Developing Reliable Trading Strategy for NIFTY/STOCKS

Hi All,

I have Learnt a lot of Technical Analysis skills from this forum. Hence, I am trying to involve in this community by a contribution with all of you.

I am in the process of developing of a New Trading Strategy, which I am using at this moment for Live intraday trading. I am not happy with it because of it's performance. Hence, I decided to take help from this community to improvise this strategy and make it more reliable.

Our Target is to get Rs. 1000 per day as income after brokerage.

SYSTEM:

Indicators: MACD(12,26,9), W%R(14)

Filtering system: 4 points after MACD generates a Buy Signal.

Buy Signal: When MACD Line rises above the 9 period signal line and is above the zero line. W%R is in the range of -80 to -100. (Over Sold)

Stop Loss: Nearest Support Line (using Pivots or Charting)

Sell Signal: When MACD Line falls below the 9 period signal line and is below the Zero line. W%R is in the range of -20 to 0(Over bought) OR the price reaches the Target price. which ever occurs first.

OBSERVATIONS: This system generates good trades, but often gets beaten by the highly volatile sideways market.

please put in your ideas to make this trading system much better, so that it can trade even in the volatile markets.

Regards
Panish

Seems to be a good system. But perhaps it needs to be backtested on various scrips to decide the sectors where it works best. There is no one size fits all strategy or system in trading. In a trending market most systems will do good but it is in sideways volatility where a system has to prove that it can make money and not lose. Perhaps adding another filter or confirmation might be helpful.

Thanks a lot kimat ji,

I will work on the necessary filter and will post backtesting results soon, Thanks once again for your observation. I will also try for sectoral backtesting as you have mentioned. If you find anything that i should consider while backtesting in Metastock, Please let me know.

Regards
Panish