Trading as a part time profession.

[ag_fx]

Here are the charts for today.

Some of my observations so far:

1) It is better to open a position with smaller lots and Add later on. Untill now I have been opening positions with 4 lots and close 1 lot at regular interval. I am rather contemplating to start from 2 lots from now and at the best add 2 more lots when position moves in our favour. I have read a lot over this method around and have found that majority of successful traders add on to their winning positions i.e. once a position moves in your favour.
This would help us in limiting the loss because of whipsaws to half of what they are right now. Also, it would give us a chance to enter again on TRENDING days, which is more important than trading Full lots on Trading days.
Every penny saved in trading is a penny earned and I am reverting to this methodology from tommorrow.

2)Trading WRBs. I have read somewhere a post from Saint, saying that if more than half of WRB is retraces immediately or in near future without any new pivorts, then hat WRB should be considered nullified. I guess this could help us limit our losses on false breakouts(like the one that occurred today in RIL, charts below). If anyone has any input on these, kindly let us know.

Happy Trading

 

[rajendrani]

Rajendrani,

What is the filter that you use on the daily charts? And what about the position sizing?Do you follow saint's method of position sizing before entering a position?


I have been doing the 5 min flow for some time now and I am quite troubled by some whipsaws. THough, I have been able to close the book in green on daily basis after deducting brokerage and taxes since April 1(thats when I started 5 min flow), I am a little stressed out over the results. The markets have trended really well in the current month and that has given enough oppurtunities to trade ffor green. However, it has happened many a times that my filters just get taken off and market reverses. I increased the filters in last week, and the problem still persists.
What would you say about it kiran? I am a little concerned about having good filters as they havent been satisfactory.

Happy Trading

Ankit you had been doing great. About the whipsaw issues, yes, with 5 min charts the whipsaws are more, you have to understand and work accordingly, otherwise, try the miniflow where the rules are different but whipsaws are less. We get whipsaws only on non trending days. It is always advisable to open you position with small lots and then add if you get favourable trade. For me ususally i will go with two lots, one for profit booking to cover my brokerage just in case if the trade goes against me and the second one to run the profit till the very end. Now this will differ from people to people. Profit should not be booked to early as it cut downs your profit if you get a favourable trade. So once you get your desired profit for your first lot go with trailing stop loss, so that you get more than what you were actually planning for.

For the filter thing, there had been so many discussion as to what should be the filter and what is the best value we can reach for. Well there is no good answer for that. Before I used to use 7 then now 10. But how you can reach for a good filter, I wont say you try for yourself and come with some value, let me just help you out how you can do that, use 10-15% of the ATR. and how to find the atr is just use the daily chart and run the atr indicator, you will see the atr is increasing day by day, it means now nifty and other is trading in good ranges to accordingly our filter should increase in order to prevent ourself for gettting out of whipsaws.

I saw your other post on wrb thing, My personal advice dont mix two things, if you follow miniflow or 60 min flow then follow that and mixing the rules will just make you more confused. I am a strong follower of the miniflow trades, but presently not able to do that because of time constraint it had given me good result, ofcourse those rules are been modified to suit my personal way of trading. So, what i suggest you is you also can modify your current strategy what you are using to suit your style.

About the money management, yes I strictly follow what saint has taught us. I want to be in this for a long time, means I would like to survive in trading for long time, in order to do that, I will just risk my money less and use very less or no leverage.

5 min pivot trading is one of the easiest trading where there are no much rules to be defined just need to understand what are the best pivots and where should we shift our SAR level. And with one lot trading for profit booking will help you to remain in green on VV pattern day. Though profit booking too early is not a good idea, but sometimes it helps. especially in day trading.

Thanks and regards,
rajendrani

 

[rajendrani]

 

[ag_fx]

Why would you do that? This is not a PL. What is the reason of keeping a SAR here? Kindly explain.

And yes, thanks for your previous reply. Wonderful thoughts.

Happy Trading

 

[pkamalesh]

Why would you do that? This is not a PL. What is the reason of keeping a SAR here? Kindly explain.

And yes, thanks for your previous reply. Wonderful thoughts.

Happy Trading

Ankit sir, The reason i guess is the TL Break( At that Point)..Just a wild guess..

 

[rajendrani]

Why would you do that? This is not a PL. What is the reason of keeping a SAR here? Kindly explain.

And yes, thanks for your previous reply. Wonderful thoughts.

Happy Trading

If you check the Low, where I have kept the SAR, it is a PL.

And the low where i had nf lot to be covered below that is because of break of TL

Please check the daily charts and you will be able to see where I market the SAR it is a Pivot low.

The pattern what is formed over here is kind of BARR (Bump and Run Reversal), here if the upper trend is broken is better to book your profit there as the break of the lead trenline would put into reversal and then the break of the pivot low will be a confirmation for the same.
The BARR pattern has to be in some angle, which this pattern doesnt fit into that, but still these kind of pattern should not be ignored.

Thanks and regards,
Rajendrani

 

[kiranb]

I was reviewing the important patterns formed during last few weeks, what I traded, what I missed, false breakouts, etc. I thought it this will be helpful to fellow pattern traders.

 

[pkamalesh]

Excellent stuff Kiran....Great as always..A small Req..If u can Do the same When u Find an Important pattern During intraday or Post it at EOD it would be Great for Noob like me...Thanksss

 

[ag_fx]

 

[rajendrani]