Best way of day trading - 2652 theory of trading

[dhiraj11378]

pravin am trading in real with this
i belive that trading is just like gambling
u just first papaer trade and see then only u can start with actual trading
but do consider in stocks that have high volume
keep asking any queries on on this , i will be happy to answer at any time

 

[dhiraj11378]

the values are the fraction used to multipy with previous days range to get three values of next days range .
if its break out then u must catch the small change it tends to do with a breakout from the values
just paper trade first and then see
start with a small amount for a particular stock so that u can double the value if profit is not struck in a single stroke

 

[bandlab2]

in simple words
if or reliance days high on monday id 1245 and days low is 1185
then the values i take for the next day of trading is
1) 0.433* ( high - low)=0.433*60= 25.98
2)0.7666*(high- low)=45.99
3)1.355*(high-low)=81.3
taking this three values i trade the next day at 10.15
if at that time days at 10.15 relance has high of 1205 and low of 1187 , then days range is less than 25.98 points my strategy will be
sell below 1205-25.98=1179.02 profit of just 0.5 percent
buy above 1187+25.98=1212.98 profit of just 0.5 percent
(if high - low is greater then 25.98 and less then 45.99 then u must use 45.99 as the breakout value and if the days high - low at 10.15 is more than 45.99 and less than 81.3 then u must go for 81.3 as the value)
i put a stop loss of one percent for any of the orders one percent above the sell below or one percent below the buy above price
now suppose the price goes in a single stroke to 0.5 percent profit then its a net profit ,if stop loss price is hit i make a loss of one percent .but then again i put my prder back doubling the amount (if i had sold 50,000 shares at sell below ar 1179.02 then i will place a order of 1 lakh shares of sell below 1179.02 and modify my buy order from 0.5 percent to 0.7(may be 0.8) percent down from 1179.02.If suppose u make net loss of one percent ,then on the next day u must double the value of shares for sell below or buy using any of the three values given above.
some people keep a stop loss of 0.7 to 0.8 percent or some wait for two minutes after theit sell below or buy above order is triggered and exit if the profit order is not struck.
its simple, IF NOT TODAY, DEFINATELY TOMORROW.
Its best thing u start with small amount for a particular share so that u can easily double it .
take around twenty stocks like reliance, rel cap. ongc, tata mot, tata power, tata steel, dlf, abb, infys,wipro,hdfc, hdfc bank,icici bank, itc,bhel, LnT ,
which have good volume and best for trading

dheeraj, thanks for the method. looks interesting, will follow this method. meanwhile one small request, can use paragraghs and space line between paras, so that its easy to read. just a suggestion. also if you can post today's trades by evening, it will really help nderstan the method better

good luck

 

[rkkarnani]

Really an excellent gesture to share a working method!!! Only a few people do it, though its an ongoing practise on this Forum.
Thanks Dhiraj. Will post my queries if any on your 'system?
The factors :
0.433
0.7666
1.355
Are these constant for all Stocks/Futures and valid for all time frames?

 

[srichakra]

Excellent of you to share this. It would really help in all of us understanding it better,if you could post the calcualtions for todays trade with the detailed workings.
1. Does this .433, .766 and 1.35 work for all the stocks and can this be used for Nifty Futures as well.
2. In your orginal post,you had mentioned 36,63 and 92 as filters. are those numbers not relavant when compared to the ratios now being mentioned.

Sri

 

[pkamalesh]

Dhiraj...a very interesting system to trade in stocks...will try out for sure..thanks buddy...

 

[santhosh44]

The factors :
0.433
0.7666
1.355
Are these constant for all Stocks/Futures and valid for all time frames?

Dhiraj, I too have the same question. Will these 3 values remain the same for ALL the stocks? Please reply. Also could you tell, how you've arrived at these constant values?

Thanks a lot for the strategy.

 

[dhiraj11378]

some replies to the querries
i personally do not use this method in fututres .So i would suggest u all to use only in cash .
the time 10.15 is important u can start from there and by execution of some oerders suppose its 10.45 around then also u can put ur some last orders , but beyond that i suggest that u must not .
if u have a profit using first value then do not trade back in that pariticular stock
money management is important if u have a loss , then suppos u double ur amount then u must increase ur profit margin slightly . that depends on u ,to make up the losses.
do not ask of constant values .these are as per my studies and what i think
if profitable for u can use these or u can shift to ur own values .
if u have a loss on a particular day use the values for the next days not the previous days values.
any body paper tradng it or actually trading it .
do write more on this
dhiraj

 

[dhiraj11378]

important thing use this only in NSE CASH

 

[srichakra]

Dhiraj,

It seems to be a good strategy. Would you mind explaining the ratios and what is the reasoning behind the .4333/.7666/1.35 etc......
Let us know, if you have reservations.

Thanks,

Srini