Tom de mark sequential monitor for nifty50 stocks

vivektrader

In persuit of financial independence.
Requesting ST sir, to address the following when ever you feel fine to respond:
1. Discretionary aspects of sequential.
2. Trade management after entry.
Thanks.

Vivek
 
Requesting ST sir, to address the following when ever you feel fine to respond:
1. Discretionary aspects of sequential.
2. Trade management after entry.
Thanks.

Vivek
1) There is no discretionary element in sequential.The entry,stoploss,profit taking,all have defined rules.This system was invented for large hedge funds and pension funds and these institutions need time to distribute their buy positions or cover their short positions and it is done over a period of 1-3 days and they won't be able to do that if there is any discretionary element in the system.Once we decide on qualifiers,it becomes mechanical.

2) Sequential is based on daily timeframe and it has a stoploss of 120-150 points in nifty for example.Institutions take this stoploss and also hold the winning trades for 500/700 or even 1000 points.We are short term traders and our vision is also limited.I am sure very few traders can take 150 points stoploss and also willing to hold a 800 points winning trade....we chicken out in between.This is where discretion comes in and we start looking for booking small profits though system does not tell us to book profits....same with stoploss,
we try to use our short term trading ways to avoid or reduce our stoploss .

Trade management in sequential is we have to wait for opposite side set up for thinking of profit booking or let the stoploss hit.If the stoploss is hit, the market accelerates in the same direction as demand/supply has undergone drastic shift so many reverse the position and get into the accelerating trend but that needs lots of money and courage.....if one is short,then taking a stoploss of 150 points and reversing to long needs courage .

Trade management each trader has to decide on his own....what I do is given below but that is my own add on...the system does not recommend that.

Suppose I an short at 8900 with stoploss at 9070 and the market is going against me, at 8950 I will look for a dip of 25-30 points and cover my short position temporarily so that if the market goes to hit my stoploss, I lose 30-40 points and not 170 points....if market starts trading below 8900, I will open the short position again and participate in the original side trade.....this is what I told you to do as your entry was little early.This needs little managing and helps avoiding large stops but it is not part of the system.About letting the profit run, we have to control urge to book profits as sequential is not a play for 100-120 points profits.

Hope the above is useful to traders trading sequential.

Smart_trade
 

vivektrader

In persuit of financial independence.
1) There is no discretionary element in sequential.The entry,stoploss,profit taking,all have defined rules.This system was invented for large hedge funds and pension funds and these institutions need time to distribute their buy positions or cover their short positions and it is done over a period of 1-3 days and they won't be able to do that if there is any discretionary element in the system.Once we decide on qualifiers,it becomes mechanical.

2) Sequential is based on daily timeframe and it has a stoploss of 120-150 points in nifty for example.Institutions take this stoploss and also hold the winning trades for 500/700 or even 1000 points.We are short term traders and our vision is also limited.I am sure very few traders can take 150 points stoploss and also willing to hold a 800 points winning trade....we chicken out in between.This is where discretion comes in and we start looking for booking small profits though system does not tell us to book profits....same with stoploss,
we try to use our short term trading ways to avoid or reduce our stoploss .

Trade management in sequential is we have to wait for opposite side set up for thinking of profit booking or let the stoploss hit.If the stoploss is hit, the market accelerates in the same direction as demand/supply has undergone drastic shift so many reverse the position and get into the accelerating trend but that needs lots of money and courage.....if one is short,then taking a stoploss of 150 points and reversing to long needs courage .

Trade management each trader has to decide on his own....what I do is given below but that is my own add on...the system does not recommend that.

Suppose I an short at 8900 with stoploss at 9070 and the market is going against me, at 8950 I will look for a dip of 25-30 points and cover my short position temporarily so that if the market goes to hit my stoploss, I lose 30-40 points and not 170 points....if market starts trading below 8900, I will open the short position again and participate in the original side trade.....this is what I told you to do as your entry was little early.This needs little managing and helps avoiding large stops but it is not part of the system.About letting the profit run, we have to control urge to book profits as sequential is not a play for 100-120 points profits.

Hope the above is useful to traders trading sequential.

Smart_trade
Its about
1. When you say entry was early, was it right as per terminal count?
2. As you already mentioned that we should select setups when we are getting more than one, by avoiding those originating from consolidation and market doesn't seem outstretched on a particular side, that discretion I noted, I was wondering if there were any more.
3.Qualifier 13>12>11, you already told you take part position even before its met, do you think its much more safer to may be wait for it and the success rate is better, for a beginner (like me).
4. The system becomes even more accurate, if the sequential and combo both have spoken and we enter after both have done so.
5.you also mentioned in the previous thread that we can enter on the 13th bar itself if it is a legitimate 13 and also an upclose in a buy cd i.e. 13 may be a terminal count, a signal bar and at EOD an entry bar, is that correct.
6.This one's regarding stoploss, suppose we entered as per sequential and have our stoploss fixed, now in next three days combo triggers, now should the stoploss be based on combo or stay the same?
7. The stoploss on the combo after we got a down close is at 9017 nifty spot on closing basis, please confirm.

Vivek
 

vivektrader

In persuit of financial independence.
Vivek,

Hope u are doing well. Good to know ur pogress in this method. Bhai too many fundas in this one for me.
Yes, it takes time to flawlessly count sequential and see for qualifiers, but once you become a bit used to, you see them everywhere.
The fight is till the point you enter after that its a long holiday. Fire it and forget it, although after a week it may come back to hit you .
But on a serious note its completely worth it.

Vivek
 
Its about
1. When you say entry was early, was it right as per terminal count?
2. As you already mentioned that we should select setups when we are getting more than one, by avoiding those originating from consolidation and market doesn't seem outstretched on a particular side, that discretion I noted, I was wondering if there were any more.
3.Qualifier 13>12>11, you already told you take part position even before its met, do you think its much more safer to may be wait for it and the success rate is better, for a beginner (like me).
4. The system becomes even more accurate, if the sequential and combo both have spoken and we enter after both have done so.
5.you also mentioned in the previous thread that we can enter on the 13th bar itself if it is a legitimate 13 and also an upclose in a buy cd i.e. 13 may be a terminal count, a signal bar and at EOD an entry bar, is that correct.
6.This one's regarding stoploss, suppose we entered as per sequential and have our stoploss fixed, now in next three days combo triggers, now should the stoploss be based on combo or stay the same?
7. The stoploss on the combo after we got a down close is at 9017 nifty spot on closing basis, please confirm.

Vivek
1) and 2) Entry was right as per terminal count which is correct under the system.But terminal count is a situation when market just touches 13 and sells off.This s generally observed n weakening trends when the market is limping up....in present market I would have preferred to see close 13>12>11>10 to get extended level sell.....here note C 11>C10.

3) It is much more safe to wait for 13>12>11>10 and also all fulfil c> H-2

4) We have to monitor sequential and combo simultaneously and take a trade on whichever completes first.

5) 13 th cd may not be a terminal count.Market may open gap down with respect to L-2,complete all criteria and close above its opening .

6) Once we take a trade,our stoploss is decided..we cannot shift it as per other method completion.

7) I am on IPad which does not have my Ami...so comb stoploss will inform once I put my laptop or desktop on.

Smart_trade
 

vivektrader

In persuit of financial independence.
1) and 2) Entry was right as per terminal count which is correct under the system.But terminal count is a situation when market just touches 13 and sells off.This s generally observed n weakening trends when the market is limping up....in present market I would have preferred to see close 13>12>11>10 to get extended level sell.....here note C 11>C10.

3) It is much more safe to wait for 13>12>11>10 and also all fulfil c> H-2

4) We have to monitor sequential and combo simultaneously and take a trade on whichever completes first.

5) 13 th cd may not be a terminal count.Market may open gap down with respect to L-2,complete all criteria and close above its opening .

6) Once we take a trade,our stoploss is decided..we cannot shift it as per other method completion.

7) I am on IPad which does not have my Ami...so comb stoploss will inform once I put my laptop or desktop on.

Smart_trade
Thanks for your inputs and patience.
Thanks indeed.

Vivek
 

vivektrader

In persuit of financial independence.
DeMark's Combo

A combo is more useful in brisk vertical moves.
Prerequisites for counting bars of combo:

A completed setup.

No intersection is required to start counting combo.

A combo count can start from bar 1 of setup if it qualifies the conditions below and goes to 13.
Recycling will occur if before completion of combo we get a completed setup in opposite direction.

Conditions to qualify as a combo countdown bar (buy combo example)

1. Close of the bar should be lower than equal to low two bars earlier (this condition is same as in sequential countdown).

2.Close of the bar should be lower than close of previous bar.

3.Low of the bar should be lower than low of previous bar.

4.Close of each combo bar should be lower than close of preceding combo bar. This condition is not required for the first bar of the combo countdown (as there is no preceding combo bar)

The stop loss calculation, entry and trade management are the same for both sequential and combo.
We need to monitor both combo and sequential, whichever gives signal first, we go by that and enter.


Vivek
 
Last edited:

Similar threads