VKR's 4HL INTRADAY/SWING TRADE SETUP

[findvikas]

yr afl code is not correct. as per original post, stoploss is low of last 2 days. u took low of last 4 days. also you should use HHV, LLV to get highest and lowest. if u use ref (high, -4) it gives high of previuos 4th bar, not the highest in last 4 bars

also entries are as per days, exits are as per intraday TF. thats missing. you could get different results after correction

I have not considered SL in the AFL, but only Buy,Sell,Short,Cover.. SL are taken care in backtesting settings.

 

[veluri1967]

Here is the list of shares on which I am going to test this setup.

BhartiAirtel
DLF
HCLTech
ICICI Bank
Jindal Steel
M&M
Ranbaxy
SAIL
Unitech
Wipro

Today's successful trades

BhartiAirtel
SAIL


On remaining shares neither stop loss is hit nor trade is triggered.

 

[findvikas]

Here is the list of shares on which I am going to test this setup.

BhartiAirtel
DLF
HCLTech
ICICI Bank
Jindal Steel
M&M
Ranbaxy
SAIL
Unitech
Wipro

Let me know your setup...

Initial Capital
Duration (start date-end date)
Tick Size (1min,2min,day,month)
SL settings
Trade type... long & short or just long...

... then I will run the same tests using my system and compare the results...

though your system and my system has quite similarities.

 

[trader.trends]

Today's successful trades

BhartiAirtel
SAIL


On remaining shares neither stop loss is hit nor trade is triggered.

For intraday or positional?

 

[veluri1967]

For intraday or positional?

My setup is not for positional. Its for intraday and swing trade.

These are triggers for intraday and swing trades only.

Intraday targets are achieved and closed.

For swing trades positions are held. Bharti Airtel Short position with SL 294. SAIL Long position with SL 185.

 

[Karanm]

I have been in this forum for the last 3 months learning all the stuff required for a successful trading. A lot of thanks to all those learned seniors and learning peers for making my journey a fruitful and rewarding one. The selfless help from seniors has gone a long way in building up trading knowledge for which I am always indebted to them. Even I am mimicking some of their writing skills, to mention one. The mentioning of their names is immaterial.

I am gearing myself to put forward a trade setup called "VKR'S 4HL INTRADAY/SWING TRADE SETUP" which I hope would help many of those around here and I feel previleged if it is accepted as a gift from me. The roots of this setup are of Richard Donchian 4 Week Rule. Richard Donchian's 4 week rule is for a long term perspective and has been very successful. Mine is a modification of the same for intraday/swing trades. Since it is a setup I have no claims over the success of this setup. I need to test it over a period of time how it works. I would be grateful if members on this forum backtest the same post the results here. However, I am going to forward test it.

It has been well established fact that the success of a setup/strategy doesnot depend upon how complex the setup/strategy is. In other words, even a simple setup can work wonders. This is the fact that prompted me to experiment this setup. As for my observation of the past data, the signals are not generated regularly, but if generated, there are profits immediately. Since we have a lot of cash stocks apart from various indices we can have a decent number of signals. Fortunately we have a lot of members over here who have advanced softwares on which AFL can be written and scanned for possible trade signals.

Initial set up is as follows. As the backtesting and forward testing takes place in due course of time, I will put forward a final strategy which is ofcourse a matter of time and effort.

Can you please explain what exactly is Richard Donchian 4 Week Rule and how it is to be traded.

 

[veluri1967]

Can you please explain what exactly is Richard Donchian 4 Week Rule and how it is to be traded.

The rule is continuous journey. Consider last 4 weeks Higher High and Lower Low. Trade next week by placing a buy order just above Higher High of last 4 weeks. And sell order just below Lowest Low of last 4 weeks. Let the 5th week be over. Now starts 6th week. Consider last 4 weeks Higher High and Lower Low. Buy another lot just above Higher High of last 4 weeks and sell another lot at Lowest Low of last 4 weeks. Keep doing it. The positions get automatically squared off as the chain goes on. The system is very successful for positional trading. Probably in indian perspective, the nifty futures may be correct option of this trade. Try and let me know the result.

 

[Karanm]

The rule is continuous journey. Consider last 4 weeks Higher High and Lower Low. Trade next week by placing a buy order just above Higher High of last 4 weeks. And sell order just below Lowest Low of last 4 weeks. Let the 5th week be over. Now starts 6th week. Consider last 4 weeks Higher High and Lower Low. Buy another lot just above Higher High of last 4 weeks and sell another lot at Lowest Low of last 4 weeks. Keep doing it. The positions get automatically squared off as the chain goes on. The system is very successful for positional trading. Probably in indian perspective, the nifty futures may be correct option of this trade. Try and let me know the result.

I will be highly obliged, kindly explain in detail. How to take trade 5th week onwards, which week's Higher High / Lower Lows are to considered, say in 7th Week, it will 4th week's Higher High / Lower Lows or 6th Week's. How Chain of Trades will be formed and how automatically Positions get Squared off. Lastly I do not want to trade in F&O Segement, how I will make a Sell Position in 100 Shares of any company.

 

[rkkarnani]

I will be highly obliged, kindly explain in detail. How to take trade 5th week onwards, which week's Higher High / Lower Lows are to considered, say in 7th Week, it will 4th week's Higher High / Lower Lows or 6th Week's. How Chain of Trades will be formed and how automatically Positions get Squared off. Lastly I do not want to trade in F&O Segement, how I will make a Sell Position in 100 Shares of any company.

Karanm, The current week is a fifth week for the week ended 4 weeks back!!! Its a continous process. You dont trade the levels of 4 weeks back , but Highest ort lowest levels ahieved in Past weeks, it could be that the High was just a week back and low 3 weeks back!!
Its not possible to 'short' shares in Cash segment!!

 

[veluri1967]

Today's successful trades for intraday.

M&M - A Superb Intraday click.

Today's Triggers for Swing Trade.

HCL Tech
M&M
SAIL

It seems the setup is not working well for Swing Trades. I will modify Swing Trade Set up in due course of time.


Interesting observations

HCLTech - Quite Interesting phenomenon. Price opened above our buy target but moved and crossed down below our target. Hence, we should not consider this for intraday trade.
SAIL - A Target hit within 30 seconds after market opened. Since it is very difficult to trade this I have placed this under SL hit group.