NF SAR 2DHL; SL to BE >2%

trader.trends

Well-Known Member
#1
NF SAR 2DHL; SL to BE >2%


Wanted to put a strategy with price as the only indicator in one line. The only addition to that line is if open is beyond SAR, SAR will shift to minimum 0.25% of entry. Prices of NF but taking trades in Mini to start with. Works on BNF and stocks. Not for Intraday Traders.

NF: Nifty Futures, SAR: Stop and Reverse, 2DHL: 2 day High/Low, SL: Stop loss, BE: Break even point(Entry), >2%: After a move of 2% in favour.

04 Jan Long 5229
07 Jan exit at 5263 P/L +34 points
07 Jan Short 5263. SAR for 08 Jan 5303.25
 
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bandlab2

Well-Known Member
#4
NF SAR 2DHL; SL to BE >2%


Wanted to put a strategy with price as the only indicator in one line. The only addition to that line is if open is beyond SAR, SAR will shift to minimum 0.25% of entry. Prices of NF but taking trades in Mini to start with. Works on BNF and stocks. Not for Intraday Traders.

NF: Nifty Futures, SAR: Stop and Reverse, 2DHL: 2 day High/Low, SL: Stop loss, BE: Break even point(Entry), >2%: After a move of 2% in favour.

04 Jan Long 5229
07 Jan exit at 5263 P/L +34 points
07 Jan Short 5263. SAR for 08 Jan 5303.25
hi tt, please explain with some examples. unable to understand the strategy
 

enygma

Well-Known Member
#5
TT,

Thanks for another simple setup. Could you please explain the gap scenarios - could understand the trade setup and execution but not clear about gaps.

Thanks in advance,
Enygma.
 

trader.trends

Well-Known Member
#7
Entry: Break of 2 day high/Low. Go long once the 2 day high breaks. Go Short when two day low breaks. It is a system where you are always in trade either long or short. SAR is the level where you close your previous position and open a fresh position in the opposite direction.

Once the trade moves 2% in your favour shift stops to entry level but the entry level now becomes your exit level not SAR. The new entry level is again when the 2 D high/low breaks after hitting the stops.

If you look at trades from the beginning of this year, on 4 Jan the 2 day high of 5229 was broken. You go long at 5229 with SAR at 5155 which is the 2 day low for 4th Jan. You carry the position. For 5th and 6th Jan, the 2 day low was at 5190 and 5210 which did not trigger. You continue with the longs. On 7th Jan the 2 Day low was at 5263 which got triggered. So you exit the longs at 5263 book profit of 34 points and have entered the shorts at 5263. The SAR for that is 2d high. For 8 Jan the 2DH was at 5303 which was not triggered. Now for Monday the SAR level(2DH) is at 5293. If we hit 5293 on Monday, we quit the shorts and go long.

If the opening is beyond the SAR level, entry at .25% of Open. For instance if on Monday NF opens say at 5300 which is beyond SAR or 5293 then we go long at 5314. IF NF does not breach 5314 we continue to hold the shorts.

Everything about the strategy is revealed in that one line: SAR 2DH/L; SL to BE >2%, If open >SAR, SAR at .25% of Open.

Historically, the two day high and low has been breached on the same day about 6-12 times in a year. If you think through you will know what to do on such a day.
 

trader.trends

Well-Known Member
#10
thanks tt. is this nifty-only strategy ? or works for nifty stocks also ?
Works on NF, BNF and the stocks that I tested. Though caution advised on trading in Options. Something works in Futures does not mean it will work on Options as many erroneously think. Under this setup, many times we may exit with minor profits or no loss (at entry) after 4-5 days, whereas options trade would have resulted in losses due to time decay.
 
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