Trading Nifty futures for a target of 200 points per trade

#1
1.To trade Nifty Futures
2.To follow candle stick patterns on daily chart
3.Two bar reversal pattern
4.Initial capital 1 lakh
5.Maximum Risk per trade 5% and Target 200 points
6.Why 200 points
i. Each leg of nifty moves a minimum of 200 points and further it may continue in the same direction or reverse, hence to catch that minimum
ii. To be in trade for minimal time to avoid emotional ups and downs

Why am I here?

To participate in discussion and seek guidance from seniors and peers
 

TraderRavi

MM is the holy grail
#4
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hmp

Well-Known Member
#5
Dear Kiran
May i request you before proceeding your thread?
Will you pl. throw some light on how to find out two bar reversal pattern? & how to trade this setup?
Thanks & regards.
 
#6
Hi hmp,

These are basic candlestick patterns, and there is a lot of material available on internet including traderji itself. I myself donot remember all the names. Sorry if I disappointed you.

What I'm trying here is to catch a rally or decline at an early stage. Meet the target and exit. Now wait at sidelines for next trade. In nifty I observed Rally to decline and vice versa happens continuously. And whichever happens i.e Rally or Decline continues for a minimum of 3 days. In point terms it's minmum 200. Sometimes they may last more than 10 days/1000 points, I am not targetting them.

Setup:
1. There has to be reasonable prior decline/rally
2. The decisive candle usually is of opposite color or an insidebar
3. Next day enter above the high of the decisive bar or vice versa.
4. Keep SL at the low of the decisive bar or vice versa

Stop Loss and Position sizing:
1. To define a fixed % stop loss before entering the trade
2. To take a position based on the defined Stop loss
3. To move SL higher as trade goes forward
Eg: Capital: 100000/- Stop Loss: 5%
Current Trade in progress entered at 8455, SL at 8375 means 80 points away.
No of shares====>5000/80===> 62.5 hence 2 contracts

Target 200 points, if achieved is a nice 10% return.

If the SL is at 50 points away, can take a position of 100 Shares which shall give a return of 20%.
 
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