Systems for three market types- trending, nontrending, volatile
- Thread starter suri112000
- Start date
Mocktrading Nifty Positional based on 5 min TF. The strategy is based on EMA. Let me test it for a month or so first.
April series trades so far.
28/3/14
Short 6693 -11
Long 6704 +34
31/3/14
Short 6738 +12
Long 6726 still open
April series trades so far.
28/3/14
Short 6693 -11
Long 6704 +34
31/3/14
Short 6738 +12
Long 6726 still open
Every Traders ultimate aim is to minimize risk to the possible extent and increase the profit to the extent possible..The technique here is one of such wonderful and awesome way of trading which provides huge gains with almost no risk.
To be called as a simple but a great method,it has to have following ingredients.
1.Simple (Every one starting from a kid should be able to understand it)
2.Risk should be Minimal.
3.Reward should be substantial.
4.Stress should be minimal.
5.It should have worked over the period of time (statistical edge)
6.It should be adaptable (Tradeable on any Time frame and in any conditions).
Further, the caliber of a trader or a businessman is judged not only by his profitability but also by looking at the risk he undertook to achieve that profit figure.
To all these questions,the answer was “Trading Inside Bars “ .If an amateur comes and says “I don’t know trading but I want to start trading profitably.Tell me something worth to do it“, Right away tell him to start trading with “Inside bars” as it is not only simple to understand but also as simple as it to trade.
The trading world has given so much importance to outside bars that Seldom
the “IB” got the due it deserved.
Assumptions and beliefs
1. An IB indicates a remote activity within the timeframe of its construction.
2.Hence an IB, most of the times either indicates accumulation happening at the end of a substantial down move or an accumulation in midst of a rally or
3.Distribution happening at the end of a substantial up move or distribution taking place in midst of a substantial down move.
4.The high of an IB is considered as an upper boundary
5.The low of the IB is considered as a lower boundary and
6.Breakout on any side is an indication that a particular party has taken over the charge by breaking the boundary or
7.In case of false breakout ,it is understood that the party which broke the boundary first is defeated and the opposite party has taken over the reins.
Qualification:
To be qualified as an Inside Bar popularly known as an IB, a bar has to have its Open/High/low and close within the body of its preceding bar.
In the above example we have bar "A "and bar "B".Bar “A “is called mother bar and bar “B” is called as an Inside Bar as its
high ( 1.3200) and low (1.3100) are contained
within the high and low of mother bar “A”.
Next we come to a breakout bar .
A breakout bar is a bar which breaks either the high or low of the IB as the case may be.
In the above noted example Bar
“C” is a breakout bar since it has broken the high of IB.
Hence a mother bar,An inside bar and a
breakout bar are the essentials parts of trading this technique.
Trading the Inside bar:
As
soon as an Inside bar is formed , we keep 2 pending orders of equal quantity .
A. A
buy order above the high of an IB .
B. A
sell order below the low of IB.
Scenario 1: When the high of the IB is broken: The Buy order gets
triggered and pending sell order will be modified with double the qty of buy
order.
Exa: We kept 1X Quantity pending buy
order at A and 1X quantity selling order at B.Now 1X quantity buying order gets triggered.Hence 1X quantity selling order
is modified to 2X quantity of selling order to be kept as SAR ( Stop and reverse )
Scenario 2: When the high of the
IB is broken and then price reverses and breaks the low of the IB.:When the
high of the IB is broken 1X quantity of buy order gets triggered.When price reverses and breaks the low of IB, 2X quantity sell order gets triggered and hence we have 1X Quantity sell order as net position.Now we place 1X quantity as pending buy order above the high of Breakout bar.
Lets take below illustration. The bar "C breaks high of IB at 1.5050.Say we have 2 lots of pending buy orders got executed. Now we place 4 lots of pending sell orders below the low of IB i.e:at 1.4990.
Price reverses and breaks the low of IB at 1.4990.Now 4 lots of pending sell orders get triggered and now we have 2 lots selling orders as net position.We place stop above the high of bar C @ 1.5080.
Scenario 3: When the low of the IB is broken: The sell order gets
triggered and pending buy order will be modified with double the qty of sell
order.
Exa:.1X quantity of selling order gets triggered.Now 1X quantity of buying order
is modified to 2X quantity of buying order to be kept as SAR ( Stop and reverse)
Scenario 4: When the low of the
IB is broken and then price reverses and breaks the high of the IB.:When the
low of IB is broken 1X quantity of sell order gets triggered.When price reverses and breaks
the high of the IB 2X quantity of buy order is triggered and hence we have 1X quantity buy order as net
position.Now we place 1X quantity pending sell order below the low of breakout bar "C".
Covering:
The most wonderfull
character of this technique lies in its R:R:very often we get to have trades of
1:5 ,1:10 R:R .Considering this fact 50% of the positions are covered at 1:3 and 25%
at 1:4 and rest till trend exhausts.
As we know the exit part is the one subject which cannot be defined universally.It is a combination of several factors hence I would say each trader can cover the positions according to his own established disciplines.
--------------------------------------------------------------------------------------------------------------------------------------
Conclusion
1.It is a simple technique both for understanding as well as trading.
2.No stress as rules are clearly defined upfront.
3.Risk to Reward is awesome .
4.Can be traded on anytime frame.
5.Can be used for both scalping (5 Min TF to 1 Hour ) and swing Trading ( 4 Hour TF to monthlY.
Courtesy : http://www.dukascopy.com/fxcomm/fx-article-contest/?Trading-Inside-Bars&action=read&id=401
To be called as a simple but a great method,it has to have following ingredients.
1.Simple (Every one starting from a kid should be able to understand it)
2.Risk should be Minimal.
3.Reward should be substantial.
4.Stress should be minimal.
5.It should have worked over the period of time (statistical edge)
6.It should be adaptable (Tradeable on any Time frame and in any conditions).
Further, the caliber of a trader or a businessman is judged not only by his profitability but also by looking at the risk he undertook to achieve that profit figure.
To all these questions,the answer was “Trading Inside Bars “ .If an amateur comes and says “I don’t know trading but I want to start trading profitably.Tell me something worth to do it“, Right away tell him to start trading with “Inside bars” as it is not only simple to understand but also as simple as it to trade.
The trading world has given so much importance to outside bars that Seldom
the “IB” got the due it deserved.
Assumptions and beliefs
1. An IB indicates a remote activity within the timeframe of its construction.
2.Hence an IB, most of the times either indicates accumulation happening at the end of a substantial down move or an accumulation in midst of a rally or
3.Distribution happening at the end of a substantial up move or distribution taking place in midst of a substantial down move.
4.The high of an IB is considered as an upper boundary
5.The low of the IB is considered as a lower boundary and
6.Breakout on any side is an indication that a particular party has taken over the charge by breaking the boundary or
7.In case of false breakout ,it is understood that the party which broke the boundary first is defeated and the opposite party has taken over the reins.
Qualification:
To be qualified as an Inside Bar popularly known as an IB, a bar has to have its Open/High/low and close within the body of its preceding bar.
In the above example we have bar "A "and bar "B".Bar “A “is called mother bar and bar “B” is called as an Inside Bar as its
high ( 1.3200) and low (1.3100) are contained
within the high and low of mother bar “A”.
Next we come to a breakout bar .
A breakout bar is a bar which breaks either the high or low of the IB as the case may be.
In the above noted example Bar
“C” is a breakout bar since it has broken the high of IB.
Hence a mother bar,An inside bar and a
breakout bar are the essentials parts of trading this technique.
Trading the Inside bar:
As
soon as an Inside bar is formed , we keep 2 pending orders of equal quantity .
A. A
buy order above the high of an IB .
B. A
sell order below the low of IB.
Scenario 1: When the high of the IB is broken: The Buy order gets
triggered and pending sell order will be modified with double the qty of buy
order.
Exa: We kept 1X Quantity pending buy
order at A and 1X quantity selling order at B.Now 1X quantity buying order gets triggered.Hence 1X quantity selling order
is modified to 2X quantity of selling order to be kept as SAR ( Stop and reverse )
Scenario 2: When the high of the
IB is broken and then price reverses and breaks the low of the IB.:When the
high of the IB is broken 1X quantity of buy order gets triggered.When price reverses and breaks the low of IB, 2X quantity sell order gets triggered and hence we have 1X Quantity sell order as net position.Now we place 1X quantity as pending buy order above the high of Breakout bar.
Lets take below illustration. The bar "C breaks high of IB at 1.5050.Say we have 2 lots of pending buy orders got executed. Now we place 4 lots of pending sell orders below the low of IB i.e:at 1.4990.
Price reverses and breaks the low of IB at 1.4990.Now 4 lots of pending sell orders get triggered and now we have 2 lots selling orders as net position.We place stop above the high of bar C @ 1.5080.
Scenario 3: When the low of the IB is broken: The sell order gets
triggered and pending buy order will be modified with double the qty of sell
order.
Exa:.1X quantity of selling order gets triggered.Now 1X quantity of buying order
is modified to 2X quantity of buying order to be kept as SAR ( Stop and reverse)
Scenario 4: When the low of the
IB is broken and then price reverses and breaks the high of the IB.:When the
low of IB is broken 1X quantity of sell order gets triggered.When price reverses and breaks
the high of the IB 2X quantity of buy order is triggered and hence we have 1X quantity buy order as net
position.Now we place 1X quantity pending sell order below the low of breakout bar "C".
Covering:
The most wonderfull
character of this technique lies in its R:R:very often we get to have trades of
1:5 ,1:10 R:R .Considering this fact 50% of the positions are covered at 1:3 and 25%
at 1:4 and rest till trend exhausts.
As we know the exit part is the one subject which cannot be defined universally.It is a combination of several factors hence I would say each trader can cover the positions according to his own established disciplines.
--------------------------------------------------------------------------------------------------------------------------------------
Conclusion
1.It is a simple technique both for understanding as well as trading.
2.No stress as rules are clearly defined upfront.
3.Risk to Reward is awesome .
4.Can be traded on anytime frame.
5.Can be used for both scalping (5 Min TF to 1 Hour ) and swing Trading ( 4 Hour TF to monthlY.
Courtesy : http://www.dukascopy.com/fxcomm/fx-article-contest/?Trading-Inside-Bars&action=read&id=401
Hi Friends,
Everyone is talking about 1-2-3 Setup but no one provide a simple amibroker afl for this. so, i try to make it so that it will give some benefit who are interested in 1-2-3 setup.
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));
Plot( C, "Close", ParamColor("Color", colorDefault ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
_SECTION_END();
_SECTION_BEGIN("1-2-3 Setup");
C1=Ref(H,-2)<Ref(H,-3) AND Ref(L,-2)>Ref(L,-3);
MB=C1 AND Ref(H,-1)>Ref(H,-3);
MS=C1 AND Ref(L,-1)<Ref(L,-3);
MB = MB AND H>Ref(H,-1);
MS = MS AND L<Ref(L,-1);
PlotShapes(IIf(MB, shapeUpTriangle, shapeNone),colorGreen, 0,L,Offset=-30);
PlotShapes(IIf(MS, shapeDownTriangle, shapeNone),colorRed, 0,H,Offset=-30);
_SECTION_END();
Everyone is talking about 1-2-3 Setup but no one provide a simple amibroker afl for this. so, i try to make it so that it will give some benefit who are interested in 1-2-3 setup.
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));
Plot( C, "Close", ParamColor("Color", colorDefault ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
_SECTION_END();
_SECTION_BEGIN("1-2-3 Setup");
C1=Ref(H,-2)<Ref(H,-3) AND Ref(L,-2)>Ref(L,-3);
MB=C1 AND Ref(H,-1)>Ref(H,-3);
MS=C1 AND Ref(L,-1)<Ref(L,-3);
MB = MB AND H>Ref(H,-1);
MS = MS AND L<Ref(L,-1);
PlotShapes(IIf(MB, shapeUpTriangle, shapeNone),colorGreen, 0,L,Offset=-30);
PlotShapes(IIf(MS, shapeDownTriangle, shapeNone),colorRed, 0,H,Offset=-30);
_SECTION_END();
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