Karthik's EOD Strategy...

[anup]

Hi Guys,

Watch out for this page for karthik's EOD strategy. Once he defines rules, the thread will be kick started.. till then keep smiling and keep guessing :thumb::clap::clap::clap::clapping::clapping::clapping:

 

[karthik_sri]

Thank you for a separate thread...

I will share here the strategy which i came to know recently after searching for a strategy for EOD. I am impressed with the EOD strategy which SH has started years back and there were good response to the strategy as well and have seen people using the strategy now also and benefited.

This strategy will have EMA & ADX. EMA to identify the price trend and ADX to know the direction of the trend. This strategy is not holy grail and every EOD strategy will have losing trades (with SL hit) but the % of loss will be minimal.

Setup
Time Frame : Daily
chart: EMA 3 & EMA 10 on close price
ADX : 14

Entry Rule:

Buy : 3EMA cross 10EMA from below
ADX: +DI > -DI
SL : Low of the trade trigerred candle

Sell : 3EMA cross 10EMA from above
ADX: -DI > +DI
SL : High of the trade trigerred candle

Exit : When the price not touching 3EMA (or) some fixed % depending upon the risk taking appetite.

Important: There will be no trade if the condition of EMA & ADX both are not met

Some of the rules/strategy like exit rule taken from SH strategy which workd very well for exiting on right time.

I will post some charts with explanation for better understanding.

Karthik

 

[anup]

Thank you for a separate thread...

I will share here the strategy which i came to know recently after searching for a strategy for EOD. I am impressed with the EOD strategy which SH has started years back and there were good response to the strategy as well and have seen people using the strategy now also and benefited.

This strategy will have EMA & ADX. EMA to identify the price trend and ADX to know the direction of the trend. This strategy is not holy grail and every EOD strategy will have losing trades (with SL hit) but the % of loss will be minimal.

Setup
Time Frame : Daily
chart: EMA 3 & EMA 10 on close price
ADX : 14

Entry Rule:

Buy : 3EMA cross 10EMA from below
ADX: +DI > -DI
SL : Low of the trade trigerred candle

Sell : 3EMA cross 10EMA from above
ADX: -DI > +DI
SL : High of the trade trigerred candle

Exit : When the price not touching 3EMA (or) some fixed % depending upon the risk taking appetite.

Important: There will be no trade if the condition of EMA & ADX both met

Some of the rules/strategy like exit rule taken from SH strategy which workd very well for exiting on right time.

I will post some charts with explanation for better understanding.

Karthik

Karthik, Thanks for sharing the strategy..can u plz explain it with a chart..

 

[anup]

Ok karthik, let me try out your technique.. Guys watch out for ICICI Bank...
If it closes below 1128.89 then short can be initiated...Please find the attached chart..
Karthik,Please analyse.

Image: http://imageshack.us/photo/my-images/189/icicix.png/

 

[karthik_sri]

I have posted chart of SBIN. I have marked the EMA cross over and ADX crossover and the conditions of the rule.

1). The 3EMA crossed over 10EMA on 11.04.12 but ADX condition not met
2). The 3EMA still > 10EMA on 12.04.12 and this time ADX condition was met as +DI > -DI and the condition of BUY met
3). The buy order placed @ 2234.00 with SL of 2177
4). 13.04.12 the buy order executed.
5). 18.04.12 the price didnt touch 3EMA which means we have to exit from our position at the close price which is 2276.00
6). The exit order (sell order in this case) placed at 2276.00 and trigerred

The profit on this trade is Rs.42.00 (excluding brokerage/comm)

http://i.imgur.com/gDlyE.png

Karthik

 

[karthik_sri]

Ok karthik, let me try out your technique.. Guys watch out for ICICI Bank...
If it closes below 1128.89 then short can be initiated...Please find the attached chart..
Karthik,Please analyse.

Image: http://imageshack.us/photo/my-images/189/icicix.png/

The ADX is indicating the down trend by giving -DI > +DI. We need to wait for EMA crossover to satisfy the price trend (i.e 3EMA < 10EMA).

 

[anup]

The ADX is indicating the down trend by giving -DI > +DI. We need to wait for EMA crossover to satisfy the price trend (i.e 3EMA < 10EMA).

ya this can be kept in observation: should wait for EMA 3<EMA 10, then can initiate short

 

[null]

...
Important: There will be no trade if the condition of EMA & ADX both are not met

Hi Karthik,
I guess you have to update your rules to correct this typo ( adding are not to your original post)

BTW, I am trying to write the AFL for this strategy for ease of use. Let me see how much I can progress. I am learning to code strategies. Pl. let me know if you have already done it.

Thanks

 

[anup]

Hi Karthik,
I guess you have to update your rules to correct this typo

BTW, I am trying to write the AFL for this strategy for ease of use. Let me see how much I can progress. I am getting stumped with plotshape for buy / sell with 2 conditions (or defining buy/sell based on cross() & ADX condition). Pl. let me know if you have already done it.

Thanks

which typo are u talking about?..

 

[vikas2659]

This is a good strategy..i also read it sumwhere couple of years back & tried it for intra day trades also but with some modification.it worked..but needed some more refinement..then i left it for some other method..But still i cannot stop appreciating this...One can try EOD or some smaller tf according to one's temperament to bear SL..:thumb: