Thoughts on Day/Swing Trading Part 2
- Thread starter DanPickUp
- Start date
You have to either trade from long side or not trade in the zone marked as the market is not trending . This is evident from the fact that ADX of 60 min, 15 min and 5 min BNF all are below 20 so there is no trend on any of these timeframes. Trades will be successful when ADX goes above 20 meaning when the market starts trending.
In nontrending period use VWAP bands with 1SD and 2 SD and -1 SD and -2 SD and try to sell in the upper band, and buy in the lower band.
Smart_trade
In nontrending period use VWAP bands with 1SD and 2 SD and -1 SD and -2 SD and try to sell in the upper band, and buy in the lower band.
Smart_trade
ST da,
Thanks for sharing trades on charts as well. I have some doubts:
1. Like SWIFT, if we have to plot MA line to indicate long term trend, what MA (I mean 60MA , 30MA etc) is OK for hourly candle?
2. Can these trades be taken mechanically? I mean, as we know previous pivot low, can we just place a buy order below the PL (+filter of 5 in BNF) and once it is filled, place SL at previous PH?
3. How to avoid getting into ranging period, because if place order during formation of hourly candle and if BNF getts rangebound, are we supposed to continue till trend resumes or SL hit?
4. Also, thanks for input on ADX above 20 to mark trending period. Do you use default period of ADX(14) for 5 min, hourly & daily?
Regards,
Gaur_Krishna
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
Thanks for sharing trades on charts as well. I have some doubts:
1. Like SWIFT, if we have to plot MA line to indicate long term trend, what MA (I mean 60MA , 30MA etc) is OK for hourly candle?
2. Can these trades be taken mechanically? I mean, as we know previous pivot low, can we just place a buy order below the PL (+filter of 5 in BNF) and once it is filled, place SL at previous PH?
3. How to avoid getting into ranging period, because if place order during formation of hourly candle and if BNF getts rangebound, are we supposed to continue till trend resumes or SL hit?
4. Also, thanks for input on ADX above 20 to mark trending period. Do you use default period of ADX(14) for 5 min, hourly & daily?
Regards,
Gaur_Krishna
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
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