NIFTY Futures Mechanical Trading

Originally Posted by nadodav

Dear All,

I am starting a new thread for Nifty Futures Traders. I am successfully following my own trend following mechanical trading system for NIFTY futures which i would like to share with you all. I will be posting daily two levels i.e. support & resistance for nifty futures alongwith my current position. These support & resistance are short term trend reversal points and not daily support & resistance levels though it has also worked very well in so many ocassions. My daily posting will look like this -

NIFTY FUTURE For October 29,

Current position : LONG (at 5479 on 25/10/2007)

Support : 5573
Resistance : 5728

Hold LONG positions with SL 5573. If trades below 5573, exit LONG & go SHORT with SL 5728

This means, we are currently LONG in Nifty. And if nifty trades below support i.e. if on Oct 29, Nifty futures trades below 5573 for 2-3 minutes, we will exit LONG & go SHORT with SL as resistance. in this case it is 5728. Incase of SHORT positions, we will look for market to trade above resistance to exit SHORT & go LONG.

So we are simply continuously will be in trade at any point of time either LONG or SHORT. there is no need to book profit as it will be taken care by these level it self. We will capture major part of short term trend in both ways i.e. up as well as down.

Whenever market trades rangebound, than we may have some series of small losses as trend following system will fail in rangebound market. So i request you all initially just watch the levels before putting actual money into trade. I request you to simply paper trade and keep records in excel sheet for atleast two months & once you confident enough, you can trade.

those who are new to futures trading, i think this will be the right place to learn trading futures in more disciplined way. every time you take any positions, you know what will be your exact loss if it goes against you so your emotions, fear etc will be removed.

Pl post your comments, views & feedback.

Vinod Nadoda

Updated on 24/11/2007

I have attached "Nifty fut.xls" till date which may be useful to keep track with my levels. i will keep updating on weekly basis here. Last one year result alongwith trades are also attached.

Vinod Nadoda

Originally Posted by nadodav

NIFTY FUTURE For January 17,

Current position : SHORT (at 6210 on 10/01/2007)

Nifty Fut Closed at : 5947.65

Profit/(Loss) in current trade : +262.35 (as per last closing price)
Net Profit / (Loss) since thread started : +629.35 (367.00+262.35)

Support : 5908
Resistance : 6083

Hold SHORT positions with SL 6083. If trades above 6083, exit SHORT & go LONG with SL 5908.

Happy Trading.

Vinod

Originally Posted by ravalsb

Hi Vinod,

I have read through all the threads. Its quite an effort. Only a discplined and dedicated person can achieve this. I really appreciate your efforts. Keep up the good work.

If this thread continues like this for sometime, i am sure even you would be declaring dividends and bonuses to all of us.

I have two questions for you:

1. You seem to be calculating support and resistance as a standard deviation of 12day moving average. Is that true.

2. While we are long, can we exit immediately when Price falls below moving average instead of waiting for support to be broken and go short there and then wait for resistance (earlier support level) to be breached. May be that would limit our losses considerably.

Happy Trading

Originally Posted by callme2shy

hello vinod,

As u suggested I have gone through all the previous messages in the thread. I must say its quite an effort. It really tickles my brain cell to work more into the technicals. this thread has a great future with vinod leading n robin,justnifty there to discuss it out. keep going guys.
vinod just out of curosity wat is your profession otherwise??

nitin