SH's swing trading system - a simple way to play the markets

[eevra]

Yes, it plots two MA bands (Above & Below) from the given MA & by the given %age.

thanks a lot..

 

[Satyen]

Ok folks.... I am also providing the pyramiding rules now.

How to pyramid

Pyramiding is the final step for a swing trader. Pyramiding is done to maximise profits in a good trend by adding more positions while not increasing the risk due to increased position.

A swing trader should pyramid only when the original position is in good profits, and the SL for the newly added position should be less than the profit earned by the original position so far. This ensures that the additional risk taken by the trader is not a risk of losing capital but just a risk to lose some profits from the original trade.

One more way in which these pyramiding option can be used is when someone misses the original trade or doesnt take the original trade due to large SL, one can wait for these pyramiding opportunities to enter the position afresh.

When to pyramid?

Again talking of 30 mins charts, we have understood how one can use GFZ to book profits/hedge and 15 EMA touch to enter positions again. To pyramid, we use the same logic as re-entry, we wait for first 30 min candle to close above 15 EMA after the retest (the candle should be bull candle i.e close should be higher than open for a bullish swing and visa versa)

We enter as soon as this bull 30 mins candle close above 15 EMA and keep the recent lowest point as SL (please note this is SL for 'added position only and not SAR for original position).

Obvioulsy if markets were trending they will make a new high hence making this SL as SAR for all positions.

Charts to showcase pyramid points in last 10 days...

Cheers
SH

Hi SH
I have confussion about ADD point what we should do in case of ADD Stop hit and again market goes in the dirrection of trend , then how to re-enter our ADD positions

in above chart i have doubt why the red arrow marked bar can not be used for entry/ADD ? if so then Stop hit ? again market going down then how to re-enter our ADD

Waiting your Reply

 

[Satyen]

Hi all
Any body bcktesting the system SAR based only .. no exit and re-entries

then what is the initial risks ? win/loss ratio etc ? please share

Anybody backtested it with some MM rule Like if initial risk is more than say 100 point no trade , enter into trend in next ADD point as said by SH ,

If ADD stops hit then any re-entries of ADD positons ?

please share the report

SH if you have done any detailed backtest then please share it will boost our moral

Regards

 

[Tradewithhunter]

Quick update:

Shorts exited yesterday at 5378 ...didnt get a re-entry today in shorts.

so wait continues with SAR 5515

Please note that if SAR 5515 is hit ... longs will trigger but for those longs SAR would be yesterdays lows around 5325-5350 levels.. which means a BIG SL ..

Therefore its advisable not to enter longs if 5515 hits, wait for markets to give an entry point near 15 EMA and use TSL based on pyramiding rules.

However if on the contrary mkts do fall tomorrow and we get a 30 min candle close below 15 EMA .. it will be a valid ADD or entry point in shorts with SAR at 5515 and SL at todays highs (as per pyramiding rules)

Cheers
SH

 

[trader_boy]

SH,
will you pls guide on how to decide upon the moving average envelope values for different scripts on 30 min tf for gfz...
like we should be changing the peroid or the deviation...or both

 

[augubhai]

:clapping::clapping:

What a superb system!! With simple rules so easy to follow. :thumb:

The only doubt I had was about taking profit at GFZ, but the market action in the last 2 days has shown me its advantage. :clap::clap::clap:

Now only if we knew how to find the right MA's for each scrip

 

[Shantala]

Quick update:

Shorts exited yesterday at 5378 ...didnt get a re-entry today in shorts.

so wait continues with SAR 5515

Please note that if SAR 5515 is hit ... longs will trigger but for those longs SAR would be yesterdays lows around 5325-5350 levels.. which means a BIG SL ..

Therefore its advisable not to enter longs if 5515 hits, wait for markets to give an entry point near 15 EMA and use TSL based on pyramiding rules.

However if on the contrary mkts do fall tomorrow and we get a 30 min candle close below 15 EMA .. it will be a valid ADD or entry point in shorts with SAR at 5515 and SL at todays highs (as per pyramiding rules)

Cheers
SH

Hi,

Please check following. I am seeing 2 highs above 15 EMA with low below 15 EMA. 1st high 5445, 2nd high 5459 and low at 5407 with 15 EMA at 5410.60.
Are these points SARs?

Thanks
Shantala

 

[Shantala]

Entered yesterday at 5445 with SL 5407, today booked 55 points

 

[Tradewithhunter]

Entered yesterday at 5445 with SL 5407, today booked 55 points

No these are not SARs as for bull swing to start nifty needed to hit 5515 SAR (which has been hit today).

Now the SAR is 5325 ..however as this is almost 190 point SL no point buying here. We will wait for retracement to 15 EMA.

Also please notice nifty has gapped up in GFZ zone today so one more reason why we need to wait for a retracement to 15 EMA.

Cheers
SH

 

[SACH2000]

No these are not SARs as for bull swing to start nifty needed to hit 5515 SAR (which has been hit today).

Now the SAR is 5325 ..however as this is almost 190 point SL no point buying here. We will wait for retracement to 15 EMA.

Also please notice nifty has gapped up in GFZ zone today so one more reason why we need to wait for a retracement to 15 EMA.

Cheers
SH

i think since we have crossed previous high of 5514 today & before that 15 ema touch at low of 5407, hence that shall be bull sar. SH please clarify.