trade commodities in a simple way

[gurmy.]

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

hi;
If you have checked the backtest file you can see that this system catches the big moves easily(3 moves>20pt,2move>15pt,1 move>10pt) and keeping losses min(max is 7,rest all ,<5)and a total profit of >133pt in 9 months.(copper mini)
But profit is not my concern any more now. it is there for sure
Now my focus is how we can reduce the loses further
For this I noticed one thing that whenever there was a signal long/short copper moves min rs2 in our favour(only 2 occasion when it moved only rs1.90 and rs 1.05 in our favour,in last 9 months)
So how we can utilize this finding to minimize our losses
What I do is book 25% my position at the profit of rs 1,next 25% @ the profit of rs 2 and carry rest 50% till the end
This strategy comes handy during sideways movement of the market
thanks

 

[ambarish123]

ok i understood how u exit but still my question is not cleared...now lets assume we are in an upmove ....waiting for a reversal signal to short..and lets assume candle A,B,C,D...where high of a<high of b<high of c ...so now our entry will be low of a ....now lets say low of d=or>low of c...and no higher high above c is made (inside candle) ..now where will our entry be ??still at the low of a or at low of b????????

 

[praveen taneja]

as the price crosses the lavel

Bro its possible in non volatile days but when volatality comes it moves 4-6 rs on both side then how is it possible that sl is not picked many time in a day

 

[gurmy.]

ok i understood how u exit but still my question is not cleared...now lets assume we are in an upmove ....waiting for a reversal signal to short..and lets assume candle A,B,C,D...where high of a<high of b<high of c ...so now our entry will be low of a ....now lets say low of d=or>low of c...and no higher high above c is made (inside candle) ..now where will our entry be ??still at the low of a or at low of b????????

hi ambrish,
i think if u have gone through the chart,it should be clear to u.
we are taking the data of last two bar only,
assume today is wed,we r in a upmove waiting for a short signal
mon low is 442,tue low is 443,so on wed we will wait for the price to go below the lowest of (mon,tue,ie 442)so our entry will be just below the 442
but if on wed price does not go below 442 and the low of wed is 444
so on thu we will see the lowest of tue and wed,which is 443 and this is our entry point for short on thu
hope it is clear now
thanks

 

[gurmy.]

Bro its possible in non volatile days but when volatality comes it moves 4-6 rs on both side then how is it possible that sl is not picked many time in a day

u r right bro,high volatility on a single day is dangerous for this system,thanks for pointing out
but what u are pointing is very rare
let me clarify
in long position, my exit is pr day low and fresh short is just below the lowest of pr two days
and if s/l is hit for short same day than fresh long will be above the pr two days high
so we are looking for a day whose high is >pr two days high and low is<pr two days low
below shown bar for 3 days ,short to be taken below the low of 1st bar and long to be taken above the high of 2nd bar and we require the 3rd bar to take both the position same day
vs.bmp

and I could find only 1 day in last 1 year ie 15 mar 12
still in this situation,after reversing the position,if s/l hit same day,than no more trade that day,start fresh next day.
I hope I made myself clear

 

[jiju_infinity]

Bro,i am beginner to commodity, kind to explain this method of trading using simple example.

 

[gurmy.]

Hi,
here is the chart for natgas oct contract (though i dont trade in this)
short opened on 14.9.12 below 171(low of 12.9.12)
position reversed on 24.9.12 above 164.20(high of 21.9.12)
long is still open
NATGAS.bmp

 

[gurmy.]

Bro,i am beginner to commodity, kind to explain this method of trading using simple example.

dear jiju,
this is a very simple set up, if u go through the thread,u will understand it
still if u have any doubt,can ask
one more thing, do not trade blindly any system,just because somebody posted here,and think it is profitable
first understand it,check it,backtest it
if u think it is good,paper trade it
than only risk your hard earned money on it
thanks

 

[gurmy.]

hi,
lead mini gave a sell signal below 119.65

 

[gurmy.]

sold 3 lots leadmini @ 119.5
booked 1 @ 118.5
waiting for 117.5