trade commodities in a simple way

[gurmy.]

hi,
presenting here a simple system for trading commodities.
though the system can be used on stocks also but i prefer commodities.
the idea behind this system is not mine,i took it from this forum only
made some alteration to suite my style of trading

some highlights of the system are

:no TA/FA required
:no charting software,real time data needed
:no sitting infront of computer for long hrs
:exact entry/exit points are known.one day before
:easy to understand

WHO CAN BENEFIT FROM THIS SYSTEM

:beginners who does not have much knowledge about trading
:compulsive trader(myself)who always want to be in trade,not want to lose much,and satisfied with a decent return
:does not have time for TA/FA
contd

 

[gurmy.]

SYSTEM

it is a simple SAR system for swing trading, which i call "two day reversal system"

ENTRY :enter LONG as price break previous two days high
:enter SHORT as price break low of previous two days

STOPLOSS/PROFIT BOOKING :in a SAR system there is no s/l, only position are reversed at entry/exit signals.

But here as and when the position comes into profit., we shift the s/l to previous day’s high/low.
Idea is to lock the profit first.
Now if long position is in profit,and we have shifted the s/l to pr day low and it get hit,if from here,the price again goes above the pr day high,we can go long again.

That’s it

This is the basic out line around which I created my system and using it also
One of the beauty of this system is,that it catches a trend very early and loses are low.
I personally use this system to trade copper and lead
There is a reason to trade copper with this system
That we will discuss later and also how we can improve it
With the help of money management
thanks

 

[san77s]

Hi Gurmy,
Good simple system for beginners, but commodity price affect with global events. If overnight position open with huge different from previous close, have you blindly cut and reverse or have to wait for some time?
Share your past experience.

 

[praveen taneja]

Bro can you give an example????

Ithink copper would pick sl twice a day????if system is not foolproof???

pls write in layman language as I know little high fy words of TA

 

[gurmy.]

Here is the backtest file for last 9 months
http://www11.zippyshare.com/v/22566716/file.html[/URL]

 

[gurmy.]

Hi Gurmy,
Good simple system for beginners, but commodity price affect with global events. If overnight position open with huge different from previous close, have you blindly cut and reverse or have to wait for some time?
Share your past experience.

dear
nobody can anticipate what will happen tomorrow and still we carry our positio overnight,that is the risk every swing/positional trader takes
regarding your question,yes i will cut and reverse my position
if we are following some rules than follow them w/o question
thanks

 

[praveen taneja]

you make decision at EOD to reverse or once price touch that level???

 

[gurmy.]

you make decision at EOD to reverse or once price touch that level???

as the price crosses the lavel

 

[ambarish123]

do v only chng sl wen new new high is made

 

[gurmy.]

do v only chng sl wen new new high is made

copmin.bmp