Trading according to Karthiks strategy..

[karthik_sri]

"Chal Bagundi "Karthik....Excellent.. but tell me what WMA (MA is moving average, what is W)..

Weighted Moving Average bro...

 

[anup]

Please post some calls with charts so that we can get clear picture...

Also plz let me know, which is the best stock which obeys this law(5WMA)..

We can trade in options with positional calls

 

[karthik_sri]

I have posted the EOD chart of SBIN...the price closed above the 5WMA high on 17.12.12...

The 5WMA High of 17.12.12 - 2331.50
High price of 17.12.12 - 2349.00
Close price of 17.12.12 - 2344.30

Signal : Buy
Enter : Buy at 2349.00

Today High price - 2382.00 and closed at 2372.70:clap::clap:

See the Trade...simple strategy good reward...

Track SBIN, TATASTEEL, TATAMOTORS, ICICIBANK, ABAN, SEASAGOA, LT


http://i.imgur.com/uoXda.jpg

Karthik

 

[gurmy.]

POSITIONAL TRADING STRATEGY (USING 5 WMA)

We trade based on EOD data. We need to plot 5WMA on close, High & Low.

Strategy:
1). Enter long (Buy) when the close price closes above 5WMA High
2). Stop Loss is the low of the candle which closed above 5WMA
3). Enter short (Sell) when the close price closes below 5WMA Low
4). Stop Loss is the high of the candle which closed below 5WMA
5). Exit/Target with 1% min and can be carried forward according to the individual risk taking level.

I have attached EOD chart of ICICIBANK for the period from Feb'12 - Aug'12. Please review to have a basic idea on what I have explained above. I will explain with trading oppertunities.:thumb:

http://i.imgur.com/Vow7n.png

Karthik

thanks karthik,

one doubt, stoploss is on close basis or intraday basis

thanks

 

[rangarajan]

I have posted the EOD chart of SBIN...the price closed above the 5WMA high on 17.12.12...

The 5WMA High of 17.12.12 - 2331.50
High price of 17.12.12 - 2349.00
Close price of 17.12.12 - 2344.30

Signal : Buy
Enter : Buy at 2349.00

Today High price - 2382.00 and closed at 2372.70:clap::clap:

See the Trade...simple strategy good reward...

Track SBIN, TATASTEEL, TATAMOTORS, ICICIBANK, ABAN, SEASAGOA, LT


http://i.imgur.com/uoXda.jpg

Karthik

Karthik,
Why we require the WMA(close,5) at all?
The rule says,Buy above the High of the Trigger candle when the Price closes above WMA(high,5) & mirror for short.
Am i missing yr point?

 

[karthik_sri]

thanks karthik,

one doubt, stoploss is on close basis or intraday basis

thanks

Am not getting ur point...

 

[trader08]

POSITIONAL TRADING STRATEGY (USING 5 WMA)

We trade based on EOD data. We need to plot 5WMA on close, High & Low.

Strategy:
1). Enter long (Buy) when the close price closes above 5WMA High
2). Stop Loss is the low of the candle which closed above 5WMA
3). Enter short (Sell) when the close price closes below 5WMA Low
4). Stop Loss is the high of the candle which closed below 5WMA
5). Exit/Target with 1% min and can be carried forward according to the individual risk taking level.

I have attached EOD chart of ICICIBANK for the period from Feb'12 - Aug'12. Please review to have a basic idea on what I have explained above. I will explain with trading oppertunities.:thumb:

http://i.imgur.com/Vow7n.png

Karthik

Amibroker Afl of same strategy for more clear chart and signal.. cheer...:thumb:

_SECTION_BEGIN("Hilo Activator");

Hilo = Optimize("Hilo",10,1,10,1);
Hld = IIf(C > Ref(WMA(H, 5), -1), 1, IIf(C < Ref(WMA(L, 5), -1), -1, 0));
Hlv = ValueWhen(Hld != 0, Hld, 1);
Hilo = IIf(Hlv == -1, WMA(H, 5), WMA(L, 5));
m=Hilo;
Plot(Hilo, "Hilo", colorWhite,styleThick);
color=IIf(BarsSince(Cross(Hilo,C))>
BarsSince(Cross(C,Hilo)), colorBrightGreen,colorRed);
Plot(C,"",Color,64);
_SECTION_END();

 

[karthik_sri]

Karthik,
Why we require the WMA(close,5) at all?
The rule says,Buy above the High of the Trigger candle when the Price closes above WMA(high,5) & mirror for short.
Am i missing yr point?

RR,
There is no role play of WMA (Close) in this. I will correct/edit the same. Thanks to bring it to my notice.

Karthik

 

[karthik_sri]

Please post some calls with charts so that we can get clear picture...

Also plz let me know, which is the best stock which obeys this law(5WMA)..

We can trade in options with positional calls

Please see the Option call based on the SBIN buy signal generated yday.

The close price of SBIN (17.12.12) 2344.30

We buy SBI Call Option of 2350.00

We today (18.12.12) buy SBI Call option of 2350.00 @ Rs.49.25 The option price further goes down and goes up and finally ends up at 57.00. The high price made today was 64.00

Option Trade if played well will give immense return and at the same time the Loss is also immense but one difference is the Loss is KNOWN TO US and will NOT EXCEED more than our BUY PRICE!!!

The return in this trade is 15% if we exit the trade at 57.00

http://i.imgur.com/iRqZG.jpg

Karthik

 

[rangarajan]

RR,
There is no role play of WMA (Close) in this. I will correct/edit the same. Thanks to bring it to my notice.

Karthik

Karthik,
on back test,unlike ATP,filters r required in this strategy.

For eg,to Long,u have to look for the First candle that goes from Below WMA(5High) & closes above it & maintain yr position with Trailing s/l to Exit.

If u enter in between, there is every chance u may end up in loss.

See on Short on 13 & 14th. Hardly 2rs.

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