Your trading system?

S

Satha

New Member
#1
#1
Hi,
what trading system are you following? Elliot wave? candle stick? Gann? or is it based on Trend analysis? volumes?, oscillators? MACD? etc... etc... or what all indicators are you combining for confirmation? what is the success percentage of your system? I'm new to trading and enquiring just to learn the reliablity and suitability of trading tools or systems and how they work under different situations or time frames.
I'm learning a lot from this site, I honestly thank everyone who is contributing in here.
Satha
 
Last edited:
C

colion

Active Member
#2
#2
As far as using indicators, including Elliott Wave, Gann, etc., I don't think that any should be used by themselves. Rather using a mixture from different types of indicators (e.g., momentum, volatility, trend, etc.) is desired. The exact mixture may or may not be constant over time but must be consistent with the way the individual likes to trade (i.e., many times per day, weekly, etc.). In addition, the best combination will be a function of the markets and securities traded and it is unlikely that a particular combination will work equally well for circumstances.

In short, in my opinion, there is no absolute answer to your question. You have to experiment and find what works best for you in the markets that you wish to trade.
 
S

Satha

New Member
#3
#3
Hi,
Thankyou colion for the reply. I think you are right, but now the market seems more complicated to me. More experiments and experience might make a person a better trader. Is it not possible to establish a standard and say "This particular system(or a combination) is the best for this circumstance" irrespective of the subjectivity of the person using it. That way it becomes more scientific and success rate might increase. For eg. Is there any tool/system most reliable and suitable for a bear market condition like what we are facing now? or for more volatile stocks or for some particular sectoral stocks? sorry if the question is not correct, just trying to figure out on how to use technical tools.
Satha.
 
C

colion

Active Member
#4
#4
You can try to develop a "standard" that produces a high percentage of good trades over a long time. It is not that hard to find a high percentage system that works over the short term. However, markets are not static, steady state "machines" and so finding the "holy grail" that is stable over a long period has so far been problematic.

Having models designed for specific markets and market conditions (e.g., bear, bull, flat, volatile, quiet) has been shown to help increase the percentage of good trades but not necessarily eliminate the need to modify and adjust things over time. In addition, this approach suffers from the need to being able to identify market conditions so that the proper model is used. Of course, ideally that means that changes in market conditions have to be identified before they occur!
 
J

johnnypareek

Well-Known Member
#5
#5
Satha said:
Hi,
Thankyou colion for the reply. I think you are right, but now the market seems more complicated to me. More experiments and experience might make a person a better trader. Is it not possible to establish a standard and say "This particular system(or a combination) is the best for this circumstance" irrespective of the subjectivity of the person using it. That way it becomes more scientific and success rate might increase. For eg. Is there any tool/system most reliable and suitable for a bear market condition like what we are facing now? or for more volatile stocks or for some particular sectoral stocks? sorry if the question is not correct, just trying to figure out on how to use technical tools.
Satha.
Click to expand...
Hi,

Well, At begnning you can do this. Plot price chart, macd - adx, enter when both bullish n exit when ne one gives sell.

johnny
 
S

Satha

New Member
#6
#6
colion said:
You can try to develop a "standard" that produces a high percentage of good trades over a long time. It is not that hard to find a high percentage system that works over the short term. However, markets are not static, steady state "machines" and so finding the "holy grail" that is stable over a long period has so far been problematic.

Having models designed for specific markets and market conditions (e.g., bear, bull, flat, volatile, quiet) has been shown to help increase the percentage of good trades but not necessarily eliminate the need to modify and adjust things over time. In addition, this approach suffers from the need to being able to identify market conditions so that the proper model is used. Of course, ideally that means that changes in market conditions have to be identified before they occur!
Click to expand...
I understand the practical difficulty.
1. We need to predict the market condition in advance using technical tools.
2. We need to apply the right model.
Both involve subjectivity and predicting the market is definetly a challenge. There is a need to recheck our strategy everytime before trading,even if it is a similar circumstance of trade as have faced earlier.Thanks for your inputs, and I will try to learn more on these areas.
 
S

Satha

New Member
#8
#8
I'm a beginner, these are a few of my basic learnings. Experienced traders please correct if I'm wrong, add on simple techniques like this here.People like me might find this useful.
1.Trading using Moving averages give better results in trending markets rather than range bound markets.
2.If MACD line is at 0 or close to 0, it signals a range bound market.
3.Donot trade using MACD(only) in a range bound market.
4.Buy near or at support and sell near or at resistance.
5.ADX should be higher than 30 for trending stocks.
satha
 
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