Hi All trading Gurus,
let me introduce myself so that nobody should follow this strategy blindly. I have started trading in commodity for last 1yr. Lost 1.2Lks (thanks to Silver only) till Oct-2012.
I used to make some TA and used to trade. Got some success but due to some big failure in silver made the big loss.
Now coming to my strategy. IT LOOKS VERY VERY SIMPLE AND EVEN SOMETIMES I DON'T BELIEVE WHETHER IT WILL WORK IN ALL CONDITION
# i HAVE cheked the chart of crude/aluminium/lead/zinc/silver/gold based on only RSI. when ever the RSI is below 30, buy the comodity and whenever RSI is above 70 sell the commodity
# there is some loophole (RSI above 70, few times comodity stays above 70 for quite some day) but same is not below 30. For this also I have thought some way out but in this the margin requirement is bit high.
Lets say for crude, taking the below example
Day-1 -close price 5200---- RSI is 70
Day-3 -close price 5312---- RSI is 76
Day-3 -close price 5423---- RSI is 80
My 1st lot sell will be at 5200, 2nd will be at 5300 and 3rd will be at 5400 (based on my margin which is 2LK) max I will trade in 3lots.....
So my Avg will come around 5300.
Advantage:
# I need not to keep on looking the price every time
# No SL
# Reward will be very good ( it can be like 3lots*100* 300Rs=90K in 1 or 2month)
Disadvantage:
# Need more margin
# waiting period is high
Note: I have checked the charts for 5yrs for all the comodities mentioned above
Recent success is Buy in Silver mini (last week) now it's giving 800Points per lot.
Frns, I NEED YOUR VALUABLE COMMENTS, suggestion AND HOW WE CAN MAKE THIS SYSTEM MORE FOOLPROOF.
why I am doubting is becus it's too simple
let me introduce myself so that nobody should follow this strategy blindly. I have started trading in commodity for last 1yr. Lost 1.2Lks (thanks to Silver only) till Oct-2012.
I used to make some TA and used to trade. Got some success but due to some big failure in silver made the big loss.
Now coming to my strategy. IT LOOKS VERY VERY SIMPLE AND EVEN SOMETIMES I DON'T BELIEVE WHETHER IT WILL WORK IN ALL CONDITION
# i HAVE cheked the chart of crude/aluminium/lead/zinc/silver/gold based on only RSI. when ever the RSI is below 30, buy the comodity and whenever RSI is above 70 sell the commodity
# there is some loophole (RSI above 70, few times comodity stays above 70 for quite some day) but same is not below 30. For this also I have thought some way out but in this the margin requirement is bit high.
Lets say for crude, taking the below example
Day-1 -close price 5200---- RSI is 70
Day-3 -close price 5312---- RSI is 76
Day-3 -close price 5423---- RSI is 80
My 1st lot sell will be at 5200, 2nd will be at 5300 and 3rd will be at 5400 (based on my margin which is 2LK) max I will trade in 3lots.....
So my Avg will come around 5300.
Advantage:
# I need not to keep on looking the price every time
# No SL
# Reward will be very good ( it can be like 3lots*100* 300Rs=90K in 1 or 2month)
Disadvantage:
# Need more margin
# waiting period is high
Note: I have checked the charts for 5yrs for all the comodities mentioned above
Recent success is Buy in Silver mini (last week) now it's giving 800Points per lot.
Frns, I NEED YOUR VALUABLE COMMENTS, suggestion AND HOW WE CAN MAKE THIS SYSTEM MORE FOOLPROOF.
why I am doubting is becus it's too simple