Sure system -suresh gundappa develops

#1
Hi friends

Here is a trading system called SURE, developed by suresh gundappa.


Only Losers Can Win

Every trader is a Loser, It's just that some traders Win more!


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he says
I use SG oscillator to identify trend strength. Obviously it is proprietary so I cannot disclose details. However what I can share is that I use ADX as primary trend strength identifier. SG oscillator is an improvisation on ADX. for me ADX below 20 is a weak trend strength (or sideways market). Take a look at yearly charts on the first page of the blog. Sun pharma, AB Nuvo, HCL , all are plotted with ADX. see how the indicator behaves when ADX strength is below 20 or what I call Sideways market.
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his site is

http://sureshgundappa.blogspot.in/
http://sureshgundappa.blogspot.in/2013/04/reliance-communication-chart-of-month.html

see a chart here from his blog with sure system


suresh says

Note: This trading idea is based on the proprietary trading indicator called "SURE". I have developed and deployed "SURE" Indicator successfully over a period of time. This indicator has been designed to serve Prop traders, Mutual funds and Investment funds. Currently several Prop traders are using "SURE" as confirmation Indicator for "Entry" and Exit" strategies. Please consult your financial advisor and trade with stop-loss .


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AN ARTICLE FROM SURESH BLOG is here

Minimizing your risk is 100 times more important than finding winning trades

As we’ve talked about so far, the most important thing you can do is keep your risk to an absolute minimum. I can’t say it enough. Minimizing your risk is 100 times more important than finding winning trades. (And finding winning trades is important too, so I hope this shows you how important it is to limit the risk.)

Then there is the habit that some traders get into that can be very detrimental to your trading.
There is nothing that can add more risk to your trading than adding to a losing position. But nevertheless, traders do it every single day. The main reason this happens is the same reason most other trading problems come up. Most traders do not want to admit they’re wrong. By adding to their losing position, they give themselves another chance to not be wrong.

But if the key to successful trading is keeping the risk to an absolute minimum, then how can adding to a losing position help a trader? The answer is it can’t! This is very similar to what I wrote about earlier (The Worst Mistake You Can Make). The real problem is when doubling up (adding to a losing position) works out and you end up taking a profit on a trade like this. This validates a very dangerous situation and could possibly tell you it’s O.K. to do it again next time. But the next time could be the time it takes a big chunk out of your account.

“The only reason to get into a trade is if you see an opportunity and you feel the market has a good chance of moving in your direction. But the reason people usually add on to their losing positions is not because they see another opportunity, but because they don’t want their first opinion to be wrong.”

The only reason to get into a trade is if you see an opportunity and you feel the market has a good chance of moving in your direction.
DONT ADD TO LOOSING POSITION BUT FOCUS ON GETTING OUT FIRST TO MINIMISE RISK

But the reason people usually add on to their losing positions is not because they see another opportunity, but because they don’t want their first opinion to be wrong. They feel if they average out their price, they have a better chance of not being wrong. But, in my opinion, that’s the wrong attitude to be successful. I really feel most people add to their losing positions to avoid having to take responsibility for being incorrect about the current market direction.

I don’t want you to get the wrong idea. I don’t think scaling into a position is the wrong thing to do. If you have a plan to put on more than one contract at different price levels, I think that’s fine. But what I’m talking about is when a trader doesn’t have that kind of plan. They simply decide to add to the position as it’s going against them. This is a mistake. And like I said a minute ago, it could turn out to be an even bigger mistake if it works out, because that situation tells you it might be O.K. to do it the next time. And I promise you itwill hurt you much more than it will help you.
I’ve seen it happen thousands of times. I’ve done it to myself enough times to know it will not work out in the long run.

Now, on the other hand, I don’t have any problem at all adding to a winning position. In fact, I think in many cases adding to a winning position is an excellent idea. I guess the basic idea is it’s O.K. to add to your position when things are going your way,

but it’s not O.K. to add to your position when things aren’t going your way. That is a good rule to have.

Again, this just goes to the idea of acting in your own best interest. And, if adding to a losing position is a way to avoid admitting that we were wrong about market direction, then it would just go to show you that doing it (without a plan) is simply not acting in your own best interest.

This is because if we want to act in our own best interest, we must be willing to admit that we are wrong, instead of avoiding it and making things worse.
 
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