Hi,
Im starting this ACD thread on Nifty Future (NF) for the purpose of testing/learning/trading. For the basic info of ACD system please read " The logical Trader...." by Mark Fisher.For setup of ACD on NF some tweak/assumptions are made to adopt the A ( or C) value. However any system can be backtesed, but testing in real on the go is alltogether a joyfull experince.It may fail dumbly but a testing over a month will be done and im expecting a healthy n rich guidence/suggestion/discussion from seniors and members.
Setup:
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Opening Range (OR) time duration for this ACD system on NF is chosen 10-min.Charts are drawn on sharekhans trade tiger terminal.Candle size is chosen as 2.5 min ( just for clear view of completion of 5-min validation) so first 4 candle will make opening range.Deciding the A( or C) value these should be kept in mind:
a) Running daily Average True Rnage ,ATR(10 period) on previous days. This value is "theaoritical possible" range of a day ( high-low). Because of day trade, if 10-min OR consume too much value from daily ATR ( say more than 25-30% of daily ATR) than trade generated may not be so efficient/profitable. After all trade signal will be valid beyound OR+(A or C value) for long and OR-(A or C value) for short.Total OR+-(A or C) value should not run away of 40% of daily ATR and a day should be totally avoided if it runs away 60-70%.
b) "10-min bar ATR(10 bar)" on NF roughly ranges as
10-14 points as normal
16-20 points as extreme.
Given the nature of volatility of NF , whole "10-min bar ATR" value should be chosen as A or C value. So for sake of simplicity A or C values are taken 10 ponits.
Execution:
-----------
Trades will be generated only if validation comes, means if NF trades beyond the (OR+-A) value for 5-min continuously.ACD systems can be traded as normal ( Fig 1) after validation or as failed point A (rubber band trade) (fig 2). In this thread we are focusing mainly normal exacution,but rbber band trade are also possible depending upon situation and feasability.
[ stay in touch, compiling more info in a day or weekend]
Im starting this ACD thread on Nifty Future (NF) for the purpose of testing/learning/trading. For the basic info of ACD system please read " The logical Trader...." by Mark Fisher.For setup of ACD on NF some tweak/assumptions are made to adopt the A ( or C) value. However any system can be backtesed, but testing in real on the go is alltogether a joyfull experince.It may fail dumbly but a testing over a month will be done and im expecting a healthy n rich guidence/suggestion/discussion from seniors and members.
Setup:
-------
Opening Range (OR) time duration for this ACD system on NF is chosen 10-min.Charts are drawn on sharekhans trade tiger terminal.Candle size is chosen as 2.5 min ( just for clear view of completion of 5-min validation) so first 4 candle will make opening range.Deciding the A( or C) value these should be kept in mind:
a) Running daily Average True Rnage ,ATR(10 period) on previous days. This value is "theaoritical possible" range of a day ( high-low). Because of day trade, if 10-min OR consume too much value from daily ATR ( say more than 25-30% of daily ATR) than trade generated may not be so efficient/profitable. After all trade signal will be valid beyound OR+(A or C value) for long and OR-(A or C value) for short.Total OR+-(A or C) value should not run away of 40% of daily ATR and a day should be totally avoided if it runs away 60-70%.
b) "10-min bar ATR(10 bar)" on NF roughly ranges as
10-14 points as normal
16-20 points as extreme.
Given the nature of volatility of NF , whole "10-min bar ATR" value should be chosen as A or C value. So for sake of simplicity A or C values are taken 10 ponits.
Execution:
-----------
Trades will be generated only if validation comes, means if NF trades beyond the (OR+-A) value for 5-min continuously.ACD systems can be traded as normal ( Fig 1) after validation or as failed point A (rubber band trade) (fig 2). In this thread we are focusing mainly normal exacution,but rbber band trade are also possible depending upon situation and feasability.
[ stay in touch, compiling more info in a day or weekend]