Why this thread? Though I am tracking Nifty and BankNifty basis 30M Supertrend in a separate thread, http://www.traderji.com/general-tra...supertrend-nifty-bank-nifty-5.html#post889147 this thread is just a small attempt on my part to help traders to gain insight into simple trading techniques that can WIN without trying to be smart or outsmarting the market and WITHOUT using complicated analysis or indicators.
Though this is not my focus, Will post and update this thread from time to time. Any questions, I will try to answer.
What's required to trade 30M 20SMA?
Take a trade with the trend. Keep max SL of 20 points.
To trade overnight or not, is your choice. (Why fear Gap.? It can work to your advantage or against you. Over the long run, both should either be neutral - the market has nothing against you. But rather as you are trading with the trend, you should be in positive. This assumption needs to be verified)
The rules?
1. Long after 20M SMA turns green and the 30M price bar is above the SMA.
2. Short after 20 SMA turns red and the 30M price is below the SMA.
3. SL rule : Max SL 20 points. Wait for next reversal signal.
Chart of Nifty attached with notes.
Trade 1 +54
Trade 2 + 9
Trade 3 - 10
Trade 4 + 88
Total Trades 4 / Wins 3 / Loss 1 / Draw 0
Total Win : 151 points Total Loss : 10 points Net Win 141 points Over 8 days, with single lot.
What's required is discipline and patience. Ofcourse besides following the system and doing proper money management.
Have posted basis my understanding as an insight to study simple systems, but this is no Holy Grail. Trade basis your understanding and analysis.
Though this is not my focus, Will post and update this thread from time to time. Any questions, I will try to answer.
What's required to trade 30M 20SMA?
Take a trade with the trend. Keep max SL of 20 points.
To trade overnight or not, is your choice. (Why fear Gap.? It can work to your advantage or against you. Over the long run, both should either be neutral - the market has nothing against you. But rather as you are trading with the trend, you should be in positive. This assumption needs to be verified)
The rules?
1. Long after 20M SMA turns green and the 30M price bar is above the SMA.
2. Short after 20 SMA turns red and the 30M price is below the SMA.
3. SL rule : Max SL 20 points. Wait for next reversal signal.
Chart of Nifty attached with notes.
Trade 1 +54
Trade 2 + 9
Trade 3 - 10
Trade 4 + 88
Total Trades 4 / Wins 3 / Loss 1 / Draw 0
Total Win : 151 points Total Loss : 10 points Net Win 141 points Over 8 days, with single lot.
What's required is discipline and patience. Ofcourse besides following the system and doing proper money management.
Have posted basis my understanding as an insight to study simple systems, but this is no Holy Grail. Trade basis your understanding and analysis.