VKR's 4HL INTRADAY/SWING TRADE SETUP

veluri1967

Well-Known Member
#1
I have been in this forum for the last 3 months learning all the stuff required for a successful trading. A lot of thanks to all those learned seniors and learning peers for making my journey a fruitful and rewarding one. The selfless help from seniors has gone a long way in building up trading knowledge for which I am always indebted to them. Even I am mimicking some of their writing skills, to mention one. The mentioning of their names is immaterial.

I am gearing myself to put forward a trade setup called "VKR'S 4HL INTRADAY/SWING TRADE SETUP" which I hope would help many of those around here and I feel previleged if it is accepted as a gift from me. The roots of this setup are of Richard Donchian 4 Week Rule. Richard Donchian's 4 week rule is for a long term perspective and has been very successful. Mine is a modification of the same for intraday/swing trades. Since it is a setup I have no claims over the success of this setup. I need to test it over a period of time how it works. I would be grateful if members on this forum backtest the same post the results here. However, I am going to forward test it.

It has been well established fact that the success of a setup/strategy doesnot depend upon how complex the setup/strategy is. In other words, even a simple setup can work wonders. This is the fact that prompted me to experiment this setup. As for my observation of the past data, the signals are not generated regularly, but if generated, there are profits immediately. Since we have a lot of cash stocks apart from various indices we can have a decent number of signals. Fortunately we have a lot of members over here who have advanced softwares on which AFL can be written and scanned for possible trade signals.

Initial set up is as follows. As the backtesting and forward testing takes place in due course of time, I will put forward a final strategy which is ofcourse a matter of time and effort.

SET UP FOR INTRADAY

Consider Highest High of the last 4 days.
Consider Lowest Low of the last 4 days.

Next day,
Go long above Highest High.
Go short below Lowest Low.

Initial Profit Targets
0.50% of the Entry Price for intraday.


Stop Loss/Trailing Stop Loss

0.25% for intraday.

Other issues.

Money Management Techniques and Risk Management is not a problem, I hope. We have here many posts/threads covering these aspects.


REVISED SETUP FOR SWING TRADE

LINK http://www.traderji.com/day-trading/35550-vkrs-4hl-intraday-swing-trade-setup-6.html#post387497

 
Last edited:

findvikas

Well-Known Member
#2
as you asked me... it doesn't look good on backtesting... hitting too many SL and results is more losers than winners.

Here is the AFL (hopefully correct)

Code:
Buy = 	Open > Ref( High , -4 );
Sell = Open < Ref( Low , -4 );
Short = 	Open < Ref( Low , -4 );
Cover = Open > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);
I think the problem is you are buying above the high.. which could be a resistance level and then price comes down near support where you sell... so may be if you try little opposite that might work


ok then instead of Open I used close price and the results are better..
Code:
Buy = 	Close > Ref( High , -4 );
Sell = Close < Ref( Low , -4 );
Short = 	Close < Ref( Low , -4 );
Cover = Close > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);
 

trader.trends

Well-Known Member
#3
This strategy yields greater profits if followed as a positional trade rather than intraday trades. Since it is a trend following method a little deeper stop loss and holding positions till the trend reverses has yielded better results.
 

rkkarnani

Well-Known Member
#4
I have been in this forum for the last 3 months learning all the stuff required for a successful trading. A lot of thanks to all those learned seniors and learning peers for making my journey a fruitful and rewarding one. The selfless help from seniors has gone a long way in building up trading knowledge for which I am always indebted to them. Even I am mimicking some of their writing skills, to mention one. The mentioning of their names is immaterial.

I am gearing myself to put forward a trade setup called "VKR'S 4HL INTRADAY/SWING TRADE SETUP" which I hope would help many of those around here and I feel previleged if it is accepted as a gift from me. The roots of this setup are of Richard Donchian 4 Week Rule. Richard Donchian's 4 week rule is for a long term perspective and has been very successful. Mine is a modification of the same for intraday/swing trades. Since it is a setup I have no claims over the success of this setup. I need to test it over a period of time how it works. I would be grateful if members on this forum backtest the same post the results here. However, I am going to forward test it.

It has been well established fact that the success of a setup/strategy doesnot depend upon how complex the setup/strategy is. In other words, even a simple setup can work wonders. This is the fact that prompted me to experiment this setup. As for my observation of the past data, the signals are not generated regularly, but if generated, there are profits immediately. Since we have a lot of cash stocks apart from various indices we can have a decent number of signals. Fortunately we have a lot of members over here who have advanced softwares on which AFL can be written and scanned for possible trade signals.
Though you have mentioned HH or LL of last 4 days but as you wish to trade the setup intraday, do you suggest any time frame in which to trade the set up!! Say 30 min. 1 Hour, 15 minutes etc.!!! There is a bit of confusion or am i not getting it correctly!! :confused:
Just as an example : When todays trading started, the previous 4 days HH was sat 5050. So do we enter long above this level?? If yes, then we exit at 0.5% of 5050 and the trade ends there or we trail it with some SL? If the trend continues to be up do we reenter again the next day , above toadys high?
 

veluri1967

Well-Known Member
#5
Though you have mentioned HH or LL of last 4 days but as you wish to trade the setup intraday, do you suggest any time frame in which to trade the set up!! Say 30 min. 1 Hour, 15 minutes etc.!!! There is a bit of confusion or am i not getting it correctly!! :confused:
Just as an example : When todays trading started, the previous 4 days HH was sat 5050. So do we enter long above this level?? If yes, then we exit at 0.5% of 5050 and the trade ends there or we trail it with some SL? If the trend continues to be up do we reenter again the next day , above toadys high?
Any timeframe.

When we are looking for a break of high, the price obviously should open below and should crawl northwards. Then our ideal break out occurs and should open our position. Once we have open position, we should trail stop.
Close positions once the trail stop hits and book profits. If the trail stop is not hit for the day and have guts to carry forward the trade, as it is exibiting lot of steam. If the trail stop is not at all activated and stop loss is hit, book losses for the day. If a position is closed on intraday basis, the next day's trade is to be considered for the last 3 days + today's HH and LL. Hope your doubts are cleared. As said by tradetrender it is best used with trends where maximum is made. In choppy market, we are less in trade because of lack of signals and hence saved from possible whipsaws.

In case of shorts the opposite is true.
 

veluri1967

Well-Known Member
#6
as you asked me... it doesn't look good on backtesting... hitting too many SL and results is more losers than winners.

Here is the AFL (hopefully correct)

Code:
Buy = 	Open > Ref( High , -4 );
Sell = Open < Ref( Low , -4 );
Short = 	Open < Ref( Low , -4 );
Cover = Open > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);
I think the problem is you are buying above the high.. which could be a resistance level and then price comes down near support where you sell... so may be if you try little opposite that might work


ok then instead of Open I used close price and the results are better..
Code:
Buy = 	Close > Ref( High , -4 );
Sell = Close < Ref( Low , -4 );
Short = 	Close < Ref( Low , -4 );
Cover = Close > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);
Thank you...vikas...for the burden taken to write AFL.

Here I am posting the visual results of ACC for the last 1 month.

Date High Low

03/11 748 680.5
04/11 734.1 702
05/11 733 702
06/11 730 712.5

High of last 4 days is 748 and Low is 680.5

On 09/11 our buy order is above 748 and sell order below 680.5

09/11 722.5 708.1 Hence trade is not triggered.

Now, high of last 4 days is 734.1 and Low is 702

On 10/11 our buy order is above 734.1 and sell order below 702.

10/11 743.9 714

Our buy order is got executed at 734.1 and price moved to a high of 743.9
Total 9.8 points. But I am not sure whether the price moved up continuously to make a high or not from EOD data. If it made, there is profit. But if it is reversed to hit a stop loss and then moved high, then its a different story. Anyway I am going to forward test it on intraday basis whether to take a close price or high price or open price for the trades.

Thanks again
 
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findvikas

Well-Known Member
#7
have some backtest done on atleast past 5 years data and see how many winners/losers you have. What is risk/reward ratio and how many big loses/big gains you get.

Another simplest strategy of mine that I am working on yields unimaginable returns with losers being 25-35% at max... lets see how that goes.
 

rkkarnani

Well-Known Member
#9
Any timeframe.

When we are looking for a break of high, the price obviously should open below and should crawl northwards. Then our ideal break out occurs and should open our position. Once we have open position, we should trail stop.
Close positions once the trail stop hits and book profits. If the trail stop is not hit for the day and have guts to carry forward the trade, as it is exibiting lot of steam. If the trail stop is not at all activated and stop loss is hit, book losses for the day. If a position is closed on intraday basis, the next day's trade is to be considered for the last 3 days + today's HH and LL. Hope your doubts are cleared. As said by tradetrender it is best used with trends where maximum is made. In choppy market, we are less in trade because of lack of signals and hence saved from possible whipsaws.

In case of shorts the opposite is true.
With the small traget we have in view, the system should work well!! I think I do understand what you wish to convey. I had tried similar system with a slightly different approach, and it shall not be ethical to discuss it here.
Now do tell us something about trailing the SL!! Anything in mind, how we do it!!!???
One more thing, we go long above the HH of last 4 days, how much above?? i.e. what filter we use? The HH of 4 periods is say 5050, market opens at 5045, where do we take a long trade??
Another scenario, our long is triggered, trade does not do the target, SL is hit, again the Price hits the Long trigger level, do we trade Long again!!??
Do write in your views!!
Best regards,
R K Karnani
 

bandlab2

Well-Known Member
#10
as you asked me... it doesn't look good on backtesting... hitting too many SL and results is more losers than winners.

Here is the AFL (hopefully correct)

Code:
Buy = 	Open > Ref( High , -4 );
Sell = Open < Ref( Low , -4 );
Short = 	Open < Ref( Low , -4 );
Cover = Open > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);
I think the problem is you are buying above the high.. which could be a resistance level and then price comes down near support where you sell... so may be if you try little opposite that might work


ok then instead of Open I used close price and the results are better..
Code:
Buy = 	Close > Ref( High , -4 );
Sell = Close < Ref( Low , -4 );
Short = 	Close < Ref( Low , -4 );
Cover = Close > Ref( High , -4 );

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Cover = ExRem(Cover,Short);
Short = ExRem(Short,Cover);

yr afl code is not correct. as per original post, stoploss is low of last 2 days. u took low of last 4 days. also you should use HHV, LLV to get highest and lowest. if u use ref (high, -4) it gives high of previuos 4th bar, not the highest in last 4 bars

also entries are as per days, exits are as per intraday TF. thats missing. you could get different results after correction