Best way of day trading - 2652 theory of trading

[biyasc]

every sytem/strategy/method/whateveryouhave have good times, as well as bad times. our job as a trader is to execute trades as per our written plan. personaly i feel that the 2652 is a good trading method & have good success rate till on date. but remember, trading is not about how many times you win, but how much money you make...that's how the score is kept in this game. i feel the only concern is the risk:reward part. until we make some neccessary changes in r:r part, we will be a net looser, even if we get 70% success rate. think of it.

 

[humble]

For all those, wanting to create "EOD IntraDay charts" from the ticklist available from "InvestBull", you can use the tool provided here: "http://sites.google.com/site/imeandmyego/Home".

I found a free open source library[ZedGraph] on the internet using which, I create intraday charts by reading the ticklist of individual stock provided by the InvestBulls website.

Instructions:
1. Download the attachment.
2. Double click on IntraDayChart.exe.
3. Click on the button "Load Scrip".
4. Go to the folder where you have the "SCRIPNAME.txt" file stored on your computer. I have included "RCOM.txt" in the same directory.
5. Click on the "OK" button.
6. You get the chart displayed now. "Right click" on the chart to zoom-in, save etc.
7. WARNING: This tool can understand "ONLY" the format specified in the "RCOM.txt" i.e provided by InvestBulls. This tool can create "ONLY" intraday charts. This tool is FREE to use .

Having learnt sooooo much from this forum, I thought it was time to give back something to the forum [especially from Dhiraj and Sunil]. Enjoy trading .

-Sri

 

[V.V.]

For all those, wanting to create "EOD IntraDay charts" from the ticklist available from "InvestBull", you can use the tool provided here: "http://sites.google.com/site/imeandmyego/Home".

Dear Sri,
Thank you

Regards
V.V.

 

[Flock]

For all those, wanting to create "EOD IntraDay charts" from the ticklist available from "InvestBull", you can use the tool provided here: "http://sites.google.com/site/imeandmyego/Home".

I found a free open source library[ZedGraph] on the internet using which, I create intraday charts by reading the ticklist of individual stock provided by the InvestBulls website.

Instructions:
1. Download the attachment.
2. Double click on IntraDayChart.exe.
3. Click on the button "Load Scrip".
4. Go to the folder where you have the "SCRIPNAME.txt" file stored on your computer. I have included "RCOM.txt" in the same directory.
5. Click on the "OK" button.
6. You get the chart displayed now. "Right click" on the chart to zoom-in, save etc.
7. WARNING: This tool can understand "ONLY" the format specified in the "RCOM.txt" i.e provided by InvestBulls. This tool can create "ONLY" intraday charts. This tool is FREE to use .

Having learnt sooooo much from this forum, I thought it was time to give back something to the forum [especially from Dhiraj and Sunil]. Enjoy trading .

-Sri

Hi,

Fcharts SE will do the same and it is free. Will work with EOD also. I use the same to load and analyse investbulls data. Just rename the .txt to .csv and click Import/Export button, click 'import price files' and everything is loaded into the database and saved for future also. You can also import an entire folder using the 'Import folder' button.

Rgds

 

[mubeenmohd]

hi ,
first just read the above post which was posted on 11th dec .
7 days after i had posted my thread , reading this once i thought that i should delete the thread .
but kept thinking that somebody might find it useful and earn from it .
i didnt wanted to prove anything , this method was designed by me , which was earning good for me , i just posted thinking that there will be one more dhiraj who must have lost money in this crazy world of share market and will be surfing net for getting something profitable .
if this had got no reponse also than i t would not have effected me the slightest .
ther were many post that where criticising , but i kept the post and knew ther will be some wise people who will test and then come to post their feedback .
and thanks sunil for that ,that followed the change in here .
sunil a person of such high reputation giving a green signal made everybody crazy .( ther were some members who were using it before all this , specially bandlab , sachin also i think )
personally thank sunil , not for promoting this but making me learn how it can be useful in futures and how i can earn without more with this .
the back testing results last week made more noise . there were posts after posts .
sunil too was surprised with the number of posts per day , so was i .
ther were some fear by many members that this might be misused commercially , that this might go in hands of manipulators and all things .
but now what happened today was shocking .
a person was caught doing a thing and he admitted , his mistake is forgiven
but what about those who are not caught .there will be more people whoe must have started using it comercially .
i hope sunil remembers that once i had written to him that i fear that people do sell tips using this.
i had recieved so many private messgs saying that we must move it to some safe place .
personally i cant comment whether there can be maiplutaion or such things .
but yes as per one of the member who wrote to me saying that if a market mover knows about this then he can make such two orders to trigger stop loss and this will definatley let many down .
definately it will not effect dhiraj , i have more two methods with me under backtesting .
today i had sent a message to sohan saying that i need his help for that .

any how there was no wonder in 2652 method , it was a simple system using the right factors and with right money management system with tight stopp loss and tight targets .
personally i am a mechanical engineer , i payed rs 2000 for a 10 hours course in panajim , goa by a gentlemen from mumbai for share market study
in the whole study i only grasped that in share market we must buy for a low price and sell for a high price .
i started in jan 2008 and with the fall of market i also came down .in august 2008 i stopped trading and only surfed net for all technical studies , various forums like trade2win, traderslaboratory , many sites and many more thing .
but last i concentrated on how a days range can be used for trading the next day and from there started testing of a method using various factors .
it took me two months to come up with this method .
i paper traded it live sitting in front of markets , then got it into cash with small amount then found it profitable and then posted it here .
i was very eager to post here , my first post here was that" how can i post a new thread " i think sunil had read this first post of mine .
then i posted it here ,and now its here today .
the thread will remain i will definately not delete it .
hope this will be helpful for a new dhiraj or a new jhaveri who had lost lost money in this crazy world and will be surfing net for something profitable .
it took me two hours for typing my first post with all the ideas in my mind
and this post took two hours and fourty minutes for writing because i had not thought of writing this .
so this will be my last post on this thread .


I NAMED THIS METHOD AS 2652 AS IT WAS MY METHOD AND I HAD TO NAME IT SOMETHING TO PUT IT UP HERE . THE NAME WHICH WAS LUCY OR DEAR TO ME .
2652 IS NOTHING BUT MY LUCKY BIKE NUMBER GA -01-Y-2652

HAPPY TRADING TO ALL

DHIRAJ

DHIRAJ
100%, this theory is yours even though people make some money using it, bro if you feel its in the hand of manuplators then please do not comment or give advice to any1 regarding this theory or some other queries.
bro i really thankful to you and saint sir. this is kalyug you people does not belong to this yug.
i have seen many people giving suggestions and advices with their knowledge but when it comes to money i have never seen in my life people advicing honestly some1 to make money ( seen only in traderji)

i am a newbie i have opened account with angel even if do not gain in market.
but sure want to change myself just like you helping people without any greed,

mubeen

 

[Flock]

The theory behind the theory:

I have been doing some back test on this theory and I have a hint as to why this theory works with 90% success rate. (Just my interpretation; maybe totally wrong). Reason for posting is that knowing why something works gives confidence and also allows room for improvement.

The factor calculation from previous day:

When we take the previous day's range and calculate factors what we are in effect doing is dividing the next day into three sub ranges depending upon the most recent volatility of the scrip.

Taking the days range to decide the entry prices:

What we are doing here is taking a measure of the volatility of the stock during the first 15-45 minutes and fitting it into one of the pre-calculated sub ranges for the day. By calculating our entry prices using the pre-calculated sub range we are in effect adding a filter on the top and bottom of the range in the first 15-45 minutes.

Why we have a good trade so often

When the price hits our entry points what is actually happening is a break out from the days range confirmed by the upper or lower filters. Chances are very great that it will hit the .5 or .8 or even the 1% target.

When do we hit SL and why the second trade is successful

When there is a break out or a break down failure we hit SL. That is why a reentry out of that range in the direction of loss has an even higher chance of success. Many times the break out or break down failure will take the market into a huge trend to the other side, meeting the other side entry and target.

Eg: Yesterday the Nifty had a break down failure. First trade might have resulted in loss. The second trade should have met target because the market trended to the opposite side.

When are we likely to have a bad day

On a day when a failed break down and a failed break out occurred. Like today.

Why should a stock that lost today be a likely winner tomorrow

I think this is pure probability. If you have only 1 failure out of 10 days the probability that they will happen on consecutive days is remote.

I will post the chart of infosys on 5th and 6th Jan to illustrate this.

===

PS: Please feel free to rip the above apart. Constructively of course.

 

[Sunil]

Why should a stock that lost today be a likely winner tomorrow

I think this is pure probability. If you have only 1 failure out of 10 days the probability that they will happen on consecutive days is remote.
.

it signifies that the intraday range was tight, and chances of breakout are in either direction, (hopefully with momentum) are high for the next day.

On Tuesday & Wednesday, we had to take to two directional trades, but ultimately achieved the day's target.
On Thursday, we had, as pointed out by arm, failed BO & BD...

Intraday Range (high-low):
Monday = 102
Tuesday = 73
Wednesday = 68
Thursday = 46!!!
Friday = ??? (maybe 85, if not 35)

has anyone actually observed the relation between the formula-derived levels & their status in intraday charts....

u will find that these levels are nothing but breakout (BO) / breakdown (BD) levels - 0.5% reaction is but a normal expectation on BO / BD.
Sometimes, they coincide with pivot highs, as in Saint Sir's flow method.

this is the reason why I had admired Dhiraj's sytem - a mathematical formula-driven levels, which will help people who are not that conversant with charts.

When Asish Da (my mentor in this forum) had posted his views on the system, I knew what he was actually trying to communicate....

So, don't worry about the future of this system - the actual process has been in existence since beginning of market.
It's just that Dhiraj has given a mathematical face to it - which is simply brilliant & genius.

these are my personal views/observations, and may differ with others

 

[Flock]

Thanks Sunil. I didn't see that earlier post of yours.

Anyways that should somewhat lessen the fears that a market mover can torpedo this system.

It wont be easy, as proping up a market going in an uptrend or supporting a support zone when the market is going sideways on low volumes is one thing, and trying to reverse a market breaking out or breaking down on high volumes is another. Market will swallow the market maker and go where it wants.

It will be like trying to stop an avalanche with a bull dozer. More often than not it will end in comedy .... Like the time they tried to prop up RPower on listing. In an hour the market took the stock where it wanted.

 

[santhosh44]

banknifty - buy triggered

 

[V.V.]

Nifty : -

Buy Above : 2945
Target :2959.70,
Sl :2915.55

Sell Below : 2921.15
Target :2906.55
Sl:2950.40