The Best Trading System

1.So you are saying substitute the 200 EMA with 100 EMA. Am I right?

2. Once you let me know the Q1 trades I shall check and find out why the delta?

Thanks,

Hold on, I am checking something.

Continuation of the 30 mins Fool's system we are discussing on Nifty:
Here are the logs from my system:

V1 = Same as already discussed (20 EMA, 200 EMA)
V2 = (50 EMA, 200 EMA)

Only filter I am using - not generating any bearish signals as long as the market is above STI on daily.

V1 Logs:




V1 Algo



V2 Logs



V2 Algo

Fool's system posted under Trading concept #5 was on Daily TF and based on 20 DEMA and 50 DEMA.
The details posted in the above post are 30 min TF and using other EMA and also Stoch is used.
So which one is the correct setting for Fool's System.

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Don't confuse DEMA and EMA ( I sometime use that term DEMA :: Daily EMA, technically referring to EMA only when I speak about Fool's system on daily TF).

So EMA's are 20EMA, 50 EMA - and 200 EMA is the area (bull-bear) filter. This is a miniature version of that Daily Fool's system - I started exploring this as the trigger frequency from that Daily one is less and this year it has been literally draught on that system.

This lower TF Fool's system was discussed - here:



You can use the quotes to navigate further backwards on the thread timeline to find where exactly it was introduced.

GM Tuna sir.What is the settinggs for STI Daily for filltering the trade ?.Thankyou.

Does not make much difference, I use (7,3)


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On the weekends, apart from spending extra time at home with the loved ones, I keep aside 4 to 5 hours for self-education on trading. And somehow, I don't feel like 'doing' this as an assignment, it is now natural for me to explore unknown avenues to see what extra can be done to improve further from here.

This week, I was going through all my failed trades (Both Intra and Positions) and trying to identify a pattern for taking those trades. Just to be clear (so that I don't blame my systems), I filtered out those trades for analysis which were taken without referring the system (less, now a days, but still non-zero).

So here are the common issues which influenced my trading mind. I am sharing this cause I am sure, I am not alone a victim of this. And probably putting these in black and white with neat and clean bullet points , would let other also realize the cardinal sin of being a retail trader and where we need to improve. Here we go:

• Taking a trade just because my systems are not generating any signal and I have run out of my patience (Error # 'Not following the system)
  
  
• Taking a trade well before the price came to the selling level - e.g, bias is negative, as per analysis, you expected price to be jacked up to a level which is good for short, but since this did not happen for sometime, entering market at current price only to find price doing a MAE and reaching same level as per earlier analysis ( Error # 'Early Entry'). And it really more painful as you already did the hard work earlier to find your level of entry - just could not stick to the plan.
  
  
• Ignoring position size - does not need much explanation. Only reason I found when I did this when I had gone through a losing streak. The outcome sometimes positive (erasing out last 3-4 losses), but when it goes wrong, well..you know how it feels (Error # Oops I did it again, wrong size). Just remind me the same prabochan of TD - " Trading is a business where no one wants to grow slowly, that's why nobody grows"
  
  
• Taking aggressive trade out of over-confidence due to sequential winning streak- Just a like a losing streak can make you feel down, a winning streak (at times I had 15+ on Nifty) can make you feel that -Oh Boy you have figured it out in trading' - and that is exactly the time market decide to smack it on the face. (Error # Over trading)
  
  Frankly speaking, it is rightly said - it is difficult to reach a top slot, but it is far more difficult to stay there. In trading terminology - defending the won over points are more important that increasing the same every day.

Why I post this (my problems in trading) - 2 reasons:

1. I am being honest, that in spite of being profitable, I am far (light years) from perfect and have enough problem to rectify
   
2. It is said, if you want to fix some problem, you first need to recognize their existence. I just did my part. Would encourage if all of you can go through your past trade and find out the most common Cardinal Sins of yours in trading and keep those jotted down somewhere - trust me, it is going to help.

Interesting man .....

so your system makes 3.41 % profit and due to Sl rule it lost 1.67 %
resulting in net 1.74% profit

Lets do fools maths and say u keep this ratio constant and trade using same code for 1 year 1.74 *12 = 20 %++ return on investment

NOt bad in deed it;s fool system.

To be honest Even Shana market player doesn;t makes more then 30% of investment.

So in that view you have a cool system.
You need to work on the SL rule some how i have feeling that can be improved idk how but Dil ne kaha.

My systems makes that much profit; but I don't. LOL . Well I have quite a few systems and I follow each one ( total 4 ) for my Nifty trades. Fool's system (30mins ) the latest addition to the arsenal - leas than 3 months old, too early to judge its performance. But it is not new or unknown in market. There is one open source called Holy Grail which only uses 20 Ema and ADX, I got rid of ADX for ops TF and sticked to STI on daily for trend direction.

Let see how it fares. I will keep posting the logs.

I am working on something newer (and if that fares well, credit will go to OBV ledge Varun) - I want live testing of same for next 6 months with real money - shall work on NIFTY, BNF and Crude ( 30 mins for first 2 , 5 mins for last ) , will let all know.


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