An Intraday Trading System that actually works - Use it if you like
- Thread starter Rustom Fracis
- Start date
- Tags advanced consistent trader intraday multiple timeframe multiple timeframes strategies strategy tested
I'd been hunting for an intraday system that is consistently profitable for so many years and have tried my luck with dozens of them. I've learnt a lot from them and finally have designed one of my own over the last one year. It's made me money in both bullish and bearish markets. Hell, It actually even survived the test of the random whipsawing markets in Feb 2018 when the budget was announced. I'm posting it here for your benefit should you choose to use it.
The system is as follows:
Step 1: Determine if today’s market trend is bearish or bullish using the daily chart of the Nifty.
Perfect Bullish Condition:
The 14 period RSI of the Daily chart of the Nifty is above 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is above 50.
Make sure that the RSI is above the 5 period EMA of the RSI
Perfect Bearish Condition:
The RSI of the Daily chart of the Nifty is below 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is below 50.
Make sure that the RSI is below the 5 period EMA of the RSI
Step 2: Pick the stocks you will be trading for the day before market opens
If the daily NIFTY chart is in “Perfect Bullish Condition”, run a market scan for individual stock charts that meet all parameters of the “Perfect Bullish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BEARISH CONDITION”.
If the daily NIFTY chart is in “Perfect Bearish Condition”, scan for individual stock charts that meet all parameters of the “Perfect Bearish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BULLISH CONDITION”.
Take all your scanner results and create a watchlist for the day. Do not trade any stocks outside this watchlist.
Step 3: Trade Timing and Entry
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
When you are trading a stock that is in “Perfect Bearish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a short position when the price crosses below the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
Step 4: Target and stop loss setting:
Stop loss for long positions should be placed under the low of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Stop loss for short positions should be placed above the high of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Things to keep in mind when using this system:
Though this system rarely ever fails me, there are no guarantees in the stock market and you may suffer losses when you trade. One must be mentally prepared for this.
Being a successful day trader takes a great deal of discipline. Follow the rules of the system very precisely without any deviations if you hope to make any profits.
Do not trade unless and until all conditions mentioned above are met. There may be days when things don’t align and you will have to sit on the side lines and wait for the perfect conditions but if you are serious about making a living from day trading, understand that capital preservation is as equally important as making profits.
I have been using this system only on the NIFTY 50 stocks, I have no idea how well this will work on stocks outside of this watchlist.
Wish all of you guys the best of luck and good fortune!
Comment if you like the system and share it with as many people as you can once you are convinced that it is working for you.
The system is as follows:
Step 1: Determine if today’s market trend is bearish or bullish using the daily chart of the Nifty.
Perfect Bullish Condition:
The 14 period RSI of the Daily chart of the Nifty is above 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is above 50.
Make sure that the RSI is above the 5 period EMA of the RSI
Perfect Bearish Condition:
The RSI of the Daily chart of the Nifty is below 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is below 50.
Make sure that the RSI is below the 5 period EMA of the RSI
Step 2: Pick the stocks you will be trading for the day before market opens
If the daily NIFTY chart is in “Perfect Bullish Condition”, run a market scan for individual stock charts that meet all parameters of the “Perfect Bullish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BEARISH CONDITION”.
If the daily NIFTY chart is in “Perfect Bearish Condition”, scan for individual stock charts that meet all parameters of the “Perfect Bearish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BULLISH CONDITION”.
Take all your scanner results and create a watchlist for the day. Do not trade any stocks outside this watchlist.
Step 3: Trade Timing and Entry
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
When you are trading a stock that is in “Perfect Bearish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a short position when the price crosses below the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
Step 4: Target and stop loss setting:
Stop loss for long positions should be placed under the low of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Stop loss for short positions should be placed above the high of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Things to keep in mind when using this system:
Though this system rarely ever fails me, there are no guarantees in the stock market and you may suffer losses when you trade. One must be mentally prepared for this.
Being a successful day trader takes a great deal of discipline. Follow the rules of the system very precisely without any deviations if you hope to make any profits.
Do not trade unless and until all conditions mentioned above are met. There may be days when things don’t align and you will have to sit on the side lines and wait for the perfect conditions but if you are serious about making a living from day trading, understand that capital preservation is as equally important as making profits.
I have been using this system only on the NIFTY 50 stocks, I have no idea how well this will work on stocks outside of this watchlist.
Wish all of you guys the best of luck and good fortune!
Comment if you like the system and share it with as many people as you can once you are convinced that it is working for you.
Read your strategy several times and the feeling is a good one!
Now the next question is:
Are you following some kind of a scanner to arrive at Perfectly Bullish/Bearish condition?
Because, it is pretty difficult to keep checking all the Nifty 50 stocks one by one.
Therefore, there ought to be a scanner for that. Would you like to share it with us?
I know plenty of scanners available on Chartink, even made two for my personal use. These are available on Chartink.
If any one wishes, I can share them gladly.
But, with your parameters, i.e. Overlaying EMA 5 on RSI 14......haven't tried to develop it.
Therefore, thought of asking you first!
Further, since we are going to use EMA 21 only on a 10M chart, I feel like to add EMA 8 (close) too as a precautionary measure.
That is EMA 8 will work as a torch bearer/ whistle blower on the chart with usual cross over or if the price dips below EMA 8 in Buy mode, get ready to tighten the belt if SL is still far off. Same thing in reverse mode for Sell mode.
Hope you can throw some light on the subject as a whole.
Regards
Vijay
Last edited:
Guys, this strategy is working out for most of my trades today....some positions are still open and a couple may end up in a small loss too...but here are the charts for some of my trades from today that are squared off....
Also, please read the notes at the end of the post...i've written there that I use this strategy only on the Nifty50 stocks and I don't know how well it will work on anything outside this watchlist...neither Ashok Leyland nor Relinfra are in the Nifty50 so....
Also, please read the notes at the end of the post...i've written there that I use this strategy only on the Nifty50 stocks and I don't know how well it will work on anything outside this watchlist...neither Ashok Leyland nor Relinfra are in the Nifty50 so....
Thanks for the Images which you have posted. I have observed RSi which you have plotted shows 15.. Is this something than the default values ?
Thanks in advance for your kind response.
@Vijay11
Are you able to put in 5 ema over rsi now?
Are you able to put in 5 ema over rsi now?
But, still my charts don't lead me to greenbucks, i.e. 'Profits'.
And its happening from beginning of Feb Series.
I mostly trade in Options.
I think there is something terribly wrong happening with my trades.
Trying to weather it out.
Any Suggestions?
Regards.
Vijay
.......................
Any Suggestions?
................
Regards.
Vijay
Any Suggestions?
................
Regards.
Vijay
Just out of curiosity, Vijay, were you successful in trading stocks, before venturing into options?
IMHO, intraday opportunities don't come by every day. I think we might get a handful of opportunities per month. Some months more, some less. Rustom and other successful traders here could give more insight into this.
Just out of curiosity, Vijay, were you successful in trading stocks, before venturing into options?
Just out of curiosity, Vijay, were you successful in trading stocks, before venturing into options?
I am always making money when ever I carry it as a Swing trade or Investment.
Can't venture in to Futures now due to heavy losses in the past two months.
Still, try with Options....every now and then.
Hoping to get back the lost touch!
Regards.
Vijay
Step 3: Trade Timing and Entry
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
I'd been hunting for an intraday system that is consistently profitable for so many years and have tried my luck with dozens of them. I've learnt a lot from them and finally have designed one of my own over the last one year. It's made me money in both bullish and bearish markets. Hell, It actually even survived the test of the random whipsawing markets in Feb 2018 when the budget was announced. I'm posting it here for your benefit should you choose to use it.
The system is as follows:
Step 1: Determine if today’s market trend is bearish or bullish using the daily chart of the Nifty.
Perfect Bullish Condition:
The 14 period RSI of the Daily chart of the Nifty is above 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is above 50.
Make sure that the RSI is above the 5 period EMA of the RSI
Perfect Bearish Condition:
The RSI of the Daily chart of the Nifty is below 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is below 50.
Make sure that the RSI is below the 5 period EMA of the RSI
Step 2: Pick the stocks you will be trading for the day before market opens
If the daily NIFTY chart is in “Perfect Bullish Condition”, run a market scan for individual stock charts that meet all parameters of the “Perfect Bullish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BEARISH CONDITION”.
If the daily NIFTY chart is in “Perfect Bearish Condition”, scan for individual stock charts that meet all parameters of the “Perfect Bearish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BULLISH CONDITION”.
Take all your scanner results and create a watchlist for the day. Do not trade any stocks outside this watchlist.
Step 3: Trade Timing and Entry
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
When you are trading a stock that is in “Perfect Bearish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a short position when the price crosses below the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
Step 4: Target and stop loss setting:
Stop loss for long positions should be placed under the low of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Stop loss for short positions should be placed above the high of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Things to keep in mind when using this system:
Though this system rarely ever fails me, there are no guarantees in the stock market and you may suffer losses when you trade. One must be mentally prepared for this.
Being a successful day trader takes a great deal of discipline. Follow the rules of the system very precisely without any deviations if you hope to make any profits.
Do not trade unless and until all conditions mentioned above are met. There may be days when things don’t align and you will have to sit on the side lines and wait for the perfect conditions but if you are serious about making a living from day trading, understand that capital preservation is as equally important as making profits.
I have been using this system only on the NIFTY 50 stocks, I have no idea how well this will work on stocks outside of this watchlist.
Wish all of you guys the best of luck and good fortune!
Comment if you like the system and share it with as many people as you can once you are convinced that it is working for you.
The system is as follows:
Step 1: Determine if today’s market trend is bearish or bullish using the daily chart of the Nifty.
Perfect Bullish Condition:
The 14 period RSI of the Daily chart of the Nifty is above 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is above 50.
Make sure that the RSI is above the 5 period EMA of the RSI
Perfect Bearish Condition:
The RSI of the Daily chart of the Nifty is below 50
Overlay a 5 period EMA on this RSI. Make sure that this EMA too is below 50.
Make sure that the RSI is below the 5 period EMA of the RSI
Step 2: Pick the stocks you will be trading for the day before market opens
If the daily NIFTY chart is in “Perfect Bullish Condition”, run a market scan for individual stock charts that meet all parameters of the “Perfect Bullish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BEARISH CONDITION”.
If the daily NIFTY chart is in “Perfect Bearish Condition”, scan for individual stock charts that meet all parameters of the “Perfect Bearish Condition” in the Daily timeframe as well. DO NOT SEARCH FOR STOCKS THAT ARE IN “PERFECT BULLISH CONDITION”.
Take all your scanner results and create a watchlist for the day. Do not trade any stocks outside this watchlist.
Step 3: Trade Timing and Entry
When you are trading a stock that is in “Perfect Bullish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a long position when the price crosses over the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
When you are trading a stock that is in “Perfect Bearish Condition”, switch from the daily chart to a 10 minute chart and overlay a 21 period EMA to it. Then add the RSI indicator under this chart and overlay a 5 period EMA on this RSI. Take a short position when the price crosses below the 21 period EMA and the 5 period EMA of the RSI is greater than 50. Unless both these things happen, do not take a long position.
Step 4: Target and stop loss setting:
Stop loss for long positions should be placed under the low of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Stop loss for short positions should be placed above the high of the previous swing on the 10 minute chart. Target can simply be 1% (OR) target can be set using Fibonacci levels (OR) profits can simply be booked towards the end of the trading session at 3:15 PM. Personally, I prefer setting a 1% target and squaring off the trade once this is achieved.
Things to keep in mind when using this system:
Though this system rarely ever fails me, there are no guarantees in the stock market and you may suffer losses when you trade. One must be mentally prepared for this.
Being a successful day trader takes a great deal of discipline. Follow the rules of the system very precisely without any deviations if you hope to make any profits.
Do not trade unless and until all conditions mentioned above are met. There may be days when things don’t align and you will have to sit on the side lines and wait for the perfect conditions but if you are serious about making a living from day trading, understand that capital preservation is as equally important as making profits.
I have been using this system only on the NIFTY 50 stocks, I have no idea how well this will work on stocks outside of this watchlist.
Wish all of you guys the best of luck and good fortune!
Comment if you like the system and share it with as many people as you can once you are convinced that it is working for you.
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