Trading With CrossOver And BB

[cnbondre]

'JAI BABA'

Thanks For Giving Update On BB 20,3. Will You Please Tell Where We Should Use It I Mean During Positional Or Intraday Trading? Is It Replacement For 9,2 Or Alternative?

Thanks.

Hi,

DOC,

Thanks for your afl on BB(9,2) and CROSSOVER(5,6). I want to know was it developed for Interaday trading or for Positional trading ? I want to file it accordingly in my records, hence the question.


Hi, Anant,

Savant sir always mentions to keep a close eye on contracting Bolinger band.

I found an afl (perhaps you might have come accros with it !) which I feel may be useful to sort out / FILTER the contracting BB equities in advance and help out to mark scripts, in DOC's afl for BB (9,2 ) and CROSSOVER (5,6 ), though it will require some correction as per the writer of the afl itself. It plots a nice graph but needs corrections for scan/filter. Need your help for required correction in the afl.

May I request you, Doc and others to check the usefulness of the afl and then release it for all if think so by you seniors. I am not competent to write an afl neither so far reached to a level to juge the system, but feel some-where the need of some supportive add on in the afl developed by DOC (under able guidence of Respected Savant Sir)for SORTING/FILTERING ONLY ( LET ME BE VERY CLEAR NOT FOR PLOTTING) a large number of equities giving buy/sell signals after scan/explore at EOD study. This may give an additional signal! Not any change in the DOC'S original SGS.afl please!


AFL GOES LIKE THIS COPY AND PASTE IT IN THE FORMULA EDITOR


/*
Bollinger bands squeeze.
By Vladimir Gaitanoff, 2005. support<at>vglib<dot>com

This is a volatility indicator.
It can be used to determine the periods of extremes of low volatility which usually followed by big moves.
Indicator does not show direction of the trade, only timing. Some other aspects of technical/fundamental analysis should be employed for direction.

There is a signal line with colored dots. Red dots indicate periods of low volatility (sqeeze).
Green dots indicate periods of high volatility.
Indicator line crosses above and below signal line. Time trades at historical extremes of low volatility.

It can be used for scans, for instance, to find stepper stocks before big moves.
The original author of the idea uses it for intraday trading.

For confirmation look for sqeezes in two different time frames.

*/

Length = 8;
Price = EMA(Close, Length);

// Keltner
kLength = Length;
kN = 1.5;
kATR = ATR(kLength);
kUpper = Price + kN * kATR;
kLower = Price - kN * kATR;

// Bollinger
bbLength = Length;
bbN = 2;
bbStDevValues = StDev(Close, bbLength);
bbUpper = Price + bbN * bbStDevValues;
bbLower = Price - bbN * bbStDevValues;

IsSignal =
bbUpper <= kUpper AND
bbLower >= kLower;

Graph0 = 1;
Graph0Style = styleDots;
Graph0BarColor = IIf(IsSignal, colorRed, colorGreen);

Proportion = (kUpper - kLower) / (bbUpper - bbLower);
Graph1 = Proportion;

Title = "Next Move Signal.BB SQUEEZE. In squeeze: " + WriteVal(IsSignal, 1) + " Keltner/Bollinger: " + WriteVal(Proportion);

-SECTION END();

--------------------------------------------------------------------------


Please give attention to the thoughts of the afl writer,

Indicator does not show direction of the trade, only timing.

It can be used for scans, for instance, to find stepper stocks before big moves.

Will somebody explain the meaning of

For confirmation look for sqeezes in two different time frames.

and the,

Some other aspects of technical/fundamental analysis should be employed for direction.

Regards.

CNB

 

[asnavale]

Hi,

DOC,

Thanks for your afl on BB(9,2) and CROSSOVER(5,6). I want to know was it developed for Interaday trading or for Positional trading ? I want to file it accordingly in my records, hence the question.


Hi, Anant,

Savant sir always mentions to keep a close eye on contracting Bolinger band.

I found an afl (perhaps you might have come accros with it !) which I feel may be useful to sort out / FILTER the contracting BB equities in advance and help out to mark scripts, in DOC's afl for BB (9,2 ) and CROSSOVER (5,6 ), though it will require some correction as per the writer of the afl itself. It plots a nice graph but needs corrections for scan/filter. Need your help for required correction in the afl.

May I request you, Doc and others to check the usefulness of the afl and then release it for all if think so by you seniors. I am not competent to write an afl neither so far reached to a level to juge the system, but feel some-where the need of some supportive add on in the afl developed by DOC (under able guidence of Respected Savant Sir)for SORTING/FILTERING ONLY ( LET ME BE VERY CLEAR NOT FOR PLOTTING) a large number of equities giving buy/sell signals after scan/explore at EOD study. This may give an additional signal! Not any change in the DOC'S original SGS.afl please!


AFL GOES LIKE THIS COPY AND PASTE IT IN THE FORMULA EDITOR


/*
Bollinger bands squeeze.
By Vladimir Gaitanoff, 2005. support<at>vglib<dot>com

This is a volatility indicator.
It can be used to determine the periods of extremes of low volatility which usually followed by big moves.
Indicator does not show direction of the trade, only timing. Some other aspects of technical/fundamental analysis should be employed for direction.

There is a signal line with colored dots. Red dots indicate periods of low volatility (sqeeze).
Green dots indicate periods of high volatility.
Indicator line crosses above and below signal line. Time trades at historical extremes of low volatility.

It can be used for scans, for instance, to find stepper stocks before big moves.
The original author of the idea uses it for intraday trading.

For confirmation look for sqeezes in two different time frames.

*/

Length = 8;
Price = EMA(Close, Length);

// Keltner
kLength = Length;
kN = 1.5;
kATR = ATR(kLength);
kUpper = Price + kN * kATR;
kLower = Price - kN * kATR;

// Bollinger
bbLength = Length;
bbN = 2;
bbStDevValues = StDev(Close, bbLength);
bbUpper = Price + bbN * bbStDevValues;
bbLower = Price - bbN * bbStDevValues;

IsSignal =
bbUpper <= kUpper AND
bbLower >= kLower;

Graph0 = 1;
Graph0Style = styleDots;
Graph0BarColor = IIf(IsSignal, colorRed, colorGreen);

Proportion = (kUpper - kLower) / (bbUpper - bbLower);
Graph1 = Proportion;

Title = "Next Move Signal.BB SQUEEZE. In squeeze: " + WriteVal(IsSignal, 1) + " Keltner/Bollinger: " + WriteVal(Proportion);

-SECTION END();

--------------------------------------------------------------------------


Please give attention to the thoughts of the afl writer,

Indicator does not show direction of the trade, only timing.

It can be used for scans, for instance, to find stepper stocks before big moves.

Will somebody explain the meaning of

For confirmation look for sqeezes in two different time frames.

and the,

Some other aspects of technical/fundamental analysis should be employed for direction.

Regards.

CNB

Hi CNB,

Give me some time. I will post here.

-Anant

 

[docvijay4u]

Hello CNB,

AFL Primarily Written For Positional Trading, For IntraDay Trading Savant Sir Said That Setting Should Be Little Sensitive Like For Nifty 4,5 SMA And For BankNifty 3,5 SMA; BB Should Remain Same i.e. 9,2 [ I Hope These Values Are Still Same As I Was Absent For Long Time ]. As I Have Written Detail Explanation Of Each Bit Of Code I Think You Can Easily Customize It For Your Need. In Case If There Is Any Difficulty Please Let Me Know, I Will Do My Best With What Little I Know.

Thanks.

Hi,

DOC,

Thanks for your afl on BB(9,2) and CROSSOVER(5,6). I want to know was it developed for Interaday trading or for Positional trading ? I want to file it accordingly in my records, hence the question.

Regards.

CNB

 

[cnbondre]

Hello CNB,

AFL Primarily Written For Positional Trading, For IntraDay Trading Savant Sir Said That Setting Should Be Little Sensitive Like For Nifty 4,5 SMA And For BankNifty 3,5 SMA; BB Should Remain Same i.e. 9,2 [ I Hope These Values Are Still Same As I Was Absent For Long Time ]. As I Have Written Detail Explanation Of Each Bit Of Code I Think You Can Easily Customize It For Your Need. In Case If There Is Any Difficulty Please Let Me Know, I Will Do My Best With What Little I Know.

Thanks.

Hi,

DOC,

I know you have taken lot of pains ( went through all your postings) and completed the task. It is a wonderfull long lasting perfect work. Your basic afl is a master piece. No change in your absence. Lot many benifited from it including me! I wanted to know it from my veiw as mentioned, thats all.
Thanks for your reply and suggestions of Savant Sir, tried with MA (4,5), instead of MA (5,6) get an early signals, but have decided to stick to Savant Sirs' MA(5,6).

Thanks and Regards.

CNB

 

[scorpio77]

Hi Savant / Doc,

Welcome back Doc. Hope you are feeling better now.

I have started trading with an eye on mainly two charts (30 min and 10 min) with 60 min as a reference. Primary chart 10 min.

I use 20,2 Bollinger on the 10 min and 9,2 on the 30 min.

Entry and exit based on a combination of SMA 4,5 crossovers and candlesticks wrt Bollinger.

Stochastics as an additional indicator

Has shown promise. Any views?

Regards,

Scorpio

 

[prasadam]

hello scorpio.

very happy to note that you have found the method promising.

Now, please specify the following.

entry ( at which point?) , exit ( stoploss?/SAR?), scaling in, scaling out, position size.

my strategy is,

in the case of bullish crossover:

entry at the opening of the bar immediately after the crossover bar, with three lots.

trailing stoploss at the low of previous three bars lows or entry bar minus ATR of that time frame.

profit booking of 1 lot at entry + 20 points, 1 lot at BB piercing (if it happens) and 1 lot at bearish crossover.( if BB piercing does not happen then 2 lots) or at end of the day( if bearish crossover does not happen).

would like to see your strategy and also charts ( at least at EOD)


cheers.

prasad.

 

[scorpio77]

Hi Prasad,

Thank you for sharing your strategy.

Mine is a bit rough at the moment and needs refining but here goes:

Long Trade

1. Look at the 30 min / 60 min charts for SMA 4 to be higher than 5 (normally OK) and diverging ( best case).

2. Check to see if stochastic (settings 8,3,4) is not in overbought zone (above 80) on both 30 min as well as 10 min charts

3. Enter trade on bullish SMA crossover on 10 min with two lots.

4. Sell one lot on BB piercing, followed by red candle or
if stochs are in overbought zone, followed by bearish crossover of stoch lines and movement downwards into neutral zone. ( on either 10 or 30 min chart)

5. Sell remaining lot on bearish crossover of SMA on 10 min. ( or when target profit is reached!!!!

All positions closed by end of day.

The reverse of the above steps apply for a Short Trade.

During trade, I always keep an eye on 30 min and 60 min charts to check market trend and watch out if position is contrarian.

Have also started projecting the NIfty Pivot points by Savant on the 10 min chart for reference. This helps early entry and early profit booking ( under testing for one week only but excellent results)

Stoploss: Generally not required as 4,5 are quite close and the crossover limits losses.

A friend and I are currently trying this on Nifty options ie lot above means one lot of ATM or OTM Call and Put if short. Reason being lower initial capital required and better returns than futures (understand risks of options but can manage)

This strategy is a combination of all our learnings on Traderji from Savant, Pride, Doc and you. The option bit is our tweak

Do revert with your thoughts.

Will try and post charts EOD next week onwards as I am traveling this week.

Cheers,

Scorpio

hello scorpio.

very happy to note that you have found the method promising.

Now, please specify the following.

entry ( at which point?) , exit ( stoploss?/SAR?), scaling in, scaling out, position size.


would like to see your strategy and also charts ( at least at EOD)


cheers.

prasad.

 

[prasadam]

hi scorpio.

nice tweak.:thumb:

my view regarding stop loss.

1) how to position size without an initial stoploss?

2) I have been observing sudden moves of 60-70 points of nifty in 5-10 minutes and price consolidating there for some time. In such situation, sma crossover happens after this move is over.

If, such move is in favour of our position, its ok. but, if it happens against our position, how to protect our capital?

please think about it.

cheers.

prasad.

 

[scorpio77]

Hi prasad,
Agree on the sudden movement bit. In fact, have lost some profitable positions on account of such movements.
Currently trying out an initial SL of 30% of buy price which changes to buy price + brokerage once position is profitable. Later use trail of previous pivot lows.
I am sure it can be improved upon.

hi scorpio.

nice tweak.:thumb:

my view regarding stop loss.

1) how to position size without an initial stoploss?

2) I have been observing sudden moves of 60-70 points of nifty in 5-10 minutes and price consolidating there for some time. In such situation, sma crossover happens after this move is over.

If, such move is in favour of our position, its ok. but, if it happens against our position, how to protect our capital?

please think about it.

cheers.

prasad.

 

[DanPickUp]

I am new to this forum. It is very interesting to see how you work and share ideas. I already have to say thanks to all of you and I am happy to found this forum.:clapping:

Regards

Dan