Linkon's guppyBB system...!

I have always wanted a system that caters to all kind of market conditions... And big criteria for such a system is that it should be easy to execute. There should be clarity in terms of direction... entry...exit... position sizing... take profit levels...

Its a tall ask and keeping in mind a starting capital of just 25 K for small traders... it becomes even more challenging...! so a stop loss of 12 K is the termination of the system...!

we will be dealing with options only and this enhances the risk as we will be on the buy side of options...so time is not our friend... taking periodic profit out is a must and ensuring strict adherance to stop loss is of utmost importance...

I plan to post the system this weekend...

till then need the help of a few good coders who can help me make the system into clear decission points... so that result is the same for all followers...

My system will concentrate only on nifty options and really have no idea how it'll perform on stock options...

Mindset :

Mindset :

We never presume what market will do. There is always an equal chance of the next bar going against us and we dont react unless system tells us. If need be..we will book a loss but we will never try to outsmart the system. We take profit when system tells us and not before that. Only sure shot way to success is to stick to the plan. Even if it means we have to look at the screen and watch the profit turn into a loss, we will do it.Discipline comes only when we master the ability to stick to the signals and take action only when the time comes.

This is a options based system and options buyers always gets killed as smart money is mostly on the sell side of the options trade. Slightest hint that a particular level will hold and we can see that the option that we are holding is being written mercilessly. We again dont care. As long as the system keeps us on the right side of the trend, we are safe. We are mentally prepared to see some m2m losses on days when market is totally flat. Thats the drawback of being a options buyer and we are ok with that. Again, the mindset is, hold the right key and locks will open. Its just a matter of time.

This system is designed on Amibroker. Other software users can easily mimic the system as we are using just ema and biolinger band. Those who dont have a software can use google charts or yahoo charts and track the movement.

We are all students in this market and every month we get to learn new things that we can slowly incorporate into our system. No system is perfect and there is always room for improvement. Its a evolution process and all comments are welcome...

Trading Logic...!

Trading logic...!

Before we follow a system we need to know the logic behind the system and why we should put our hard earned money at risk based on the signals provided by the system.



We first look at the price chart... except for the very experience eyes, ordinary people like us need some help in deciphering the market into decission points. some use trendlines... we will use ema... we notice that every time frame... we have a ema that represents the intermediate trend and price normally tend to come back to that level and then expand and then again come back to that level...



In 15 min tf, 34 ema of the close, tends to act as the imtermediate trend. It does not mean that price will come and bounce exactly at that ema... it can over shoot or it can kiss and go... it can behave like our girlfriend and hug it for a long time... only thing we know for sure is that price and 34 ema are married and like all married coupled, they fight and make up... They cannot stay away from eachother for long, so either price comes to ema or ema comes to price...

To strengthed the bias based on ema..we use a lot of such ema..now our chart looks like this... lot easier to follow... lot easier to confidently pull the trigger....

Trading logic.. part 2

Guppy MMA will tell us when to enter a trade and the direction... So far we know (ema34) is the base. Price will come near the ema-34 and stretch in either direction like a rubber band. We need to measure how far it can go before returning to the center line. That will give us a well definite exit level for 50% of our holding...

We measure the standard deviation from this center line by using Boilinger band. With a setting of BB(c,34,1),BB(c,34,2) and BB(c,34,3). we can roughly know where we should book our profit partially.



This is a typical fade the extreame kind of trade..only we decide use them for exiting...

reserved6...!

reserved for charts etc

reserved for back test report!

reserved for back test

I am already using Guppy MMA provided by you in some link.You are giving more.

Thanks a lot.

Raju

sir hats off to u.ur helping others without any expections. i am eagerly waiting for ur system.