Pivot Based Trading (modified) 1:1 risk reward ratio

[radha55]

Nifty Futures Profit for today 23rd July 2009

The price of Nifty Futures at 10:25 - 10:30 am was around 4500 - 4510.

This is between Pivot(4453) and R1 (4520).

So we buy above R1 and Sell below pivot.

During entire day, market was moving in the range of R1 and Pivot.

Nifty Futures made a low of 4455 (see this carefully. it is very important). It didnt go below our Pivot, so we are saved from going short.

Till 2:15 pm, the price of Nifty Futures was between Pivot and R1.

At 2:20 pm, the buy triggered at R1(4520).

0.5% Target = 4542.6 (achieved at 2:54pm).

Finally Nifty Futures closed at 4539. This is still our buy level.

Total profit for today = 0.5% = 22 points.

Profit of 1000+ with one lot of Nifty.

No other calls generated today.

I am a paper trader.
Trade based on your risk.

All those who wants to know how this system works, please read the first post of this thread.

 

[vicky_ag]

Radha,

Great job of updating each and everyday. :thumb:

I have testing some systems on my own. From my calculations, the method by Dheeraj , has a hit rate of 80-90%, which is superb.

Hoping for a similar result from this thread.

 

[radha55]

Nifty Futures profit for today 24th July 2009

At 10:25 - 10:30 the price of Nifty Future was around 4530-4540.

This is between Pivot(4512) and R1(4547).

so we sell below pivot and buy above R1.

sell below Pivot(4512) triggered at 11:40 am.

0.5% stoploss = 4534.56(hit).

So now we take 4534.

This is between Pivot (4512) and R1(4547).

So we buy above R1 and sell below Pivot.

Buy above R1(4547) triggered at 1:18pm.

0.5% Target = 4569.735(achieved).

Now we take 4569.
This is between R2(4569) and R3(4602).

so we buy R3 and sell below R2.

Sell below R2(4569) triggered at 2:10 pm.

0.5% Target = 4546.155 (not achieved as market reversed from 4551).
0.5% stoploss = 4591.84 (not hit as high was 4589).

So we wait for 3:00 pm (this is based on one's risk apetite.)

And after 3:00pm we square off based on our risk apetite.

After 3:00pm the price of Nifty Futures was in range of 4560-4580.

lets say we sqaure off at 4570 (midpoint).

So profit = 4569-4570 = -1 points.

Total profit for today = -0.5 + 0.5 = 0% = 0 points - 1points = -1 points loss.

So loss of Rs.50 with one lot of Nifty.

I am a paper trader. Trade based on your risk.

 

[radha55]

Nifty Futures Profit for today 27th July 2009

At 10:25 - 10:30 the price of Nifty Future was around 4590-4595.

This is between Pivot(4556) and R1 (4608).

So as per rule, we buy above R1 and sell below Pivot.

Buy above R1(4608) triggered. But market made a high of 4610 and reversed.

0.5% stoploss = 4584 (hit).

Now we take 4584. This is between Pivot(4556) and R1(4608).

Sell below Pivot(4556) triggered at 11:14 am.

0.5% Target = 4533.22(achieved).

Now we take 4533. This is between Pivot(4556) and S1(4524).

So as per rule, we buy above Pivot and sell below S1.

See very carefully, today Nifty futures made a low 4525 (S1-4524). We are saved from getting into short.

Now buy above Pivot(4556) is triggered at 1:27 pm.
0.5% stoploss = 4533.
See this above stoploss very carefully. Market went down but reversed back from 4535. So our stoploss didnt hit.

0.5% Target = 4578.78 (achieved at 2:55 pm).

Total Profit for today = -0.5 +0.5 +0.5 =0.5% = 22 points.

I am a paper trader. Trade based on your risk.

 

[sam2trade]

Hi Radha,

Can you clear this confusion ?
After getting the values at 10.30 am we get the range (eg R1-Pivot etc). Now how do you decide it is buy above R1 or sell below Pivot ?

Thanks,
Sameer.

 

[radha55]

Hi Radha,

Can you clear this confusion ?
After getting the values at 10.30 am we get the range (eg R1-Pivot etc). Now how do you decide it is buy above R1 or sell below Pivot ?

Thanks,
Sameer.

You take the price at 10:25 - 10:30 am.

Now this price will fall in any one of the range.
Lets say it falls in R1-Pivot.

For this range, R1 is upper limit and Pivot is lower limit.

so we buy above R1 and sell below Pivot.

 

[radha55]

Nifty Futures Profit for today 28th July 2009.

At 10:25 - 10:30 am, the price of Nifty Futures was around 4545-4552.

This is between Pivot(4570) and S1(4531)

So as per rule, we buy above Pivot and sell below S1.

Buy above Pivot(4570) triggered at 12:45 pm.

0.5% Target = 4592. (achieved).

Now we take 4592. This is between Pivot(4570) and R1(4616).

So we sell below Pivot and buy above R1.

Sell below Pivot triggered at 2:26 pm.

0.5 stoploss = 4592 (not hit)
0.5% Target = 4547.15. (not achieved).

So nor stoploss got hit nor target got achieved.

But still Nifty Futures closed at 4562 (8 points below our sell).

Lets say we covered our short at the same price 4570.

So total profit for today = 0.5% = 22 points.

I am a paper trader.

 

[sam2trade]

So it is like, which ever trigger is hit first we follow that and then the other. Is it right ?
For example, if the base price is falls between R1-Pivot, anyone condition will be triggered, suppose if the price goes above R1, then buy above R1 is triggered, else if the price goes below Pivot, sell below Pivot is triggered. Am I right ?

You take the price at 10:25 - 10:30 am.

Now this price will fall in any one of the range.
Lets say it falls in R1-Pivot.

For this range, R1 is upper limit and Pivot is lower limit.

so we buy above R1 and sell below Pivot.

 

[radha55]

So it is like, which ever trigger is hit first we follow that and then the other. Is it right ?
For example, if the base price is falls between R1-Pivot, anyone condition will be triggered, suppose if the price goes above R1, then buy above R1 is triggered, else if the price goes below Pivot, sell below Pivot is triggered. Am I right ?

you are right.

 

[radha55]

Nifty Futures profit for today 29th July 2009

At 10:25 - 10:30 am, the price of Nifty Futures was around 4560-4570.

This is between S1(4531) and Pivot(4570).

So as per rule, we buy above Pivot(4570) and sell below S1(4531).

Buy above Pivot(4570) triggered at 11:00am.

High was 4572.90.

So 0.5% stoploss = 4547.15 (hit).

Now we take 4547. This is bewteen S1(4531) and Pivot(4570).

So as per rule, we sell below S1 and buy above Pivot.

Sell below S1(4531) triggered.

0.5% Target = 4508.345 (achieved).

Now we take 4508.

This is between S1 and S2.

So we buy above S1 and sell below S2.

Sell below S2(4496) triggered.

0.5% Target = 4473.52 (achieved).

Now we take 4473.
This is between S2 and S3.

Sell below S3(4457) triggered.
0.5% Target = 4434.715 (achieved).

Now we take 4434.
This is below S3.

So we dont sell now. We buy above S3.

buy above S3(4457) triggered. (12:35pm)
0.5% Target = 4479.285(achieved)

Now we take 4479.
This is between S2 and S3.

Buy above S2(4496) triggered at 1:48pm.
0.5% Target = 4518.48(achieved).

After this market was revolving in range +/- 25 points.

Total Profit for today = -0.5 + 0.5 + 0.5 + 0.5 +0.5 +0.5 = 2% = 88points

Profit of 4000+ with one lot of Nifty.