Nifty Positional System - Using Intrady Charts

#11
Dear Dipesh,

I am Nilesh Mehta, a member to traderji.com under name 'nilesh'.

First of all thanks forposting a very simple system of trading positional with intraday charts.

I have few queries which you can please look into and address to me personally by answering this email.

The questions are:

1. What if gap up or gap down opens next day and our signal reverses with larger loss.

2. Can we also hedge position in any way.

3. How are you comfortable with whipsaws occuring during the day trading itself.

It would be great if you could address to my concerns.

Nilesh Mehta.

[ REPLY TO NILESH MEHTA'S MAIL]

Thanks Nilesh For going thru my system

See each and every system will give you whipsaws, you cant go without it in any system. I tell you, I have put lot of systems and not a single system is giving NO WHIPSAWS.

Very important thing is to remain with the system. I will address you queries as below. I have seen favours using following rules while keeping positions open.

1. GAP up or GAP down - Suppose if you are Long in the system on today. tommorrow due to some negative news market opens with a gap of say 100 points. Your intraday software will give you alert that there is a 5/21 crossover on selling side. Means you have to go short. You will go short below low of the candle/bar in which sell was triggered. Just reverse your longs in to shorts.

In case during the day markets covers all losses and moves up and again your software gives you alert to go long above particular candle, then reverse it and go long.

Keep in mind we are not here to earn pity 50-100 points on the nifty, we are following some trend following system which can give you 300-400 points on nifty if momentum is built in your favour. Generally during 1 month you will get 2-3 rounds of either side momentum.

You should not spare yourself or use your brains while putting trade under this system. Strict to the rules of the Game. You will be surprised to see market is always giving you more than what it takes from you. Just stick to the system.


2. Hedging - There is no hedging is to be done. We are here to speculate not to hedge. See friend, I am following 2 Trading system based on this one signal. One is to go short or long in Nifty and another is to Sell IN THE MONEY Put or Call. If there is a Buy signal - Sell in the money PUT at market and when there is a reversal, i.e. sell signal, Cover your Short puts at market and Sell in the money call. This system works excellent and also note that everytime you have to become call or put writer and not buyer of the option. Since its proven that 85% of the option buyers are losers in the end. So why to join them, be a part of those 15% who writes options. !!


3. In early days, While doing practical trading, there are days which will kill you both sides. But one or two big favours will clear all those whipsaw losses and you will start generating good money.

I will advice you not to start with big capital. Initially Rs 1,00,000 to be kept as margin and trade in 100 Nifty only both side. If you want to play in options Margin of Rs. 1,00,000 is enough.

I wish you very best going forward.

In case any queries, Let me know.

Dipesh.
 
#12
Excellent post Diparti........

But, in the end, how do you cope up with the sideways market, which gives a lot of whipsaws.............and remember, market remains in sideways direction for majority of the time......
 
#14
You take out the first trade from the system..And you wouldnt have been able to do 150 NF for more than 3 trades thereafter.

Money Management needs to be looked upon in this. Also,I believe using MAs for positional trading using intraday time frame is not a good idea. One gap against your position and you would not only be killed, but left out of the reversal trade too.

MAs are powerful tools to trade, but I will not endorse this MA crossover system.

Just my 2 cents.

Good Luck.
Hallo,
I am a new entrant.However i would like to know any addition modification in the strategy for better rewards in response to your statement . "MAs are powerful tools to trade, but I will not endorse this MA crossover system."
ASHUTOSH850
 
#15
Dear Dipesh,

I am Nilesh Mehta, a member to traderji.com under name 'nilesh'.

First of all thanks forposting a very simple system of trading positional with intraday charts.

I have few queries which you can please look into and address to me personally by answering this email.

The questions are:

1. What if gap up or gap down opens next day and our signal reverses with larger loss.

2. Can we also hedge position in any way.

3. How are you comfortable with whipsaws occuring during the day trading itself.

It would be great if you could address to my concerns.

Nilesh Mehta.

[ REPLY TO NILESH MEHTA'S MAIL]

Thanks Nilesh For going thru my system

See each and every system will give you whipsaws, you cant go without it in any system. I tell you, I have put lot of systems and not a single system is giving NO WHIPSAWS.

Very important thing is to remain with the system. I will address you queries as below. I have seen favours using following rules while keeping positions open.

1. GAP up or GAP down - Suppose if you are Long in the system on today. tommorrow due to some negative news market opens with a gap of say 100 points. Your intraday software will give you alert that there is a 5/21 crossover on selling side. Means you have to go short. You will go short below low of the candle/bar in which sell was triggered. Just reverse your longs in to shorts.

In case during the day markets covers all losses and moves up and again your software gives you alert to go long above particular candle, then reverse it and go long.

Keep in mind we are not here to earn pity 50-100 points on the nifty, we are following some trend following system which can give you 300-400 points on nifty if momentum is built in your favour. Generally during 1 month you will get 2-3 rounds of either side momentum.

You should not spare yourself or use your brains while putting trade under this system. Strict to the rules of the Game. You will be surprised to see market is always giving you more than what it takes from you. Just stick to the system.


2. Hedging - There is no hedging is to be done. We are here to speculate not to hedge. See friend, I am following 2 Trading system based on this one signal. One is to go short or long in Nifty and another is to Sell IN THE MONEY Put or Call. If there is a Buy signal - Sell in the money PUT at market and when there is a reversal, i.e. sell signal, Cover your Short puts at market and Sell in the money call. This system works excellent and also note that everytime you have to become call or put writer and not buyer of the option. Since its proven that 85% of the option buyers are losers in the end. So why to join them, be a part of those 15% who writes options. !!


3. In early days, While doing practical trading, there are days which will kill you both sides. But one or two big favours will clear all those whipsaw losses and you will start generating good money.

I will advice you not to start with big capital. Initially Rs 1,00,000 to be kept as margin and trade in 100 Nifty only both side. If you want to play in options Margin of Rs. 1,00,000 is enough.

I wish you very best going forward.

In case any queries, Let me know.

Dipesh.
Hallo,
I am a new entrant under the name, ASHUTOSH850.
First of all i must thank for suggesting positional system of trading.Actually this method had appealed to me and had a desire to try but had not advanced . However now suggestion on experience is there i would definately try on it and also on the comments to the positional trading there in
Thanks.
ASHUTOSH850
 

nareshch

Active Member
#16
1. GAP up or GAP down - Suppose if you are Long in the system on today. tommorrow due to some negative news market opens with a gap of say 100 points. Your intraday software will give you alert that there is a 5/21 crossover on selling side. Means you have to go short. You will go short below low of the candle/bar in which sell was triggered. Just reverse your longs in to shorts.


What if the Gap up or down is around 20% like what we had after election results ? Many systems gave buy signals before election result .BUT . lets think other wise . We are on short before election result and after results we had a 20% Gap up . For 100 nifty , we woulf have lost around Rs50000/- which is 50% of our capital .

In case during the day markets covers all losses and moves up and again your software gives you alert to go long above particular candle, then reverse it and go long.
.
But we already lost 50% of capital and we cannot trade more than 50 nifty now . And to cover 50% Loss , you need to earn 100% on the remaining capital .

I am not saying anything againist the system .There were many MA cross over systems and even in traderji we had a system ST's 3-15 cross over . The only concern in all the systems is lack of protection . Dont tell me that market doesnt move 10% or 20% frequently . But one such move against you will erase all your capital . Fine tune it . Try to back test the system in consolidation phases . not in trending markets . Take the charts for 2001-2003 or before 2000 and back test on them . Back testing from 2005 to 2009 may yield good results but its not the market trend allways.
 

Similar threads