The Best Trading System

AWOSOME to hear varunkochhar. Would you mind sharing afls and couple of more charts with explaining entries and exits rules. Once again thanks to you for showing simple system :clap::clap:

TUNA Bro is doing great job. Please join your hands as well in this thread to help newbies like us or by opening a new thread :clapping::clapping:

Which green line are you talking about ?
in the upper pane obv line must go below green line[TEMA (obv,36)]..
In 2nd pane, price must simultaneously go below which green line ??
kbtop line kya?

Hello Everybody i have already said too much. This is somebody else's thread. He has already taken my inputs constructively. Let him come up with a revised system else it would cause too much confusion.

My Trading Concept # .... (The Untested Monster) ​

First of all sorry to all my friends for no new concept / myth-buster posting in recent times. Was really busy. And now I am having plenty of time apart from enjoying my view from my trading desk. Let me present you something which is untested - will you join me in testing this? No not asking for your money, but for your time. Paper trade is ok.


(There is nothing new except the Volume part which was conceptualized on advice from one of our fellow Traderji Ledge, Mr. Varun !!, Thanks to him for this)

Could be quite a few spelling/grammatical mistakes (but long post, ignore those and "Bhavnao ko Samjho" - get the context)

This is a system for Universal settings (you can use it for Reversal Trade and Pullback Trades). And since this a multi time frame system (mode of checking manual), you get the whole wave view of the current price trend (if you are EW freak like me- even better)

First, this system is an untested system and the backtest was dubious on a different timeframe (+61% to -45%) as it was missing human factor. But got tremendous potential, you can paper trade or small trade on this till you own it.

I am already putting it into practice for myself (apart from my primary system)

The issue is, we need Pi for this as on KITE we can not overlay RSI (the script in the attachment).

Lets' go through the concept of this (on volatile instruments):

1. Trading Pullbacks:

We restrict ourselves to highest of 30mins TF and identify of price is bullish or bearish with help of STI (default setting).

We drill down to 15mins to see if the trend is consistent.

Finally, we drill down to 5 mins chart and see if there is STI Flip - we prefer a Bullish STI Flip in 5 mins (where 30,15mins are bearish) or opposite (30,15 bullish and 5 mins just went to a bearish flip)

Sometimes - this may not be ideal (you may get all 5,15 getting flipped together, but as long the chances of complete reversal is less (tip, see the distance of the closing candle from STI level on 30mins chart), you still can trade pullbacks.

So you got a Pullback here against the prevailing trend. Now the trick is to short a bullish pullback (on a higher TF bearish trend) or going long on bearish 5 mins pullback (on a Higher TF Bullish trend) - when the trend exhaustion is noticed.

We will do with OBV with 2 overlays (34 EMA, 5EMA) + Another RSI system (on the OBV, 21 periods ). I will provide you the Pi scrip, no worries.

Today I was thinking how can I get something to decide on the strength of the OBV if the overlay is not clear for decision making - another here you go

Short the Pullback



Long on the Pullback




Trading Reversals will be same - Just note this points:

30 mins STI showing sign of slackness (STI is flat and price trending very close to it, and already bounced back from same level at least couple of time - this part is important)

5 mins showing significant strength after flip and now that is started showing in 15mins - It is time for positional long or short.

Forgot to mention, there is 100 EMA (Yellow) on main price chart. Chances are higher if Long is happening above it (or crossing over from bottom) or Shorts below it. This works a stupid filter - which will save us from stupidty. Sometime, simple is the best, how to use it by simple visual clue -

Pullback
1. If you want to short a Bullish Pullback (5mins), make sure it is staying below the 100 EMA (Apart from all the other OVB and RSI and Overlay stuff)

2. If you want to go long on Bearish Pullback (5mins), make sure price is above it or crossing over it

Reversal

1. Trend fatige noticed on 30 mins and price very close to STI level (+ multiple retests of the levels in recent past and bounced but again back) And
Price (5mins) now crossing below 100 EMA (Bearish Reversal) + OVB+RSI stuffs

2. Oppsite for long

I guess you guys got it what I meant here. All of the things (100EMA Cross, OBV Cross, RSI 50 mark etc) won't happen simultaneously but will happen consequently (this is the challenge in backtesting the proper spirit of the system), you need to see max of these factors meeting eachother (higher is probability) - And also see if we go wrong, till what point I should wait before booking loss. Thats is your SL (for me it varies from 5 to 15 points, based on size and risk factor of the entry).

Booking profit:

Well, once 30 or 70 mark of RSI is hit for short or Long - book. No need to let your winner run for Pullbacks. For reversal you can hold longer as it will actually go the moon.

Trading Psyops # ... The 5 Rules​

​

1. Your trading size: If you are trading with 1 Lakh, your size is 1 Lot of Nifty with 16 point Target on each trade. Unless you are trading with same size in each trade (in proportion to your capital) - you are just looking at another account blow up - touch your heart as you read this, and confess to yourself if you already let it happen to you in last 3 months. This is first and foremost thing in trading - Trade your size.

2. Your Z Factor: Know when to stop. You can not trade for the whole day with the same system. The market participants change, so does the market. Long-term participants may do persistent buying or selling on VWAP or just pitching at the closing minutes or at the opening. Intraday traders they need to close the session regardless they won or lost - so the market is different in the opening, mid and closing sessions. Find out which session works best for your style. It is unlikely to work similarly in all 3 sessions. I prefer first (9-30 to 11:30) and Mid 2nd half (12-30 to 2). I don't like trading after 2.30 pm as my style does not suit it. But there are systems which are specifically meant for the closing sessions.

Dont try to recover your loss on closing sessions. Let the day pass. you don't have to win every day

Typically, the rule of gambling (and Trading ) is to know when to take the money out of the table and walk out of the casino (market). No one, trust me, none can stay 24X7 in a casino and make money. Our decision-making systems (that we use in our day to day life) and the system of Market are in Contra - And how much ever you try consciously you can not take contradictory decision flow to trade successfully all day. You can do it for few hours (with lots of dicipline and foucs)

So no need to earn enough to retire tomorrow. Eat little, eat fresh, daily. get out of the market once you got 16 to 20 points in Nifty. Later you can scale it up to 32 points (My present Z factor). There will be days when you will get 100+ on single trade.

3. Bring Consistency : That's why people follow systems. Purely mechanical ones are best in this regards but, trust me even an Aeroplane on auto-pilot needs 2 pilots on the cockpit. You have to be there in the loop in decision making (except Algo trading). There will be the moments, when you need to decide what to do if the system is undecided or partially decided (2 of 4 indicators showing buy). If you are protective player - well then stay on sideline till all conditions are met- but you will loosing out many good trades, and risk is that, eventually you will jump in the market with a bad entry. So, use a system, which is mechanical with a small (read this twice) window of discretion.

4.Keep Focus on your Monthly Target & Repeatability:
End of the month after all the systems, theory etc etc what matters, Did your money grow or not?

So before taking a stupid entry (where you are about to violate your system -either by size or SL or Entry point), just ask yourself, -

"Is this action of mine going to add value to my monthly target, if I do this same thing repeatedly?"

This will work as an airbrake for all your nasty decisions - like bad position size, senseless entry, desire to take high-risk trade to cover day's loss etc etc. Live to trade another day. Anything , that you feel as non-repeatable, is no-go even for once. Follow this, you will complete 1 year of jounery of a novice trader in 1 day.

And lastly

5. Each trade is a new trade:

This is a big problem I had and had to really work hard to get this correct. When we make good profit in first few trade, we suddenly get little more risk taking, thinking we have some profit cushion, lets make it even bigger.

The otherway, you made a loss, now on next trade you are already in profit and met the target, but hesitant to book as you are net loss for the day considering all the trade. you keep waiting and eventually, give away the profits. Sounds familiar? No surprise. All our trade decisions are influenced by our day to day dealings. This is how we work outside. But, but not in the market.

Here each trade is a fresh entity which should have no bearing on your next trade or no consequence of your previous trade. You do back test right? There on the machine, each trade follows the same rule of entry and exit. Does not matter if you are in net loss for the day. Get your habit of treating each trades separately - this will make you a net winner.

Hope this helps.

Looks you have stopped using CCI!!

Nope, that is my tested system. I am only adding the charts here from the new one. I still use my cci for hourly and daily decision making.


Sent from my iPhone using Tapatalk