Mistakes I made in the Flow Method

[orderflow13]

Hello friends, title suggests everything.This thread mostly for traders who trading Saint's flow method ( 60 and mini ).We make some tweaks to suit our personal needs.Doing so many times we overlook some importent point in our tweaks and while trading with real money market tells us what point you were missing, and doing so market has nasty habit, Mr. Market takes pay check from u in the form of losses.Its not about tweaks, even with given set of rules some times we unable to follow it.Some time we forget to sell all lots and one lot remains only to find at end while checking it.
I AM ALWAYS HAPPY TO GIVE THAT PAY CHECK BUT HOW IT WILL BE IF WE SHARE OUR MISTAKES WITH OTHERS AND DOING SO SHARE OUR COST. LEARNING FROM MISTAKES IS GREAT LEAP THAN READING BOOKS.
Happy trading
Alex

 

[columbus]

Re: Mistakes I made in flow method

Hello friends, title suggests everything.This thread mostly for traders who trading Saint's flow method ( 60 and mini ).We make some tweaks to suit our personal needs.Doing so many times we overlook some importent point in our tweaks and while trading with real money market tells us what point you were missing, and doing so market has nasty habit, Mr. Market takes pay check from u in the form of losses.Its not about tweaks, even with given set of rules some times we unable to follow it.Some time we forget to sell all lots and one lot remains only to find at end while checking it.
I AM ALWAYS HAPPY TO GIVE THAT PAY CHECK BUT HOW IT WILL BE IF WE SHARE OUR MISTAKES WITH OTHERS AND DOING SO SHARE OUR COST. LEARNING FROM MISTAKES IS GREAT LEAP THAN READING BOOKS.
Happy trading
Alex

The trading time frame for 60-min flow or mini flow (30 min) is too large,considering the wild fluctuations that are seen in nowadays.

 

[rajendrani]

Re: Mistakes I made in flow method

Hello guys, I have been trading stocks and use the 30 min chart and follow the same procedure as for miniflow, but I keep my stop loss at 1% and more time I had seen that my stop loss gets triggered, then I started using filter along with that but still plenty time my stop loss gets triggered, then I used to put the sl at the high of the previous bar if I had shorted, and low of the previous bar if I had long position, but still not in favourable position.

So what I did was I had looked at the average true range for that particular stock for that 30 min time frame for 1 week, 2 weeks 1 month so i get on an average the average true range and I add filter to it

For eg. If I am using a 15 min tf for trading and the stock is valued at 1020 and the average tf is about 12 then I add filer to it as 3 so my stop loss would be now at 12 + 3 =15. Now I dont know how this things would be but its really working for me.

Guys do you have any other way how we can determine the best stop loss for any particular scrip, keeping in mind our risk and not to get out of trade very quickly.

thanks,
rajendrani

 

[orderflow13]

Re: Mistakes I made in flow method

The trading time frame for 60-min flow or mini flow (30 min) is too large,considering the wild fluctuations that are seen in nowadays.

Agree wild fluctuations are byproduct/direct product of volatility, instead of decreasing the time frame better decrease position size.
when volatility index ( vix)go down below 50 we can again trade with normal position size.
another option is not doing anything as end of year chances r we will be in profits, if trade per plan. In Asish da's words unlearning the process.
add, edit .. i am talking about 30 min mini flow, i didnt hv experience of 60 min flow.

 

[TFL]

Re: Mistakes I made in flow method

The trading time frame for 60-min flow or mini flow (30 min) is too large,considering the wild fluctuations that are seen in nowadays.

Alex_laxy,

Special thanks for taking the charge to start the thread.

I think we got switches back and forth to long and short is after started trading with the new rules. Is this because of the rules or because of the market?

Think somebody, completely new will be interested to introduce themselves by posting the charts and trades of 2 or 3 days charts having trades with old rules and new rules. That will be a learning for themselves as well as people like me.

haribird.

 

[orderflow13]

Re: Mistakes I made in flow method

Hello guys, I have been trading stocks and use the 30 min chart and follow the same procedure as for miniflow, but I keep my stop loss at 1% and more time I had seen that my stop loss gets triggered, then I started using filter along with that but still plenty time my stop loss gets triggered, then I used to put the sl at the high of the previous bar if I had shorted, and low of the previous bar if I had long position, but still not in favourable position.

So what I did was I had looked at the average true range for that particular stock for that 30 min time frame for 1 week, 2 weeks 1 month so i get on an average the average true range and I add filter to it

For eg. If I am using a 15 min tf for trading and the stock is valued at 1020 and the average tf is about 12 then I add filer to it as 3 so my stop loss would be now at 12 + 3 =15. Now I dont know how this things would be but its really working for me.

Guys do you have any other way how we can determine the best stop loss for any particular scrip, keeping in mind our risk and not to get out of trade very quickly.

thanks,
rajendrani

best option is using SAR as mentioned by saint. what u mentioned is useful for setting filter to our stock. I am curious, can u check atr thing with nifty ? and post here? wanna see whether its matching with 14,7 and 5 ( set filters for nifty by saint sir, though i bet saint sir hasnt used atr n all,he must have backtested visually and come with the magic number )

 

[columbus]

Re: Mistakes I made in flow method

Hello guys, I have been trading stocks and use the 30 min chart and follow the same procedure as for miniflow, but I keep my stop loss at 1% and more time I had seen that my stop loss gets triggered, then I started using filter along with that but still plenty time my stop loss gets triggered, then I used to put the sl at the high of the previous bar if I had shorted, and low of the previous bar if I had long position, but still not in favourable position.

So what I did was I had looked at the average true range for that particular stock for that 30 min time frame for 1 week, 2 weeks 1 month so i get on an average the average true range and I add filter to it

For eg. If I am using a 15 min tf for trading and the stock is valued at 1020 and the average tf is about 12 then I add filer to it as 3 so my stop loss would be now at 12 + 3 =15. Now I dont know how this things would be but its really working for me.

Guys do you have any other way how we can determine the best stop loss for any particular scrip, keeping in mind our risk and not to get out of trade very quickly.

thanks,
rajendrani

Agree wild fluctuations are byproduct/direct product of volatility, instead of decreasing the time frame better decrease position size.
when volatility index ( vix)go down below 50 we can again trade with normal position size.
another option is not doing anything as end of year chances r we will be in profits, if trade per plan. In Asish da's words unlearning the process.
add, edit .. i am talking about 30 min mini flow, i didnt hv experience of 60 min flow.

Perhaps the remedy of frequent triggering of STOPLOSS can be avoided by having a sufficient large STOPLOSS ,may be twice that is employed on any NORMAL day ,upto ~30 points ,in case of Nifty futures.Stoploss for nifty futures varies from day to day, based on volatility of nifty.

 

[orderflow13]

Re: Mistakes I made in flow method

on wed i was paper trading s&p in night time using 30 min flow rules, found it extremely difficult to trade. forget our v shapes, this is the mother of all 'v' . plz confirm if my entries n exits r per rule.
i heard so many times s n p is very notorious to day trade. if we able to trade lil bit comfortably we can improve our performance in nifty
sorry didnt mention filter - filter i am using is 7, 5,4

 

[orderflow13]

Re: Mistakes I made in flow method

well i posted my costly mistake in mini flow when i got long thinking market is reversing....most imp mistake i didnt post, i trade on monday, yes this sunday i dig my contract notes n found losses r mostly on mondays ( m talkin about 30 min flow ) reason is i socialise with friends on sunday ( read as late night party ) n sleep so late that when my alarm wakes me up i came to my trading terminal with confuse state n i trade mini flow n i keep making mistakes.
today also a monday i am going to trade but with very less position.
another behavioral trait n my mistake ... there were very huge gains in my mini flow account where i was short, i almost thrilled ( i think those were one of circuit days ) i said enough gains lets close the position and say happy trading. Well later i found if i only trade according to rules i wd hv richer by at least 100 more nifty points, i missed the ultimate gift of sticking with the rules.
Alex

 

[niftychance]

Re: Mistakes I made in flow method

Hello Alex

Thanks for the thread.

I have a suggestion for improving our understanding of the flow methods ...

We should select a period from historical data and discuss the signals generated form back test ...

Lets start with 60 Min Flow method, one of the challenging period I found was a week after the Jan 08 Fall, i.e. 23 Jan 2008 to 31 Jan 2008.


Thanks

Sr.	Date		Flow	Entry	SL	Add1	Exit

7	23-Jan-08	Long	5130	4916	5342	5095
8	24-Jan-08	Short	5095	5373		5375
9	25-Jan-08	Long	5373	5253		5161
10	28-Jan-08	Short	5161	5385		5385
11	29-Jan-08	Long	5385	5205		5205
12	31-Jan-08	Short	5205	5283		5150