VKR's 4HL INTRADAY/SWING TRADE SETUP

[trader.trends]

Sorry to say, but I am more confused than I was before this chart was posted!
Considering that we took 1st position of long above 8th Jan only(though we were in fact Long much before that)... our SL, i.e 4 days LL is hit on 10th, we go short on 11th, but why exit on 15th the place marked by you as" booked loss here" the 4 days HH LL was not breached!!??
Again the short has been covered around 23rd or 24th , there also the 4 days HH LL are not breached!!!
Please reply per your convenience!!!
Regards.
-R K Karnani

Entry: Break of past 4 day's H/L
Exit: For longs break of past 4 day's HL; For shorts past 4 day's LH

You are looking at HH and LL for exits hence the confusion
8th Jan buy break of 6292(4day low formed on 4th Jan)
9 Jan exit longs at 6214 as the HL of the past 4 days breached.
11 Jan short break of 6141
14 Jan cover as 6225 the LH of past 4 days broke.
15 Jan Short break of 6115
Covered at 4997 the breach of 4DLH

 

[rkkarnani]

Entry: Break of past 4 day's H/L
Exit: For longs break of past 4 day's HL; For shorts past 4 day's LH

You are looking at HH and LL for exits hence the confusion
8th Jan buy break of 6292(4day low formed on 4th Jan)
9 Jan exit longs at 6214 as the HL of the past 4 days breached.
11 Jan short break of 6141
14 Jan cover as 6225 the LH of past 4 days broke.
15 Jan Short break of 6115
Covered at 4997 the breach of 4DLH

Okay, thanks a million for clarifying the concept!! I never did look at HL and LH!!!
Shall have a look again!!!

 

[veluri1967]

I am thankful to all those who see my setup as possible trading methodology.

I am a full time employee in reputed PSU and my job profile does not permit me to watch the terminal as required by this set up. As and when I get leave or spare time, I love to trade Intraday. When I do I made almost sure decent profits. But I feel that I am loosing opportunity to trade, so I searched for various options. This thread is the outcome of such relentless search.

This Swing Trade Setup allows me to trade without much being attached to terminal as per my requirement. I have Mobile Indiabulls loaded in my cell which allows to put alerts. I am planning to use it to initiate trades whenever my swing strategy gives a signal by dialling my broker. Its only a call per day at the most. Isnot it?

I plan to put 3 alerts for HH breach. one at 10 points above, second one at trade initiation, third at 10 points below. Similar alerts for LL, HL, LH breach.
whenever the alert is hit, I call my broker to place the order. When it is hit I will be in trade. Let me see how this is going to work.

For those who wish to trade this setup, my request is that kindly backtest it in sideways markets. If the result is positive or neutral then no look back. It works very well in bull, bear markets.

All the best friends.

 

[bandlab2]

how u get the alerts ? u mean u watch the chart once in a while ?

 

[veluri1967]

Though the strategy does not require any technical skills, the following problems may pose a serious threat to the strategy.

Looking for a solution for the following events.

1. Gap up and gap down days. On these days we may miss the trades. If the price retraces to the required level, then OK, otherwise we would miss the bus. We have to be in the trade without missing the bus, but HOW?

2. When the price pierced through both High and Low on the same day after 4 days very narrow range. Both long and short get triggered on the same day and eventually we land in loss since the positions are squared off if it is a fresh position. In case of square off, a variety of problems may crop up. Need a serious look into this.

Any constructive suggestions in this regard are highly appreciated.

 

[rkkarnani]

Though the strategy does not require any technical skills, the following problems may pose a serious threat to the strategy.

Looking for a solution for the following events.

1. Gap up and gap down days. On these days we may miss the trades. If the price retraces to the required level, then OK, otherwise we would miss the bus. We have to be in the trade without missing the bus, but HOW?

2. When the price pierced through both High and Low on the same day after 4 days very narrow range. Both long and short get triggered on the same day and eventually we land in loss since the positions are squared off if it is a fresh position. In case of square off, a variety of problems may crop up. Need a serious look into this.

Any constructive suggestions in this regard are highly appreciated.

VKR,
01. On Gap up or Gap down days we can have a few scenarios : (We need
solutions for all these)
a. We are in trade and Gap moves in our direction. (No problem at all)
b. We are in trade and gaps against our direction but does not breach
the exit level. (No problem here either)
c. We are in trade and Gaps against us and opens beyond our SL level?
It may very well retrace to our SL level and continue in our direction
or may continue to move adversely.
d. We are not in trade and gaps up and triggers a fresh trade but levels
are beyond our entry levels. As you rightly said the price may retrace
to our levels.
02. Price piercing both HH and LL the same day has to be very rare!!! I could not locate any!!! Please do point out such dates!!

I shall try to give my input for the scenarios mentioned above!!
All the best.
-R K Karnani

 

[rkkarnani]

Deleted as it was misleading a few and got PM from GKPC and 2 more!!

 

[trader.trends]

This was one of the strategies that could be back tested in just an excel sheet. I have taken the Nifty F1 data from January 01 2009 till 20 Nov from NSE website.
Entry: Break of 4 day High/Low
Stops for Longs: Highest Low of 4 days
Stops for shorts: Lowest High of 4 days.

No entry on the date of exit. On the days it opened beyond entry level no trade taken. On the day the trade is taken, if the stops were triggered we exit else carry forward. Yes that happened on quite a few days. Please take a look at the data analyzed in excel sheet and make your comments. Column M defines the stops for the day, and Column L indicates whether the stops were triggered or not. If it was triggered then no entry is seen on that day. Cost of transaction is taken at 0.1%. If there are any errors in data or analysis, will be happy to amend.



http://www.4shared.com/file/163901032/6e89a30b/4DHL.html

 

[Mangafreakz]

Hey trader.trends , how are you , you wre working on the gap trading strategy na , hows it going ? Looking forward to more of your threads.

 

[rkkarnani]

This was one of the strategies that could be back tested in just an excel sheet. I have taken the Nifty F1 data from January 01 2009 till 20 Nov from NSE website.
Entry: Break of 4 day High/Low
Stops for Longs: Highest Low of 4 days
Stops for shorts: Lowest High of 4 days.

No entry on the date of exit. On the days it opened beyond entry level no trade taken. On the day the trade is taken, if the stops were triggered we exit else carry forward. Yes that happened on quite a few days. Please take a look at the data analyzed in excel sheet and make your comments. Column M defines the stops for the day, and Column L indicates whether the stops were triggered or not. If it was triggered then no entry is seen on that day. Cost of transaction is taken at 0.1%. If there are any errors in data or analysis, will be happy to amend.



http://www.4shared.com/file/163901032/6e89a30b/4DHL.html

Facing problem with Excel Sheet, some .msi file missing so could not have a look at your Trade data.
Can you kindly post number of trade taken from Jan to Nov and the Profit for say 100 Nifty i.e. 2 lots (2X50) during the period. If not a big hassel do most the month wise profit figures from Jan to Nov.
Thanks for your effort!!