trade commodities in a simple way

[mehtaka]

Hello,
From what i understood your system is...
Buy is when the high is broke of the past 2 days
Sell is the low of the previous bar

Short is when the low is broke of the last 2 days.
cover is the high of the previous bar.

you take the trade on closing basis or once the price is triggered?

In your backtest report
I didn't understood your 1st trade in copper.
1 ) You took long @ 419.05
How did you judge that we need to enter long, coz that day low is also the lowest of the last previous day.
2) you exit this long position @ 423.2, but on 7th feb, low is 414.6, which was lowest of th last previous day ( 418.95 & 416.7) so exit should have been 416.7 rather than 423.2.

I havnt checked the entire sheet as of now, got this query on the first trade of your back test result and tot to get your attention der.

 

[gurmy.]

Hello,
From what i understood your system is...
Buy is when the high is broke of the past 2 days
Sell is the low of the previous bar

Short is when the low is broke of the last 2 days.
cover is the high of the previous bar.

you take the trade on closing basis or once the price is triggered?

In your backtest report
I didn't understood your 1st trade in copper.
1 ) You took long @ 419.05
How did you judge that we need to enter long, coz that day low is also the lowest of the last previous day.
2) you exit this long position @ 423.2, but on 7th feb, low is 414.6, which was lowest of th last previous day ( 418.95 & 416.7) so exit should have been 416.7 rather than 423.2.

I havnt checked the entire sheet as of now, got this query on the first trade of your back test result and tot to get your attention der.

Dear,
thanks for paying attention
yes u understood right
regarding 1st trade on 3 feb
till 2nd feb short position was open,which was reversed to long on 3rd feb
so no question of taking short on 3rd feb(check in signal coloumn of 2nd feb,it shows short)
regarding taking position.i take position as the price triggered
yes u are right on your 2nd point
mistake happened in excel sheet due to the signal coloum,which changes as per EOD,where as i enter/exit as and when price triggers
thanks for pointing out
will correct and upload a fresh sheet as soon as possible
thanks

 

[mehtaka]

Dear,
thanks for paying attention
yes u understood right
regarding 1st trade on 3 feb
till 2nd feb short position was open,which was reversed to long on 3rd feb
so no question of taking short on 3rd feb(check in signal coloumn of 2nd feb,it shows short)
regarding taking position.i take position as the price triggered
yes u are right on your 2nd point
mistake happened in excel sheet due to the signal coloum,which changes as per EOD,where as i enter/exit as and when price triggers
thanks for pointing out
will correct and upload a fresh sheet as soon as possible
thanks

Thank you for quick reply...

It seems like you will again have to prepare the entire back test report, by random checking its seen that the exit is not been proper.

Also, if we think other way, we can enter on the break out but if we exit as per the closing basis, your back test report can be consider.

 

[ambarish123]

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

hello bai ....back again with doubts and questions
now i understood how we take into a position ie 2 day low or 2 day high break but what i didnt get is now after we enter a trade say long and the next day (day 2)the high of day 1 is not broken now the next day (day 3) the day 2s hig is broken...now questions are

1)is there a need for the high to be higher to shift our sar ??if yes then
a)in the above condition does the highest high ie day1 high has to be taken out or just the previous days high?

 

[gurmy.]

Thank you for quick reply...

It seems like you will again have to prepare the entire back test report, by random checking its seen that the exit is not been proper.

Also, if we think other way, we can enter on the break out but if we exit as per the closing basis, your back test report can be consider.

thanks dear,
it seems i was in a hurry to develop a system,initial results were
so good that i forgot my own rule to check and recheck
now going deeper,i find many flaws in this strategy
i required some time to look into and decide how i can make it flawless
if i could do that,i will come back
thanks

 

[praveen taneja]

Bro its ok every system is good which work for you but for others that can be hopeless.

it took me 20 long years to make a system that work for me or for a kid of 14 years but many still says that is fail due to less TA/FA confirmation in it

 

[mcxinvest]

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

Nice post,
A suggestion you should try out to enter and exit trade on a closing basis.

Also this strategy would be good once it picks up the trend, in a sideway it could lead to many losses.

 

[ashish2010]

I am working in Angel Broking as Investment Advisor. If anybody want to open a Trading A/c in any segment (i.e. Equity, Commodity, Future & Option, Currency) with Angel Broking. PLs contact me on 9702477216 Rajan..........!!!!!!!!!!!!!!!

 

[prabit]

I think this system is good.All system will make loss during sideways. Only over a long period your net result should be profitable.

 

[abhisingh2002]

Do we have an example?