Trading With CrossOver And BB

[scorpio77]

Hi Lancer,

I am in sync with your conclusion. let's see what savant has to say.

If you notice, on the previous trades the candlestick after the crossover has been in favour of your trade except in the last case. I usually wait for a confirmation of trend after crossover. Hard luck, Guess you were a victim of a market whipsaw!

How often does one see a complete trend reversal in a span of 10 mins during the last half hour of trade? :annoyed:

BTW, noticed that you are using SMA 4 and 6. Any particular reason?

Hi,

Have been following the thread and experimented with the system on SUZLON FUTURES.

All trades went right except for the last one @ 5 and ended up hedging one short of June with one long of July with trailing losses. Where did I go wrong ? Is not covering after two green bars the reason. BTW used 5 mins TF.

Wishes,

Lancer.

 

[lancer]

Hi Lancer,

I am in sync with your conclusion. let's see what savant has to say.

If you notice, on the previous trades the candlestick after the crossover has been in favour of your trade except in the last case. I usually wait for a confirmation of trend after crossover. Hard luck, Guess you were a victim of a market whipsaw!

How often does one see a complete trend reversal in a span of 10 mins during the last half hour of trade? :annoyed:

BTW, noticed that you are using SMA 4 and 6. Any particular reason?

Hi Scorpio,


Thanks for the quick one. The last 10 mins took me aback and it was beyond me as all my sell orders did not menifest. So, I took recourse to hedging one JUNE SHORT with one JULY LONG to keep the trailing losses at the minimum and take further trade buying short on retracement and selling long on a peak.

Yes! You noticed right. Savant has recommended 4/5 SMA for NF and 5/6 for equities. My simple logic of using 4/6 SMA is for better visibility on a volatile day and think it is a better tool when a huge loss or gains are at stake in FNO. ( SUZLON comes with a lot size of 6000 shares )

I am new to trading for past two months only and have been following Saint, Savant and other stalwarts to get to know the Fundas.

Let me see what the masters of the trade have to say as I would tend to believe that it was an error of judgement on my part by not covering the short after point 5 on appearance of two succesive green candlestick.

Wishes,

Lancer.

 

[SavantGarde]

Hi Guys,

I Have Just Returned Half An Hour Back, Give A Me A Litle Time To Get Back With Replies.

My Apologies For Returning Back Late, Will Spare You Guys With Details, But It Was One Of Those Things Beyond My Control.

Happy & Safer Investing

SavantGarde

 

[scorpio77]

Welcome back!

Hope you had a good break! As you can see the threads has been very active in your absence!!

Hi Guys,

I Have Just Returned Half An Hour Back, Give A Me A Litle Time To Get Back With Replies.

My Apologies For Returning Back Late, Will Spare You Guys With Details, But It Was One Of Those Things Beyond My Control.

Happy & Safer Investing

SavantGarde

 

[SavantGarde]

Hi Scorpio,

Staying Away From What One Loves Is Never A Much Needed Break,

Mostly These Trips That Happen Occassionally Or When GF Is In Town Is A Spiritual Connection That Is Missed While I Am Busy Doing What I Love.

SavantGarde

Welcome back!

Hope you had a good break! As you can see the threads has been very active in your absence!!

 

[y2j826]

Hi Guys,

I Have Just Returned Half An Hour Back, Give A Me A Litle Time To Get Back With Replies.

My Apologies For Returning Back Late, Will Spare You Guys With Details, But It Was One Of Those Things Beyond My Control.

Happy & Safer Investing

SavantGarde

you shld have to be there as without you peoples were gonna die soon :lol:

 

[vanram]

hello Lancer,

if you went short because of BB piercing, normally the target should be 9 sma.

or atleast you should have covered / reversed at 2.50 to 2.55 bar.( at bullish cross over)

If I remember correctly,some where savant has mentioned that BB should be treated as secondary indicator only and it should be used to exit existing position only.

If you want to trade based on BB piercing, use it as a separate setup with separate target.

Hi,

Have been following the thread and experimented with the system on SUZLON FUTURES.

All trades went right except for the last one @ 5 and ended up hedging one short of June with one long of July with trailing losses. Where did I go wrong ? Is not covering after two green bars the reason. BTW used 5 mins TF.

Wishes,

Lancer.

 

[SavantGarde]

Hi y2j826,

It Is Just A Perception That I Should Be There & Truth Is Antipodal To Perception In This Case.

Happy & Safer Investing

SavantGarde

you shld have to be there as without you peoples were gonna die soon :lol:

 

[SavantGarde]

Hi Lancer,

Vanram, Is Very Correct In His Opinon About BB....

a) It Is A Secondary Indicator To Know Where The Price Is In Relation To Normal Moving Average.

b) If Trading F&O One Has To Be Extremely Nimble, Because The Price Close To Any Of The Extremes Of BB, Should be Treated With Respect & Caution, Especially When There Is Huge Contract Size At Stake.

c) I Have Always Emphasised That BB Is Utilised For Quick Bonus Trades, But Not Advisable For Those With Huge Lot Sizes, More Suitable For NF & BNF, Though It Probably Fulfills Conditions On Equity Futures, But Not Worth The Risk If One Doesn't Have 'Margin Of Safety'

Will Elaborate Some More In Another Post, After I Have Finished Replying To Other Pending Queries.

Happy & Safer Trading

SavantGarde

 

[lancer]

Hi Lancer,

Vanram, Is Very Correct In His Opinon About BB....

a) It Is A Secondary Indicator To Know Where The Price Is In Relation To Normal Moving Average.

b) If Trading F&O One Has To Be Extremely Nimble, Because The Price Close To Any Of The Extremes Of BB, Should be Treated With Respect & Caution, Especially When There Is Huge Contract Size At Stake.

c) I Have Always Emphasised That BB Is Utilised For Quick Bonus Trades, But Not Advisable For Those With Huge Lot Sizes, More Suitable For NF & BNF, Though It Probably Fulfills Conditions On Equity Futures, But Not Worth The Risk If One Doesn't Have 'Margin Of Safety'

Will Elaborate Some More In Another Post, After I Have Finished Replying To Other Pending Queries.

Happy & Safer Trading

SavantGarde

Hi Savant,

Thanks for the reply. Please elaborate what other indicators are to be used when dealing with a big lot size so as to optimize the risk ? I do understand that market has a habit showing *Whipsaw* that defies all indicators.

Wishes,

Lancer.