Pride's Intra-Day Strategy [Profit Everyday]

Discussion in 'Day Trading' started by .Pride., Jun 16, 2009.

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  1. bpradipkumar

    bpradipkumar Member

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    realy very intresting sir . i would like to ask u one doubt that if we use any small script it will cross so many time . so what conclusion shall i take ? means buy or sell ? and one more thing is if i buy then if i would like to cover and try to short in the same script what things should i follow sir ? please clear that ji
     
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  2. regardson

    regardson Active Member

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    Hi,
    Can we use this statergy for eq also..kindly advice
     
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  3. ag_fx

    ag_fx Well-Known Member

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    Pride,
    Thanks for sharing your system with us.

    If I am not wrong, this is how to go about it:

    1) Check the Stochs on a 30 min chart. See if it is bullish or bearish, taking care that oversold and overbought levels are not reached.

    Let us assume that this chart is Bearish.

    2)Drop down to a 5 min chart with the same stoch settings and a 5 & 13 EMA.
    Now, untill and unless we find a Bearish crossover on the 5 min, we dont plan to enter.If it is already crossed down and EMAs have also crossed down, we enter.

    3) Follow the exit strategy as you mentioned.

    Do give your comments on this.

    Also, I would request you to post your daily trades charts by EOD so that many traders can learn this in the initial stages of the system.

    Happy Trading
     
  4. .Pride.

    .Pride. Well-Known Member

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    well, you can backtest and see for yourself whether this strategy is good for a particular scrip...but always take trades in the direction of the 30 minute charts stoch...


    like i said, backtest and see if it works or not... :)

    yes ankit, that is correct :)
    first see if stoch in 30min is bearish...then wait for stoch in 5min to go bearish...then sell immediately on bearish crossover of ema :)
    reverse is true for going long.
     
  5. bpradipkumar

    bpradipkumar Member

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    Last edited: Jun 18, 2009
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  6. .Pride.

    .Pride. Well-Known Member

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    For those who are confused about the stochastic settings, here is a paragraph explaining the stoch settings.

    The Full Stochastic Oscillator has three variable boxes.

    The first variable sets the look-back period.

    The second variable sets the number of periods to smooth the Stochastic Oscillator. A 1-period smoothing (which equals no smoothing) would simply be a Fast Stochastic Oscillator. A 3-period smoothing (which would smooth with a 3-day SMA) would be equivalent to the Slow Stochastic Oscillator. Some traders prefer more smoothing tham 3 days. Therefore, the Full Stochastic Oscillator allows you to set the smoothing higher.

    The final variable in the Full Stochastic Oscillator is to calculate the trigger line, which is simply a SMA of your Full Stochastic Oscillator. If the Full Stochastic Oscillator is set for 20-periods with 10-periods of smoothing, then the signal line will be a 5-day SMA of this Full Stochastic Oscillator. For all Stochastic Oscillators, the signal line is a simple moving average of the actual Stochastic Oscillator.
     

  7. ag_fx

    ag_fx Well-Known Member

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    Pride,

    Please see if I am right in trades from this system for today sio far.

    1) The first Bullish crossover occurred at 11AM on 30 min chart. After dropping to 5 min tf, the bullish stoch and ema crossover took place at 12:00 at 4342 and Tp was done at 4366 at 12:25 bar

    2) The bearish crossover happened between 1330 and 1400 bar. I dont know, but I guess you cant trade this untill 1400 bar closes. Whats your view on it? by 1400 all the downfall was over. infact mkts reveresd by that time and on 5 min time frame stochs was highly bullish.

    I want to know how you traded it today?Kindly post some charts too.


    Thanks

    Happy Trading
     
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  8. .Pride.

    .Pride. Well-Known Member

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    the first trade you mentioned is correct.

    for the second crossover, as you mentioned, the 30min stoch was still bullish.
    so we would miss the downfall.

    but if your risk appetite is large, you could have gone for the trade, considering that the fast stoch in 30min had started curving downwards and would cross below soon.

    As I said earlier, this system is not for huge profits. It just provides decent points every day and ensures that you stay in the green at the end of each day. :)
    Keep your expectations around 30-50 points each day, no matter what the day's range may be.

    If we want to play safe, we should be ready to sacrifice some big swings as well, keeping in mind that small consistent returns are essential in the long run.

    "boond boond se hi saagar bharta hai" :)
     
  9. ag_fx

    ag_fx Well-Known Member

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    Agreed friend. Well Said. What trades did you take today? Did you take the talked about bearish crossover trade?
    How about in the past of such trades? Has it happened to you that you pre-empted a trade and went on to loose on it?

    Thanks for your reply.
     
  10. .Pride.

    .Pride. Well-Known Member

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    Well, I took the first trade you mentioned, that is, bought @ 4344 and squared off @ 4366.

    I didn't take the bearish crossover trade as I like to play safe, and as the 30 min stoch was not bearish yet, I did not short sell. The result being I missed out on a huge 100 point fall :p
    In the past also, I have avoided taking such risks, as I would like to have a profit of 30 points in the end of the day without taking much risk and tension rather than having 60-80 points profit involving high risk and a lot of mental tension.


    Second trade for today is going short @ 4265 on bearish EMA crossover and bearish 30min and 60 min stoch.
    I exited half when the stoch hit the oversold line and bounced back, indicating a reversal (i.e @ 4245). I exited the rest @ 4255 when stoch crossover happened.

    Sometimes you have to go with some other indicators/Levels, etc based on your experience. If you traded with just using rules of this system, you would have exited @ 4355, but if you use stoch for some time, you will be able to identify indications and patterns to exit early as well.

    So profit for today = 22+15 = 37 points.
    Net profit = around 30 points after removing brokerage and slippage.

    if you had followed rules only, still net profit would be 25 points. Not bad for a choppy day.
    and believe me, ending the day with a positive balance is most important, no matter how small it may be.

    Trust me, consistently making 25-30 points will do wonders to your bank account :D
     
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