Hi AMit...i am looking for a purely mechanical system which i can teach my younger brother...i have developed one...want to compare with the existing ones.....
yes it would be great if you can share details of your system....let's see if things can be improved...though 500% returns are more than sufficient....
yes it would be great if you can share details of your system....let's see if things can be improved...though 500% returns are more than sufficient....
Let me give you brief of my system. Please understand that I've created this system with following in mind...
- minimum number of trade
- tight SL & little wider trail
- to be traded in nifty future with 30 min TF
System framework
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I use three EMA (FastAvg, SlowAvg, StopAvg).
Cross of FastAvg & SlowAvg defines uptrend
Cross of SlowAvg & FastAvg defines downtrend
SL is 25 points & Trail SL is 70 points
Entry Rules
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1. Primary entry at the cross of FastAvg & SlowAvg
2. Re-entries can be done on different conditions...
If exited due to scale-out than re-enter when price touches FastAvg
If exited due to SL or Trail than re-enter at the cross of FastAvg & StopAvg with certain conditions
Exit Rules
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1. If SL or Trail is hit on candle close basis (with a small exception on first candle of the day)
2. If Price moves (again closing basis) to far from mean (i.e. FastAvg) (scale-out)
Pyramiding (optional)
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You can add position once trend is flowing in your favor.
Adding position at touch of FastAvg (with certain conditions)
Adding position at touch of StopAvg (with few conditions)
Exit rules remain same for conservative trader
Exit can be splited for aggresive trader (not recommended)
Filters / Delayed entries (optional)
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I'm still working on this. However initial experiments suggests that VWAP will be very handy to decide whether or not to take a trade. Or delay the entry till VWAP works in our calculated range.
Improvement possibilities
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Avoiding whipsaw is my priority. System has produced 105 trades in last 18 months. However I've certain days where system has generated 3 trades & all wrong. You can atlest avoid 30 trades that as a human you may have not taken. But as I wanted to keep this 100% mechanical, I'm trying to find out mechanical solution to avoid this.
System Statistics
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Total trades : 105 (in last 18 months )
Successful trades 40
Wrong trades : 64
Currently in buy mode (trade is open)
Initial capital : 100,000 (to cover margin for 2 lots + M2M if any)
Current capital : 581280 (no pyramiding, strictly trading 2 lots only)
Do let me know if you need more details. Please find trade list for last 18 months here.
Regards,
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Also for those who wish to know evoluation process, please visit http://www.traderji.com/commodities/commodities/advanced-tra...potential.html
Please note that this was early days for this sytem & lot has changed after that. But you may get base AFL & other details from there.
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