Stocks To Keep A Close Eye On

[asnavale]

Re: Stocks To Keep A Close Eye On - Chapter II

Hello Anant

I was looking at your AFL.
Splendid job.

However, I noticed a line of code as follows:
SLHit = IIf(Bought AND NOT Buy AND C < SL, True, False);

Gathering that, SLHit is abbreviation for "Stop Loss Hit" the line should have been as follows:
SLHit = IIf(Bought AND NOT Buy AND L < SL, True, False);

Stop Loss Hit becomes true as soon as the price crosses the SL, one should not wait for the candle to complete because Stop Loss is supposed to limit the loss on the trade. If we allow the candle to get completed then there is a potential of losing more than limited with the Stop Loss.

Suggestion number 1:
In the exploration I was looking at the columns and found that other three columns would make it more informative. They are, Reward(%), Risk(%) and Reward to Risk ratio, the lines of code may be as follows:

//Calculation
Rewardpc = IIf(Buy OR Bought, ((NextTgt-C) * 100) / C, Null);
Riskpc = IIf(Buy OR Bought, ((SL-C)*100) / C, Null);
RewardRiskRatio = IIf(Buy OR Bought, Rewardpc/abs(Riskpc), Null);
//Exploration Table additional columns
AddColumn(IIf(Buy OR Bought, Rewardpc, Null),"Reward%", 5.2) ;
AddColumn(IIf(Buy OR Bought, -Riskpc, Null), "Risk%", 5.2);
AddColumn(IIf(Buy OR Bought, RewardRiskRatio, Null), "Reward/Risk", 5.2);

Suggestion number 2:
There are lots of false signals being generated, as such I believe you must add some more qualifying criteria before the trade is executed.

These are my thoughts, and welcome the opinion of the fellow members and particularly seniors.

Regards
Suresh

Hi Suresh,

Thanks for your inputs.

1) Regarding Stop Loss, the system is based on EOD and Closing price is considered for Target and SL. Therefore SLHit uses Close instead of Low. As you say, it may result in more loss but there are cases where Low goes below SL but Close remains above and later the price moves up. In this case, exiting on Low going below SL may be premature. If Close is below SL the chances of recovery is much less and therefore, exit. As the strategy is for a period extending over a week or some times months, the small extra margin we give for SL would not be much compared to the advantage of remaining in the trade for a longer time and getting better returns.

2) Risk / Rewards can be added as you have coded.

3) In a system based on moving averages, these whipsaws are inevitable. We can minimise them by inspecting the charts after getting the signals. Visually we can see whether the trade would be acceptable. One of the situations where we can decide based on charts is already given in one of my posts with the relevant charts. I will be posting some more such examples where charts can help in taking a better decision. Presently there is no code which will help. But after some experience with charts we may be able to formulate some rules and include them in the AFL.

Regards

-Anant

 

[je_shan]

hello anant
can you please share the list of stocks you scan for, it was around 200 u mentioned before.. I normally use sp500 for scanning but still feel that i miss few gud stocks.. i will add my favorites to ur 200 stocks are create a new watchlist..

thanks,
shan

 

[asnavale]

hello anant
can you please share the list of stocks you scan for, it was around 200 u mentioned before.. I normally use sp500 for scanning but still feel that i miss few gud stocks.. i will add my favorites to ur 200 stocks are create a new watchlist..

thanks,
shan

Hi shan the list is given in the thread itself. Just look for it between June 25 and July 1.

-Anant

 

[praveen taneja]

Eid Mubarak to all of my TJ bro n sis

 

[rizuk]

Eid Mubarak to all of my TJ bro n sis

Thanks PT Bhai . . Aap ko bhi Mubarak . . Sab ko Mubarak

Eid ka din hai aaj to gale mil lay zalim
Rasm e Duniya bhi hai Mauqa bhi hai Dastur bhi hai

 

[rizuk]

Guys,

There Is Nothing Compelling In VEER For Me To Look At It Favourably.....I Heard The Guy From VEER On The TV Channel...Other Day...But Not Convinced...& ADAG Having Small Stake Is Not Reason Enough Yet...
Because When The Maket Corrects...This Will Come Down Like A Stone...

Happy & Safer Investing

SavantGarde

In short Veer mein heavy invest karne se Veergati prapt hone ka khatra hai

 

[superprogrammer]

In short Veer mein heavy invest karne se Veergati prapt hone ka khatra hai

in other words
agar aap veer hain toh veer mein invest kare :lol:

 

[fantastikanth]

savant bhai and all senior members of traderji, their has been a lot of talk on the correction in the market after the long bull run, are you people sensing any such disaster, or is it just another cheap trick by big players to create panic among small investors and make money..............your answer would help us tremendously, thanks in advance

 

[bunny]

savant bhai and all senior members of traderji, their has been a lot of talk on the correction in the market after the long bull run, are you people sensing any such disaster, or is it just another cheap trick by big players to create panic among small investors and make money..............your answer would help us tremendously, thanks in advance

Count me in for the correction. I would put the NIFTY figure to 4600.

In the above chart, see what I have marked as (a), (b) and (c).

I think we are repeating the same events as we did in the last week of August and first week of September.

 

[enygma]

Depends on what you call is a correction and what timeframe you are looking at. A 150-200 point drop is not a correction after a bull run that we have seen, so it is possible. Unfortunately, the market often does not oblige the consensus view - as Savant has been repeatedly seeing.

When was the last time you saw a market bust when everyone is talking about caution and saying that retail money should stay away? The day we see a 100 point correction, doomsayers would talking about how a famous gap is going to be filled soon etc ...

The market as I see it - remains a buy on dip. Period.

Regards,
Enygma.

savant bhai and all senior members of traderji, their has been a lot of talk on the correction in the market after the long bull run, are you people sensing any such disaster, or is it just another cheap trick by big players to create panic among small investors and make money..............your answer would help us tremendously, thanks in advance