Mr. Nagpal, till my system is in intial stage ......... ya i will post here as there is no use of distributing system code unless it proves its worthiness
My system is only designed for uptrend so whenever i post any filtered signals then whether i mention or not .......... it is always for BUY
But sometimes when a stock rises too much then it corrects itself like yesterday after making a high of 109, liberty falls to 102.......... so if u using suitable afl that u can sell at 107 n cover at 102 but make it clear that system always generate stocks that r most probable to rise
very good u can use senti levels as entry points but mind it that works only on very high liquid stocks thats y i used that theory on nifty
senti levels works well when sentiments of many traders r attached to that stock but u see 50% of traders never traded in liberty so how can we trade in that stock using senti level when most of traders dont know even its full name.........
so better use suitable afl n sell only when u think that stock is going to be corrected or sometimes it falls constantly before sudden rise.......
like network18 didn't rose the very next day of my detection rather a day after that.
Hope i cleared something.............?
You sure did. Another thing to consider while trying to trade into breakouts among mid-cap and small-cap stocks is the margin multiple allowed by your broker - it would be more or less the same for stocks on intraday basis as well as futures lots. My broker allows max margin multiple of 5 times of cash margin held (own capital) against prime blue chips within Nifty and 9 times against Nifty and other indices.
It is difficult to catch a breakout on intraday basis. Even if you did, psychological trading inhibitions (fear or greed) will compel one to leave money on the table because one could not hold one's position until the next peak. Positional trading is not always advisable in mid-cap futures primarily because market-makers and professional insiders with good knowledge and experience of market psychology undoubtedly exist;and small-caps would not have any futures at all. And so if you trade on delivery basis thinking that you have made a killing with the large %age gain, please also consider that your margin will only get released 3 or 4 days after square-off and therefore reduce your rotational trading capital. All said max %age gain as an objective must be balanced against these pitfalls.
Contrary views are welcome with logic.
I am curious to know something more about the 113 behavioral patterns on the basis of which stocks are screened. Positional trading requires that you take a BTST or STBT position one day ahead, preferably near closing bell. I am sure your selected patterns for screening stocks are something more than accumulation-distribution.
hrsnagpal
