Me & My Mom ................................... Our Trading-Our Style!!

[msdtime]

I have also adjusted my trading a little bit.
I am not going to trade NF or BNF for a while as the amount of losses visible in Position books are catastrophic to the Mom's psyche. She can't just handle those for now.
I have also deleted many of the EMAs that I earlier had on my charts.
Of all the indicators included in the previous post following are no more used for trading.
http://www.traderji.com/community/threads/me-my-mom-our-trading-our-style.106029/post-1272602

• 100, 150, 200 DEMAs - I found SMAs are more respected than DEMAs.
• Volume Profile - Couldn't yet master them. It will be fun to understand Market Profile/ Volume Profile.

I backtested intensively this weekend and have come to following conclusions.
If anybody's reading this and want to suggest/correct I will be very happy.

TBC.

 

[msdtime]

Indicators and most rewarding TFs
1. VWAP - 15 min TF
but not working on Nifty Fut! ?????
2. Pivot - 1/3 min TF (for entry), 1D TF (may take S-R)
3. STR - 1/3 min for scalping
5/10/15 min for regular
4. ORB - 15 min TF to id, 1/3 min TF to trade.
5. EMAs - 5/10/15 min TF
6. RSI(5) - No hope to long if touching 80, also no short if touching 20
7. Fib. on RSI
8. Fib. on 15 min. ORB ( when choppy and range bound within Master Candle)
9. PDH, PDL, PDC
10. O,H, & L
11. Major Swing Pivots - Intraday & Historical
12. BRNs
13. Range High & Lows
14. Historical S-Rs





1. VWAP, ORB - 1st signal only after 15 min candle.
2. Use 3 min TF near Pivot, S-Rs and reverse fast until you get a trade.

 

[msdtime]

Also I invented my own formula for Position sizing out of nowhere. I don't know if it's valid or need improvement.
May be some of the masters here will enlighten me.

1. The 2.5% Rule: Capital ₹ 60,000
   so max loss on each day ₹ 1,500 only
   Target - ₹ 1,500
2. Divide by 3 - i.e. trade 3 scrips at a time. ( 4th slot suspended for sake of NF, as I am not trading but only observing it)
   max loss per scrip - ₹500; target - ₹500
3. Add the position on each ATR move up
   But only with trailing SL of BE.
4. Max Loss/(|LTP - SL| + ATR) = Position size

So The formula that I invented for position sizing is I calculate the difference between the LTP and SL and ATR to it. Then I divide the Max. DD I am willing to take with this no to arrive at my P.S.

For eg. Today at 9:30 AM SBIN was at ₹ 246.80, while the SL was placed at 246.37 just below it. Also ATR was at 1.35
So my Max possible DD was 246.80-246.35+1.35 = 1.8. I was willing to take only ₹ 500 risk. So my PS was 500/1.8 = 277. But I took only conservative 250 position.

Why add ATR?
ATR is average size of last 14 candles (intraday candles have no Gaps!). Consider a situation in which a candle ends just above your SL level. Now you cannot exit as SL is not breached and its high chance that S/R will act as such and direction of price will reverse in next candle. Putting SL exit order is also not an option as you never know when it will form a hammer or price reversed just after hitting your SL but still closed above SL level. So I always wait till candle end. Now what if the next candle continues the trend and ends below your SL. In such scenarios your net Loss/DD will be Trade price - SL + the length of this latest candle. Now the ATR tell us the tentative size of this candle. AND you are saved.

 

[msdtime]

ATR takes good care of such cases, by giving you ample elbow room to move.

 

[doonyadav]

Dear MSD
It will hurt you but let me say this after looking at your last few posts:
1. You have created a lot of mess around & its very unlikely to make profit this way.
2. Keep the things as simple as you can.
Why i am writing to you?
Because i was doing the same way in the beginning of my trading life.

 

[newtrader101]

Dear MSD
It will hurt you but let me say this after looking at your last few posts:
1. You have created a lot of mess around & its very unlikely to make profit this way.
2. Keep the things as simple as you can.
Why i am writing to you?
Because i was doing the same way in the beginning of my trading life.

I too thought so in the beginning, (too many indicators) but he was doing well.

A suggestion to MSDTIME :
Heikin Ashi may be suitable if you want to simplify decision making.

 

[nil.nik.9777]

Indicators and most rewarding TFs
1. VWAP - 15 min TF
but not working on Nifty Fut! ?????
2. Pivot - 1/3 min TF (for entry), 1D TF (may take S-R)
3. STR - 1/3 min for scalping
5/10/15 min for regular
4. ORB - 15 min TF to id, 1/3 min TF to trade.
5. EMAs - 5/10/15 min TF
6. RSI(5) - No hope to long if touching 80, also no short if touching 20
7. Fib. on RSI
8. Fib. on 15 min. ORB ( when choppy and range bound within Master Candle)
9. PDH, PDL, PDC
10. O,H, & L
11. Major Swing Pivots - Intraday & Historical
12. BRNs
13. Range High & Lows
14. Historical S-Rs





1. VWAP, ORB - 1st signal only after 15 min candle.
2. Use 3 min TF near Pivot, S-Rs and reverse fast until you get a trade.

Too many indicators
Use max 2 or 3

Sent from my ASUS_Z010D using Tapatalk

 

[msdtime]

@doonyadav @nil.nik.9777 @newtrader101
Thanks a lot for your valuable suggestions.
Regarding all those indicators - I have earlier posted that these are not indicators for me but levels. The levels which are imp to price action. So I do not decide on their basis, I just remain cautious.
The indicators don't clutter my screen at all. At any given moment only 2 to 4 levels - 2 above and 2 below are imp to me. All others are ignored. As price breaches the levels farther ones behind the price are discarded and new ones come into picture.

So my full focus is only where the battle is going on, & rest of the lines are ignored.

 

[msdtime]

@doonyadav @nil.nik.9777 @newtrader101
Thanks a lot for your valuable suggestions.
Regarding all those indicators - I have earlier posted that these are not indicators for me but levels. The levels which are imp to price action. So I do not decide on their basis, I just remain cautious.
The indicators don't clutter my screen at all. At any given moment only 2 to 4 levels - 2 above and 2 below are imp to me. All others are ignored. As price breaches the levels farther ones behind the price are discarded and new ones come into picture.

So my full focus is only where the battle is going on, & rest of the lines are ignored.

 

[msdtime]

Sorry for typo