Thoughts on Day/Swing Trading Part 2

[Smart_trade]

Hello Smart_Trade

A perfect entry and exit, what a strategy :thumb:

Do you mean this band is drawn in your software using afls?
If Yes,

how can we create this band in software where we do not have any afl like icharts.in. ?

Hello T4J,

The blue and rose bands as well as blue VWAP is plotted by AFL. Your charting may have VWAP with Std Dev bands. Bot most of the charts show the bands for current day and not for 2 days. Here instead of -1SD/-2SD of 2 day bands ( rose band in my chart) close approximation could be -2 SD and -3 SD of current day VWAP.

Alternatively you can use divergence on oscillators like stochastics or RSI for indication of profit booking.

Hope the above helps.

Smart_trade

 

[Gaur_Krishna]

For those who have followed ST da's thread on Stochastic, here is some good use. " Alternatively you can use divergence on oscillators like stochastics or RSI for indication of profit booking." :thumb:

Use divergence for profit booking and not for anti-trend trade. Anti-trade needs some confirmation than just divergence. Divergences are plenty in a clear trend move and one may get trapped time to time in anti trend move. So we need to be careful in using divergence for fresh position.

Regards,
Gaur_Krishna

Hello T4J,

The blue and rose bands as well as blue VWAP is plotted by AFL. Your charting may have VWAP with Std Dev bands. Bot most of the charts show the bands for current day and not for 2 days. Here instead of -1SD/-2SD of 2 day bands ( rose band in my chart) close approximation could be -2 SD and -3 SD of current day VWAP.

Alternatively you can use divergence on oscillators like stochastics or RSI for indication of profit booking.

Hope the above helps.

Smart_trade

 

[Smart_trade]

Happy Diwali and Best Wishes for a very prosperous,happy and Healthy years ahead to all my trader friends.....let all your wishes come true in the coming year.

Smart_trade

 

[DanPickUp]

Happy Diwali and Best Wishes for a very prosperous,happy and Healthy years ahead to all my trader friends.....let all your wishes come true in the coming year.

Smart_trade

The same counts to you, sent from far away. All the best and happy Diwali to you, your family and your friends. Wish you an other good and specially healthy year.

DanPickUp

 

[yashodhan]

Hello ST and other friends on traderji,

Wish you all a happy, prosperous Diwali and a bountiful new samvat !!!

Yashodhan

 

[vinst]

Nifty future is showing shorting setup according to sto8,3,4 setup given by ST.
situation: sto8,3,4 remains overbought for more than 5 bars, then dips to neutral region, rises to cross above 80 and drops below 80 before completing 5 bars above 80.
(no chart avlbl , unfortunately.)

 

[Tlahuicole]

Great learning so far from this thread, I am not able to hit thanks button hence gonna waste a post to Thank all contributors

 

[Tlahuicole]

HI ST,

I am currently using the following techniques adviced by you, but am confused when exactly to implement BOBD failures and rejections. Please see my chart, correct if anything wrong and advice what trading decisions you would have taken on the same time. I need to reconstruct my ideas accordingly to get more efficient at trading.

I use MACD crossover and SMA for confirmation but mostly trade on pivots,

1) First trade I shorted after low of first bar breached and SL placed at 3rd bar high + f. Exited at the pivot break( 7th bar is PH ), did not reverse trade as candles are below MA line. This trade was an useless trade, as only break even was gained and risk was quite high. Should I have taken this trade? If yes is there any place to put a better SL? Should I scale down in tf to fine tune my SL? If you are trading what you would have done?

1st trade status is Gain = 6 points

2)Entered after PH broke, but reversed on rejection and kept SL at rejection bar high which is circled? Is this right? Later moved SL to next PH bar after new lows form. Two failure trades here as I had to get out on next pivot high broke.

2nd trade status is Loss = 12 points

3) Entered at pivot high break, and reversed on failure and exited on 3:15 bar.

3rd trade status is Gain = 90 points

Day was profit day, but however I am getting a feeling that I am entering with high risks. Please advice what all to improve.

What you feel I should avoid, What you feel I should learn more.

 

[ptk]

very good numbers ptk. Though these are paper trade numbers, high performance can be achieved if one trades a good method with decipline .My observations are as under :

1) Actual trading performance will be different than the model performance. But with decipline one can achieve 70-75 % of the model trades performance.It is a good idea to check the variance between model and actual performance at end of the day and try to reduce the gap. This will be useful for even regular traders.

2) The method will work on any scrip with good daily range and no erratic up/down moves... the choice of the scrip is personal choice.

3) The above data proves that a good method traded well is enough for making a good living through trading and one may not keep shifting to different methods in never ending search of finding an ideal method.

Well done, keep it up...and share your performance with everyone here.

Best Wishes,

Smart_trade

Dear Smart_Trade,

I have continued my paper trading. Attached is the summary.

1. Portfolio value continues to be Rs 1 lakh.
2. Risk per trade is 1% i.e. 1k Rs.
3. Max Loss per day is still less than 3% including adds.

I now feel confident to begin trading from Jan but I am a little scared since you have said that generally people make a lot of losses in the initial years of their trading career.

If I stick to the rules and dont let my mind overpower the rules, do you think atleast 50% of the performance can be achieved?

I plan to start doing it in Ranbaxy and DLF in cash segment.

Is it safe to keep the portfolio of 1 lakh or should I start small?

Your answers will be of great help as always.

Regards,
PTK

 

[Smart_trade]

Dear Smart_Trade,

I have continued my paper trading. Attached is the summary.

1. Portfolio value continues to be Rs 1 lakh.
2. Risk per trade is 1% i.e. 1k Rs.
3. Max Loss per day is still less than 3% including adds.

I now feel confident to begin trading from Jan but I am a little scared since you have said that generally people make a lot of losses in the initial years of their trading career.

If I stick to the rules and dont let my mind overpower the rules, do you think atleast 50% of the performance can be achieved?

I plan to start doing it in Ranbaxy and DLF in cash segment.

Is it safe to keep the portfolio of 1 lakh or should I start small?

Your answers will be of great help as always.

Regards,
PTK

Very good, PTK....your performance shows capital doubled in most scrips in 6 months.

There will always be some difference between paper trades and actual trades but if you follow a method and have proper risk control, you will succeed.

Portfolio of Rs 1 L is ok I think as you have papertraded it for last 6 months.

I fergot the method...was it Swift intraday method on 5 min timeframe ? Can you post any typical days trades marked on chart for everyone to benefit ?

Great going ..

Smart_trade