Intraday/Positional trades (Using 3-15 system on 15mins/1H chart)
Tried following the 3-15 system on the daily chart and have been unsuccessful over the last couple of months. Its a great system in a trending market, but there were too many whipsaws in a flat market (the last two months). So I am gonna try using the system on the 15mins chart (for Intraday). Will try to use the SH swing system on the 30mins chart on the 15min chart. I will not be able to monitor the market continuously (maybe once every 15-20 mins), so will need to see how successful I can trade on a 15mins chart. Like most traders, have never been disciplined about trading. I am hoping starting a diary here will enable me to follow the following rules and be more disciplined.
PS - Will also trade 3-15 Daily chart for positional trades. (Only 1-2 lots for carryover)
1. Will Buy or Sell NIFTY lots in multiples of 4 (Starting with 4).
2. Will book profit on 50% (Initially 2) of lots after 20 points. Have made mistake of not booking profits and positions have turned unfavorable thereafter.
3. Will book 25% (Initially 1) of lots after 40 points.
4. Will hold the final 25% (Initially 1) of lots. It will be carried over to next trading day. There will always be one lot carried over to next day, with exceptions being weekends or big events (like RBI meet, Euro meet etc).
5. There will be no stop loss. Will follow SAR. Once the 3-15 crossover happens will reverse positions.
6. Since 25% (Initially 1) of the lots is carried over, will add 75% (Initially 3) of lots or reverse the position based on next trading day open.
7. In case by EOD (3PM) the 20/40 points are not reached, will square off 75%/25% of the lots between 3:15-3:30 at some random, hopefully profitable, price.
8. If SAR happens after 3PM, then while reversing positions, will take new position only on 25% (Initially 1 lot) of the lots.
9. Will be following charts and not go by gut feeling or other whims (Would be crorepati by now if my gut feeling worked).
Will be trading on Zerodha and ICICI (Have some shares and can use those for margin on ICICI). Will definitely be using Zerodha as brokerage is low. Will try to use ICICI also from time to time (Brokerage is about Rs100-110 per lot inclusive of all taxes and charges). Will also occasionally buy/sell options (Will Sell options on ICICI, only when I am sure I can let it expire, selling closer to expiry). Will mark the options buy value as loss on the date of purchase and profit on the date of sale of options.
Will post all my trades here by EOD or next day morning with P/L after brokerage. Will also track P/L series wise and reassess the strategy every 3 months.
24-Nov-2012 : Well the brokerage seems like a big killer when trading in futures. Gonna use options (ITM or just OTM) for Intraday and Futures for positional. The rules are still the same, will try to book profits after 5 points (50%) and 10 points (25%) and let the final 25% roll. Still got to figure out a Stop Loss to ensure that the final 25% of positions don't eat up the profit gained through the initial 75% (if they are profitable). Will try to keep a stop loss of 3-5 points, once a position is open.
23-Nov-2012 : Signed up for a demo account with xtb which gives NIFTY future data with MT4. The values are off by 2 points (-2 for buy and +2 for sell), so the averages must also be off by similar amount and so the crossovers must be roughly off by 2-4 points. I think the demo is for 30 days. If the first 30 days are profitable might see if I can subscribe to someone providing live NIFTY futures data.
Tried following the 3-15 system on the daily chart and have been unsuccessful over the last couple of months. Its a great system in a trending market, but there were too many whipsaws in a flat market (the last two months). So I am gonna try using the system on the 15mins chart (for Intraday). Will try to use the SH swing system on the 30mins chart on the 15min chart. I will not be able to monitor the market continuously (maybe once every 15-20 mins), so will need to see how successful I can trade on a 15mins chart. Like most traders, have never been disciplined about trading. I am hoping starting a diary here will enable me to follow the following rules and be more disciplined.
PS - Will also trade 3-15 Daily chart for positional trades. (Only 1-2 lots for carryover)
1. Will Buy or Sell NIFTY lots in multiples of 4 (Starting with 4).
2. Will book profit on 50% (Initially 2) of lots after 20 points. Have made mistake of not booking profits and positions have turned unfavorable thereafter.
3. Will book 25% (Initially 1) of lots after 40 points.
4. Will hold the final 25% (Initially 1) of lots. It will be carried over to next trading day. There will always be one lot carried over to next day, with exceptions being weekends or big events (like RBI meet, Euro meet etc).
5. There will be no stop loss. Will follow SAR. Once the 3-15 crossover happens will reverse positions.
6. Since 25% (Initially 1) of the lots is carried over, will add 75% (Initially 3) of lots or reverse the position based on next trading day open.
7. In case by EOD (3PM) the 20/40 points are not reached, will square off 75%/25% of the lots between 3:15-3:30 at some random, hopefully profitable, price.
8. If SAR happens after 3PM, then while reversing positions, will take new position only on 25% (Initially 1 lot) of the lots.
9. Will be following charts and not go by gut feeling or other whims (Would be crorepati by now if my gut feeling worked).
Will be trading on Zerodha and ICICI (Have some shares and can use those for margin on ICICI). Will definitely be using Zerodha as brokerage is low. Will try to use ICICI also from time to time (Brokerage is about Rs100-110 per lot inclusive of all taxes and charges). Will also occasionally buy/sell options (Will Sell options on ICICI, only when I am sure I can let it expire, selling closer to expiry). Will mark the options buy value as loss on the date of purchase and profit on the date of sale of options.
Will post all my trades here by EOD or next day morning with P/L after brokerage. Will also track P/L series wise and reassess the strategy every 3 months.
24-Nov-2012 : Well the brokerage seems like a big killer when trading in futures. Gonna use options (ITM or just OTM) for Intraday and Futures for positional. The rules are still the same, will try to book profits after 5 points (50%) and 10 points (25%) and let the final 25% roll. Still got to figure out a Stop Loss to ensure that the final 25% of positions don't eat up the profit gained through the initial 75% (if they are profitable). Will try to keep a stop loss of 3-5 points, once a position is open.
23-Nov-2012 : Signed up for a demo account with xtb which gives NIFTY future data with MT4. The values are off by 2 points (-2 for buy and +2 for sell), so the averages must also be off by similar amount and so the crossovers must be roughly off by 2-4 points. I think the demo is for 30 days. If the first 30 days are profitable might see if I can subscribe to someone providing live NIFTY futures data.
Last edited: