Bakwaas Trading

augubhai

Well-Known Member
#92
augubhai ,
can u suggest me , how to hedge our positions infront of overnight adverse gaps ?
i have no knowledge of options ......
i have seen that inspite of our sl , say assume 60 points , trades with loss of 100,200 and 450 points are there and this all are due to adverse overnite gaps ,
so how to face this situation ?and is there any solution for this ?
I don't trade positional though I want to, because I am not happy about the gaps. For me to go positional, the positional strategy should give much higher returns than intraday strategies. Else, it is not worth the risk.

I had earlier tried to trade a strategy that had a target of about 200 points and SL about 35 points on NF. To hedge against gaps, I had used just OTM options. http://www.traderji.com/advanced-tr...-22-lac-1-yr-2-mths-6-days-17.html#post717664. But I stopped after sometime, and focused on intraday.
 
#94
I don't trade positional though I want to, because I am not happy about the gaps. For me to go positional, the positional strategy should give much higher returns than intraday strategies. Else, it is not worth the risk.

I had earlier tried to trade a strategy that had a target of about 200 points and SL about 35 points on NF. To hedge against gaps, I had used just OTM options. http://www.traderji.com/advanced-tr...-22-lac-1-yr-2-mths-6-days-17.html#post717664. But I stopped after sometime, and focused on intraday.
You are only ROBOTIC trader in this forum :D.......I am surprised that genius like you don't like positional trading.......:thumb:
 

jamit_05

Well-Known Member
#95
I don't trade positional though I want to, because I am not happy about the gaps. For me to go positional, the positional strategy should give much higher returns than intraday strategies. Else, it is not worth the risk.

I had earlier tried to trade a strategy that had a target of about 200 points and SL about 35 points on NF. To hedge against gaps, I had used just OTM options. http://www.traderji.com/advanced-tr...-22-lac-1-yr-2-mths-6-days-17.html#post717664. But I stopped after sometime, and focused on intraday.

Trading intraday mechanically?
 

Tlahuicole

Well-Known Member
#98
Weekend gyan for everyone, awesome post from our ST boss. Augubhai, lets make it a complete Gyanthread :D. Get something from your learner document and paste it here for a good read.

HOW TO IDENTIFY A TRENDING DAY

I had posted silmilar post in miniflow thread some months back,tried to locate it but it seems to have got burried...

Nobody can identify a strong trending day before the day starts...but as the day's market action progresses, it can be identified with fair accuracy. Some of the tell-a-tale signs of strong up trending day are as under : Mirror image for down trending day.

1) Strong up day starts near the bottom of the day's range and closes near the top of the range both within bottom/top 20%. This means that the market does not retrace much after opening and quickly gets down to its business.

2) Strong up days are made of 1-2 Wide Range Bars ( WRBs)with large volumes.

3) In up trending day the rallies will be have more volumes than declining bars.

4) In uptrending day, there are no frequent reversals.

5) Market overall is strong and broadbased meaning there is strong move in many stocks/indices.

6) In uptrend day market does not retrace much....retracements are small and market gains the retraced ground fast.It is my thumb rule that if the market in-between retraces more than 25 points in Nifty Futures from its intraday top,chances of strong up day are remote.

7) In strong up day market gallops after 2:00 -2:30....and rises very fast from 2:45 to 3:10....and may retrace some ground gained afterwards.

We daytraders must have some large trend days on our side ,where holding till end and adding on every dip is all we need to do , to keep us on winning side.

Best wishes,

Smart_trade
 

augubhai

Well-Known Member
#99
Hi sir .. need a little help of yours.

I have a made a trading system (momentum based, intraday). The system works on stock futures. Have backtested it from 2010 till date... it is giving decent returns on a portfolio of 40 scrips which ofcourse is not tradeable with my account size. So i reduced the portfolio to 10 stocks and it was still pretty good with a car/mdd of around 8. So i thought lets try this system for 4 scrips initially, but what i found that the main advantage of the system was its diversification.. when i tested it for only 4 positions open at a time the results came down dramatically.

So i have decided to go with 10 stocks only and keep the system as it is.

Now since there is no vendor with which i could autotrade the system. Symohony is there but their partner brokers would charge hefty brokergae i.e 20 per order which would come out to be 20*15*2*2=1200 per day.

So again i decided i should do it then coz the system was worth it. I would like to know from that how to close each stock candle at a diff minute.. eg for first stock it closes at 1001, for 2nd it closes at 1002 and so on. This way i will be able to tarck easily as decisions are taken at the close of the candle only.

I am asking from you coz i read this in some of your posts that you had done this for one of your systems.

Thanks for reading..
Any suggestions and comments are welcome.

Thx
 
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