Stocks FnO positional trading

Hi all,

I am newbie to stocks fno trading and don't have any experience in it.
Starting this thread to track a specific list of stocks in NSE based on the stochastics analysis.

Please note that i am not trading in stocks fno based on this method and this is just a paper trading experiment to see if this setup works.
If it does work, it will help me in entering into actual stocks fno trading with confidence. :thumb: Else it ll just become yet another attempt... :annoyed:

Idea:
-----
1. Positional trading
2. Need to check status of holding in EOD during last 5-10mins of trading only.
3. Holding time can be very short term like covering the position can happen next day also.
4. Profit target: little profit will do to begin with. Actually, Lesser loss trade is the aim here and not looking for big money.

Technical Detail:
----------------
Like my other thread on NF trading , there are 2 stochastics windows. Always both this windows are consulted for entering trade:
1. Stochastics (15,3)
a. if %k > %d - Up trend
b. if %k < %d - Down trend
c. The steepness is very important. After good continuous steep move by %k when you get and less-steep or horizontal kindof move, EXIT.
2. full-stochastics: (21,4,1) / (18,4,1) / (15,4,1) / (12,4,1) / (9,4,1)
a. Purpose of this window is to find uncertain or ranging or no-trend situations.
b. If all these stochs are very close to each other, the trend will be stronger and we can place our trade in that direction after confirming with the trend.
c. If these stochs are spread out from each other, it means there is no trend or ranging market in that stock. Don't trade in this situation.

Don't try to enter short immediately once stochastics reach OB region(>80)
Don't try to enter long immediately once stochastics reach OS region(<20)
Because often stocks tends to move stronger in the direction of the zone.

Important Rule: When in doubt, EXIT. Protecting the capital is important THAN missing the profitable points...

Comments/improvement/suggestions are welcome.
Will post images in next post...

All BUY stocks on today EOD price.
Script - lotsize - price
----------------------
SyndicateBank - 4000 - 129.95
Rcom - 4000 - 73.05
ApolloTyre - 4000 - 88.2
Adani - 2000 - 237.6

These are all spot levels....I have entered in Futures 1 lot on corresponding closing price... (paper trading)

My Weekly charts on AXIS BANK SUGGEST its a shorting candidate below 1425, with tgts 1360 and 1280.. on long term basis.. with an ultimate target around 1200 lvls..

This is pretty long term view.. stop loss is 1513.


Bro.. I fail to understand you way of trading the child- parent ..and all the curves ges over my head.. never grasp.... sorry about that.. Still i will try to understand.. I hope that i will d in near future..

Thanks a lot for starting a new thread about stock futures.. and all the best..:thumb::thumb::thumb:

SummaSumma,

Kindly can you share the AFL for above please.

Hi Sai
I just joined this community yesterday. Can you please help me get up to speed....what tool do you use to prepare weekly charts. Which website is good. I frequent moneycontrol. But weekly charts....??

Thanks Saivengat...

Just my 2 cents on axisbank! (and ofcourse my views are in few days and not long-term)

You can see the circled area to compare in 2 different times.
First time during august 2012, when the (X,4,1) stochastics are closer and moving down, the price also moved down strongly. We should have entered short as pointed in the image with %k<%d coming out of OB zone.

@current price i should have avoided short as per this method as you can see that the (X,4,1) stochs are not closer enough. You can see (9,4,1) / (12,4,1) / (15,4,1) are spread out. As the result you can see the price also didn't move down strongly and floating eventhough the stochs are moving down.

We can watch the axisbank movement in future to see whether the price starts moving when the (X,4,1) gets closer.(im sure, it will)

Stochastics (15,3) is the standard indicator in amibroker which you can plot directly.
For other full stochs (X,4,1), I have already provided you AFL sometime back in PM. The same is used here also.

Check Sharekhan's Trade Tiger for one of the best live charting platform. If you have many trades, you can open another account with a discount broker to save on brokerage, while using TT's charting facility.

Entry:
=====
Script - lotsize - price
----------------------
SyndicateBank - 4000 - 130.5
Rcom - 4000 - 73.45
ApolloTyre - 4000 - 88.35
Adani - 2000 - 238.5


CMP:
====
SyndicateBank - 129.95 (-0.55*4000= -2200)
Rcom - 73 (-0.55*4000= -2200)
ApolloTyre - 89.2 (+0.85*4000= +3400)
Adani - 237.35 (-1.15*2000 = -2300)

Net MTM = -3300 :annoyed:

Holding as all (X,4,1) stochs are closer and UP.

BTW.. todays blood bath has carried Cut the Horzionatal axis of Axis bank.. and it dropped to a low of 1399..
Interestingly.. i failed to take positions yesterday..