Yes slight modification in the approach.
Trading Style : Intraday
Objective : Trading the trend in 1m chart. Enter as per pre-defined entry setup whenever an entry potential is seen. Be in the trade as long as the trend lasts and exit gracefully with no hesitation whenever exit criteria are met.
Trading Instruments : 13 stocks
Banking Sectors : AXISBANK, BANKBARODA, SBIN, YESBANK
Finance Sectors : HDFC, LICHSGFIN
Metals : TATASTEEL, HINDALCO, VEDL
Auto : ASHOKLEY, TATAMOTORS
Others : RELIANCE, LT
Trading Strategy:
Trade 1m trend in the direction of 5m trend.
5m trend (Trade direction) is identified with 2 sets of EMA and rally/decline/candle patterns from 5m chart.
Once trade direction is decided then wait for positive momentum to be seen in the direction of the trend. This is done through MACD histograms.
Up to this point its all mechanical and will be scanned through my exploration AFL on every 15m. Once a potential trading candidate is identified I will check its trend on 1 m chart and trade as per the following setups.
Trade Setups :
- Breakout Pullback and Breakout Failure from sideways range
Entry, Trade management and exits are discretionary so far.
Money Management :
Take 0.5% risk on each trade. Maximum 3 open trades at a time. initiate 4th trade only if one of the trade from previous 3 trades is secured.
Daily Trade Risk = 2%