Nifty Trading Strategy: Daily

[ravalsb]

One tiny point to note here: You shouldn't trade if there is no trade to be taken. Even if it means you are jobless! Take the time to think, analyze etc. but don't trade because you feel you have to trade.

Trading is all about picking the right opportunities, not quite about finding an opportunity every day.

Hi Ucalegon,

I agree with you.

I never meant that one should trade 'cos he is trader. Anyways, point noted.

Thanks & Regards

 

[ravalsb]

25 FEB 2008

We are currently holding Short position on Nifty, which was opened today at 5098 level, with the Stop loss at 5270 and profit targets at 4926 and 4754

We exited our Nifty short position today by the close of trade.

Hi Puneet, want to know why did we cover shorts today, as SL 5270 was not triggered.

Thanks & Regards

 

[psvaja]

ya. i also wish to know that, why did we cover short position because you have mentioned yesterday that, we will get out only at either the stop loss or the profit targets.


Thanks

Pravin

 

[ravalsb]

Hi,
Please refer to the 'Rules' sheet in the excel file I attach daily. Under the heading of Stop loss, I had mentioned that we will cover our position if the Nifty closes in the top 20% bracket of the daily range of that day against our trade direction.

This is what I have been following for the last few years, and you too can backtest this. If Nifty closes in the top 20% bracket of the range (eg. if diff bet High and Low of a day is 100 and NIfty closes 80 points up or down), there is a =~0.7 probability that the next day Nifty will continue in the same direction. There is a greater likelihood of our stop-losses being triggered in such cases. The only time we fade this rule is when the difference between such higher-range close and the stop-loss is > 1-1.5 ATR.

I suggest you backtest this on a 5 year data, which will help better assimilation. In case I can be of any help, pl do let me know.

Puneet

Thanks Puneet. Indeed its a good analysis.
Will backtest and get back to reconfirm.

Does that mean one can speculate by buying in the closing hours when Nifty is trading in the top 20% bracket of the range and exit next day...or short sell in the closing hours when Nifty is trading in the down 20% bracket of the range and cover next day.....just like ATST.

Also want to know if this holds good for stocks.


Thanks & Regards

 

[neo1599]

Hello,

Our outlook on the market remains bearish in the medium term. What is your analysis?

Neo

 

[rkgoyal_98]

Hello,

As per your post dated 26th Feb you must have entered the trade above 5304 with a stoploss @ 5150. Since market has not tanked upto 5150 and was trading above 5304 for 2-3 hours, kindly explain why you are not in trade as per stertegy posted on 26th.
Regards
Rajeev

 

[rkgoyal_98]

Hello,

Thanxs for reminding
Good luck
Rajeev

 

[jagendrain]

Hello Punit,

I am a newcomer to the group. It is interesting to go through your initiation for NIFTY Trading Strategy. I am trying to understand NIFTY Trading. I like to know certain things from you and other group members as well.

What are the softwares available with live feed in Indian Equity Market for NSE along with their strenghts and weaknesses?

Is their any vendor providing Order Book Data (Intraday Archive with Tick-to-Tick Updates) which can be further porcessed in MS Excel keeping live feeding?

Is it possible to form a group to improve the negotiation power with software/data vendors?

Cheers,

Jagendra Shah

 

[circle zee]

Puneet

I have been using quote tracker for EOD ...but i am having problem with intra day data...would u please help with that...it is keep saying not enough data collected.

CZ

 

[circle zee]

Try to re-install the software. Make sure your firewall settings allow for auto data updates.
Let me know if this resolves the prob.

Puneet

Puneet,

As u said i have reinstalled software and turned windows firewall off. now i can see few data on screen like volume and time...but i still cant see intraday chart.....i dont know whether it could be market timing or else...

I also looked at pages fatched lately from site....and i show ERR

so need more help if possible...thanks.

CZ