scalping/Trading with fixed volume bars. nifty,options, commodities etc.

[nitingosavi]

Hi friends,

last 3/4 months I was trying/ trading fixed volume(pre defined volume) bars(candles) for finding trades entry,s/l etc.

And for me seems its working good. Its a very simple Mainly scalping ( can also be used for intraday trading) strategy based on Fixed volume candles.

Fixed volume candles = we predefine a volume for a price candle and when that volume is traded a candle completes and a new price candle starts.
for example if defined Volume = 500000 (5 L) for nifty futures. when market opens a price candle will appear it will have all regular parameters O,H,L,C etc but it will not end after a time interval. it will end when 5 L volume will be traded in nifty futures. and we will have a new price candle start for next 5 L volume. thus we will have a candle with 5 L volume with its O/H/L/C. so 5 min/15 min /1 hr intervals (time) is a factor which is not considered at all.

This chart usually has less noise and a clear visualisation. patterns/ trend lines/ indicators etc. and all other technical tools and methods we can use on these charts as well.

with this, I trade Index futures/Options/Crude oil / base metals . some times some stock futures too. just like any other method(s) it has failures too, posting this as some one may find this useful and working for him.

In next post. I will try to explain this simple strategy. which is working for my scalping.

 

[rjshem]

Yes constant volume bars and constant range bars r very good to trade as they have less noise.moving average strategies also work better with these.important thing is getting a correct software which can give these bars,looks ufound a good one, do share info on it too here for others benefit.happy trading all the best.

 

[nitingosavi]

1) 1st of all you will have to define suitable volumes for each scrip.
I use 2000 or 5000 volume for crude oil. 200000/500000 for nifty/ nifty options.

2) then its a simple 3 bar strategy.
when a constant volume close comes above last 2 candles high, its your buy trigger. let 1st two bars of the day to complete don't enter before that, unless you have a good risk appetite.

3) trigger bar and the bar earlier to it, a tick below lowest low is stop loss.

4) buying should be done in steps. buy range is almost until just above s/l.( this is needed as many times s/l is bigger)

5) if s/l hits. you have option to reverse the trade.

***** this is mainly a scalping technique. It don't have targets. ****

6) better if associated with some indicator/MA's/diversions. by practise you can choose your own. I prefer trading in the direction of slower stochastic.

7) can attempt to ride the trend with a trailing stop below 2 bars low.

for shorts - apposite to above entry / SL rules.

8) while trading options, refer to both, nifty fut and option charts

*** generally candles with long shadows have more importance***

here is a example. crudeoil 2000 volume

Drawbacks:-
1. sometimes s/l are big. R/R ratio logic less .
2. for each scrip you will have to define specific volumes. which you will have to finalise by trial and error. Bigger the volume you choose, bigger will be the s/l, but success rate (not R/R ratio) may increase.
3. Failures are just like any other method.
4. No targets. so exit is a "?".
5. alertness for booking profit in 1/2 to 3/4 position is very much needed. Greed may kill your trade!
6. no method for exploration.

posting in trading diary as its a technique, not strategy. as well I don't think its a full proof method. but works well if we can fine tune.

 

[nitingosavi]

Here is a chart

Crude 5000 volume. marked with some entries and s/ls.
just simple... PIVOT like.

It was trending... so had nice time. but when sideways...(?) that's why I prefer scalping.. booking max qty at fastest.


RED SQUARE. overlapping signals. failed trades. this can happen resulting into losses.

 

[amitrandive]

Here is a chart

Crude 5000 volume. marked with some entries and s/ls.
just simple... PIVOT like.

It was trending... so had nice time. but when sideways...(?) that's why I prefer scalping.. booking max qty at fastest.


RED SQUARE. overlapping signals. failed trades. this can happen resulting into losses.

Great idea !!!
How do you set this volume bars in Amibroker and how to define the volume for any scrip?

 

[nitingosavi]

Great idea !!!
How do you set this volume bars in Amibroker and how to define the volume for any scrip?

Amibroker --> tools ---> preferences --> intraday ---> "custom N-tick/N-volume-Range bar setting"

here you can set volumes.

how much volume-- its differs from scrip to scrip just a trial error method..

currently using as follows
Nifty, nifty options- 5 L
banknifty - 2L
crude 2000 and or 5000
copper,lead- 2000
gold silver- 500

rest all stocks 1 L- 2L-5L-10L when chart will not seem erratic.

 

[nitingosavi]

Last post.

example. todays trade. booked !!thank god !! it was a big success.
nothing more left at my end to explain.

as nifty reversed from strong resistance zone. chances were bright.

Nifty 7500 put 500000 Volume chart

Nifty fut 500000 volume chart.

 

[sherbaaz]

Amibroker --> tools ---> preferences --> intraday ---> "custom N-tick/N-volume-Range bar setting"

here you can set volumes.

how much volume-- its differs from scrip to scrip just a trial error method..

currently using as follows
Nifty, nifty options- 5 L
banknifty - 2L
crude 2000 and or 5000
copper,lead- 2000
gold silver- 500

rest all stocks 1 L- 2L-5L-10L when chart will not seem erratic.

which data vendor r u using ?as far as i know only truedata is providing tick chart which is must for volume based charts.

regds,
s

 

[rjshem]

Subhadips ma strategy will work very smoothly in this.also ST s swift method.

 

[nitingosavi]

which data vendor r u using ?as far as i know only truedata is providing tick chart which is must for volume based charts.

regds,
s

I use databulls, earlier which was manshiRT.

any data vendor who provide volumes will do I guess.