Trading Nifty by Levels

M

msa5678

Well-Known Member
#2,842
#2,842
ff35 said:
Thanks msa for this info...will be of help to me.

Can anyone tell me, if after taking out the TSL it reverses and continues in its original direction what do we do?
In particular, do we wait until the nearest target is crossed (if it's near) before we enter again... What SL do we put?

Thanks :)
Click to expand...
If TSL is hit and NF goes below the "Buy Above" and comes back again, My suggestion is to take a second entry. Reason is , The second entry may cross all the 4 targets without hitting the TSL again.

Another way of trading by GANN values would be to revise the SL's to the Targets .

Example :

Nifty Fut 9.30 close 4771.2
Buy above 4778 Stop loss 4761 target 4793 4810 4828
Sell below 4761 Stop loss 4778 target 4746 4729 4712

Lets take today's Buy Above , which was 4778 , Assume that the first target is crossed , i.e., 4793, As soon as 4793 is crossed , revise the SL from 4761 to 4778, And assume that NF goes still further to the second target 4810, Immediately revise the SL to 4793 and so on.

I would like to add here that at the end of the day , all the strategies give almost similar returns. Only thing that is needed is to stick to any particular method and have strict money management, and military discipline.

 
M

msa5678

Well-Known Member
#2,843
#2,843
Glad to see that this thread has reached the 300 pages within a very short period of time. Khushiji's initiative is really appreciable. I think this is a kind of record for a thread to reach this mark so fast.
 
M

murthyavr

Well-Known Member
#2,844
#2,844
msa5678 said:
Hi Shivangi,

Sorry to intrude in between the discussion. Many procedures have been listed in the thread "Best Nifty Strategy...'. I even did a backtest of 4 months for the GANN Values. I found that it is best to use a TSL if you are trading by GANN strategy. For Example , If today Buy Entry was 4778 and NF reached 4793, your TSL is 10 points , Then you should exit around 4783. That way you will be locking your profits.



Click to expand...
Exactly my point! (I was away for some time..)

Move your TSL to cost price at the earliest instance. By the time the price
reaches the first target your TSL should be at least moved to break-even
levels (For NF, the break-even would work out to 3 points, if you have a
broker like Zerodha..)

A 4-point stoploss (as per Zerodha, who is considered to be offering the
cheapest brokerage charges..) would give you a loss of Rs.360 for one lot
of NF. A 10-point profit would give you a net of Rs.340.

Now calculate the Reward/Risk ratio. It's less than 1. As per the above ratio,
you need to have 50% success rate to keep your ledger balance as it is,
forget about the profits.

With this kind of RR Ratio, it's certain that the ledger will bust up
very soon. Traders have failed even with 1:1 ratio..

Any strategy needs to be back-tested with realistic money management terms.

Windfall is entirely a different story and short-lived!
 
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