General Trading Chat

[Smart_trade]

ST Da

There had been lots of pearls of wisdom shared recently by you on topic of swing trading - viz comparison to intraday trading.

One last pearl would make necklace complete - what are known swing trading systems - which one can take, back test and modify according to trader's need.

Like for intraday - we have Pratap's method on thread for intraday (my understanding is it's for intraday) - do we have known similar methods for swing trading - which define clear rules for entry/exit's and how to handle known scenarios like whiplashes etc.

Few I could see are EMA Crossover - like 315, and EMA 8 method (correct if they are not valid one's )

Not expecting holy grail to follow - but for understanding and developing one's competence in swing trading - to get started and any views on what advanced swing trader's improvise on standard swing strategies

There are few known trading systems like Elder Triple Screen system, Alligator, Zuma Swing,Ichimoku and many such as these. I tried many such systems but I was not successful with any of these. Not that these systems were inefficient but my trading mindset was not in tune with the system.

Any trading idea ( except scalping ) which works on smaller timeframes can be scaled up in larger timeframe for swing trading. There are systems based on indicators, pattern recognition, breakout/breakdown failures ,price action etc and any such system has to be altered to suit our mindset. Many such systems in swing trading mode were having a stoploss of 70-100 nifty points and that stoploss I was not ready to take as 3 stoplosses in a row will put us behind in the game in a month. So had to do many changes to suit my requirements.

Any system such as pivots, Pratap's SRSAR,21/8 ma, dual timeframe, on 30 or 60 or 4 Hrs timeframe can be converted into a good swing trading system with our own stops, profit taking, gaps, reversals put in it....this alteration to suit our mindset and trading style takes time and efforts on part of the trader. Once we have these add-on modules ready, they can be put in any other system and then we can trade 2-3 systems

Pivots system and dual MA system shared by Subhdip, SRSAR and AMA systems shared by Pratap, flow system ( with some modifications) , simple 21 MA system, ERLs can be good material for swing trading system. I have not gone into details of system shared by XRay...but we can take his help also to modify his method to swing. We have to do the initial work and all these friends will be happy to help. But we cannot expect them to give us a ready made system with all the tweaks , then convince us with backtests,answer all questions ,put up with some irritating comments also. In short they will teach us how to drive but they wont be a driver of our car while we sit in the backseat or they wont carry us on their shoulders to our destination which is trading success...the walking we have to do ourselves....and it is not easy else everyone will " read" a system document and be an expert trader.

Smart_trade

 

[Smart_trade]

If trading 30 min positional charts, would SL be below A,B or C?

Below C now.

Smart_trade

 

[vivektrader]

There are few known trading systems like Elder Triple Screen system, Alligator, Zuma Swing,Ichimoku and many such as these. I tried many such systems but I was not successful with any of these. Not that these systems were inefficient but my trading mindset was not in tune with the system.

Any trading idea ( except scalping ) which works on smaller timeframes can be scaled up in larger timeframe for swing trading. There are systems based on indicators, pattern recognition, breakout/breakdown failures ,price action etc and any such system has to be altered to suit our mindset. Many such systems in swing trading mode were having a stoploss of 70-100 nifty points and that stoploss I was not ready to take as 3 stoplosses in a row will put us behind in the game in a month. So had to do many changes to suit my requirements.

Any system such as pivots, Pratap's SRSAR,21/8 ma, dual timeframe, on 30 or 60 or 4 Hrs timeframe can be converted into a good swing trading system with our own stops, profit taking, gaps, reversals put in it....this alteration to suit our mindset and trading style takes time and efforts on part of the trader. Once we have these add-on modules ready, they can be put in any other system and then we can trade 2-3 systems

Pivots system and dual MA system shared by Subhdip, SRSAR and AMA systems shared by Pratap, flow system ( with some modifications) , simple 21 MA system, ERLs can be good material for swing trading system. I have not gone into details of system shared by XRay...but we can take his help also to modify his method to swing. We have to do the initial work and all these friends will be happy to help. But we cannot expect them to give us a ready made system with all the tweaks , then convince us with backtests,answer all questions ,put up with some irritating comments also. In short they will teach us how to drive but they wont be a driver of our car while we sit in the backseat or they wont carry us on their shoulders to our destination which is trading success...the walking we have to do ourselves....and it is not easy else everyone will " read" a system document and be an expert trader.

Smart_trade

ST sir if a system based on ITF is to be traded as a swing system what time frames should be used?
4hr-1hr with fine tuning to 5min?

 

[vikas2131]

ST sir if a system based on ITF is to be traded as a swing system what time frames should be used?
4hr-1hr with fine tuning to 5min?

For swing it should be 15 mins..At least that is what i do..

 

[traderniftybank]

Bhai.... 7777 ya 6969 ?

Jai ramji ki

hmmm
7777 still seems far
As per my study of NF chart we may be able to see 7555 on Tuesday, SGX also touched these levels today.
And also if NF be able to open around/above 7555 then we may see 7600/26 easily.

 

[Somatung]

@WaveSurfer

In option trading we can do what ever we want. It is our judgment which defines our risk or which strategy we want to choose. What you mentioned in your post is called a Long Guts, as you use itm options. With otm options it would be called a Long Strangle.

In the past the "Long - and even the Short Strangles" were discussed in the forum in the option section. So if you want to know more about them, then just use the "Search" tool to find those threads in which I even showed a bit how to trade them with leg in and leg out.​

Now the "Long Guts" was not much discussed, but can be traded the same way like the Strangles. Still, there are some points I really value very different when it comes to "Long Guts".​

To me, your idea would be far to expensive. When I go long, then only with less money with other combinations, as there is no guarantee that your mentioned Long Guts is going to give any money to you. If Implied Volatility falls, you are already in trouble with the long guts. An other point is the profit potential. In your case you mentioned 100 points. To make this 100 points you risk 640. At least to me, this does not look very interesting. But as told: It is each persons choice how he want to trade his option strategies. Regarding the 100 points profit potential: Don't you think there are other ways and option leg combinations which will give you the same profit potential with far less money risked on the table? So, even with option strategy trading we think twice how much money we want to risk for any trades and the profit we can make with it.

What to do next? Go back to the option matrix and analyze which option cost how much and has how much profit potential according to what you think how market could act. Which option or which combination cost you less and has more or less the same profit potential. Always ask your self such questions when working with the option matrix.

Making a quick example with rounded number: 7500 put is @ 135.00. If market plunges 300 point, like in your example, then this put will be @ 340.00 or even more. The 7450 call is @ 138.00. If market jumps up your mentioned 300 points, then this call will be @ 360.00. This is also a Long Guts, but far less expensive and the profit potential is not much less compare to your idea.

Hope it helps a bit to get a better understanding how to work out ideas on the option matrix. Have a nice day / Dan

Disclaimer: This is just for educational purpose and in no way a trading call nor what so ever.​

 

[vikas2131]

http://www.techinsider.io/ontario-announces-basic-income-plan-2016-3

Helicopter money

 

[wisp]

ST Da,
In this chart, after we get stopped out, what should be the thought process for reentry?

 

[Vipul_84]

How to enable PM option?

 

[TracerBullet]

ST Da,
In this chart, after we get stopped out, what should be the thought process for reentry?

Rentry - VT is up - so can renter on mph BO which is also mt change here.