Tom de mark sequential monitor for nifty50 stocks

[vivektrader]

Combo Marking

 

[travi]

Vivek bhai, do you have the Combo AFL?

 

[vivektrader]

Vivek bhai, do you have the Combo AFL?

No, will have to mark manually.

Vivek

 

[travi]

ok cool, i'm adding more data to the sheet, you can check it when you have time.
Mostly Q&A, else it'll be buried in the thread

 

[vivektrader]

1) and 2) Entry was right as per terminal count which is correct under the system.But terminal count is a situation when market just touches 13 and sells off.This s generally observed n weakening trends when the market is limping up....in present market I would have preferred to see close 13>12>11>10 to get extended level sell.....here note C 11>C10.

3) It is much more safe to wait for 13>12>11>10 and also all fulfil c> H-2

4) We have to monitor sequential and combo simultaneously and take a trade on whichever completes first.

5) 13 th cd may not be a terminal count.Market may open gap down with respect to L-2,complete all criteria and close above its opening .

6) Once we take a trade,our stoploss is decided..we cannot shift it as per other method completion.

7) I am on IPad which does not have my Ami...so comb stoploss will inform once I put my laptop or desktop on.

Smart_trade

Sir, is there any role of adds in this system?

Vivek

 

[vivektrader]

Completed Sell Combo Example, may fail.

 

[Vipul_84]

Thanks ST Sir. Even going by these numbers (120 pts SL & 600 pts Target)its a 1:5 RR and thats great. What we as short term traders need is smaller SL and Slightly bigger profits but large number of trades. Say if we trade with a system with moderate 50% win and 1:2 Risk reward ratio compared to Sequential where its 70% win & 1:5 RR ratio, what we have to also consider is that trades on sequential are limited to max 4 trades in a year. So what we get is 12.8R in a year (4*0.7*5 - 4*0.3*1). Now compare this with large number of trades that we can take on small TF. Say if we take 240 trades in a year (daily 1) with 1:2 RR and 50% win we get to whooping 120 R gains. This still makes a case for smaller TF as our funds are small. Thus we can still maintain our short term methods along with other superb methods like sequential. Let ST sir comment on this to check my understanding is right :thumb:

1) There is no discretionary element in sequential.The entry,stoploss,profit taking,all have defined rules.This system was invented for large hedge funds and pension funds and these institutions need time to distribute their buy positions or cover their short positions and it is done over a period of 1-3 days and they won't be able to do that if there is any discretionary element in the system.Once we decide on qualifiers,it becomes mechanical.

2) Sequential is based on daily timeframe and it has a stoploss of 120-150 points in nifty for example.Institutions take this stoploss and also hold the winning trades for 500/700 or even 1000 points.We are short term traders and our vision is also limited.I am sure very few traders can take 150 points stoploss and also willing to hold a 800 points winning trade....we chicken out in between.This is where discretion comes in and we start looking for booking small profits though system does not tell us to book profits....same with stoploss,
we try to use our short term trading ways to avoid or reduce our stoploss .

Trade management in sequential is we have to wait for opposite side set up for thinking of profit booking or let the stoploss hit.If the stoploss is hit, the market accelerates in the same direction as demand/supply has undergone drastic shift so many reverse the position and get into the accelerating trend but that needs lots of money and courage.....if one is short,then taking a stoploss of 150 points and reversing to long needs courage .

Trade management each trader has to decide on his own....what I do is given below but that is my own add on...the system does not recommend that.

Suppose I an short at 8900 with stoploss at 9070 and the market is going against me, at 8950 I will look for a dip of 25-30 points and cover my short position temporarily so that if the market goes to hit my stoploss, I lose 30-40 points and not 170 points....if market starts trading below 8900, I will open the short position again and participate in the original side trade.....this is what I told you to do as your entry was little early.This needs little managing and helps avoiding large stops but it is not part of the system.About letting the profit run, we have to control urge to book profits as sequential is not a play for 100-120 points profits.

Hope the above is useful to traders trading sequential.

Smart_trade

 

[Smart_trade]

@ Vipul,

Yes,Sequential is not a system for short term trading but it has its place in investing and long term trading.Once we are fully invested,we should know where we remain alert for likely market top and liquidate our investments.....same with buying our positions.

For intraday trading and swing trading there are many systems discussed in our forum and traders can trade you of those methods.

I too don't trade Sequential for my intraday or even swing trades lasting for few days.

Smart_trade

 

[vivektrader]

@ Vipul,

Yes,Sequential is not a system for short term trading but it has its place in investing and long term trading.Once we are fully invested,we should know where we remain alert for likely market top and liquidate our investments.....same with buying our positions.

For intraday trading and swing trading there are many systems discussed in our forum and traders can trade you of those methods.

I too don't trade Sequential for my intraday or even swing trades lasting for few days.

Smart_trade

I suppose there is also a case, when we have a long term horizon and we want to add on dips, these dips can be defined by sequential and TDSTs.

Vivek

 

[C_R_Kumar]

@ Vipul,

Yes,Sequential is not a system for short term trading but .......

For intraday trading and swing trading ........

I too don't trade Sequential for my intraday or even swing trades lasting for few days.

Smart_trade

Aren't some trades possible intraday also ?
I think Perl says that these indicators can be used on all TFs.

Thanks