Inviting to share afl & how to use it for consistent returns.

hmp

Well-Known Member
#1
Dear members
This thread is for all the respected members who are using afl for their trading and wants to share their experience for the benefit of other members if it is giving them consistent returns.
Till now I was a part time trader due to my full time job. Now I am retired and became a full time trader. I was in search of a system which will give me steady income.
As I read in one of thread one respected member said that market me kaunsa bhi system religiously follow karo ,that will surely gives you money at the end.
Here i am sharing the method which is giving me positive results at the end of month. This method I received from one of my friend & I got his kind permission to reveal it, Believe me i am not a technical expert nor computer savvy, I m just a common man with very basic knowledge of trading & money management. For almost last six months I am blindly following it.
I use supertrend afl with 14 atr. & 12 min. time frame. Pl. don’t ask me why am I using 12 min. time frame because I already said that idea is not mine. Till now I traded in nifty future only. I remain in position all the time & only reverse when crossover occurs. So no stop loss because system is having it in built. I use amibroker software.
Every day at 3.10 pm. I buy atm put/call option for hedging. That is protecting me from next day’s reverse gap opening .If that happens then immediately I reverse my position in nifty future & keep Put /call position till end of the day. Suppose at 3.10 pm I am in buy position in nifty I square up call option & buy put option for next day. That’s all!
How about you?
Regards.
 

jagankris

Well-Known Member
#2
Dear members
This thread is for all the respected members who are using afl for their trading and wants to share their experience for the benefit of other members if it is giving them consistent returns.
Till now I was a part time trader due to my full time job. Now I am retired and became a full time trader. I was in search of a system which will give me steady income.
As I read in one of thread one respected member said that market me kaunsa bhi system religiously follow karo ,that will surely gives you money at the end.
Here i am sharing the method which is giving me positive results at the end of month. This method I received from one of my friend & I got his kind permission to reveal it, Believe me i am not a technical expert nor computer savvy, I m just a common man with very basic knowledge of trading & money management. For almost last six months I am blindly following it.
I use supertrend afl with 14 atr. & 12 min. time frame. Pl. don’t ask me why am I using 12 min. time frame because I already said that idea is not mine. Till now I traded in nifty future only. I remain in position all the time & only reverse when crossover occurs. So no stop loss because system is having it in built. I use amibroker software.
Every day at 3.10 pm. I buy atm put/call option for hedging. That is protecting me from next day’s reverse gap opening .If that happens then immediately I reverse my position in nifty future & keep Put /call position till end of the day. Suppose at 3.10 pm I am in buy position in nifty I square up call option & buy put option for next day. That’s all!
How about you?
Regards.
Thanks a ton.
14ATR and What is the factor for Supertrend?
 

hmp

Well-Known Member
#3
I am glad to receive thanks from respected masters.I also urge them to add their valuable comments to improve this strategy or if something new idea arise in their mind so that will be beneficial to all the members.
Thanks & regards.
 

jagankris

Well-Known Member
#5
Dear members
This thread is for all the respected members who are using afl for their trading and wants to share their experience for the benefit of other members if it is giving them consistent returns.
Till now I was a part time trader due to my full time job. Now I am retired and became a full time trader. I was in search of a system which will give me steady income.
As I read in one of thread one respected member said that market me kaunsa bhi system religiously follow karo ,that will surely gives you money at the end.
Here i am sharing the method which is giving me positive results at the end of month. This method I received from one of my friend & I got his kind permission to reveal it, Believe me i am not a technical expert nor computer savvy, I m just a common man with very basic knowledge of trading & money management. For almost last six months I am blindly following it.
I use supertrend afl with 14 atr. & 12 min. time frame. Pl. don’t ask me why am I using 12 min. time frame because I already said that idea is not mine. Till now I traded in nifty future only. I remain in position all the time & only reverse when crossover occurs. So no stop loss because system is having it in built. I use amibroker software.
Every day at 3.10 pm. I buy atm put/call option for hedging. That is protecting me from next day’s reverse gap opening .If that happens then immediately I reverse my position in nifty future & keep Put /call position till end of the day. Suppose at 3.10 pm I am in buy position in nifty I square up call option & buy put option for next day. That’s all!
How about you?
Regards.
Dear HMP,

Thanks for sharing your system and opening an discussion regarding system
optimization :).

I am glad that you are profitable at the end of the month.
Meaning one has to religiously follow the system and in long run one can expect to be in profits like any trend following system.

But I have my reservations with the comment that "market me kaunsa bhi system religiously follow karo".

Broadly there can be two kind of traders
1)Mechanical
2)Discretionary - not just based on gut but rules for all kind of market conditions.
Markets can be broadly classified as 3 conditions
1.Up trend
2.Down Trend
3.Sideways

There could be pullbacks and sideways with in the trend.
And 3 the market could be in sideways for long duration more than one could expect.

and in the above the sideways need not be a perfect rectangle (range)
but highly erratic.

The draw backs with mechanical trend trading system is that it cannot handle all kind of market conditions.
But which a discretionary trader can - just with his visual trained eyes can.

Hence a mechanical trend trading system like Super Trend is no exception to this.

Now with mechanical trading systems there could be long duration of non performance as well as drawdowns.

Unless and until the trader knows very well the drawbacks of his system it is very difficult to follow the system especially during draw downs and non performance.It could be psychologically draining.

Again regarding the optimization of a Mechanical trading system - the system performing with a parameter settings and a particular time frame need not perform in the same manner for ever.
Hence this requires constant monitoring and fine tuning.

I.e The time frame 12 performing now after few months time frame 8 could be
performing better :annoyed:

The time frame/parameter setting which is working best for NIFTY may not be give the same performance for Bank Nifty :annoyed:.

But that's the beauty of Markets :).

Having said the above I am reserving my comments about the system which you are following as I need some more details.

Note:-I don't have NIFTY options data.

What is the capital you are employing ?
How many no of trades you placed in Nifty as per signal?
How Many trades in Options ?
What is the net profit in Nifty.
What is the Net Profit/loss in Options.
What is the Net Brokerage+commissions paid.
What is the net profit in 6 months.
 

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