Trading as a part time profession.

[rajendrani]

 

[rajendrani]

 

[ag_fx]

Dear Harsh, check this pic, now you would be very clear on the pivot trading and these trendlines drawn on the two pivots really can give more information. Now how to use those trendlines and how this can be really useful. For that you have to wait for my detailed post on that, for which again time is a constaint for me. But as soon as I get time for the same, I will definately post on how to use these trendlines.

Thanks and regards,
rajendrani

Thanks a lot rajendrani f your post. If you can, kindly do talk about which trendlines to use for profit booking and which to not...Like in the posted pic of urs, the first two trendlines after the long was triggerred were broken, but nothing was done. Kindly do post how to distinguish.



Also, I had another question for you regarding your pivots post.

I tried using that this week. The ATR level was 124(close to) and thus the small filer came out to be 12 points. Now, since I am trying out the 5 min flow method, this is a very huge filter. In my past month of paper trading the 5 min flow, I have realised that many a times markets gives us only 15-20 points in our direction before reversing intraday. With such a huge filter, our SAR levels become further apart and a lot loss booking trades might come into existence(that is when we go wrong).I should rather say that the size of losses increase rather than the number of them. I am not too sure whether such a filter is appropriate intraday.
May be we can use 5% of ATR as small filter and 10% of ATR as larger one. Wats ur take on it.

As for me, uptill now, my filter size is a percentage of NF levels. Like as of now NF is in 3500-3600 zone and thus my filter is 7 points. when it was in 2500 zone, it was 5 points. Do let me know your thoughts on this.

Thanks

Happy Trading

 

[MurAtt]

Thanks a lot rajendrani f your post. If you can, kindly do talk about which trendlines to use for profit booking and which to not...Like in the posted pic of urs, the first two trendlines after the long was triggerred were broken, but nothing was done. Kindly do post how to distinguish.



Also, I had another question for you regarding your pivots post.

I tried using that this week. The ATR level was 124(close to) and thus the small filer came out to be 12 points. Now, since I am trying out the 5 min flow method, this is a very huge filter. In my past month of paper trading the 5 min flow, I have realised that many a times markets gives us only 15-20 points in our direction before reversing intraday. With such a huge filter, our SAR levels become further apart and a lot loss booking trades might come into existence(that is when we go wrong).I should rather say that the size of losses increase rather than the number of them. I am not too sure whether such a filter is appropriate intraday.
May be we can use 5% of ATR as small filter and 10% of ATR as larger one. Wats ur take on it.

As for me, uptill now, my filter size is a percentage of NF levels. Like as of now NF is in 3500-3600 zone and thus my filter is 7 points. when it was in 2500 zone, it was 5 points. Do let me know your thoughts on this.

Thanks

Happy Trading

7 pts. Is it not a bit too small considering the volatility?
I mean, y'day I bot 1 lot NF@3621. It went up to 3630 where I put my SL order at 3620. It went to 3645 and I left the terminal with the SL in place. Then NF came down to 3618 whereas my SL triggered and then bounced back from 3618 to 3640 to close there. Bad luck.

But 7 points does look too near, does it not?

 

[rajendrani]

Thanks a lot rajendrani f your post. If you can, kindly do talk about which trendlines to use for profit booking and which to not...Like in the posted pic of urs, the first two trendlines after the long was triggerred were broken, but nothing was done. Kindly do post how to distinguish.



Also, I had another question for you regarding your pivots post.

I tried using that this week. The ATR level was 124(close to) and thus the small filer came out to be 12 points. Now, since I am trying out the 5 min flow method, this is a very huge filter. In my past month of paper trading the 5 min flow, I have realised that many a times markets gives us only 15-20 points in our direction before reversing intraday. With such a huge filter, our SAR levels become further apart and a lot loss booking trades might come into existence(that is when we go wrong).I should rather say that the size of losses increase rather than the number of them. I am not too sure whether such a filter is appropriate intraday.
May be we can use 5% of ATR as small filter and 10% of ATR as larger one. Wats ur take on it.

As for me, uptill now, my filter size is a percentage of NF levels. Like as of now NF is in 3500-3600 zone and thus my filter is 7 points. when it was in 2500 zone, it was 5 points. Do let me know your thoughts on this.

Thanks
Happy Trading

Ankit, if you are not comforatble with the 10% atr then you can go down to whatever you like if you plan to 5 and 10 % then even you can go for that as per me, I think you go for 7 and 11% of the ATR as your small and big filter respectively.

Ankit the overall idea is trade when the market gives the signal and if not, then its better not to trade, if nifty is trading in small range it may not be advisable to less your filter range or just deviate from your trading sytle, it will be better not to trade for that particular day, as its always good not to go in loss by not trading and then go into loss by trading and frustrating yourself. Ankit you are the only judge for yourself, It all depends from people to people what is good for me or what is liked by me, may not be liked by others.

My best advice to you would be what ever you have your plan I mean the profitable plan, stick to it and just try to make it better and do not deviate from that. and also keep learning for new methods and strategies.

Thanks and regards,
Rajendrani

 

[ag_fx]

7 pts. Is it not a bit too small considering the volatility?
I mean, y'day I bot 1 lot NF@3621. It went up to 3630 where I put my SL order at 3620. It went to 3645 and I left the terminal with the SL in place. Then NF came down to 3618 whereas my SL triggered and then bounced back from 3618 to 3640 to close there. Bad luck.

But 7 points does look too near, does it not?

Well 7 points seemed fine to me uptil now...i have used money management too..that is, I enter only with half lots at first pivot break...and add only to winning positions or get out....Also, I have arrived at this level with some sort of backtesting...Also, since I book profits at +11,+22,+35 & +55 levels, the 7 point filter worked fine for me.
All these levels are dynamic and they change once market moves by 500 points.Like, I started with 5 point filter and +10,+20,+30 & +50 as TP levels. I have seen in intraday, regular small profits add up to bigger profits and thus this technique.
And all this,is just my personalisation....I have tailor made this plan to suit my needs and dats why I have conviction in it!


But, I must also say that it is not devoid of whipsaws...yes, they do occur and sometimes we get whipped wildly...And dats the only reason by real money is still not into this strat as till now, I am not comfortable with the filter levels and the performance of the strat on trading days..And thats why I keep trying other levels of filters...trendlines....indicators etc....to reduce the whipsaws

 

[ag_fx]

Ankit, if you are not comforatble with the 10% atr then you can go down to whatever you like if you plan to 5 and 10 % then even you can go for that as per me, I think you go for 7 and 11% of the ATR as your small and big filter respectively.

Ankit the overall idea is trade when the market gives the signal and if not, then its better not to trade, if nifty is trading in small range it may not be advisable to less your filter range or just deviate from your trading sytle, it will be better not to trade for that particular day, as its always good not to go in loss by not trading and then go into loss by trading and frustrating yourself. Ankit you are the only judge for yourself, It all depends from people to people what is good for me or what is liked by me, may not be liked by others.

My best advice to you would be what ever you have your plan I mean the profitable plan, stick to it and just try to make it better and do not deviate from that. and also keep learning for new methods and strategies.

Thanks and regards,
Rajendrani

I agree with every word that you have said....i would also like to stand out on a day when market is trading in a small range....My only concern with the 12 point filter was, when I backtested it, it reduced the profits of my trading plan....Since i book profits at regular intervals, sometimes i was able to get out with smaller losses, but still the filter was too huge for my comfort on 5 min chart.....
From my exp with this strat so far, most of the times the +11,+22 TP levels get hit...+35 are rarer and +55 are the rarest of the TPs to be hit.....and dis is all after entering with the filter...that is 5-7 points away from the PH or PL.
Also, generally the distance between PL n PH (dat i have observed) is 20 odd points dese days...as a result, I carry a risk of 32 points with +6 as filter(20+6+6) for a TP level of +11 & +22....this is where I am most uncomfortable....Though with this strat so far, the book has closed in green on daily basis....but this is one grey area i want to encounter to my comfort before putting real money to it.
now, if I use a +12 filter, my SLs wud be generally a good 44 points away.....A risk, which might be too huge for my book....And sometimes,u do get hit on the wrong side,forcing you to take losses....

None the less, your points well noted and wud be implemented soon in the testing

Btw, how is the daily flow mehtod working...I am seriously considerin takin sm positions with real money on daily flow...with of course your support here

Happy Trading

 

[rajendrani]

oops the 3rd one is falling wedge. sorry

 

[rajendrani]

 

[rajendrani]