Best Nifty Strategy-Must Read

Hello readers, I have a best Nifty strategy, belive it or not. I have been trading on it for last 4 months and got 78% returns on capital in 4 months although my capital size is not very big. And I didnt follow rules of stratgey due to fear ( no greed, only fear). If I had followed it strictly without fear, I could get more profit.
Even today on 9th august 2011, It gave buy above 4987 with just small SL of 4970. Almost everyday It works. If it fails then we initiate trade on other side of stop loss. There is hardly 1 or 2 days in month when SL of both sides hit. And SL are small less than 20 pts. Once the trade goes in our favor, we may revise SL to cost for rest qty by booking half qty in 20 pts profit or hold with origional SL depending on easy condition. For example if buy comes above 4987 and Tgt is 5010, then at 5010 if price is below 20 ema, then revise sl at cost and if price is above 20 ema, then hold with origional SL. Vice versa for shorts.

So my point was that I want to make AFL of this strategy. There is no point discussing, and wasting time with people about this strategy who criticise everything . Probably such people dont want even 18 Pts SL in signle day of month. They want something magic system dircet from God. So I want to discuss and reveal strategy with people who are intelligent, and can make AFL of this. You can later backtest it too, it really gave and still gives excellent profits. AFL writing masters can send me private msg, as i guess posting personal emails is not allowed on traderji. Thanks

Why do you think of people who would criticise every initiative? All the very best and I am waiting for further posts from you

I "think" you have some wrong understanding about the members here, Why don't you Think in a different way- by discussing your strategy here on the forum it has some good scope of improvements ( Improvisation is all a trader is looking for) and you can also get to design a complete system out of your strategy.

All said criticism is always there everywhere, what we should aim for is Improvisation.. & good lukk Trading..

Regards

santosh

Hi brother,
u r most welcome in traderji forum. Tell us your strategy. Our master will help u to make your afl.

Ok let me explain it. May be many of you already heard about it, just like some of my friends have already read about it. But none has analysed, studied and paper traded on it. So even if you know it, then paper trade it for 2 weeks, and then see results. If this makes profit for you too, then please reward me with its AFL. thanks

At 9.29 am check the VWAP ( average trade price) of Nifty futures. That you may chcek on your broker terminal or from this link
http://nseindia.com/live_market/dyn...ument=FUTIDX&expiry=25AUG2011&type=-&strike=-

Now put this VWAP value in this Gann square calculator
http://pivottrading.net/pivot/pivot/gann.html

you will get Buy Sell Levels with Tgt and SL. Follow these Levels. And then see results . Take it seriously and must paper trade on it. You may blend technical analysis with it. Like if it says Buy above 5047, Tgt 5065-5083, SL 5039. 5047 broken And your charts says that it will come down before going high, then you may wait and buy 5037 when it comes 10 pts down. But This way I missed very big profits many times. As few times I bought low after it broke buy level and came 10-12 pts before going up. So next times I waited again to buy low but it went only up and huge up after breaking level and leaving me behind regretting my decision. Same for shorts.

And yes, with slight change in VWAP or avrge trade price, Buy Sell Levels dont change. For ex today at 9.29 VWAP was 4985.75, So The Levels were
Buy at / above: 4987.89 Targets: 5003.05 - 5020.75 - 5038.47 - 5056.23
Stoploss : 4970.25
Sell at / below: 4970.25 Targets: 4955.11 - 4937.53 - 4919.97 - 4902.45
Stoploss : 4987.89

Now if you put any number in between 4971 to 4987 in calculator, you will get same buy sell levels. The new levels will be generated only when VWAP will be either 4969 or 4988. And we have to trade the levels of 9.30 for whole day. You cant put VWAP of nifty Fut any time during day for Buy sell decisons. Only the levels generated on VWAP of 9.29 am work accurately

ok rajvir from tomorrow i will trade a small quantity of nifty future as per your strategy.:thumb:

Ok The conditions of making AFL. I have the AFL of VWAP. It calculates almost same VWAP as that of NSE site, only with small diff of half point i.e 0.50 pts . 2nd I know that AFL cant do complex calculations of Gann square. So I have solution of that problem too. All that I want is that write the condition of taking VWAP of 9.30 am, or VWAP of 3rd candle on 5 mint chart ( As VWAP of 5 mint candle is more accurate, 1 mint candle is most accurate, but there is only diff of 0.20 pts between 5 mint and 1 mint candle's VWAP prices).

For Gann Levels calculations, we will put the levels manually in the AFL. As in 100 points of Nifty there exists only 5-6 Levels of Gann square. Like in the range of 5000-5100 the Gann levels are
5005.56 5023.26 5041 5058.76 5076.56 5094.39

So If Nifty is trading 5000, we will put Gann levels manually from 4800 to 5300 in the AFL. There will be total 30 Levels in this AFL.

i.e A= 5005 ;
B= 5023;
c= 5041; and so on

When the nifty range change, we will edit levels manually in the AFL.

So this way we will write conditions, that at 9.29 am, taking VWAP of that time, we will get alert on chart that buy above this level, whicever level comes 1st above VWAP, with SL at level that comes 1st below VWAP.
This is not impossible to make for seniors here. So I request them to work on it. Thanks

Hello Rajvir,

let me try to work on your described method and develop AFL for backtesting. Please answer following questions...

1. I understand when we talk about price, vwap... we are referring to Nifty current month future (not spot nifty)

2. Please send me your vwap formula. Is it same as AmiBroker AFL or different?

3. Please also work out different levels of Gann from 4500 to 5500. I'll get them coded in AFL & give you flexibility to change as required. May be I can try to include Gann calculation if anybody can describe rules.

4. Also please confirm time of VWAP as 9:29 or 9:29:59 (this is precise when 3rd candle will get completed)

5. Do let me know whether you wish to take reverse trade or not. I mean what if SL hit in first trade. Also advice entry delay (for initial entry, re-entry after SL hit)

6. Please also let me know how stop loss & entry/target levels are to be considered. I mean should we consider value on tick by tick basis or on candle close basis.

7. What are our exit rules? I mean what if first target hit... should we exit or wait for second target with first target being SL. Please advice.

8. Do you wish to add to initial position (pyramiding) when trade in our favour.
If yes, please describe scale-in & scale-out rules.

9. Anything else that you may wish to include in AFL

Hello

Thanks for taking the efforts in helping us, I am new to trading and don't have much idea about these and couldn't understand anything about the rules mentioned in the PDF document (See Link Below) I hope it will help you in understanding the Gann Rules.

Thanks