Nifty 2 Day High/Low System

[pvs]

- To protect your profit, you might like to exit on x % drop from high.. say when price drops by more than 3% or 4% from recent high, you exit. This will save you from late exit on cases where last 2 days were really wide range days. Here it might be just profit exit, not a SAR. Your next entry will still be based on 2day range break.

am too trading 2day high/low, i do buy OTM call/put when the 2 day high/low pierce... here OTM with the delta value around 0.55 - 0.75 with the stop of abt 30pts from my entry level. when my stp hits i come out and wait for the nxt entry... approximately collected abt 380pts in abt two and half month duration...
cos of the whipsaw i got earlier, i went to OTM options. on a wild guess tht if my stp dont hit, my OTM will become ITM soon...
may be didnt thought of position sizing and protecting the profits till now..!!!
Thanks for this post sir, will work on position sizing here on...

 

[istyles]

Thank you for the knowledge passed, Its worth it.

Boss keep it up and thanks again

B L

 

[s0058350]

so lets start the trading with this strategy,nifty yesterday high was 5594,and today high is 5609.9,that means,tomorrow if nifty breaks today high, then we will buy nifty with s/l of 5505

 

[timepass]

so lets start the trading with this strategy,nifty yesterday high was 5594,and today high is 5609.9,that means,tomorrow if nifty breaks today high, then we will buy nifty with s/l of 5505

I think his calculations are based on nifty spot, not futures.

 

[rohitm]

I think his calculations are based on nifty spot, not futures.

Calculations will be based on whichever contract you are trading. So if you are trading Mini Nifty of Jul expiry, you'll look at those values for July Mini Nifty. I hope its clear

 

[nileshshukla]

for entry & exit point u can use Oscillators. in oversold u can enter and at over bought u can exit or vice versa

 

[AW10]

nilesh, In my opinion, oscillator is going to confuse this system.
The systems is based on breakout, It anticipates that breakout will be successful and turn into a new trend. When that happens, oscillator will remain in ob/os zone and may not give you entry.

Oscillator are good for sideway market trading, or when you are looking for entry on pullback in the trend.

Happy Trading

 

[s0058350]

today i hav bought nifty at 5611 with s/l of 5545,so lets see

 

[sbali1976]

Hello Friends, I am new into technical analysis, however I have come across this strategy while surfing a website.

Intraday Trading Strategy

1) This strategy only on intraday trading...not for delivery or long time.

2) During use this strategy dont follow any news,tips or any other information

just follow the system ....


TREND FINDING METHOD


FIRST take the low price,open price,high price of NF at 9.30 as per ODIN

example 1.

low price = 5971
open price = 5976
high price = 5987

now, count the different between Open - Low = 5
and High - Open = 11.

(HIGH-OPEN) is greater than (OPEN - LOW) = so intra trend UP

example 2.

low price = 5961
open price = 5976
high price = 5982

now, count the different between Open - Low = 15
and High - Open = 6.

(OPEN - LOW) is greater than (HIGH-OPEN) = so intra trend DOWN


After finding the trend ... go for stoploss method


STOPLOSS FORMULA

1) SL FORMULA FOR BUY POSITION

BUY SL = {(OPEN - (HIGH - OPEN) - 1}
= (5976-(11)-1}
=(5965-1)

BUY SL IS = 5964.

NOTE:- if the SL hits reverse the position BUY to SELL...

2) SL FORMULA FOR SELL POSITION

SELL SL = {OPEN + (OPEN - LOW) +1}
= {5976+(15)+1}
=(5991+1)

SELL SL IS = (5992)


NOTE:- if the SL hits reverse the position SELL to BUY...


TARGET FORMULA FOR BUY POSITION

BUY TG = {OPEN + (OPEN PRICE * 0.75 %)}
= {5976 + (5976*0.75)}
=(5976+45)
=(6021)

TARGET FORMULA FOR SELL POSITION

SELL TG= {OPEN - (OPEN PRICE * 0.75)}
=(5976 - (5976*0.75)}
=(5976-45)
=(5931)

NOTE:- This method is used only for Intra-day and if the difference between the NF at 9.30 AM and SL is more than 30, then do not Trade.

Chances - 7-8 successful trades out of 10

Would like the experts to backtest it and endorse if this is a good strategy.

Regards
Shailender Bali

 

[techtrader2]

Rohit I had tested this sytem in the past...results are bad for 2006...0%..as 2006 was overall a trending year but this system caused us to keep oscillating between long and short....2003/4/5 were profitable but not as much as 2007/8/9/10....please test 2006 before trading this system