Trading Strategies Using Technical Analysis

[SwingKing]

Thanks Raunak,

Just want to understand concept of reversing our stance from bearish to bullish or vice versa.
Normally, is it done by booking loss on perticular trade?
As indicated by you, your Index shorts were hedged with stock long hence net position was in positive. Now when you are reversing your stance, you will be booking loss in your Index position.
Am I understanding it correctly?

Rrmhatre,

Let me explain it to you, the way I think about this.

I have two ways of executing trades.

1. Trade with trend
2. Trade with opinion

When both agree, my profits are huge. When either one of them agree, my profits are still very good. Now, to start with, I never argue with the markets. Hence, if markets are trending up, I keep taking positions in stocks which are showing strength. Similarly, I never argue with my opinions. If I have a bearish opinion, I do not hesitate to open up bearish positions. I know that the current trend positions will take care of my losses. And when trend reverses, I would close my profits on long and would be prepared with my positions on the short side.

When I bet, I bet big. I don't mind to loose. If I see a trade, I go for it. There is no scope of if, but and why in my trading plan.

Tc

 

[hills_5000]

Raunak,

Kindly explain in greater detail reasons for reversing your viewpoint , since you have been bearish for quite somtime now. The reasons you have given are too brief to justify the prolonged bearishness you have maintained.

regards

Rrmhatre,

Let me explain it to you, the way I think about this.

I have two ways of executing trades.

1. Trade with trend
2. Trade with opinion

When both agree, my profits are huge. When either one of them agree, my profits are still very good. Now, to start with, I never argue with the markets. Hence, if markets are trending up, I keep taking positions in stocks which are showing strength. Similarly, I never argue with my opinions. If I have a bearish opinion, I do not hesitate to open up bearish positions. I know that the current trend positions will take care of my losses. And when trend reverses, I would close my profits on long and would be prepared with my positions on the short side.

When I bet, I bet big. I don't mind to loose. If I see a trade, I go for it. There is no scope of if, but and why in my trading plan.

Tc

 

[rrmhatre72]

Rrmhatre,

Let me explain it to you, the way I think about this.

I have two ways of executing trades.

1. Trade with trend
2. Trade with opinion

When both agree, my profits are huge. When either one of them agree, my profits are still very good. Now, to start with, I never argue with the markets. Hence, if markets are trending up, I keep taking positions in stocks which are showing strength. Similarly, I never argue with my opinions. If I have a bearish opinion, I do not hesitate to open up bearish positions. I know that the current trend positions will take care of my losses. And when trend reverses, I would close my profits on long and would be prepared with my positions on the short side.

When I bet, I bet big. I don't mind to loose. If I see a trade, I go for it. There is no scope of if, but and why in my trading plan.

Tc

Thanks for explanation.

It seems you open position in futures only. (no options to hedge)
How do you hedge your position? pls advice more about your hedging methodology.
OR you control your risk with stoploss ONLY?
If your risk management is with stoploss only then how do you handle gap up/down situation?

 

[alroyraj]

Buy Reliance Media @213.

Will be posting SL in live sessions.

These trades would require continuous monitoring as we could reverse positions and go short.

Tc

I assume you have shifted to trading the Sep series,is it ?
Also on what TF you suggest monitoring,the 3 or 5 min TF seems adequate since there is a lot of gapping and WRBs,any advice on what settings you use to deal with this..(like TF used, SL etc)

 

[saivenkat]

Also on what TF you suggest monitoring,the 3 or 5 min TF seems adequate since there is a lot of gapping and WRBs,any advice on what settings you use to deal with this..(like TF used, SL etc)

This is what i requested thro' PM - what TF to adopt for this kind of sideways market for intraday?

Regards
Saivenkat

 

[SwingKing]

I assume you have shifted to trading the Sep series,is it ?
Also on what TF you suggest monitoring,the 3 or 5 min TF seems adequate since there is a lot of gapping and WRBs,any advice on what settings you use to deal with this..(like TF used, SL etc)

Dear Alroyraj and Sai,

3 or 5 min are time frames I don't even look into. Sadly, I am not blessed with that kind of patience. But in my opinion, combination of 5 min or 6 min with 30 min as reference frame should do well. Also dont be afraid to experiment the 10 min and 30 min time frame. Some of my intraday traders have told me this works good.

Tc

 

[SwingKing]

Thanks for explanation.

It seems you open position in futures only. (no options to hedge)
How do you hedge your position? pls advice more about your hedging methodology.
OR you control your risk with stoploss ONLY?
If your risk management is with stoploss only then how do you handle gap up/down situation?

rrmhatre,

Yes, I use futures only. I hedge my position the way I explained it to you in my previous post. As far as risk management goes, I use only stop losses. But, stop losses are not based on support or resistance or previous high/lows. They are based purely on discretion.

As far as gap down is concerned, there is nothing I can do about it. I take it as a part and parcel of the entire trading profession.

Tc

 

[SwingKing]

Raunak,

Kindly explain in greater detail reasons for reversing your viewpoint , since you have been bearish for quite somtime now. The reasons you have given are too brief to justify the prolonged bearishness you have maintained.

regards

Hills,

My entire shift from being a Bear to a Bull has been due to some long term fundamental and economic factors. There's nothing technical about it. I feel we are on the brink of something Special. Hence even if markets correct (which it will), I am going to be a net - net buyer.

Tc

 

[Apurv7164]

Reversing positions - Nifty View

Well, I have been bearish for 2 months now expecting the Nifty to slide to 5100 levels. Last two days, our team has sat down and dismantled what is happening underneath our markets. We have reached a conclusion that we are amidst a market which is extremely strong. Hence, on Monday we will be reversing our stand on Nifty.

The Nifty could go into corrective phase (5300, 5200,5100 or 4900) this month or next month, but we have decided to be long in the markets with active risk management. During past two months, some of the stock futures deals have worked very well for us. This is primarily why, despite of carrying short positions on Index, we have managed to be deep in the green overall.

At present we are going to position ourselves as being conservatively bullish on the market and will structure our investments around this.

Tc

Raunakji,

I know when you have reversed your positions, there must be well thought and calculated reasoning.... I wud surely like to learn more on that...

However, if it is proprietary system/method/strategy based decision, please disregard my request and refrain to disclose... that is perfectly fine....

Bests,
Apurv

 

[SwingKing]

Raunakji,

I know when you have reversed your positions, there must be well thought and calculated reasoning.... I wud surely like to learn more on that...

However, if it is proprietary system/method/strategy based decision, please disregard my request and refrain to disclose... that is perfectly fine....

Bests,
Apurv

There's nothing Proprietary dear. Its all for you guys. I'll write a detailed post over weekend as to why I have turned completely Bullish.

Tc