Trading Methodology :
Suitability : This method is meant for a trader who is
1. patient : He will wait for the right setup and will never second guess the system. He will take a trade only if system gives a signal and doesn't care if the market moved a hundred without him.
2. Disciplined : Execution of the plan is his only motto. If he hits 10 stop loss in a row and stuck to his system, he is happy with the result. If he hits a big trade but he achieved that by second guessing the system, then he feels ashamed of himself.
3. Indifferent to end result : He doesn't feel happy when he hooks a big one because he is already looking forward to the next trade. If a trade hits the stop loss and then moves his direction, he will re-enter again without a second thought simply because the system said so.
4. Sticks to one system and one trading plan : He wont look at other systems during trading hours as each system will have a different way of interpreting price action and he doesnt want a conflict of signals that will paralyze him. That thing he wants is too much information inflow.
5. self monitoring : maintains a log of all the trades taken and why he took the trades. he is very critical of his own performance. He knows that success will come in his ability to pull the trigger when the right time came and that ability will come only when he masters the system he is trading. His mastery over the system will only come if he removes the grey areas which led him to make mistakes.
6. Awareness : He is aware of what his system is designed for. How the system derives its signals. He will know when the system is weak and when it is very strong. He is very aware of the past performance of the system. He has bar replayed the system for at least the last 12 months and has seen the present scenario repeat itself plenty of times. He knows that is the secret to his success. He has rehearsed his system so many times that he knows what has to be done and has no doubt in his mind.
Time frame : 2 min
Filter : 2 points for nifty, 5 points for BNF
methodology
direction : The system is pure trend following and defines a trend as follows:
In 5 min tf : if price is above the 89 sma then system will look only for longs.
In 5 min tf : if price is below 89 sma, then system will look only for shorts.
entry : Long
entry timing : Enter only just 5 seconds before bar completes.
TF : 2 min
if St pop says " very strong UP trend ", then entry is cci20 bouncing off the 0 line or the -100 line. Price has to be very near the lower TJ band. Preference is at least 1 white bar on the TJ band.
If st pop says "Up trend", then white bar on the lower tj band is compulsory. CCI neds to bounce off the -100 mark or cross it from below.
If ST pop says " Neutral " , Its a no trade zone. Market is pure sideways and a trend following system will get chopped. Dont trade.
Stop loss : The value of low of the price bar (minus filter) of the V on cci.
Entry : short
entry timing : Enter only just 5 seconds before bar completes.
Tf : 2 min
if St pop says " very strong DN trend ", then entry is cci20 bouncing off the 0 line or the +100 line. Price has to be very near the Upper TJ band. Preference is at least 1 white bar on the TJ band.
If st pop says "DN trend", then white bar on the lower tj band is compulsory. CCI needs to bounce off the +100 mark or cross it from below.
If ST pop says " Neutral " , Its a no trade zone. Market is pure sideways and a trend following system will get chopped. Dont trade.
Stop loss : the high of the price bar when cci made a /\ plus filter
Exit : 50% on the opposite Tj band and trail the other 50% till sl gets hit.
Suitability : This method is meant for a trader who is
1. patient : He will wait for the right setup and will never second guess the system. He will take a trade only if system gives a signal and doesn't care if the market moved a hundred without him.
2. Disciplined : Execution of the plan is his only motto. If he hits 10 stop loss in a row and stuck to his system, he is happy with the result. If he hits a big trade but he achieved that by second guessing the system, then he feels ashamed of himself.
3. Indifferent to end result : He doesn't feel happy when he hooks a big one because he is already looking forward to the next trade. If a trade hits the stop loss and then moves his direction, he will re-enter again without a second thought simply because the system said so.
4. Sticks to one system and one trading plan : He wont look at other systems during trading hours as each system will have a different way of interpreting price action and he doesnt want a conflict of signals that will paralyze him. That thing he wants is too much information inflow.
5. self monitoring : maintains a log of all the trades taken and why he took the trades. he is very critical of his own performance. He knows that success will come in his ability to pull the trigger when the right time came and that ability will come only when he masters the system he is trading. His mastery over the system will only come if he removes the grey areas which led him to make mistakes.
6. Awareness : He is aware of what his system is designed for. How the system derives its signals. He will know when the system is weak and when it is very strong. He is very aware of the past performance of the system. He has bar replayed the system for at least the last 12 months and has seen the present scenario repeat itself plenty of times. He knows that is the secret to his success. He has rehearsed his system so many times that he knows what has to be done and has no doubt in his mind.
Time frame : 2 min
Filter : 2 points for nifty, 5 points for BNF
methodology
direction : The system is pure trend following and defines a trend as follows:
In 5 min tf : if price is above the 89 sma then system will look only for longs.
In 5 min tf : if price is below 89 sma, then system will look only for shorts.
entry : Long
entry timing : Enter only just 5 seconds before bar completes.
TF : 2 min
if St pop says " very strong UP trend ", then entry is cci20 bouncing off the 0 line or the -100 line. Price has to be very near the lower TJ band. Preference is at least 1 white bar on the TJ band.
If st pop says "Up trend", then white bar on the lower tj band is compulsory. CCI neds to bounce off the -100 mark or cross it from below.
If ST pop says " Neutral " , Its a no trade zone. Market is pure sideways and a trend following system will get chopped. Dont trade.
Stop loss : The value of low of the price bar (minus filter) of the V on cci.
Entry : short
entry timing : Enter only just 5 seconds before bar completes.
Tf : 2 min
if St pop says " very strong DN trend ", then entry is cci20 bouncing off the 0 line or the +100 line. Price has to be very near the Upper TJ band. Preference is at least 1 white bar on the TJ band.
If st pop says "DN trend", then white bar on the lower tj band is compulsory. CCI needs to bounce off the +100 mark or cross it from below.
If ST pop says " Neutral " , Its a no trade zone. Market is pure sideways and a trend following system will get chopped. Dont trade.
Stop loss : the high of the price bar when cci made a /\ plus filter
Exit : 50% on the opposite Tj band and trail the other 50% till sl gets hit.
Last edited:
(asking you to too much