Hi niftytaurus,
The problem with many (including me,initially) is that ,once a position is initiated ,
we want to see it ,to hit other BAND.We tend to ignore some signals.
"A" on Stochastic chart corresponds to TOP band of BB, so square off entire position ,
if already a BUY position is there.Initiate a SELL position.
"B" on Stochastic chart is telling ,to stop SELL position and initiate a BUY position.
"C" on Stochastic chart is telling to stop BUY position and initiate a SELL position.
Since you are doing PAPER TRADING where greed/fear has no role, you can initiate
a SELL position at "D" also.
If it hits LOWER band with RED+GREEN pair ,then square off entire quanity
Since Bands are NARROW and difference between them is comparable to the Candles
I am given to understand that most probably this is a chart of 1Min time frame.
The problem with such a low Time frame is 1.Too many trades 2.The chances of going
Wrong (Whipsaws).
Moreover ,I observed that in Strong Markets ,I was booking profits early.
To solve the problem ,I have developed another strategy ,3D-bollinger bands,
where it contains ,not ONE ,but a series of Bands with varying SMAs and SDs.
In highly bullish/bearish markets please give some relaxation to the rules.
The problem with many (including me,initially) is that ,once a position is initiated ,
we want to see it ,to hit other BAND.We tend to ignore some signals.
"A" on Stochastic chart corresponds to TOP band of BB, so square off entire position ,
if already a BUY position is there.Initiate a SELL position.
"B" on Stochastic chart is telling ,to stop SELL position and initiate a BUY position.
"C" on Stochastic chart is telling to stop BUY position and initiate a SELL position.
Since you are doing PAPER TRADING where greed/fear has no role, you can initiate
a SELL position at "D" also.
If it hits LOWER band with RED+GREEN pair ,then square off entire quanity
Since Bands are NARROW and difference between them is comparable to the Candles
I am given to understand that most probably this is a chart of 1Min time frame.
The problem with such a low Time frame is 1.Too many trades 2.The chances of going
Wrong (Whipsaws).
Moreover ,I observed that in Strong Markets ,I was booking profits early.
To solve the problem ,I have developed another strategy ,3D-bollinger bands,
where it contains ,not ONE ,but a series of Bands with varying SMAs and SDs.
In highly bullish/bearish markets please give some relaxation to the rules.
This is 5 min chart ..if we put 4 trades in those small period..it will be like scalping..so can we scalp like that? But I am not comfortable with taking so many trades..as stochastic changes its direction many times..how to overcome this problem?
for me paper trading is like real trading with 1 lot nifty..so I am trying it with that.
I put ema stripes & 3d bollingar along with my chart to helping in decision ..in ema stripes, when it changes its color , i mean in blue stripes, it shows patches of red for some time..& then blue continues, so I again get confused..
I think , I should not stick to strict rules..I should observer them more & more..& then use my discreation, then it will be better to improve my trading results..what do u think?
Thanks again
