Thoughts on Day/Swing Trading Part 2

[Smart_trade]

If the average loss is 8 points and the average profit is 24 for you, then the R:R should be in the lines of 3:1

Actual figures for August : Trades 39,Profit 580 points, Average winning trade 35 points ,Average loosing trade 6 points.RR = 5.83

But even RR of over 2:1 is pretty good if one has > 50 % hit rate.

Smart_trade

 

[Gaur_Krishna]

This is what ST da says as the ""Holy Grail" of trading - keep your looses short and let the profits run..... :thumb:
This is good SL strategy that we get out the pivots which we enter and consider these b/o as false by default..... Phantom too says so..... (Ref: Phantom of the Pit) Thanks Dan for that nice book reco :thumb:

Regards,
Gaur_Krishna

Actual figures for August : Trades 39,Profit 580 points, Average winning trade 35 points ,Average loosing trade 6 points.RR = 5.83

But even RR of over 2:1 is pretty good if one has > 50 % hit rate.

Smart_trade

It is possible. Suppose you shorted below a pivot low, and after going some distance, the market comes back and closes above the pivot low which put us in a short trade, get out of that trade. If the breakout is genuine and strong, the market should not close above the pivot.

This works well for me as stops are small.but as a tradeoff it gives some some premature exits and thus diluting my success rate to less than 60 % but my RR is 6:1 which is unheard of in daytrading.

Just as an example today we had 5 loosing trades in which we lost 26-27 points , but last short trade made all the losses good. And on a good day we make 40-60 points or even more in nifty futures.

Think about such solutions and these are possible.

Smart_trade

 

[oilman5]

good to read . excellent thread!!!!!!!!!!!!

 

[techtrader2]

ST you are really clear with your explanations...no wonder you are a hugely successful intraday trader!

It is possible. Suppose you shorted below a pivot low, and after going some distance, the market comes back and closes above the pivot low which put us in a short trade, get out of that trade. If the breakout is genuine and strong, the market should not close above the pivot.

This works well for me as stops are small.but as a tradeoff it gives some some premature exits and thus diluting my success rate to less than 60 % but my RR is 6:1 which is unheard of in daytrading.

Just as an example today we had 5 loosing trades in which we lost 26-27 points , but last short trade made all the losses good. And on a good day we make 40-60 points or even more in nifty futures.

Think about such solutions and these are possible.

Smart_trade

 

[vishal7176]

TO ,

Smart Trade ,

A very very BIG thanks to you ,.....sir .

Posting your valuable thoughts. i read your both of thread .

its great .thanks a lot sir .

 

[Smart_trade]

P-1 or 2 Bars Entry

Today I will share an entry technique which is my favourite entry technique for getting into a trend move, Many times we either miss an entry in a trend move or we get out in between and we want to enter again with small, predefined and controlled risk.

The chart is attached. Here market was in uptrend, it opened with a gap up and after a bit of correction, the uptrend resumed and we want a low rish entry in this uptrend.

Here we locate a small pivot low. And our entry in long trade is above high of the bar which is one bar earlier to pivot low bar provided it is higher than the pivot low bar high, else we go 2 bars earlier.

I have marked 5 places where market gave us a low risk entry shown by blue lines. The stoploss is at the low of the pivot low bar....and you are hooked into a trend...enjoy the ride.

This is an entry method....it is NOT a stand alone trading system....please use it as an entry method only.

The method is based on the fact that an uptrend is made up of higher pivot highs and higher pivot lows and if we keep stops at a pivot low, it will not be hit in a strong uptrend, and if it is hit, it means that the uptrend is weak and we better get out instread of hanging around in a market which is not trending strongly. It is based on sound trading principle and hence this entry technique has more than 75-80 % success rate and is my favourite.....This entry is a great entry for adds even if we are already in trend. It gives low risk add points.

Mirror image to get into a downtrend.....

Smart_trade

 

[augubhai]

TJ's hot right now. Saint, then Pratap, and now ST, all posting gyan at the same time...
:clap:

 

[Smart_trade]

TJ's hot right now. Saint, then Pratap, and now ST, all posting gyan at the same time...
:clap:

I have been posting in this thread and few other threads regularly...so I am a resident of this forum.

ST

 

[Trader_PK]

I have been posting in this thread and few other threads regularly...so I am a resident of this forum.

ST

ST bro ..when will we get out of this long trade?

 

[Smart_trade]

ST bro ..when will we get out of this long trade?

Hi Trader_PK,

Getting out is in the domain of exit srategies. It will take many more posts to explain exits but broadly we can say exit when the trend shows signs of maturing/tiring out/ reversals.

Smart_trade