Reference Material

vagar11

Well-Known Member
#21
Karanbhai

Any simple strategy works in the market.

But we refuse to believe that ,like 20EMA with support and resistance system described in this thread along with many posted examples of intraday trade.

Even simple MACD crossover strategy works in intraday.

But the secret is simple.Don't take every trade.

Let the trade come to you,till then sit out.If you have this kind of discipline then you have the potential to make it very big in the markets.

NF Chart 5 minutes.

Amit

 

vagar11

Well-Known Member
#22
From a guy on Quora.

Thank You Anil for Asking me this Question. I have been a day trader for the first 6 years of my Stock Market career. I have worked with Large Financial Institutions as a trader starting with Jp Morgan in London, Invest smart in Mumbai and MF Global (Worlds largest derivatives Stock Broker). My Last job was in a hedge fund as a Global Equity Analyst - Guggenheim Parters. Today i am founder of Stallion Asset , India’s only Advisory company whose goal catch long term trend(bubbles). We were formed to create wealth for our clients and not just beat other classes.
I am a Chartered Market Technician (USA) and backtested atleast 1000+ technical Strategies. The one which i used to personally use was TRADING THE GAP. I have BackTested this strategy in various markets including the Nifty futures stocks, S&P 500 and FTSE 100.
Since i used it a lot in Indian Stock Markets, i will be using Indian data for this for the Answer. The Idea is to find out companies that will have a trend day or a large candle either Black (down) or White (up)
We are Hunting for a Trend Day, which is a very recurring pattern in the Stock Market. This is what a trend day looks like.

9.15 a.m.–9.25 a.m. - Find Stocks that Have opened with a GAP up or Down of more than 2%. Out of 200 FNO stocks, you have cut down your selection criteria to 3–4 stock. There is some news in this stock, or some large investor wants to buy large quantities in this stock and hence the GAP.
9.25 a.m–9.30a.m. - There will be 3 data point available 1) Volume. 2)High 3) Low. Volume has to be higher than previous days volume in 10–15 mins. Now keep a buying Stop Loss above the days High. Example yesterday stock A closed at 100, today it opened at 103 and in the first 10 mins made a low at 102.55 and High of 103.5. As soon as it crosses its 15 minute high of 103.5 buy it.
9.30am–3.30pm - Once the Buy order is triggered, Keep days low, or weighted average price (available on all trading software like zerodha, Sharekhan etc for free) as your Stop Loss. Keep Riding the stock until its 3.15 or your trailing stop loss is triggered.

Thats it, Very easy strategy with mind blowing results . This works on the Reverse Side as well when the stock opens down 2%, thought the results are better if you do it long only.
We have done a blacktest of this strategy taking for 1,000 trades and i have used it extensively when i was a trader.

The Results for the long only data were as follows
Trade Win% after Transaction Cost- 48%
Trade Loss% after Transaction Cost- 52%
Profit per Trade - 2.3%
Loss Per Trade- 0.7%

You have a automated Stop loss which is your weighted average price, as price of the stock increases during the day, so does your weighted average price (Stop loss). Use this system for a month, i never faced a draw down of more than 10% in my trading career.
You might be thinking if i was such a good trader, why did i move to start my company Stallion Asset which is into Long term investments?
This Strategy works only if you have less than 20–30 Lakhs rupees, because after that you start affected the volume of the stock, the stoploss doesn’t get triggered properly.
Incase you have any doubts on the Strategy, feel free to comment below.
Stallion Asset is an SEBI Registered (INH000002582) Independent Equity Advisory Company backed by experts who have huge experience in wealth creation in the Indian Stock Market. We are Specialist in buying high quality midcap companies that are often ignored by the analyst community. We have delivered 288% in last 3 years, and consistently created wealth for our clients.
 

vagar11

Well-Known Member
#23
Travi

There are two types of Markets:
1. DM: Debt Market
2. EM: Equity Market

In each of 1 & 2,
there is
A. Primary Market
B. Secondary MArket

The Market that people generally refer to is 1B, ie. Secondary Equity Market

Only 1B contributes to Nifty and other Indices.
In fact the volume in Crores of DM is generally far more than EM.

Debt Market is mostly Govt Securities etc and not Stocks/Derivatives of you see.

NSDL doesn't disclose such data of DII everyday, maybe deferred data comes by months etc so you'll never know what DII did in detail like FPI.

On 11th January 2017, when you posted that data:
Look at the image below and you will understand actually how

Basically, what I'm trying to say is that the flat figures you post are not reflected on the Indices the way you are projecting.



There are huge possibilities on many days where FII can sell 1000 Cr in DM and invest 600Cr in sec. EM with Nifty jumping 150 pts and your post will say FII were -400 Cr NET Sellers.
 

vagar11

Well-Known Member
#26
VJAY summarised Varun ji's method

If any one read this thread then full of confussions ...so be read it as seperately every method here ...

1.if using 200 ,36 ema and OBV ...
Long entry when price &OBV bo above 200
short entry when price &OBV bd above 200
better to use any type of pivot for entry
you can use pvt below 36 ema when trade goes our ways
also add can take when pullback happen upto 36 ema

2. 15 OBV ribbon
Simply go long when ribbon changes to BLUE
go short when ribbon changes to RED
use any thing bar/any kind pivots for entry

3.HH-HL ribbon
Long entry when we get HL-HH range of ribbon (look vijaykris afl)
short entry when we get LH-LL ranges of ribbon
for entry you can use Bars /any type of pivots
trail SL with ranges when trade moves our direction

4.You can use ydays OBV closing for trend bias...means if trading above ydays OBV close means bullish bias ...vice versa for bearish bias..
One can take only bias side trade if want to away from some whips

5.we can use ydays OBV high & Lows too for bias...if above ydays high bullish ,below ydays lows means bearish, inside means sideways etc
one can trade this as seperately and also can use all things to judge the trade ...
as am very weak in words please forgive me any words mistaken....

BETTER TO USE 50/100 POINT EXITS WHICH IS VERY IMPORTANT TO CONTROL GREED
 

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