5-Day Positional System (F&O)

[bigbullinside]

Now this strategy is for the Futures segment, where both long and short calls would be given.
I will post the system after seeing the performance over a period of say 3 months.
The system is well known and after seeing the results live all you experienced traders could share your opinions on how to tweak the system further for better results as I myself have some questions.
So, let's see where this takes us.

 

[bigbullinside]

I will be posting the calls at the end of the day.
Only F&O scripts will be considered.
Here are the rules:
1. Enter the positions on the next day. (At the start of the trading day or as per your comfort level if you don't like trading in the first 30 mins)
2. There is no stop loss for this system as it is a time based strategy with a holding period of 5 days.
3. Please do not trade this system before I actually post the system and it is thoroughly discussed by the fellow traders on this forum. (Even after a month of good results where you make 10-20%)
4. There are a few exit rules and also a stop loss level, but right now we will test this system only on a time based function.

 

[bigbullinside]

It is a bit late but here are the signals that occured yesterday (27-12-12)
1. Buy INDUSINDBK (414.2)
Let's see where it ends up after 5 days.

 

[rkkarnani]

It is a bit late but here are the signals that occured yesterday (27-12-12)
1. Buy INDUSINDBK (414.2)
Let's see where it ends up after 5 days.

To naked eye the chart of Indusindbk futre seems to be in a downtrend ever since it hit a high of 435.75 on 19th Dec 2012. It is continuously making Lower highs.
Look forward to your system details to understand the "BUY" signal in such a situation.
Thanks for sharing !

 

[bigbullinside]

Well, I should have mentioned that this was a contra trading system.
The buy/sell signal itself is based on the script being oversold/overbought.

 

[mew]

what is the strategy used in that.can u explain.iam new to enter fut and opt.

 

[rkkarnani]

Well, I should have mentioned that this was a contra trading system.
The buy/sell signal itself is based on the script being oversold/overbought.

That explains!
BTW what indicator do you use for finding an Overbought and Oversold stock?

 

[bigbullinside]

That explains!
BTW what indicator do you use for finding an Overbought and Oversold stock?

RSI, Of course.
And please, everyone.
I am trying something here.
I again urge you not to ask me for the system yet and please do not trade on this system.
Lets look at the performance first.
I myself do not trade based on this system.
Not right now atleast.

 

[johnnypareek]

RSI, Of course.
And please, everyone.
I am trying something here.
I again urge you not to ask me for the system yet and please do not trade on this system.
Lets look at the performance first.
I myself do not trade based on this system.
Not right now atleast.

Hi,

Very first let me clear that there is no intention to criticize you or to show you down. As you mentioned "RSI" . I am attaching snap shot of hourly chart with rsi.

Please note that there is +ve divergence is going on but not yet confirmed as have not violated down sloping TL. So, One should wait for breaking of that TF. Now, Draw back of OB/OS is that they may stay there for very long time, thus until its gives breakout one should not trade.

Another thing for INDUSINDBK bank is that please check price chart, it has given breakout from HEAD N SHOULDER which is bearish.

Thus, Right now I don't think that long is good.

This is just my thought and I too have position in it. Please keep this in mind.

Hope I am not bugging.

 

[bigbullinside]

Any discussion is more than welcomed.
And true the pattern does suggest that we should wait and watch, atleast there is positive divergence.
But again, this system goes against the most basic principle of technical analysis that one should never try to catch a falling knife.
But hey, that is just how it is.
And I am repeatedly asking fellow traders not to take a position based on these calls.
At best this system is still in beta testing.
Good work though.