SH's 315 Strategy - how to use if effectively

[krishere]

@gadinaa 315 should work nicely on the high beta stocks... so just go for the high beta stocks when using this strategy.... and ofcourse do also check the historical prices to see if the script does give profit in this strategy....

 

[gadinaa]

what is beta stock?... any how i have few picked stocks with this strategy... and it is simple without much complication but i think i might just need have a look a wider picture ..recently i bought bata and earned rs 72 on that stock. I think i need to study few technical indicators but exaplained in simple manner like 315 strategy

 

[mksreeram]

What is this 6% loss rule you talk about? Interesting hmmm

Based on Elder's money management thoughts a trader shouldn't risk more than 2% in a trade and 6% overall a month. As per him 2% saves you from shark bite and 6% saves you from piranha bites. I like this idea and started following it. It helps me to be in trade.

 

[mksreeram]

Request suggestion for below.

Today NIFTY is trading (@12:47) at 5796. Day low as of now is 5736.65 and EMA3 is at 5735.76. Candle today is not touching EMA. Assuming today market doesn't come down till EOD and the day candle is not touching EMA3, what should a trader do as per SH315. Below are two options I could think of, please comment.

1. Cover half of the open position and wait for tomorrow candle to see whether to enter long or not.
2. Sell 5800 call (premium 104.75) or 5700 call (premium 171.00) to hedge any drawdown for tomorrow. How to choose which option to select?

I don't have open position in NIFTY, out of curiosity asking this question.

Thanks
Sreeram

 

[mksreeram]

what is beta stock?... any how i have few picked stocks with this strategy... and it is simple without much complication but i think i might just need have a look a wider picture ..recently i bought bata and earned rs 72 on that stock. I think i need to study few technical indicators but exaplained in simple manner like 315 strategy

Beta is the correlation between the volotality of the stock with the market. if beta is -ve it moves opposite of the market. if >1 movement is more than the market.

Krishere, do you know any site which gives beta value for the NIFTY stocks.

 

[prst]

Best is DO NOT trade this stock as per 315 Strategy!
One needs to study the historical charts.
I dont have Alsthom charts now but I vaguely remember Alstom in last Sep or october, gave 10 consecutive Buy and Sells in 15 trading days.... so just move on to something that really works with this strategy. Moreover simple crossover also does not work in NIFTY, one has to adhere to all RULES suggested here for exit, reentry, and adds etc.

SH has mentioned about some stocks on which he trades with 315.
some of them are RIL, ICICI and DLF.
my personal fav are hindalco and unitech

 

[dashr]

High beta? Here you go.....

• JP Associates
• Reliance Infra
• Reliance Comm
• HDIL
• Unitech
• Suzlon
• GVK
• GMR
• Opto Circuits
• Jet Airways

 

[ritesh.bafna88]

High beta? Here you go.....

• JP Associates
• Reliance Infra
• Reliance Comm
• HDIL
• Unitech
• Suzlon
• GVK
• GMR
• Opto Circuits
• Jet Airways

can you share how did you found out the list?

thanks...

 

[dashr]

There is no list, per se. This is common knowledge. These stocks are trader's favorites. They have huge volumes. If you want to check if a stock is high beta, search for the stock on NSE website under Equity Derivatives. Then click on "Other information", there you will find daily volatility and annual volatility. Then compare it with NIFTY's or other stocks.

 

[ritesh.bafna88]

MUKTI should be banned immediately.... i request to traderji... please take the action.... he has loitered entire site!!!!

very angry