Its been almost 2 months now since I am working on this System to predict Market trend and a possible reversal point. After lots of data crunching of past 8 years and trying various things I have came up with this System which is very much capable of tell you just 2 simple things... the trend and a reversal point. You might ask where is target? No it does not give you target and allow you to ride the trend until you hit a SL... it might sound little crazy but you have to ride the trend until you hit the SL. The beauty of this system is that it keep on adjusting the Stop Loss level accordingly to match the trend so that you get hit with minimum stop loss and take away the entire profit.
Don't believe me ? Here is a snap shot of this system since 1st Jan 09 and it has given me 7000 points till date. Red line here is the Stop Loss line... go short below it and long above it.
Its like any other trend following system can last from 1 day to 1 year keeping you alive in the trend.
Few stats after a run of this system for this year.
Max Loss: 153.05 points
Max Gain: 597.2 points
Min Holding Period: 1 day
Max Holding Period: 12 days
Winners: 39 , Losers: 11
Avg Win Size: 195 , Avg. Loser Size: 49.5
Total Point Profit: 7062.15
Few Rules:
Don't believe me ? Here is a snap shot of this system since 1st Jan 09 and it has given me 7000 points till date. Red line here is the Stop Loss line... go short below it and long above it.
Its like any other trend following system can last from 1 day to 1 year keeping you alive in the trend.
Few stats after a run of this system for this year.
Max Loss: 153.05 points
Max Gain: 597.2 points
Min Holding Period: 1 day
Max Holding Period: 12 days
Winners: 39 , Losers: 11
Avg Win Size: 195 , Avg. Loser Size: 49.5
Total Point Profit: 7062.15
Few Rules:
- All levels are based on NIFTY SPOT and NOT FUTURES but can be used to trade Futures & Options by keeping SL on SPOT
- DO NOT TRADE THIS SYSTEM, THIS IS FOR PURE EDUCATIONAL PURPOSE
- Stop Losses are HARD TRIGGERS, and one MUST take opposite position once SL is hit. For Eg. You are long @ 5110 and SL is 5103, then you MUST go double short at 5103 which will close your long and take you in short position. This way we always stay in trend and always keep the position open.
- Since we are trading daily charts, the SL will be based on Closing price for the day. If it close below the SL level then we have to change our position the very next day.
Even better solution, instead of waiting for next day opening.. one can also see the last 30 minutes of the session and calculate the average (high+low/2) of the last 25mins (3:00-3:25pm).. if the value is hitting the SL then take opposite position
- PLEASE DO NOT BLAME ME IF YOU TRADE THIS AND RUN IN LOSSES AND DO NOT ASK ME FOR THE AFL OF THIS SYSTEM AS I INTEND NOT TO SHARE AT LEAST AT THIS LEVEL AS ITS VERY MUCH UNDER DEVELOPMENT.
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