Price is fickle but volumes are not. Everybody knew where reliance multi year top was (at around 1100). Now you might have waited for it to cross at 1100 to buy. But the exponents of Volumes (OBV) got the signal at 900 itself when OBV broke out above the multiyear highs. (more than 20% earlier). So what made reliance go higher. the price or the volumes. You do not read about this in textbooks it is only experience via screen time which tells you what to rely more price or volume.
(MCX Comedy..Errr. Commodity) - How to Fake your Trade
- Thread starter Tuna
- Start date
We all (me included) are impulsive/compulsive traders. The only way we can be succesful is to profit more and lose less. That can be achieved when our stops are small and we let our profits run. Easier said than done. Two ways to go about it. Wait patiently for a new setup to emerge. (Wait to go long till you near a support and to short near a resistance to achieve the 1st part (small stops)). For second part (let your profits run) use SL based on OBV rather than price. Just doing these 2 things would take you far in your trading.
And Tuna ji i do not beleive in all that crap about not working on your system and only your psychology. If that was the case then that amounts to just tossing a coin and keeping a 50 point sl and you are on your way. At sometime you would be right and sometimes wrong. Even a broken clock gives the right time twice a day. The problem with all of us is that we tend to beleive everything we read without seriously thinking about what has been written. Just because a million copies have been sold does not mean that he is right. (Think about the herd mentality which he talks about). It is like chinese whisper. Eklavya was a self taught warrior.(I think) It may make interesting reading but then Harry Potter series have sold many times more and we all know that it is fiction.
Hi Varun,
For easiness of coding, how do u wany to define a breakout in hourly? What is the look back period? On chart we can plot the line but for coding I need a look back - like price breaching high of last 5 candle etc.
Any why hourly. You trade in 1 min. Give the rules fot 1 min, even 2 months data will be enough. I have GDFL feed only for crude. So if you can tell me the 1 min rules in codeable language ( we can have iterations to fine tune) , will code it.
Even I never belived in backtesting for more than a decade , now I do. Past price is the only matrix we have to create a trading system - mech or disc'.
For easiness of coding, how do u wany to define a breakout in hourly? What is the look back period? On chart we can plot the line but for coding I need a look back - like price breaching high of last 5 candle etc.
Any why hourly. You trade in 1 min. Give the rules fot 1 min, even 2 months data will be enough. I have GDFL feed only for crude. So if you can tell me the 1 min rules in codeable language ( we can have iterations to fine tune) , will code it.
Even I never belived in backtesting for more than a decade , now I do. Past price is the only matrix we have to create a trading system - mech or disc'.
Ok Tuna ji do not want to contradict you or anything like that. Let us come down to brasstacks. You use your matrix in whichever instrument and TF and i will use my logic to come up with trades in the same instrument. Please take it in the right spirit and not as a competition. Just want to bring out the use lessness of all these so called holy grail indicators.
I have always stressed upon timing your entries. In the times of HFT and algo trading, i feel trading BO/BD's the conventional way have become obsolete. You need to trade BO/BD's near supports and resistances to have smaller stops. A lower TF helps you to shorten your stops further. Trying to trade conventional HTF have become useless. Because the stops are so much bigger and the entries are very late. Take the example of BN. I got a BO based on my method at 23680 levels on thursday (will post a chart). The hourly (which i do not follow) would have still not given a BO probably. We did almost 600 points from there (till the highs). Now the markets may fall back to those levels again and people could counter see it had not given a BO in Hourly so it failed. But my question is that could one have profitted with this 600 point move, waiting for the hourly BO. I can get off anywhere in this 600 point move with handsome profits. Or knowing my penchant for Options, i have already booked profits in my 23400 calls and shifted to 24000Calls knowing that even if it become zero i have already profitted fom this move.
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Had ho gaya chaha, ulta hi samjhoge. No one contradicting or intend to. All I am saying OBV and any freaking indicator is just a market varaible and any pattern we trade will be repeatitive but NOT ALWAYS . All I was trying to say (with the 'Crap' book which got sold million copy is about development of the ability of accpetance of loss which even OBV will give when one trade 1 min chart).Else whole trading research would have stopped the day OBV was invented. You want to believe that the hedge funds investing millions of dollar in development of trading system would not have found this out by now.
Anyone disagreeing, need a harder look how many system they hopped till today. You have reached a stage as a trader where you are probably beyond this psychological contradiction. Trust me, 90% of the readers here are not.
Thats all. . Anyways, as you said, lets stop the argument here and move on.
Anyone disagreeing, need a harder look how many system they hopped till today. You have reached a stage as a trader where you are probably beyond this psychological contradiction. Trust me, 90% of the readers here are not.
Thats all. . Anyways, as you said, lets stop the argument here and move on.
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