one

Seriously, VJAY, am not interested, nor inclined to do so.
Are we not shifting the discussion from the points I raised to the point that now you want to know what all I have discarded?

I dont claim to be a Saint. Nor a SH. Just pointing ouit the fact that what aryabhat has written is misleading. An active trading strategy can NEVER have a losing year. If it does, it should be thrown into the trash bin.

Lets keep the dicussion in context to aryabhat's post. And my reply to his post.
Even if you ask me multiple times, I am not going to disclose anything here

PS: In no way should my posts be treated as against the system discussed here. My point of contention is aryabhats post. Thats all.

 

[aryabhatta]

Dear Friends - ELH5 is an intraday scalping system.... with every scalping system you need to find a lowest brokerage house....

One of the ways we can capture the big moves are that once our position moves in 20 points profit ... we put our trailing SL to our entry point and let our positions run (specially if this trade is entered in the last hour given that the last hour moves are usually large uni-directional moves).

There is one other way I am contemplating... I have observed that quite often when a strong intraday move comes... we miss major part of that move since we are waiting for the candles to pullback to EMAH etc.... I am trying to figure out a way around this ....


Cheers
SH

Dear SH,

ELH5 being a mechanical strategy has great potential. It seems we both have noticed that we could all concentrate on modifying the exit rule on taking profits so we can stay in winning trades longer. Thereby paying for losers. I still have faith in the strategy and even for Jan its been a winner so far. It may have had bad patches and 2009 may have been a b/e year but in trading that is to be expected. As long as it comes out ahead on average which it has done so far. Modifying the exit rule on taking profit as you suggested may yield even better results.

 

[VJAY]

Seriously, VJAY, am not interested, nor inclined to do so.
Are we not shifting the discussion from the points I raised to the point that now you want to know what all I have discarded?

I dont claim to be a Saint. Nor a SH. Just pointing ouit the fact that what aryabhat has written is misleading. An active trading strategy can NEVER have a losing year. If it does, it should be thrown into the trash bin.

Lets keep the dicussion in context to aryabhat's post. And my reply to his post.
Even if you ask me multiple times, I am not going to disclose anything here

PS: In no way should my posts be treated as against the system discussed here. My point of contention is aryabhats post. Thats all.

Dear sumosanammain,
Thanks for your reply.....I know you are not a saint/st/sh...etc...they are a good traders and they share some of their methods to here...without looking anything from us...Personaly I too much thankfull to them...who's posts helped me to stick in trading.......You also one of them who getting something from here (TJ)...not giving anything to here.....any way thanks for not desclose of your system here....:clapping: