ATR based High Probability Experimental AMO Trading Strategy

Taurus1

Well-Known Member
#31
Gulu, the method was shown to me by a friend some time ago.
The method developer, Lim, used levels based on price percentages going all the way down to -95%, and advocated using it on ETFs and composites only since they cannot go to zero.
The big hole in the method is that capital may need to be allocated indefnitely with buys taking place at each predefined level and no guarantee of periodic returns.
When I realized this, I did not go into it further.
IMO, there are better ways to do 4-8% a month with less risk and complication.
It is averaging down, no matter how it is presented, only suited for deep pockets that are willing to tie up capital for a long time if necessary.
 

vinst

Well-Known Member
#32
Gulu, the method was shown to me by a friend some time ago.
The method developer, Lim, used levels based on price percentages going all the way down to -95%, and advocated using it on ETFs and composites only since they cannot go to zero.
The big hole in the method is that capital may need to be allocated indefnitely with buys taking place at each predefined level and no guarantee of periodic returns.
When I realized this, I did not go into it further.
IMO, there are better ways to do 4-8% a month with less risk and complication.
It is averaging down, no matter how it is presented, only suited for deep pockets that are willing to tie up capital for a long time if necessary.
Thanks taurus,
According to Gulugulu, number of additional buys at any time are limited to the initial buy made so capital is not invested indefinitely. Also, absolute SL is already known at 2*ATR which in many cases is lesser than 15%.

having said that, it is welcome to know from you the better ways.
 
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SaravananKS

Well-Known Member
#33
Gulu, the method was shown to me by a friend some time ago.
The method developer, Lim, used levels based on price percentages going all the way down to -95%, and advocated using it on ETFs and composites only since they cannot go to zero.
The big hole in the method is that capital may need to be allocated indefnitely with buys taking place at each predefined level and no guarantee of periodic returns.
When I realized this, I did not go into it further.
IMO, there are better ways to do 4-8% a month with less risk and complication.
It is averaging down, no matter how it is presented, only suited for deep pockets that are willing to tie up capital for a long time if necessary.
Taurus,
Can U give where I can get details of lim method??
 

vinst

Well-Known Member
#34
ABAN 10 sold at 435 which was 22/2=11 higher than CENTRAL PRICE of 424.
Now holding 30 aban.
Next trade levels buy 10 at 424, sell 10 at 446
ABAN 10 sold at 446 and then 10 bought at 435.
Holding 30 aban.
Next trade levels buy 10 at 424, sell 10 at 446.
 

GuluGulu

Well-Known Member
#35
Please excuse me. Lot of travelling and personal jobs this week. Couldn't update this thread in time. Just returned back home few hours back and updating this thread.

I shall start the next installment in next few days.

GG
 

NTrader42

Well-Known Member
#37
IMO, there are better ways to do 4-8% a month with less risk and complication.

We have heard these type of claims . . . . many time before, but usually these better ways are proprietary and the claimant are not able to disclose them on public forum :)

Anyway good to know you already have "better ways to do 8% a month with less risk"

Cheers
 

vinst

Well-Known Member
#38
10 Aban bought at 424.
Holding 40 aban now.


Next trade levels buy 10 at 413, sell 10 at 435
15-Nov-2011: 10 bot at 413
16-Nov-2011: 10 bot at 402
17-Nov-2011: 10 sold at 413
18-Nov-2011: 10 bot at 402
18-Nov-2011: 10 bot at 391

now holding 70 aban at average rate of 413, compared to initial buy avg rate of 426 (after taking brokerage into account).

Now I have question for Gulugulu:
average ATR14 of last 80 days has reduced to 20 for Aban compared to 22 when initial trade was made.
Shall I adjust buy/sell levels every 20/2=10 or continue with original 22/2=11 ?
 

vinst

Well-Known Member
#40
vinst,
did You calculae How Much Return U Earned Using the strategy???.
Whether is satisfaction for U??
This is a complementary strategy for me to lower the cost of acquisition. through buy-sell as per gulugulu's method, i have been able to lower the cost of acquisition by 3% (brokerage already accounted for) in nearly 3 weeks. To that extent, it is certainly satisfactory.

Gulugulu has not yet shown when to buy a stock for this method. I have bought aban according to my criterion then used gulugulu's thread.
 

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