Nifty and Bank Nifty future trading - Time tested strategy

Folks,

I am starting a new thread on just Nifty and Bank Nifty trading. Though I was not very regular in Traderji, still I am in stock market since 1994. I have tried different methods for trading in stock market and finally got a method that is profitable to me most of the times.

I want to share my strategy with fellow traders in this forum. And if my thread helps fellow traders I will be more than happy.

Please go through my site where I have described my strategy in details.

For those who don't have a time to peep into my site I am describing the strategy here.

Entry: Go long when in the daily nifty chart the following channel crossover happens. 3 mins EMA crosses over 13 mins EMA and 13 mins EMA crosses over 34 mins EMA. Pls note, I mentioned channel crossover. Confirm your position with RSI crossing above 50 and stochastic moving upwards. Pls do not go long when RSI is above 70/80. Your can hold you position end of day also if in the 5 days chart at http://niftytradingchart.blogspot.com/ 70 mins EMA crosses over 1030 mins EMA and stays above it.

Go short when in the daily nifty chart at the following channel crossover happens: 3 mins EMA crosses below 13 mins EMA and 13 mins EMA crosses below 34 mins EMA. Pls note, I mentioned channel crossover. Confirm your position with RSI crossing below 50 and stochastic moving downwards. Pls do not go short when RSI is below 30/20. Your can hold you position end of day also if in the 5 days chart 70 mins EMA crosses below 1030 mins EMA and stays below it.

Exit: The strategy is entry by 1 day chart and exit by 5 days chart. Re entry is only by 1 day chart. Exit long when MACD in 5 days chart enters negative zone. Exit short when MACD in 5 days chart enters positive zone. Re-enter long or short if EMA channel crossover in 1 day chart happens again.

Thus, you can avoid the sideways market whipsaws.

My ultimate strategy: Trade less but trade profitable, earn more and give away less brokerage, bcoz the brokers sucks. So hold onto your position as long as price show an opposite trend.For more details and live Nifty and Bank Nifty charts pls visit my site http://www.stockmaniacs.blogspot.com/. Your comments are welcome.

Regards,

Indrajit Mukherjee

hmmmmm
cool heatmap

thank you, looks to be good

Thanks for sharing, but the thread doesn't seam to be created for sharing!!! Good luck.

Indrajit,
What is your strategy for stop loss or loss exits ?
One will never know at what price 5 day MACD is going to go negative while entering the trade. Or are you suggesting to go ahead with unknown risk (hope not)?

Happy Trading

Dear AW,

My strategy is to enter with daily chart and carry on my trade with a longer time frame like 5 days chart. By this, we can avoid smaller whipsaws in the market. We are entering once moving average crossover is happening in the daily chart. That means we are entering with a lagging indicator. It is proven that lagging indicators are more reliable ones. But we are also keeping an eye on leading indicators like RSI. I am clearly suggesting not to enter long when RSI is too high or to enter short when RSI is too low. That means we will enter when most of the odds are in our favour. We will do not put any defined SL points. Else we will exit whenever price starts moving in opposite direction as confirmed by MACD.

Now, asides my personal experience with stop loss is it does not stops your loss. But it adds to your loss. Most of the time the price takes your SL point and then starts moving away again.

We are not entering with unknown risk. Our risk is known as we can see the charts in front of us and can judge an immediate exit by MARKET ORDER when the MACD goes negetive.

From yahoo charts we can also judge a choppy day. Because when the gap between 2 horizontal price lines in one day nifty chart is less than 20 points, it denotes a choppy and less volatile day. We can avoid trades then.

Regards,

Indrajit

Thanks for the reply, Indrajit, No comment on them as my beliefs are quite opposite to yours. And if I post my views, we both might end up defending our beliefs and still not reach anywhere. because there is no single right way in the market.
But, we can still trade in the market with different beliefs and get the result that we want.

All the best,

Thanks AW, for ur view in trading. We are here just to exchange our views. Your comments are always welcome.

Actually this thread is not for trading with Buy above and Sell below points with definite SL exit. It is for trading with indicators, to enter whenever indicators suggest, and to exit when again the indicators suggest. Thus we can enter trade much before a BUY ABOVE of SELL BELOW price and can exit unfavourable trades much before an SL point. I have posted the last few day's trades graphically in xxxxxxxxxxxxxx.Anybody interested to know more about my trading system can go though the posts there. Do let me know your comments in this thread.

Regards,
Indrajit

How about trying stoploss with a bigger magnitude.A tight stoploss
will always and invariably be HIT .A 20 to 25 point stoploss is a good one
to start with.

Agree 1000% pattel, it is not for 'sharing' the technique...more for 'advertising' the blog.
Anyway all the best Indrajit.....
No harm in propagting your blog but why hide behind an excuse. It would be sbharing if you mentioned the formation of chart in any software and no one was need to visit your blog to track the signals.
I will accept that you are under no obligation to share your technique and no one should ask for it also BUT then I feel u shud also not call it 'sharing', all you have shared is the link to your blog.
All the best.
-Kanchan