Experiments with OBV

[aja]

aaj ka BNF chart on this system Xray Garu

 

[Happy_Singh]

atleast 90 trades !!! so you can go with any number of days ,it helps you to fix the capital for the method !!!! prevents us from dancing with real money, it is not so easy to get a strike rate of at least 50 and capitalizing the trend ..it takes time ,energy, fix a system which suits your mind and also to market ..

What efforts man . . .

If you start a thread the entire onus is on you

Come up with a concept, test it, present it, explain it, clear doubts

and yes also daily post charts . . . .


Cheers


Happy

 

[XRAY27]

What efforts man . . .

If you start a thread the entire onus is on you

Come up with a concept, test it, present it, explain it, clear doubts

and yes also daily post charts . . . .


Cheers


Happy

Got your point !!! after completion, ask a pdf of the thread :lol:

 

[mohan.sic]

What efforts man . . .

If you start a thread the entire onus is on you

Come up with a concept, test it, present it, explain it, clear doubts

and yes also daily post charts . . . .


Cheers


Happy

xray can look through. That is why he said its his Experiments with obv i/o of Strategy with obv.
Thread name is perfect.

 

[XRAY27]

aaj ka BNF chart on this system Xray Garu

aja garu !!!

2 trades 1 is BE another minor loss trade as per system rules..total jhand day in action!!!

Remember these are experiments !!!

Day summary

obv bias negative

short trade after price moving past all Dp's

 

[mohan.sic]

Bact test !!!

1.Always backtest a given logic with keen interest and accuracy,backtesting cannot be done with just at a glance or roughly

2.Test at least 90 trades

3.Write draw down and arrange your capital according to that

4 Accuracy should be at least 50 % if not it will cause mental pressure to trade

-------------------------------------------------------------------

xray, There is a drawback in this method.

You may not observe its fault on Nifty, BN and high volume stocks very frequently, but one cant escape it.

OBV formula: when price close is > than its previous close, current candle volume will be added to previous obv.

scenario: If current candle volume is Huge and there is a slight upward movement in Nifty ( lets say only 10 points ) : Here you will see a sharp up move in OBV ( due to huge volume ) and a little upward movement in Nifty. Now after that even if Nifty breaks down that 10 points and falls further to new low's with normal volumes -- OBV will not come down below its PDC.

In that sense you will start looking for Buy signals on a down trending Nifty just because OBV is above its PDC.

This is not about your method. I am only pointing at a flaw in OBV.

 

[vijkris]

atleast 90 trades !!! so you can go with any number of days ,it helps you to fix the capital for the method !!!! prevents us from dancing with real money, it is not so easy to get a strike rate of at least 50 and capitalizing the trend ..it takes time ,energy, fix a system which suits your mind and also to market ..

ok. just assume i tested for 22 trades result is 30% winners, net profit is very less.
So is it worthwhile for me to test another 70 trades.. ?

(pdc bias was not involved in the above test)

 

[XRAY27]

-------------------------------------------------------------------

xray, There is a drawback in this method.

You may not observe its fault on Nifty, BN and high volume stocks very frequently, but one cant escape it.

OBV formula: when price close is > than its previous close, current candle volume will be added to previous obv.

scenario: If current candle volume is Huge and there is a slight upward movement in Nifty ( lets say only 10 points ) : Here you will see a sharp up move in OBV ( due to huge volume ) and a little upward movement in Nifty. Now after that even if Nifty breaks down that 10 points and falls further to new low's with normal volumes -- OBV will not come down below its PDC.

In that sense you will start looking for Buy signals on a down trending Nifty just because OBV is above its PDC.

This is not about your method. I am only pointing at a flaw in OBV.

Perfect Mohan ji !!! :clapping:

Thats why added PDC,PDL etc !!! to counter this to some extent !!!

 

[vijkris]

-------------------------------------------------------------------

xray, There is a drawback in this method.

You may not observe its fault on Nifty, BN and high volume stocks very frequently, but one cant escape it.

OBV formula: when price close is > than its previous close, current candle volume will be added to previous obv.

scenario: If current candle volume is Huge and there is a slight upward movement in Nifty ( lets say only 10 points ) : Here you will see a sharp up move in OBV ( due to huge volume ) and a little upward movement in Nifty. Now after that even if Nifty breaks down that 10 points and falls further to new low's with normal volumes -- OBV will not come down below its PDC.

In that sense you will start looking for Buy signals on a down trending Nifty just because OBV is above its PDC.

This is not about your method. I am only pointing at a flaw in OBV.

If huge volume resulted in green candle, however small it is, indicates some thing cooking na?
even if price falls later, but obv will not fall as buy vol is greater...
I think the flaw which u mentioned makes it a leading indicator...

 

[XRAY27]

-------------------------------------------------------------------

xray, There is a drawback in this method.

You may not observe its fault on Nifty, BN and high volume stocks very frequently, but one cant escape it.

OBV formula: when price close is > than its previous close, current candle volume will be added to previous obv.

scenario: If current candle volume is Huge and there is a slight upward movement in Nifty ( lets say only 10 points ) : Here you will see a sharp up move in OBV ( due to huge volume ) and a little upward movement in Nifty. Now after that even if Nifty breaks down that 10 points and falls further to new low's with normal volumes -- OBV will not come down below its PDC.

In that sense you will start looking for Buy signals on a down trending Nifty just because OBV is above its PDC.

This is not about your method. I am only pointing at a flaw in OBV.

If huge volume resulted in green candle, however small it is, indicates some thing cooking na?
even if price falls later, but obv will not fall as buy vol is greater...
I think the flaw which u mentioned makes it a leading indicator...

leading indicator has a effecting making us predict some thing of future and lagging indicator effects in late reaction ,it is important to react to price cracks leaving OBV !!!