Trading Nifty Future with 'A Band in the Sand'

[Trading4Living]

Hello

Few years back I had got a chance to talk to a traditional trader (senior Gujarati gentleman) who told me how he trades with keeping just One Level in mind.

1. During the day take only short trades if the current rates are below That Level
2. During the day take only long trades if the current rates are above That Level

To my question
"Q: How do we get or calculate this level", I got a crazy answer
"A:It does not matter, choose whatever comes to your mind, but do not change it during the day"

I never used or tried this way of trading, then one day i met someone else who told me this system is called "Line in the Sand"

Now again i was curious and more interested, maybe because now we got a nice sounding English name to it . . .

The only problem was to trade intraday, this assumed level will cut many times from up to down, so how to use that?

I have decided that instead of a single price line, I can use a price range, converting the line in the sand to a "Band in the Sand".

For nifty future I have decided to make it about 1 or 1.1%,
just to avoid using % and to make it in fixed points
the NF band I will be using is of 68 Points

With a band I faced one more problem, now what if the price remains within the band?
we consider yesterdays trend to be in continuation and trade only that side


Now the interesting part about the system, how do we get these levels?
At open (at 9:15 AM) we just plot the levels on the chart and do not touch them till next day open (whatever we choose at open, it remains fixed full day)
We use this one act of discretion/judgement, rest all the rules are fixed and predefined.


The current trend for NF is on the Up Side
Will be post my levels for NF and intraday trades here,


Thanks
Sanjay Mayani

 

[Trading4Living]

Current Trend is Long based on my system for Nifty Future

Looking only for Long intraday trades

Level for when Trend Changes to Short is price closes below 6115

Thanks
SM

 

[Trading4Living]

The long trend continues on nifty future . . .

The current level for reversal of the Trend for going short is close below 6170

Thanks
SM

 

[Trading4Living]

Long Trend continues on NF

Today's reversal value is 6200 but as it is a round number i am considering 6190 on closing basis on 15 minutes chart.




Just after 3 days into trading with this way, i am very happy that i have shifted to using this, i can trade this peacefully.

The best part is even when intraday moves happen against my assumed trend I can still be calm,
because this one level we choose at Open is the only thing we have to focus on,
no other consideration and not changing the level during the day no matter what.

When this friendly guy told me about this way of trading I was too proud to accept it as it is,
and I tried to complicate it as a band instead of line
specially because the help was offered without asking for it

There will be days when we get whipsaws when the market moves in
A, V, N or W shape and any one of the legs of the moves is bigger than 68 points.
But even in this case its just one level we are watching at a time.
So i can now see that this way of trading should be really called
Line in the sand and not a band

In reality, its just one line, only when we start the system we may have to look at the band, after that its only one line (level) we are defending

Thanks
SM

 

[Trading4Living]

On my system Nifty Future continues to be in an UP Trend

Reversal of trend to down when closes below 6245 on 15 minutes.

Thanks
SM

 

[Trading4Living]

Nifty Future continues to be in an UP Trend

Reversal of trend to down when closes below 6245 on 15 minutes, i.e. same level as that of Friday

Thanks
SM