I have designed this strategy and trading it for almost 2 months .
Earlier I used to trade using a similar strategy which is a bit complicated which I have already posted before
Risk:Reward = 1: 3
The strategy consits of 3 Indicators
1. Supertrend Indicator - Setting (10,10)
2. Stochastic - Setting (5,3,3)
3. Average True Range - Setting ( 14 )
Buy Rule
As long as the price is above the super trend indicator , you will buy when ever the stochastic gives a crossover below level 20 ( oversold)
Sell Rule
As long as the price is below the super trend indicator , you will sell whenever the stochastic gives a crossover above level 80 ( ovebought )
Averge True Range is used for determining Stop Loss levels .
Example - Your Signal to buy came at Rs 500 , and at thar time Atr value is Rs 2 , you will put your stoploss 1.5 times the Art below your purchase price which is here Rs 3 , so your stoploss will be at Rs 497 and will be booking profits at 3 times the stoploss which is here is Rs 10 meaning you will be booking profit at Rs 509 .
Reasons for using such a high value in Super trend is that it will reduce market noise and gives clear direction of trend .
Trade stocks from nifty which have a price range between 400 to 600 rupees
Or you can select high volatity stock from mid cap with the same price range
To know about the risk management rules see my earlier post .
View attachment 20319
Earlier I used to trade using a similar strategy which is a bit complicated which I have already posted before
Risk:Reward = 1: 3
The strategy consits of 3 Indicators
1. Supertrend Indicator - Setting (10,10)
2. Stochastic - Setting (5,3,3)
3. Average True Range - Setting ( 14 )
Buy Rule
As long as the price is above the super trend indicator , you will buy when ever the stochastic gives a crossover below level 20 ( oversold)
Sell Rule
As long as the price is below the super trend indicator , you will sell whenever the stochastic gives a crossover above level 80 ( ovebought )
Averge True Range is used for determining Stop Loss levels .
Example - Your Signal to buy came at Rs 500 , and at thar time Atr value is Rs 2 , you will put your stoploss 1.5 times the Art below your purchase price which is here Rs 3 , so your stoploss will be at Rs 497 and will be booking profits at 3 times the stoploss which is here is Rs 10 meaning you will be booking profit at Rs 509 .
Reasons for using such a high value in Super trend is that it will reduce market noise and gives clear direction of trend .
Trade stocks from nifty which have a price range between 400 to 600 rupees
Or you can select high volatity stock from mid cap with the same price range
To know about the risk management rules see my earlier post .
View attachment 20319
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