Poll on trading system types

[lemondew]

I keep overnight. I get a sense all of us here face time when they have lost money. If you dont trade frequently like myself then I have to wait till my next set of signals to make back the losses.

The sooner your system generates signals the sooner you make and loose money. So that would be advantage of systems which generate a lot of signals like intraday ones.

 

[Tlahuicole]

1) A system that respects higher time frame.

2) A system that clearly gives entries as per current mood of the market, whether trend or channel or momentum or sideways and does not contradict with lower time frame.

3) A system that clearly shows next possible price stall zone atleast 3 times the distance between entry and sl.

4) I have a strategy that has four systems each for one market condition that I am able to understand and trade, and the combined average as well as individual values R:R, win to lose ratio and expectancy all need to be atleast 1:1.25, 50:50 and 0.25 accordingly.

5) I day trade, hence I prefer a system that will give atleast one trade per day.

6) A system that gives clear exit signals or trail stop points.

7) A system that gives clear reversal signal to reverse the trade.

 

[Rish]

Other Type...

Higher Time Frame System....near saturation top or Bottom trading in only Nifty and Bank Nifty Options....Selling Options....

Buying (Naked) Options (Call or Put) psychological bottom...taking risk of 10% of the capital....with only Nifty and Bank Nifty.....use to enter every opportunity....may be a year 10 or 11 trade....would't believe 10 trades 3 trades may hit s/l...rest 7 trades will ensure enormous return...but, we should follow the rule irrespective of external factors...need patience...

 

[TraderRavi]

1) A system that respects higher time frame.

2) A system that clearly gives entries as per current mood of the market, whether trend or channel or momentum or sideways and does not contradict with lower time frame.

3) A system that clearly shows next possible price stall zone atleast 3 times the distance between entry and sl.

4) I have a strategy that has four systems each for one market condition that I am able to understand and trade, and the combined average as well as individual values R:R, win to lose ratio and expectancy all need to be atleast 1:1.25, 50:50 and 0.25 accordingly.

5) I day trade, hence I prefer a system that will give atleast one trade per day.

6) A system that gives clear exit signals or trail stop points.

7) A system that gives clear reversal signal to reverse the trade.

struggling in points 6 & 7.

 

[XRAY27]

struggling in points 6 & 7.

6) A system that gives clear exit signals or trail stop points.

Ans )TSL concepts are... based on Pivots or High probable average points ..both are best way..

7) A system that gives clear reversal signal to reverse the trade.[/B]

Ans)You have to adopt to multi time frame for reversal trades...

Adding this answers from my little experience

 

[VJAY]

Others....
System should be simple...clear cut entry & sl/tsl rules....in backtests give a reasonable results,in live no doubt in entries whatsoever situation...must be give consistent profit

 

[praveen98]

what kind of system you find to be most ideal and what kind of system are hard to find. I have been personally very conservative and thought of trading low risk strategies with less but sure profit. The system still failed last series and hence put this poll.

Ps: i have tried the former and I am now looking at additional types to see how it fits.

Hi Lemon Dew,
Good initiative...I voted for the other type ...let me explain...
I am an intra day trader... The types of trading systems you have mentioned in the poll are perhaps with a view of swing trader like you who hold overnight positions....but i am an intra day trader so my ideal day trading system should give the following pointers to me...
1. How much to trade? when trading in line with trend and how much to trade when trading against the trend...How the position size will go up or down depending upon the capital size before start of the week....and profits and losses during the week...for example if i am trading one lot for 40k and i have 200k at the begining of the week i will trade 5 lots...if i make a 5k loss on day1 i will trade 4 lots only on day2....
2. Clear entry level and clear exit levels (Fixed targets and fixed stop loss) say for any trade the stop loss should be around 30 to 40 points and target1/2/3/4 should be 60/ 90/120/160 or more
3. what to do when the position is not moving to hit either way(neither hits target nor stop loss)...how much time i can hold the position like 30min/60min?
4. How to identify a trending or non trending day?
5. It should give at least 2 or 3 trades in a day...
6. At what amount of loss i will stop trading for the day...
That is all i am looking for in an ideal intra day trading system...:clap:
Thanks for this nice initialtive..
:clap:

 

[jagankris]

6) A system that gives clear exit signals or trail stop points.

Ans )TSL concepts are... based on High probable average points ..both are best way..

Dear XRAY Bro,

Can you please explain about - high probable average points and what it means ?
TIA.

 

[oilman5]

I have voting for choice No 4 ie "the other type " .For me system starts with data collection- i] albatross EOD data which i see metastock/DT/omnitrader
ii] IER -capitalmarket economic data
iii] some basic result data- equitymaster/pointer fundamental
i prefer higher time bias , but take lower timeframe intraday momentum also - both r different. i have particular list of stock ,where i have watched some yr.

1) I am not comfortable trading a system which gives very few hits and large no of failed trades.

2) I am not comfortable with a system which gives larger hits and fewer failures but small profits on each successful trades.So i normally trigger stop to protect big loss (this hard lesson i learnt from market)

3) i prefer Sufficient number of trades, not too many. For a swing trade system I expect 4-5 trades in a month, for day trade system 1-2 trades a day.

4) The minimum 60-65 % trades should be successful in both swing trades and daytrades.System is simple and clearly defined. No ambiguity, no indecision...mainly some candle/support -resistance bias

Sometimes i take one/two big trades using option( contrarian in nature)- in a yr when big imperfection i find in price vs market sentiment.Normally against news

 

[lemondew]

yes data collection is important. From my limited experience I realise if I have 30 days left to trade and am a starter.

a) I ll take 10 days to gather data and and draw charts out of it in amibroker/metastock, run programs to pullout favourable data whatever. The folks here are damn helpful in this and this can cut down time
b) 5 days of analysing the data.
c) 5 days of identifying favourable trades and favourable days
d) 5 days of backtesting

e) Finally trade the remaining days if I find a favourable winning strategy.