Thoughts on Day/Swing Trading Part 2

[paras_123]

standard deviation based on VWAP Bands, i have it for Nifty futures. I ll Post you the formula here in the evening, Hopefully if incorrect ST will clear it.

 

[paras_123]

1. First calculate VWAP, then take a avg of last 10 days, given it a name x,
2.Next column-deduct VWAP of 10th day MInus x in the same row, give it a name .A10,
3. Next column take A10^2, say B10,
4. divide B10 / 10, Say C10,
5.Take Sq Rt of it, say D10 = SD,
6. x+- 1*D10 , would be your SD of +- 1 band, and so on
7. x+- 2*D10 , would be your SD +-2 Band

Regards,
Paras

 

[Gaur_Krishna]

Happy Vacations Da, take care...... :thumb:

Regards,
Gaur_Krishna

I will be away on short vacation till 15th July...will reply all questions on my return.

Smart_trade

 

[Gaur_Krishna]

@VJAY, are these trades on PRICE ACTION? Can you please explain the logic of these trades? When you enter, stop-loss(is it pivot in opposite direction) and do you use any MA as 60MA (SWIFT) for deciding entry or pure pivot based price action

Regards,
Gaur_Krishna

Dear ST da,
Looks like similer to my last month BNF trades though I trade it in 30 tf&with 1 lot only without any adds ...I made 1 trade wrong too ...

 

[VJAY]

@VJAY, are these trades on PRICE ACTION? Can you please explain the logic of these trades? When you enter, stop-loss(is it pivot in opposite direction) and do you use any MA as 60MA (SWIFT) for deciding entry or pure pivot based price action

Regards,
Gaur_Krishna

Its FLOW method with some modification.....Only price actions...nothing else....s/l mostly pvts ...

 

[Gaur_Krishna]

How do you handle GAPS which go against position VJAY?

Regards,
Gaur_Krishna

Its FLOW method with some modification.....Only price actions...nothing else....s/l mostly pvts ...

 

[VJAY]

How do you handle GAPS which go against position VJAY?

Regards,
Gaur_Krishna

Had the rules for handle GAPS..looking 1st bar(15 minutes)

 

[trade4joisar]

Current upmove is a part of the buy sequential process going on and the down move possibility is still open which may take Nifty to 5500 or lower. If the spot nifty closes above 6102 then the downward bias is over.

Having said the above we as traders trade as per the ongoing trend. Sequential is for taking loge term delivery positions in the market...and its time has yet not come.

Smart_trade

Hello ST sir,

What is status of count here?

Anybody who is tracking TDST, would be helpful to post here.

Thanks.

 

[ptk]

Dear Smart_Trade

I am paper trading one of your methods that you have elaborated on some other forum.

I am doing the following:-
1. Spot Bani Nifty charts. 30 period MA, 5 min charts.
2. I treat gap days same as non gap days.
3. If prices under MA and MA falling, I short the break of pivot lows, previous PH is my Stoploss.
4. In the attached image, I have shown Adds as a new trade.
5. I am taking 2 Adds even for buys.
6. My risk per trade is Rs 1000 which is 1% of my portfolio of 1 Lakh.
7. Even for my Adds, I am taking the quantity based on risk of Rs 1000. I understand that when I have 3 open positions (original position + 2 Adds), my risk per trade is more than 1000Rs, but by the time I take the 2nd Add, the SL level is moved in my favour so the total risk is very less than 3000Rs even though slightly more than Rs 1000 but please ignore this for the moment.
8. I understand that bank nifty can be traded only in futures and the quantities I have shown are not possible in reality but please ignore this point for the moment.

In the past 3 days my total returns (paper trades only) for a risk per trade of Rs 1000 (1% of 1L) are Rs 31000 i.e. 31%.

At the end of the first day in which the returns were 9%, I was saying to myself that even if I get 1 such day in a month and for all the remaining days I am able to break even, its good enough.

I am trying to use this strategy in nifty, Tata motors and DLF but find it very difficult and rather very easy doing it on bank nifty.

I have following questions which I request you to answer:-
1. Am I missing something, are the returns 31% really? I have charts for these 3 days as well which I can attach.
2. Why it is easier to trade BNF than NF or other stocks?
3. Can you please recommend a couple of stocks on which I can use this strategy so that I dont have to start my trading in futures initially and I can day trade (long or short) individual stocks.

I plan to paper trade this strategy upto August end and begin trading from September. Your reply will help me a lot to do any fine tuning in this period.

Please be assured that I have read all threads started by you on both the forums I dont know how many times.

I have printouts of your strategy and the charts and I am helping my wife teach to understand this strategy with the explanation of pivots etc.

I have a lot more to write but I dont want to elongate this post of mine and dilute it.

I request you to reply.

Regards,
ptk

 

[VJAY]

Dear ptk,
in tatamotors this strategy given good profit...though its 2years back....now you can back& forward check for its present situation....... also post here your findings