A simple investment strategy to beat Nifty returns

ncube

Well-Known Member
#31
Hello

HA candles are not price candles in true sense but they are an indicator (derivative of price)

The fills that we get will be based on current price being traded and not the current HaClose

When putting in entry/exit/SL orders how do we adjust for this difference?

For e.g. on daily chart of BNF the HA Candle Open=Low=27489.4, where as the actual LoD is 27828.4
and as of now the CMP on HA candles is about 100 points below that of actual price being traded.

Thanks


.
Yes that's correct, it's the behaviour of HA candles. It will consider the mid-point of previous candle as the low in an uptrend and as high in a downtrend. Only when the price retraces that mid point a wick is generated indicating that the trend is getting weaker.

When taking a trade we keep SL sell/buy order below or above the wick and the trade is made only when that price is hit.
 
#32
It's a simple strategy, like swing trade on top compounders. Thank you for sharing such simple and profound strategy and entry and exit signals. Proper entry and exit makes it a system, though the person who made it only would know the right ones from his experience; others would take some experience and backtesting to make a system out of it.... Thanks for sharing a piece of your knowledge. Would help individuals to improve their trading.
 

VJAY

Well-Known Member
#33
Dear ncube,
Great thread and simple method...Hope many newbies and experienced traders can start some investments now on ...Thanks a lot as you shared many insights of trading & investments past....
 

VJAY

Well-Known Member
#34
Dear ncube,
Here you meant 10 scrips from nse 50 & nifty nxt 50 ..means 5 scrip each from both groups or we 1st look only from nifty 50?
 

ncube

Well-Known Member
#35
Dear ncube,
Here you meant 10 scrips from nse 50 & nifty nxt 50 ..means 5 scrip each from both groups or we 1st look only from nifty 50?
I just gave it as an example, you can consider either Nifty 50/ Nifty Next 50/ combine Nifty50 + Next50 or any other index or select the stocks based on some fundamental analysis. The only condition is that you need to be systematic and follow the same rules for selecting the stocks in that universe.

For example if you select Nifty 50, then your stock universe is NIFTY 50 and you have to apply the 1yr returns rule on that universe to select the top 10 or top 5. Once the rule is fixed it need to be followed strictly.

I would suggest you to consider NIFTY 50 as these are top 50 large cap stocks and less volatile compared to other indexes and wish to avoid price shocks in your portfolio.
 

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