SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

Hi SH,
As per 534 we would have entered Nickel on 12-Feb-10 @ 862.40 due to 534 bullish crossover. We have to book our half profit at 5% profit swing @ 905.52 on 16-Feb-10. Remaining half we hold till we get 10% profit swing @ 948.64. On 20-Feb-2010 at close of 951.10 we book remaining half profit. After booking our 100% profit at swing of 10%, Nickel is rising from that level. On 10-Apr-2010 Nickel is closed @ 1118.40. So as per 534 we miss the rally of Nickel from 951.1 to 1118.40. Still Nickel has not given bearish crossover and it may rise further. So in such situation what we are supposed to do? Shud we just wait and watch for 534 bearish crossover? Or shud we re-enter? Then at what level and on which basis? During this rally Nickel has never touched 34 ema. So pls let me know how to handle such situation in 534.

Thks.

-Raj

Raj - as I said before, 5% and 10% profit booking after a crossover are just arbitrary points for me, I am yet to develop a 'strategy' for commodities.


However as mentioned above, assuming one buys two lots at 862, books one at 905 and the other at 948, the trader still makes Rs 10750 profit on first lot and Rs 21500 on second lot i.e total profit of Rs 32250 on a margin of 25K. This is good enough as a commodity trader and you can wait for the next bearish signal.

Though Nickel has rallied beyond 10% .. look at copper, zinc, Lead & Aluminium and see why 5% and 10 % are effective currenlty.

Yes, as per 534 you can hold until the bearish crossover happens instead of booking profits at 5% or 10% .... thats totally up to your trading style.

right now I am waiting for a bearish crossover on Nickel. I am long on Silver, Zinc, Aluminium.

I was short on Lead at 101, booked 1 lot at 5% move and second at 10% (total profit approx Rs 76000). It has bounced back to 98 and I am waiting for a bullish crossover on it now. I might short at 100 again with a small risk.

Cheers
SH

 

[arti]

SH please reply,waiting for ur response.

Help needed,am confused.

We exit when candle not touching 3EMA and enter again when it touches 3EMA,but in case of DLF,y'day: -

1. It gave bullish crossover,so we have to exit our shorts,but candle not touching 3EMA.So how to deal with it?

2. I remember in some posts back,Sukhi_atma said that we should exit our position and enter in opposite direction and exit when candle touches 3EMA.But i observed that candle was above 3EMA when price was around 313 and when it was lingering between 315 and 316,3EMA pulled up to touch the candle,but by the end of the day,candle was again above 3EMA(though price came down to 309). So how much we should wait when candle starts touching 3EMA?

I will really appreciate if along with others, SH also replies.

Arti

 

[trade man]

dear sir still there is no repy of qustion? thanks for your stretegy.dear sir please let me know do u use anyting (other system)ein combination with 315 moving average to avoid whipsaw.sir which moving average can be best for day trading in nifty .

 

[Tradewithhunter]

SH please reply,waiting for ur response.

Hi Arti - I have answered this question a couple of times in the past. Even if 3 EMA is not touching after the crossover, we need to enter into the position.

3 EMA rule is only for booking profits, otherwise normal crossovers need to be traded.

Cheers
SH

 

[arti]

Suppose am holding a position and next day candle is not touching 3ema ,i will exit my position,now i will enter when candle will again touch 3ema,isnt it.

But my observation with dlf is : - (suppose am short) Candle is not touching 3ema,when price is high say 315 and after sometime 3ema lowers to touch the candle at say 311 and then again after sometime candle moves up say 313 and not touching 3ema.So I could have shorted again when candle touched at 311,but by the eod price is again say 315 and 3EMA is again above the candle. So usually how much u wait to reenter? coz 3ema keeps varying whole day.

Hi Arti - I have answered this question a couple of times in the past. Even if 3 EMA is not touching after the crossover, we need to enter into the position.

3 EMA rule is only for booking profits, otherwise normal crossovers need to be traded.

Cheers
SH

 

[Tradewithhunter]

Suppose am holding a position and next day candle is not touching 3ema ,i will exit my position,now i will enter when candle will again touch 3ema,isnt it.

But my observation with dlf is : - (suppose am short) Candle is not touching 3ema,when price is high say 315 and after sometime 3ema lowers to touch the candle at say 311 and then again after sometime candle moves up say 313 and not touching 3ema.So I could have shorted again when candle touched at 311,but by the eod price is again say 315 and 3EMA is again above the candle. So usually how much u wait to reenter? coz 3ema keeps varying whole day.

you enter again at 311 as soon as 3 EMA is touched.

Cheers
SH

 

[Tradewithhunter]

This thread has gone silent in the last 3-4 days , seems everyone has got a hang of 315 theory ...

Best of luck guys ... and keep minting.

Cheers
SH

 

[saivenkat]

This thread has gone silent in the last 3-4 days , seems everyone has got a hang of 315 theory ...

Best of luck guys ... and keep minting.

Cheers
SH

Oh no.. i am daily checking for SH update on nifty trend. But only disappointment remained for me. SH sir, what is your view on nifty sir, please come up. Will the 3/15 cross overs happen soon?

Regards
Saivenkat.

 

[trade man]

This thread has gone silent in the last 3-4 days , seems everyone has got a hang of 315 theory ...

Best of luck guys ... and keep minting.

Cheers
SH

i m very much interested in yuor stretegy .dear sir plz keep on posting useful guide lines thanks u.

 

[widewings]

Sir, In this 315, how many minutes' chart to follow??5, 10, 15, ???