Intraday Microflow Method

[ratan jain]

Suppose we were to take this ystem in 5 mins time frame, what would the results look like?

 

[debdeeps]

Suppose we were to take this ystem in 5 mins time frame, what would the results look like?

Here we are not trading any time frames just chasing the high or low of nifty, it can be 1 hr, 30 min, 15 min, 5 min, 1 min or 1 tick as well. The concept is after we take the position we will notice how further it traverses in that direction and will subtract 37 points from that peak to get the SAR i.e suppose we hit the SAR of the 1st long trade at 2700. and reverses to short, now Nifty moved upto 3690 and again start climbing and goes to 2710. So our SAR for current position (short) would be 2690+37.And viceversa.

 

[debdeeps]

Today's Trades:
S T1: 2648 SAR: 2683 L: 35
L T2: 2683 SAR: 2706 P: 23
S T3: 2706 SAR: 2715 L: 9
L T4: 2715 SAR: 2685 L: 30
S T5: 2685 SAR: 2675 P: 10
L T6: 2675 SAR: 2696 P: 21
Brokerage: 4X6=24 points.
Total Loss= (74-54)+24= 44 points.

 

[debdeeps]

Please think again Debdeeps.....we surely need a time frame to do it.

Suppose we enter long at 2665.
The new high may be say 2710 in 30 minutes, the same shall be 2699 in 15 and 2739 in 60 and just 2677 in 5 minutes time frame.
Have tested similar system, though a bit diferent,it requires a lot of back testing to synchronise the Time frame and the SAR value. You have suggetsed 37 but it needs a corrosponding TF with it.

All the best.

Hi rkkarnani Sir,
We are long at 2665. Now when it moves to 2710 we shift our SAR to 2710-37= 2673. Now will not bother about NF until NF makes new high or SAR gets hit. So will ignor 2699 and when NF moves to 2739 we move the SAR to 2739-37=2702 as NF makes new high. And after traversing upto 2742 when it returns back to 2677 we are already short at 2742-37.
The overall NF movement was:
2665--->2710--->2699--->2739--->2742--->2677

 

[debdeeps]

Very good initiative.

Thanks rkkarnani Sir.

 

[debdeeps]

Nice Innovation , All trading systems are result of innovation like this only , can u post back testing of last week

And if possible can u share logic of 37 points , Why u chosen 37 , is it just an observation or some thing else

Just an observation my dear friend nothing secret in it.

 

[debdeeps]

Hi,

Thanks for the new initiative.

Would you please help me in clarifying/verifying the following points:

1. Entry will be as per Saint's mini flow method.
2. SAR will be changed by constant value of 37 and is not based on timeframes/pivots etc. For example, for a long trade, after initial entry, SAR is always nifty new high - 37.
However, which value should be taken as the nifty new high? In the example trade, we enterd @ 2514 and moved SAR once price hits 2520. Just trying to understand why we change SAR exactly at 2520 and not at say 2518 or 2522 or 2525? How do we select this "nifty new high" without relying on a timeframe or a constant value from entry?

Regards
Mowgli

Because that's the high NF made after we took the position and then we went into lose and ultimately SAR hit without making new high.
10-15 min back I answered one of such similar query of RK Sir (can't find the post number but the time of posting was Today 04:23 PM), Kindly refer to that post, if still in doubt, I will explain in more detail.

 

[debdeeps]

Why not use a trailing stop loss based on ATR, may be it is more close to the current volatility. If ATR is used then it becomes a Chandelier exit. There is a variation of Chandelier exit strategy that tightens the SL as the market flows in the direction of trade.

find more from here - http://www.tradernexus.com/advancedstop/advancedstop.html

Thanks Joy, was not aware of it, will look into the details, particularly if this can improve the method and help us to earn more.

 

[citrus]

Today's Trades:
S T1: 2648 SAR: 2683 L: 35
L T2: 2683 SAR: 2706 P: 23
S T3: 2706 SAR: 2715 L: 9
L T4: 2715 SAR: 2785 L: 30
S T5: 2785 SAR: 2675 P: 10
L T6: 2675 SAR: 2696 P: 21
Brokerage: 4X6=24 points.
Total Loss= (74-44)+24= 54 points.

According to my calculation Todays trades were as:

L: 2689
S: 2706 +17
L: 2715 +9
S: 2686 -29
L: 2674 +12
C: 2696 +22

Total: 31
Brokerage: 20
Profit: 11

Note: As a habit I ignore First one minute bar (too vague bar), and for finding range take highest high and lowest low of 2 to 6 minute bars. Thus first trade was not triggered in my case.
Regards.

 

[desi123]

While the strategy seems intersting on paper, in real trading, I dont believe it will survive on long run. Reasoning is simple, this strategy works best in strong trending markets where we have one way swings.

When we come to even a bit of choppy markets, this method will be reversing multiple times, In contrast, Saints Mini Flow method reverses trend only when its really changing. Though the SAR there are sometimes higher, its well acceptable since one is looking to reverse the position and for that one needs to be certain that the trend has really changed.

Instead of SAR, if this method is used for trailing stop, it might work better since just because Nifty has come down by 37 points does not have to mean that the trend has reversed in any time frame.

I am not sure how backtests are being done, but it will be necessary to consider considerable slippage that happens during reversals.