Intraday Trading Banknifty with a solid EMA
- Thread starter suri112000
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Taking every signal it generates on crossing of EMA is a loosing proposition. Backtest it to understand better.
Still, my query is not answered, how you have fixed target.
and, you don't want to take all signals (if so, please give logics to skip the signals)...
Backtest will never solve the problem, unless and otherwise if we have logics
- why do skip the signal
- why you have not exited when EMA closed below (on what basis you have exited on breakeven).
If you don't have answer, please ignore....don't tell me to do backtest...
Logic is very simple.
Once in trade, the strategy says.......take my SL/TSL or give me profit.
In the chart, the exit was partial and there were two remaining lots in the wait to grab maximum. Unfortunately, the price has not halted at a reasonable level. In such cases, we have our stops to protect.
No strategy can pull in profits in every situation posed by the market. So, this strategy is no exception. There will be occasions where we could loose nice moves while sticking to the rules envisaged by strategy. That should not make the strategy ineffective. The basic parameter to judge any strategy is its profitability on the whole.
It can be better explained with various charts where this logic holds good. I will do that in due course.
When you asked me a querry, I thought you must be having a tested data. That's why asked to backtest. Never mind.
Once in trade, the strategy says.......take my SL/TSL or give me profit.
In the chart, the exit was partial and there were two remaining lots in the wait to grab maximum. Unfortunately, the price has not halted at a reasonable level. In such cases, we have our stops to protect.
No strategy can pull in profits in every situation posed by the market. So, this strategy is no exception. There will be occasions where we could loose nice moves while sticking to the rules envisaged by strategy. That should not make the strategy ineffective. The basic parameter to judge any strategy is its profitability on the whole.
It can be better explained with various charts where this logic holds good. I will do that in due course.
When you asked me a querry, I thought you must be having a tested data. That's why asked to backtest. Never mind.
Logic is very simple.
Once in trade, the strategy says.......take my SL/TSL or give me profit.
In the chart, the exit was partial and there were two remaining lots in the wait to grab maximum. Unfortunately, the price has not halted at a reasonable level. In such cases, we have our stops to protect.
No strategy can pull in profits in every situation posed by the market. So, this strategy is no exception. There will be occasions where we could loose nice moves while sticking to the rules envisaged by strategy. That should not make the strategy ineffective. The basic parameter to judge any strategy is its profitability on the whole.
It can be better explained with various charts where this logic holds good. I will do that in due course.
When you asked me a querry, I thought you must be having a tested data. That's why asked to backtest. Never mind.
Once in trade, the strategy says.......take my SL/TSL or give me profit.
In the chart, the exit was partial and there were two remaining lots in the wait to grab maximum. Unfortunately, the price has not halted at a reasonable level. In such cases, we have our stops to protect.
No strategy can pull in profits in every situation posed by the market. So, this strategy is no exception. There will be occasions where we could loose nice moves while sticking to the rules envisaged by strategy. That should not make the strategy ineffective. The basic parameter to judge any strategy is its profitability on the whole.
It can be better explained with various charts where this logic holds good. I will do that in due course.
When you asked me a querry, I thought you must be having a tested data. That's why asked to backtest. Never mind.
Basis of Profit Booking - Logic (i.e. May be R1 / R2 / S1 / S2 ....etc..) ?
Then why we have not initiated short ?
Any system, there should be written procedure...you are talking only post mortem...
Can u please post some charts current market, how you will handle ?
Reading and analysing Leftside of Chart always looks good....
My query will stop here...
I am assuming...this strategy will fail 100% if we have not fixed rule.
On 3 min TF, there won't be much difference between 20ema and 20sma. So you can combine it with one of Columbus's strategies using BB to determine your SL and targets.
Here is one example using BB(22,2) and BB(20,1). You can ignore the red-blue strips or use them for guidance.
The yellow band is BB(22,1). So maybe you can trigger your buy when it closes above 20sma and goes above the upper yellow line, or sell when it closes below 20sma and goes below the lower yellow line. This will eliminate the need for a certain number of bars closing after crossing the 20sma. SL as per your risk profile and the BB(22,2) as the target 1.
There is a large no trade zone, but the trades are surer.
Here is one example using BB(22,2) and BB(20,1). You can ignore the red-blue strips or use them for guidance.
The yellow band is BB(22,1). So maybe you can trigger your buy when it closes above 20sma and goes above the upper yellow line, or sell when it closes below 20sma and goes below the lower yellow line. This will eliminate the need for a certain number of bars closing after crossing the 20sma. SL as per your risk profile and the BB(22,2) as the target 1.
There is a large no trade zone, but the trades are surer.
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