60crores AFL

madhavareddy1203

madhavareddy1203

Well-Known Member
#1
#1
Hi,
While surfing net i got this article.

"if anybody had started trading in Nifty with an investment of 20000 in 1/4/2005 as per this strategy, and using all the profits to continuously trading under the same strategy , due to compound effect it would have become 60 crores by now.

This is nothing new. one of the oldest strategies (is it a strategy first???)

In EOD chart

1. Buy above 34 EMA. Sell when price cuts 8EMA from above.
Again buy when price crosses above 8EMA (provided it is above 34ema) and sell when again it comes down 8EMA
2. Short sell below 34 EMA. Buy back when price goes above 8EMA. again short sell when price goes below 8ema (provided it is still below 34 ema)

open icharts (EOD) for nifty . set 5 years period. select 8ema and 34 ema. and see the charts. you will find it.

i have conservatively considered 20% margin for nifty , and 10points per lot per trade as expenses towards brokerage etc.

it is a plan which will work both the times. bull or bear. attached an xcel file for calculation too. niftysiri

we may say that it wont be possible for nifty to move again like this past 5 years. if we see the chart for last 2 years it is visible that nifty will keep on moving either side. it is upto the traders to make use of it "

wow.. mouth watering???

is this possible..?
Can anyone create same afl with above rules?
what is the time frame???
 
C

cas67

New Member
#2
#2
Check this .
Hope this helps

//1. Buy above 34 EMA. Sell when price cuts 8EMA from above.
//Again Buy when price crosses above 8EMA (provided it is above 34EMA)
//AND Sell when again it comes down 8EMA
//2. Short Sell below 34 EMA. Buy back when price goes above 8EMA.
//again Short Sell when price goes below 8EMA (provided it is still
//below 34EMA)

Plot(C,"",3,64);
Plot(EMA(C,34),"",7,1);
Plot(EMA(C,8),"",4,1);
up=EMA(C,8)>EMA(C,34);
dn=EMA(C,8)<EMA(C,34);

Buy =Cross(C,EMA(C,34))AND up;
Sell=Cross(EMA(C,8),C);
Short=Cross(EMA(C,34),C) AND dn;
Cover=Cross(C,EMA(C,8));

Buy=ExRem(Buy,Sell);
Sell=ExRem(Sell,Buy);
Short=ExRem(Short,Cover);
Cover=ExRem(Cover,Short);

PlotShapes(shapeSmallUpTriangle * Buy , colorLime, 0, L,-10);
PlotShapes(shapeSmallDownTriangle *Short, colorRed, 0, H,-10);
PlotShapes(shapeHollowSmallUpTriangle * Cover, colorLime, 0, L,-10);
PlotShapes(shapeHollowSmallDownTriangle * Sell, colorOrange, 0, H,-10);
 
sanjn84

sanjn84

Active Member
#5
#5
and what abt the candles which r rotating around 8ema ?
how to take positions ard that?
 
R

rkkarnani

Well-Known Member
#8
#8
madhavareddy1203 said:
Hi,
While surfing net i got this article.

"if anybody had started trading in Nifty with an investment of 20000 in 1/4/2005 as per this strategy, and using all the profits to continuously trading under the same strategy , due to compound effect it would have become 60 crores by now.

This is nothing new. one of the oldest strategies (is it a strategy first???)

In EOD chart

1. Buy above 34 EMA. Sell when price cuts 8EMA from above.
Again buy when price crosses above 8EMA (provided it is above 34ema) and sell when again it comes down 8EMA
2. Short sell below 34 EMA. Buy back when price goes above 8EMA. again short sell when price goes below 8ema (provided it is still below 34 ema)

open icharts (EOD) for nifty . set 5 years period. select 8ema and 34 ema. and see the charts. you will find it.

i have conservatively considered 20% margin for nifty , and 10points per lot per trade as expenses towards brokerage etc.

it is a plan which will work both the times. bull or bear. attached an xcel file for calculation too. niftysiri

we may say that it wont be possible for nifty to move again like this past 5 years. if we see the chart for last 2 years it is visible that nifty will keep on moving either side. it is upto the traders to make use of it "

wow.. mouth watering???

is this possible..?
Can anyone create same afl with above rules?
what is the time frame???
Click to expand...
Thanks for sharing ! However seems another EMA cross strategy. We already have a few with different parameters. Seems to me that most of these crossovers work...at different times differently. A disciplined trader with risk and money management both can do wonders with it.
Look forward to view a few charts with these crossovers marked.
And the compounding thing, it happens only in papers and not in real world! But nevertheless even a small fraction of it would be tooo good !! :D
How about posting the link to the article if its not a Copyright protected.

Do we buy above the high of the Price bar closing above 34EMA or buy on close ! Do we use any Filter to avoid whips? A few such things are not very clear to me.

Thanks again for your effort!
 
a1b1trader

a1b1trader

Well-Known Member
#9
#9
rkkarnani said:
Thanks for sharing ! However seems another EMA cross strategy. We already have a few with different parameters. Seems to me that most of these crossovers work...at different times differently. A disciplined trader with risk and money management both can do wonders with it.
Look forward to view a few charts with these crossovers marked.
And the compounding thing, it happens only in papers and not in real world! But nevertheless even a small fraction of it would be tooo good !! :D
How about posting the link to the article if its not a Copyright protected.

Do we buy above the high of the Price bar closing above 34EMA or buy on close ! Do we use any Filter to avoid whips? A few such things are not very clear to me.

Thanks again for your effort!
Click to expand...
It is first post of the thread "how to make 60 crores in 5 years with 20000 investment"
in the forum icharts.in
 
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