Systems for three market types- trending, nontrending, volatile

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Humbled by Markets
why are you disturbing mr. newton :D
 

suri112000

Well-Known Member
Nifty Hedging strategy with Supertrend

Timeframe :1 Hour
Better to have 2 trading accounts to trade this strategy.

When supertrend gives a signal ie buy or sell, enter the trade as usual.
Suppose supertrend gives a buy signal, you bought Nifty futures. Immediately, you enter a sell order as follows.

Example :-

1st account buy entry : 7965
2nd account sell order : 7865 (ie 100 point stop loss)

If Nifty moves up without touching 7865 you keep holding 1st account long and hold it.

When Nifty moves up, when it reaches +400 points, again sell 2nd account Nifty to lock in profit.

There will be a total three scenarious after we enter trade.

1st. Nifty moves against our position, and hits SL, where we enter counter trend trade with 2nd account.

2nd. Nifty moves in favour and hits profit target +400, where we enter counter trend trade with 2nd account to lock in profit.

3rd. Nifty does not hit SL or profit target, but a reverse signal is generated. Then we close 1st a/c buy Nifty and enter a fresh short Nifty.

Hope the system is clear.

From 05.06.2015 to 05.2.2016 this sytem has generated 20 trades out of which 9 are profitable and 11 are loosers. The profitable trades generated 2193 points and the loosers lost 958 points. Hence total profit 1235 points. Profit factor of 2.28 which is excellent by all parameters. Each win trade fetches us 243 average points, each loss trades drains 87 average points. Even the risk to reward is 1 : 2.7 which is again good. Drawdown is 424 points.

Very leisure system. Piece of mind with a clear cut stop loss and profit targets.
 

suktam

Active Member
Nifty Hedging strategy with Supertrend

Timeframe :1 Hour
Better to have 2 trading accounts to trade this strategy.

When supertrend gives a signal ie buy or sell, enter the trade as usual.
Suppose supertrend gives a buy signal, you bought Nifty futures. Immediately, you enter a sell order as follows.

Example :-

1st account buy entry : 7965
2nd account sell order : 7865 (ie 100 point stop loss)

If Nifty moves up without touching 7865 you keep holding 1st account long and hold it.

When Nifty moves up, when it reaches +400 points, again sell 2nd account Nifty to lock in profit.

There will be a total three scenarious after we enter trade.

1st. Nifty moves against our position, and hits SL, where we enter counter trend trade with 2nd account.

2nd. Nifty moves in favour and hits profit target +400, where we enter counter trend trade with 2nd account to lock in profit.

3rd. Nifty does not hit SL or profit target, but a reverse signal is generated. Then we close 1st a/c buy Nifty and enter a fresh short Nifty.

Hope the system is clear.

From 05.06.2015 to 05.2.2016 this sytem has generated 20 trades out of which 9 are profitable and 11 are loosers. The profitable trades generated 2193 points and the loosers lost 958 points. Hence total profit 1235 points. Profit factor of 2.28 which is excellent by all parameters. Each win trade fetches us 243 average points, each loss trades drains 87 average points. Even the risk to reward is 1 : 2.7 which is again good. Drawdown is 424 points.

Very leisure system. Piece of mind with a clear cut stop loss and profit targets.
Hi ...Suriji...
as per this system u trade ..and as per your post in Suri's trading diary.. you hedge nifty trade... now if market goes down 400 points from your sell price or up 400 points from your buy price you square up both position with loss 100 points????

Regards.....
 
Nifty futures hedging strategy

03/2/2016....entered short @ 7401.7 (1st a/c)
05/2/2016...SL hit @ 7501...so hedged with long nifty (2nd a/c)

total = -100 points

No further action until signal flips.

After a failed trade, you have gone Delta Neutral (Locking in the loss on previous trade, but not open to gain from new long trade . . .)

Maybe you missed out mentioning the options trade? (2 lots of Short Puts or Long Calls on the first account)

Happy :)
 

suri112000

Well-Known Member
Hi ...Suriji...
as per this system u trade ..and as per your post in Suri's trading diary.. you hedge nifty trade... now if market goes down 400 points from your sell price or up 400 points from your buy price you square up both position with loss 100 points????

Regards.....
100 points room is vast enough for the noise of nifty. even after giving 100 points room, if nifty does not move as expected and hits stop loss, there is no logic in holding the trade whether it goes up or down by 400 points. simply wait for flipping of signal and initiate trade.
 

suri112000

Well-Known Member
After a failed trade, you have gone Delta Neutral (Locking in the loss on previous trade, but not open to gain from new long trade . . .)

Maybe you missed out mentioning the options trade? (2 lots of Short Puts or Long Calls on the first account)

Happy :)
As of now, no plans for options hedging.

I am contemplating of writing 400 points two OTM options immediately after initiating trade in nifty futures. When profit target or SL is hit, then exit both futures and option.
 

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