Thoughts on Day/Swing Trading Part 2

[trade4joisar]

Hello ST sir,

While looking at your older post while creating summarized document which i am creating and it has long way to go (this is only because of you and Raghav sir, so much important knowledge shared that i can hardly ignore the post of yours). I found this post about Pivot high (hope similar for PL).

It is as simple as this or it has more than this or more in it?
It is different from Swing high and low OR both are same?

http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-13.html#post546105

Correct....in the PH marked on my chart , the middle bar has higher high than bar preceeding and succeeding it.

 

[trade4joisar]

Dear joisar sir,
first of all can u send ur email id to [email protected] & also am eagerly waiting for shareholding data u used to post. kindly do the needful.

Hello Venkat,

After you said i looked at my program which i have written to extract data from BSE india to get shareholding data for all the companies, but i found that BSE has changed its format and now i again need to modify and tweak my program again to get this data which will take time.

At present i am not sure when i will be able to complete this, once done i will upload the same in my thread.

 

[Smart_trade]

Hello ST sir,

While looking at your older post while creating summarized document which i am creating and it has long way to go (this is only because of you and Raghav sir, so much important knowledge shared that i can hardly ignore the post of yours). I found this post about Pivot high (hope similar for PL).

It is as simple as this or it has more than this or more in it?
It is different from Swing high and low OR both are same?

http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-13.html#post546105

Correct....in the PH marked on my chart , the middle bar has higher high than bar preceeding and succeeding it.

Pivot high is a point where the market changes the ongoing direction and reverses in direction atleast temporarily. So I consider the point as pivot high if within the next few bars the low of pivot high bar is cracked AND we get a lower close than the pivot high bar close....if these conditions are not satisfied then they could be called either Inside bars or aggressive pivots.

Smart_trade

 

[trade4joisar]

Yes it is worthwhile testing it on difficult sideways periods to see whether it gives a scratch month or a small negative month.

Smart_trade

Nothing is negated. The rally expected was a antitrend rally which we get after 8th,9th,or 10th set up day. It came on 10th day. This rally was there for couple of days. Now the original downtrend has resumed. We have to go down much more and next 15-20 days will be bearish, small rallies notwithstanding.

We may finally bottom at below 5500. But the exact day and levels will be known as the downmove unfolds. But that stage is atleast 15 days away...Market behaving exactly as it should, in a text book sequential pattern.

Smart_trade

Hello ST Sir,

So as you said it was a small negative month.

I know i have limited knowledge in Sequential method, so want to know

If this rally was also part of it or it was not as expected (market can overrule anything)?

So if this is still part of this method then we have to wait for 13 count to go for long as per this method which you were saying about around 5500 i.e. previous swing low of5477

Let us know your views.

Thanks.

 

[trade4joisar]

I have started to put all important aspects discussed here in one single PDF.

https://docs.google.com/file/d/0BwQTo2jcisNVck13WUliSm5fN1U/edit?usp=sharing

I have started with "Thoughts on Day/Swing Trading Part 1" i.e. below link. Above document contains only till Page 12, Post 111. Still long way to go.

http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading.html

I have updated document with more content & try to do it in structured (still working on it) way. If anybody have any suggestion let me know i will modify (if i have enought knowledge to do it accordingly.

I have still done till 51 page, but thought to share as still long way to complete.

https://docs.google.com/file/d/0BwQTo2jcisNVSkVScE10LW9HWWM/edit?usp=sharing

 

[Gaur_Krishna]

Dear Smart_trade Da,

When we talk of pivots, do we have to consider outside of first 5 min bar range.I mean, when we want to go long/short above/below 21SMA or 60MA, the pivot has to be above/below the range of 1st bar ? If so, then on gap up/down day, we need to wait for Day's high/low to be taken out and then only we can take further trades, as most of other pivots lie between the range and are not pure pivots. Can TD points be considered as pivots?

Regards,
Gaur_Krishna

 

[Smart_trade]

Dear Smart_trade Da,

When we talk of pivots, do we have to consider outside of first 5 min bar range.I mean, when we want to go long/short above/below 21SMA or 60MA, the pivot has to be above/below the range of 1st bar ? If so, then on gap up/down day, we need to wait for Day's high/low to be taken out and then only we can take further trades, as most of other pivots lie between the range and are not pure pivots. Can TD points be considered as pivots?

Regards,
Gaur_Krishna

Yes taking trades on the pivots which are in the belly of first bar should be avoided.

ST

 

[Smart_trade]

I was discussing trading methods with a friend who is in a hedge fund. His mandate is as under :

1) He wants a totally mechanical chart based trading system.

2) Peak to valley drawdown not to exceed 15 % max.

3) Wants to deploy large volume ( almost nearing 3 digits in Rs crores) so daytrading on small timeframes is out....swing trading on larger timeframes needed.

4) He does not want any fancy returns by taking large risks.....risk control most important.

The trades are marked on the chart...red line shows short, dotted red shows add ( only 1 add considered) and black line shows covering the trade.

Trades are taken in direction of clear visual trend.....on pivots. Antitrend moves not traded.

Trades are as under : ( June Bank Nifty Fut)

Trade 1 : Short @ 12846...add @ 12687 Trade closed at 12447 = + 639 points

Trade 2 : Short @ 12321 Stopped out at 12364 = - 43 points ( loss)

Trade 3 : Short @ 12301 Add @ 12132 Trade closed at 11869 = + 695 points

Trade 4 : Short at 11836 Add @ 11518 Trade closed at 11254 = + 846 points

Trade 5 : Short @ 11160 Trade stopped out at 11254 = - 94 points ( loss )

Total 5 trades, 3 profits, 2 losses....points made in profitable trades = 2180 points , Points lost in loosing trades = 137 Net points made = 2043 points.

With less than 0.5 % risk on capital on every trade, the gains are over 7 % per month......very good returns for the risk undertaken.

Smart_trade

 

[friendforevers0007]

St sir can you update the trades of july series as this series is very volatile for day traders. Thanks

 

[sbali1976]

ST Sir,

Regarding the BankNifty trade, are these trade taken after the close of the hourly candle or once the pivot is broken during the formation of the hourly candle ?

regards