Thoughts on Day/Swing Trading Part 2

[Smart_trade]

Hi
A big SWIFFFFFFFFFFFFFFFFFFFFFFFFFTTTTTTTTTTT....
Is method ko laga dala to life jinga lala ..
here is today's yes bank future chart..
http://imgur.com/NCbgdoZ

Thanks ST Sir for this wonderful method...Sir You are the mentor of so many people like me...Thanks for ur all efforts & teachings..there are very few selfless people like u.May god bless u...Wish u a very happy new year !

Sir,I have a problem in my trading related SL in swift method..I always confuse where to put initial SL on entry in swift...I generally put it on Latest PH/PL..but the problem is m personality & psychology didnt allow me to put it ..as many times, the SL Is very far from my entry..as scrips like yes bank,tata motors,taata steel...stop is 2-3 rs away..which costs me 2000-3000 rs according to their lots..which is very high..so I started keeping SL on the high of my entry candle...in this condition, I bear losses & when market return in my original direction..its more fruststing..please help me in this.please share the view to put proper SL in SWIFT ....
Thanks

Thanks for the kind words, niftytaurus,

We have to keep a stoploss at minor pivot high if we are in a short trade.Stoploss of high of the entry bar also works fine but as it gives low stoploss, the trade-off is a few false trades .

You may consider selling 50 % quantity on pivot breakdown and sell balance 50 % on a rally up...as close to minor pivot high stoploss as possible...but the trade-off is the market may run fast and you are on board with only 50 % short positions....it is like we cannot have the cake and eat it too...

Smart_trade

 

[VIKAS 21]

range Contraction & breakdown...

 

[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

Updated upto December 2013

Happy new year to all

Regards,
ptk

 

[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

Dear Smart_Trade

Please find attached the results for my paper trades upto Jan end.

I was about to start trading from Jan but the success ratios for the individual stocks were bothering me a little. They are at about 50%. The RR are varying from 3 to 5.5.

I did a following study:-
1. I divided my portfolio into 3 equal parts and I traded in all the 3 stocks.
2. I would like to clarify that when I calculate the RR, I take the values at the end of the day. For instance, to compute RR I have taken an avg of all positive days divided by the average of all the negative days and NOT the avg of positive trades by negative trades. So even if I have say 10 trades in a day, I take the EOD figure. So typically what is done on a per trade basis, I am doing it on a per day basis.
3. You will find a new row called "All combinations" in which I have traded in all the 3 stocks mentioned above in equal quantities.
4. I was amazed to find that the success ratio shot up to 76% and the RR remained 4:1. This has happened because the stocks are compensating each other on bad days and on good days all of them do well. So, even though the success ratio for the individual stocks is just 50%, its a stunning 76% when I trade in all of them.
5. I will hence be starting trading from next week and I will be doing it in all the 3 stocks. I continue to have a risk per trade of 1% of the portfolio of 1 lakh Rs.
6. What matters to me is that 76% of the times my day ends in a positive and that too with a 4:1 RR, I dont want anything else in life

Thanks again for your amazing method. I am now fully confident that with this combinations strategy, the chances of failing and stopping this method have gone down drastically. I will also be able to raise my risk per trade to 2 or 3% in future.

Your comments will be highly helpful.

Regards,
ptk

 

[Gaur_Krishna]

Thanks PTK. One thing I appreciate is that you are with the same method even during paper trades and thats a great sign. Just coupled with managing emotions with actual money and fills at right price, this performance can be REALIZED in CASH.

I guess you are using plain 21 SMA with 5 min charts, Correct?

Regards,
Gaur_Krishna

Dear Smart_Trade

Please find attached the results for my paper trades upto Jan end.

I was about to start trading from Jan but the success ratios for the individual stocks were bothering me a little. They are at about 50%. The RR are varying from 3 to 5.5.

I did a following study:-
1. I divided my portfolio into 3 equal parts and I traded in all the 3 stocks.
2. I would like to clarify that when I calculate the RR, I take the values at the end of the day. For instance, to compute RR IS have taken an avg of all positive days divided by the average of all the negative days and NOT the avg of positive trades by negative trades. So even if I have say 10 trades in a day, I take the EOD figure. So typically what is done on a per trade basis, I am doing it on a per day basis.
3. You will find a new row called "All combinations" in which I have traded in all the 3 stocks mentioned above in equal quantities.
4. I was amazed to find that the success ratio shot up to 76% and the RR remained 4:1. This has happened because the stocks are compensating each other on bad days and on good days all of them do well. So, even though the success ratio for the individual stocks is just 50%, its a stunning 76% when I trade in all of them.
5. I will hence be starting trading from next week and I will be doing it in all the 3 stocks. I continue to have a risk per trade of 1% of the portfolio of 1 lakh Rs.
6. What matters to me is that 76% of the times my day ends in a positive and that too with a 4:1 RR, I dont want anything else in life

Thanks again for your amazing method. I am now fully confident that with this combinations strategy, the chances of failing and stopping this method have done down drastically. I will also be able to raise my risk per trade to 2 or 3% in future.

Your comments will be highly helpful.

Regards,
ptk

 

[ptk]

Thanks PTK. One thing I appreciate is that you are with the same method even during paper trades and thats a great sign. Just coupled with managing emotions with actual money and fills at right price, this performance can be REALIZED in CASH.

I guess you are using plain 21 SMA with 5 min charts, Correct?

Regards,
Gaur_Krishna

Dear Gaur_Krishna,

Thanks a lot for your kind words.

Its 30 SMA with 5 mins charts.

Regards,
ptk

 

[Kabira 21]

PTK..can we trade Swift on 3min TF?
what SMA for that then?

 

[nirtos]

Pleas tell me swift trading method

 

[niftytaurus]

Pleas tell me swift trading method

hi
this method is not available on traderji as far as I know..please google

."tradersaintforum."
moderator,i just want to help nirtos..if mentioning about other forum is against rules.please delete my post
thanks

 

[ptk]

Dear Smart_Trade,

I have started trading your swift strategy but I am doing some modifications. Following is going on in my mind but I dont have enough data to know if it works so I request your suggestion on it.

1. Based on the swift setup, if a pivot high breaks, I buy and exit on the 4th bar. So, if the breakout bar is the 0th bar, I exit on the close of the 3rd bar (0 is breakout bar, 1, 2, 3rd bar)
2. I put a SL just below the pivot high. I punch the SL in the system on the close of the 0th bar.
3. On the close of the 1 bar, I move the SL to breakeven.
4. I have noticed that for valid breakouts, a lot of move is captured in 4 bars.
5. I think the strategy will work well on options.
6. I backtested it on DLF for the past 15 days. The success rate is 43% and the R:R is 2.25.

But I seriously need your suggestions. I remember you had said you do something similar. You get out of a trade if it doesnt move in a given time and you never wait for the original SL to be hit.

Please provide me a direction and I will work on the topic with concentrated effort, I am distracted right now.

Regards,
ptk