30m 20 sma

[umeshmandal]

BankNifty 30M 20SMA : Short signaled @ 11,193.

We will consider our exit at this price. Short entry will be considered at 11,183 (10 points slippage)

SL for this trade is Max @ 11,270 (subject to change as per MA)

Will update XL tracker later.

Seems my chart is having significantly different values !!

BNF had closed below 20 SMA yesterday, 3:00 PM bar, but MA was rising !

Now that the SMA is moving down, do we take the trade?

I have understood the rule :
MA is moving down and then Candle closes below MA we trade!
Do we also trade when Price crosses below MA and then MA starts to move down?
A line in reply will be helpful.

 

[DSM]

My answers in red - Please note that this is a study project. It is an objective exercise to follow the system in real time. We need to test the results of the system (as tested live and not by historical data) and once the outcome of the same is justified, it should be traded with confidence or discarded. We will have a lot of understanding of the nuances and rules that will evolve as we go along, and be able to use it best manner possible after we have the data.

Seems my chart is having significantly different values !!

BNF had closed below 20 SMA yesterday, 3:00 PM bar, but MA was rising !

(Our rule is to sell below 20SMA if 20SMA is red and price closes below. In an upmove, price can close below 20SMA, but 20SMA can still be positive. This is just my view. Shorting when the price is below 20SMA is premature and does not justify selling.)

Now that the SMA is moving down, do we take the trade?

(Since 20SMA is red, we take the trade as per the system - the probability of the trade being profitable is 50% only. The reason is that price has to consolidate after an big move. But as we have defined the rules of the system, we keep our personal bias aside and take the trades as signaled)

I have understood the rule :
MA is moving down and then Candle closes below MA we trade!
Do we also trade when Price crosses below MA and then MA starts to move down?

(If you will note, 20SMA is flat, even if red. It is not sloping down in 30M chart. If these criteria are met, it has more chances of success, though we are trading as rules defined - though we will evolve after our understanding of the system.

1. If 30SMA is green - Long only
2. Price has to close above
3. Slope should be in the direction of the trade
4. More valid if the slope is formed after period of consolidation/being flat
A line in reply will be helpful.

(Any more questions, please feel free to ask. It helps me as well to clarify my thinking as well.)

 

[DSM]

I am not using any AFL, and hence that could be the reason for difference in values. All I have it TradeTiger from Sharekhan!

Seems my chart is having significantly different values !!

 

[DSM]

BankNifty Short SL triggered. Will consider Exit at 11,280 (+10 slippage)
Long triggered at the same price 11,280

BankNifty 30M 20SMA : Short signaled @ 11,193.

We will consider our exit at this price. Short entry will be considered at 11,183 (10 points slippage)

SL for this trade is Max @ 11,270 (subject to change as per MA)

Will update XL tracker later.

 

[DSM]

One problem following an indicator such as MA, is that it changes color, as values change. Just posting BankNifty chart as of now. The SMA which had turned red when the price went below, is now fully green as the price has gone above, and the previous red has disappeared. If we have to look at historical data, this aspect of MA not be visible, and hence many indicators which give good result on basis of backtest fail in realtime. This is one learning. Can we have a filter such as price to be x% below MA line to consider it as reliable.? Mathametically, we have tick data which can confirm if the price is above/below.... something to reflect on as we move along...

 

[DSM]

Please note that I will not be able to post and update the thread live in realtime - Am quoting from the Supertrend thread.

***

My intention was to post trade live as they happened. But as was pointed out by Raj, it will affect my trades as well. So I need to compromise here, and will track trade live and make notes for entry / exit with reasons thereof, but will post when I can, and it may be even EOD and not live.

One learning from this is that though the system will signal SAR, I am reluctant to take the same, as I have seen that they are bound to fail. It is preferable to be out of long position and book profit, but that is not the same as a call for being short.

***

Attached

 

[rajgreenpeace]

Please note that I will not be able to post and update the thread live in realtime - Am quoting from the Supertrend thread.

***

My intention was to post trade live as they happened. But as was pointed out by Raj, it will affect my trades as well. So I need to compromise here, and will track trade live and make notes for entry / exit with reasons thereof, but will post when I can, and it may be even EOD and not live.

One learning from this is that though the system will signal SAR, I am reluctant to take the same, as I have seen that they are bound to fail. It is preferable to be out of long position and book profit, but that is not the same as a call for being short.

***

Attached

My grand salute you master!!!!...........:clapping::clapping::clapping::clapping:

 

[DSM]

Current status :

Nifty Long @ 6,145 SL @ 6,325
BankNifty Long @ 11,280 SL @ 11,545

The question here is that is exit from long a call for going short? It can get choppy after a directional move. So will consider the following : Short Entry with a filter of 25 points for Nifty and 50 points for BankNifty.

So accordingly, we will be out of our longs after SL. Short trigger after filter will be as follows :

Nifty Short @ 6,300
BankNifty Short @ 11,495

SL for on the above trade will be 25 and 50 points for Nifty and BankNifty, and Targets will be 50 and 100 points.

Nifty Short @ 6,300 / Target 6,250 / SL 6,325
BankNifty Short @ 11,495 / Target 11,595 / SL 11,445

We will have to review this call as we move along......

As stated rules are evolving as we go along... Once the trade is triggered,

 

[DSM]

Trailing SL updated.

Current status :

Nifty Long @ 6,145 SL @ 6,325 SL Revised to 6,340 BankNifty Long @ 11,280 SL @ 11,545 SL Revised to 11,640

The question here is that is exit from long a call for going short? It can get choppy after a directional move. So will consider the following : Short Entry with a filter of 25 points for Nifty and 50 points for BankNifty.

So accordingly, we will be out of our longs after SL. Short trigger after filter will be as follows :

Nifty Short @ 6,300
BankNifty Short @ 11,495

SL for on the above trade will be 25 and 50 points for Nifty and BankNifty, and Targets will be 50 and 100 points.

Nifty Short @ 6,300 / Target 6,250 / SL 6,325
BankNifty Short @ 11,495 / Target 11,595 / SL 11,445

We will have to review this call as we move along......

As stated rules are evolving as we go along... Once the trade is triggered,