Intraday trading - Some experiments

vicky_ag

Well-Known Member
#1
I have been trading on NF for a week now and it will not be wrong to say I am wiser by a week. Collating that with my experience in forex, I have come up with some ideas to trade in NF.

Now, this thread is dedicated to a possible measure to trade in a simple, effective manner. Easy short trades with a target of 10-15 points a day ie by calculation 500 to 750 on a lot of nifty.

As, the title goes - experiments. Ideas will be put forth and then we need to decide, possible entries and exits.

Lets see how many people are in for this, before I come up with the first idea.
 

vicky_ag

Well-Known Member
#2
Not much attendance. :)

Anyhow lets start with how I trade forex. Without indicators. Why?
Cause trend following indicators tend to get to you in choppy markets.

And then oscillators get to you in a strong bullish and bearish markets.

Bollinger bands were primarily a tool for options market. The more volatility, the more decay. ( there's one strategical experiment who wants to use them wisely.)

Then what do i trade with? Just patterns. Butterfly being the favorite. There is one indicator which i do believe in is ATR. Now question is how to incorporate ATR in our trading. Thats the experiment and reading we need to do.
 
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humble

Well-Known Member
#4
Hi Vicky,

Answering your question from here [thought this is a better place :) ]:

I understand you would want to lookout for trading oppurtunities, while you are at other work. To be able to do this, we have to develop the ability to trade at any moment of the day. This can come only with understanding the Nifty moves [Trust me, on practice - you will get to know when it will move atleast 20 points in one direction].

1. Charts.
Live charts are a must. You can subscribe for InvestBulls/icharts [Not to worry about the chart on InvestBulls, during the day, it would be having clearer bars :), You also have zoom-in/zoom-out options]. For EOD analysis you need another software, I feel Amibroker is awesome.

2. Learning about technical analysis.
I hope the following sites would be very helpful to you.
1. Basics
2. This site covers almost all patterns.
Once you are comfortable with the patterns start identifying it on the live charts and paper trade for sometime. Also at EOD spend 15 minutes analyzing the charts.

3. TimeFrames:
Get yourself comfortable to a TF. I prefer, 3mins. This TF provides oppurtunity for 10-15 points at any point of the day. The biggest challenge is also to wait for the reasons to be clear to enter a trade. Patience is everything here [As you learn, you will find that there will loads of FALSE breakouts and breakdowns.]. You have to develop the skill to keep yourself away from this. You can avoid this by entering on "Fillings" as they call it - i.e wait for the price to settle after it has started moving.

4. GeneralKnowledge:
Are we in a uptrend or downtrend. Are there any expected market news [Inflation numbers/ IIP numbers etc.]? [This is only to prepare yourself, dont depend entirely on this.]

I am a software engineer from Bangalore. EMA's are 5 and 13 [The other one 20 I dont use, was just experimenting.]

Regards,
-Sri
 

vishalalluri

Well-Known Member
#5
HEY VICKY

HAVE BEEN LOOKIN FORWARD FOR A THREAD RELATING TO NF ANS SPECIFICALLY A 10 TO 20 POINTS PROFIT BOOKING

JUST STARTED trading ad we could disciss abt some strategies

looking forward
 

vicky_ag

Well-Known Member
#6
Ok..looks like my first experiment was a big letdown. After some thanks from some esteemed people, there was not much activity on the second post.

For those who are really interested ATR does work to a certain extent. The flaw it has is akin to RSI on a trending day.
The possible change in direction depicted by ATR might never occur.
 

vicky_ag

Well-Known Member
#7
Now, for experiment Number 2:

Many of us here are fans of Pivots, S/R. But once a bull/bear run and we enter a trade, in say like miniflow, we try and guess, the amount of retrace.

Any idea on how to pick those? I mean, take an intelligent guess of what might be a probable add point? For those, who like to get risky and want to play the retraces?

The answer: Fibonacci retraces.


So, any volunteers to carry out experiments on Fibs on intraday after a new high/low?
 

vishalalluri

Well-Known Member
#8
hi vicky

it would be great if u have a look at the attchment and letme know if these confirmations are good enuf for a trade

i woud just like to share my paper trading in which trying to undersand various confirmations at a moment to enter levels at nifty or let say when to go long to hold it or might be when to short

the first strategy is to just looking at 20ema and 50 ema crossovers with simultaneously looking at the rsi levels
 

SavantGarde

Well-Known Member
#9
Hi Vicky,

Have Mentioned Before That I Am A Positional Trader & Like To Stick To What Works For Me....Therefore Wasn't Able To Offer Much For Intraday Except That Same System That Works For Me On Postional Also Works On Intraday...As Proved By Prasad.

Some Others That Can More With Even Less Risk...The Strategy-I & Strategy-III From Your Thread 'Trading The Bars'......This Has Been Proved By Another Friend Of Mine Who I Had Just Happen To Mention To Try It...& Let Me Know Whether It Works Or Not.

ATR...Is Something I Haven't Looked Into Yet.

But Still Like To Come Here & Read As To What Is Being Discussed....:)


Happy & Safer Trading

SavantGarde

Ok..looks like my first experiment was a big letdown. After some thanks from some esteemed people, there was not much activity on the second post.

For those who are really interested ATR does work to a certain extent. The flaw it has is akin to RSI on a trending day.
The possible change in direction depicted by ATR might never occur.