30M tracking of Supertrend in Nifty and Bank Nifty

[sahen]

Thanks RKK Sir. What are your ideas on adds and on exits.? If we exit, and the market moves another 500 points, we will be out of the trade without any position. Should entry be with 2 lots? In that case we can exit 1 lot with half our normal SL level? And the rules of exit of additional lot can be double the level of normal SL. For e.g SL can be 50/100 for adds, exit @ 100/200 adds. What are your thoughts on this.? Thanks for your feedback, much appreciated.

We should not think of ADDS, as it keeps our working capital as BLOCKED. That ultimately results in lower return on investment.

 

[DSM]

Thanks Sahen, can you Explain more.? Having adds in my view should get more return, as we have 2:1 reward to risk ratio. So if we assume 50% of the trades fail, we will still be in the positive. But to see how we perform with original system (will name this as AAS - Aam Admi System, as it is from collective effort) will track AAS and AASM - AAS Modified. In separate XL sheet. Thanks for your input.

We should not think of ADDS, as it keeps our working capital as BLOCKED. That ultimately results in lower return on investment.

 

[rkkarnani]

Thanks RKK Sir. What are your ideas on adds and on exits.? If we exit, and the market moves another 500 points, we will be out of the trade without any position. Should entry be with 2 lots? In that case we can exit 1 lot with half our normal SL level? And the rules of exit of additional lot can be double the level of normal SL. For e.g SL can be 50/100 for adds, exit @ 100/200 adds. What are your thoughts on this.? Thanks for your feedback, much appreciated.

DSM, It works both ways ! We have the chance of BNF moving further 500 or more points but there are chances it may retrace partially or fully the initial move of 500 points ! In case of trading with multiple lots, partial exit can be done. And frankly DSM, not many here can hold position in BNF for further 500 points after the initial run of 500 points, including me !
Intraday, maybe, I can trail my SL , but in Positional , the fear of Gap up or down always lingers in the mind.

Dont look at it as if you are trading a single lot. Maybe we start with a single lot, but with accumulated profits, we need to increase our exposure and then I would prefer looking at booking profits.

I tried to find out the 'range' of BNF on daily charts, and it ranges from 150 to 750 points. The 20 days average of BNF intraday range comes to between 230 and 370 points. Maybe we can decide on this yard stick. Once we enter the trade and it moves by say 100 or 200 points, should we manage it intraday with a Trailing SL, locking our profits?

I like the idea of keeping the record of the First days move by BNF on Entry and by the end of the 'testing' period, maybe we get some insight about exits on day one or on a day of BIG move.


ADD : In trading with Supertrend, where do we add? It surely cannot be arbitary. Then we are to look at some other strategy for 'add' , and that complicates the simple and straight forward Supertend system !

Frankly, never tasted the fruit of "ADD" but having gone through Saints flow system, ADD looks really very juicy and tasty ! Surely would like to 'test' the ADDS while we go along 'testing' Supertrend !

I might have written things a bit haphazard, but went on writing as they came to mind.

 

[sahen]

Thanks Sahen, can you Explain more.? Having adds in my view should get more return, as we have 2:1 reward to risk ratio. So if we assume 50% of the trades fail, we will still be in the positive. But to see how we perform with original system (will name this as AAS - Aam Admi System, as it is from collective effort) will track AAS and AASM - AAS Modified. In separate XL sheet. Thanks for your input.

Well- Consider both system AAS and AASM as a separate system. Now only one system shall perform better. Whichever performs better, select that and use all monetary resources on that system only. This gives a stress free trading.

 

[rkkarnani]

Well- Consider both system AAS and AASM as a separate system. Now only one system shall perform better. Whichever performs better, select that and use all monetary resources on that system only. This gives a stress free trading.

Sahen, Thanks for your inputs and views. I feel the criteria to choose which system to trade cannot simply be selected on the basis of performance. Though that is definetly a valid issue for choice but ease and comfort of trading also be give due weightage. May be on the basis of the overall performance and other things like comfort of trading and putting how much capital or profit at risk, different Traders may opt for different System.
So let us try to 'record' the performance of both system as close to 'actual' trades as possible and hope that some thing really good emerges for use by various Traders here.

 

[DSM]

Sure RKK, We need to take runaway profits, and hence the concept of adds to do just that.... Or to trade with better RR. Our analysis in XL tracker will provide for it. There are levels where adds and exits become compelling, will put up these with charts and rules as I understand them... And tweak with feedback...

So with AAS and AASM both results can be analyzed. Let's see how it all pans out.

DSM, It works both ways ! We have the chance of BNF moving further 500 or more points but there are chances it may retrace partially or fully the initial move of 500 points ! In case of trading with multiple lots, partial exit can be done. And frankly DSM, not many here can hold position in BNF for further 500 points after the initial run of 500 points, including me !
Intraday, maybe, I can trail my SL , but in Positional , the fear of Gap up or down always lingers in the mind.

Dont look at it as if you are trading a single lot. Maybe we start with a single lot, but with accumulated profits, we need to increase our exposure and then I would prefer looking at booking profits.

I tried to find out the 'range' of BNF on daily charts, and it ranges from 150 to 750 points. The 20 days average of BNF intraday range comes to between 230 and 370 points. Maybe we can decide on this yard stick. Once we enter the trade and it moves by say 100 or 200 points, should we manage it intraday with a Trailing SL, locking our profits?

I like the idea of keeping the record of the First days move by BNF on Entry and by the end of the 'testing' period, maybe we get some insight about exits on day one or on a day of BIG move.


ADD : In trading with Supertrend, where do we add? It surely cannot be arbitary. Then we are to look at some other strategy for 'add' , and that complicates the simple and straight forward Supertend system !

Frankly, never tasted the fruit of "ADD" but having gone through Saints flow system, ADD looks really very juicy and tasty ! Surely would like to 'test' the ADDS while we go along 'testing' Supertrend !

I might have written things a bit haphazard, but went on writing as they came to mind.

 

[Cubt]

DSM,

I just happen to see this thread, good work. I just have few questions, would be great if you could provide your inputs.

1. Parameters 10 and 2
2. Time Frame- 30 Mins

on what basis we have finalized this parameter and time frame?

and regarding the adds, please consider my below inputs if it suits you.

We can add up contracts when the following conditions are met

1. If the position moves in our predicted direction after the entry.
2. Add extra contracts when Nifty crosses its previous high(long) and breaks down previous low(for short).
3. After adding the contracts, if Nifty continues to break its previous high/low, add contracts.

When not to add contracts:

1. If Nifty fails to break its previous high/low do not add any contracts.

Consider the below example: check the horizontal red line

1st adds is @ 5975 levels.
2nd adds is @ 6035 levels

3rd adds @ 6120 is not valid as it did not break the previous high of 6120

I tried it couple of time and it worked when Market is trending, provided if i have enough time to monitor the charts, as am busy with my day job am not able to do it consistently. So stopped adds and just going long/short as per the system.

 

[DSM]

Sir something I need to add here. To evolve as a trader, our mindset also needs to evolve. If we always trade with a mindset of being in comfort, we will miss out on taking difficult entries, or against the prevailing trend, which may in the end give the best return..... That was actually the reason for the thread - to be committed to a system, and TAKE ALL ENTRIES WITHOUT EXCEPTION. With the thread we can analyze if mechanical system is profitable... So to say, we need to work on a well defined system, but also we MUST not forget to work on ourselves (mind) as well.... My 2C.

Sahen, Thanks for your inputs and views. I feel the criteria to choose which system to trade cannot simply be selected on the basis of performance. Though that is definetly a valid issue for choice but ease and comfort of trading also be give due weightage. May be on the basis of the overall performance and other things like comfort of trading and putting how much capital or profit at risk, different Traders may opt for different System.
So let us try to 'record' the performance of both system as close to 'actual' trades as possible and hope that some thing really good emerges for use by various Traders here.

 

[rkkarnani]

One thing that seems good for add is, when we find the Supertrend moving in our direction and its value almost matches our initial entry , hence our initial Position is protected as the SL move to cost !

 

[DSM]

Thanks Cubt for your thoughts and sharing.... Will need to think over and reflect... Will reply a bit later, need to go out now...

DSM,

I just happen to see this thread, good work. I just have few questions, would be great if you could provide your inputs.

1. Parameters 10 and 2
2. Time Frame- 30 Mins

on what basis we have finalized this parameter and time frame?

and regarding the adds, please consider my below inputs if it suits you.

We can add up contracts when the following conditions are met

1. If the position moves in our predicted direction after the entry.
2. Add extra contracts when Nifty crosses its previous high(long) and breaks down previous low(for short).
3. After adding the contracts, if Nifty continues to break its previous high/low, add contracts.

When not to add contracts:

1. If Nifty fails to break its previous high/low do not add any contracts.

Consider the below example: check the horizontal red line

1st adds is @ 5975 levels.
2nd adds is @ 6035 levels

3rd adds @ 6120 is not valid as it did not break the previous high.

I tried it couple of time and it worked when Market is trending, provided if i have enough time to monitor the charts, as am busy with my day job am not able to do it consistently. So stopped adds and just going long/short as per the system.