Trading with OBV - for Beginners only !!

Pls wait for the april month performance review.

u already know the location of my thread where it will be posted.

Bro!! there is no "when not to trade the 200 ema method"

Just last high made above 200 ema is significan and last low below 200 and I think thats where reversals happen according to varunji, thats my understanding anyway Also, sometimes he takes some earlier trades.

I have the right to be wrong so please forgive if above statement is a misunderstanding of Varunji's posts.

In my opinion, nobody has posted backtested results so far because

1. Either we are too lazy to backtest.. :lol: let someone else do it..we will just execute the system(as if its that easy and make money everyday.

2. Or We still dont have definite set of rules to backtest. If there are no defined rules for entry and exit, even God cannot backtest the system(not sure if i can call it a system..idea is a better word)

Only few are blessed with good reverse engineering skills. Am not good at it. Could you please tell us the common pattern where the trades fail in 200 ema OBV 1tf idea?

I already posted few weeks back about rules getting added every week in that OBV thread but i was crucified for calling that out. When to pull the trigger and not pull the trigger for a system trade is a 'luxury' amateur traders cannot enjoy.

System constitutes of conditions conducive(when to trade) to a trade and conditions non-conducive(when not to trade).

I guess if both price and OBV are above 200 ema and price breaks previous PH(that was created above 200 ema), then its long. SL = previous pivot low..only trailing SL..no fixed target. As am not an expert, i do not know when the market would stop going up or when it will keep going up So, do not know when to come out at 100 points in BNF and when to trail. Anything else is not conducive to long. Vice-versa for short. If mkt is above 200 ema in both price and OBV at the start, then, wait for 36 ema pullback or PH break (that forms after mkt open). If 1st 2 trades are losses, no trades for the rest of the day(this 1 rule alone saved me some 400 points in loss) If not, 3rd trade is possible. If i get stopped out in the 1st trade, then go long again above PH or 36 ema PB(whichever comes first) These were my rules and i backtested it.

I dont have excel for this testing(i jotted it down in my notebook) but i backtested BNF (1 min TF) for 15 random months(like high volatile/low volatile/trending/rangebound) ..results were not very encouraging. It made only 1450 points after cost(1 trade cost = 3 points) and with 10 lots of BNF real trading itself, i see atleast slippage of 5 points(approx) for 5-7 trades in a month ..thats like 35 points in slippage per month. 15 x 35 = another 525 points gone..so, real points could be less than 1000 points in 15 months.

I wanted to make this post now vs not posting before as i did not want to get slammed for telling the truth (i was crucified once before)and was plain scared to post them.

P.S. Am a firm believer of manual backtesting(bar-bar)

Hi Vijkris,

Thanks for the afl with sound alert. But Its not working for me, tried this in bar replay,
something to do with my pc/settings, if possible can you code it, to plot a vertical line instead
of sound when both ribbons change at same time.

Thanks

in my observation 1min price and obv cross over above or below 200ema failed at 5 min Visual pivots or Higher low in uptrend or lowerhigh in downtrend . ( this is my observation only may be vijikris bro find other things )

vertical lines was in the afl somewhere. it shows lines only for obv change. see parameters : "show vertical line for 15 ribbon change"

As of now, no further comments from my side regarding OBV.

All queries to be directed to varun ji.

thanks.

Will come up with further ideas next month.

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Enough Gupshup from my side too.
Huge Thanks for replying my every silly question.
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i was just enjoying looking at posts from both Vijkris's and Aja..

:rofl::rofl::rofl::rofl: