Karthik's Intraday Trading using EMA & CCI

[johnnypareek]

Example for long: You buy Reliance at 1000 Rs. Your target will be 1010 rs and stoplss will be 990 Rs.

Example for short: You sell Reliance at 1000 Rs. Your target will be 990 rs and stoploss will be 1010 rs.


Rgds

What about 0.01% filter??

 

[karthik_sri]

What about 0.01% filter??

It is 0.10% filter which means if Buy order is trigerred and High of the candle is Rs.1000/- we place our buy order at Rs.1001/- where we add 0.10% additional on the high price. Viceversa for Sell. This is to avoid false trap which means sometimes when we get buy signal and we place buy order at Rs.1000/- price will make high of Rs.1000.25 and thereafter it will go down! To avoid such circumstances we keep 0.10% cushion which we call as filter.

 

[karthik_sri]

AXISBANK (Futures) ----> Trade on 01.03.13

The 5 min candle was below 110 EMA till 01:50pm and we didnt had trade oppertunity. The CCI was below -100 sometimes and in such instances the price didnt met 0.10% filter and no Trade. The 5 min candle close above 110 EMA on 01:55pm with High 1360 and Low 1345.90 and CCI reading > 100

1). We place buy order at 1361.40
2). SL : 1350
3). Target : 1371.40
4). Result : Target achieved on 02:15pm (Profit Rs.2500 with lot size 250):thumb:

http://i.imgur.com/kG2iRjp.png

 

[moneywise]

AXISBANK (Futures) ----> Trade on 01.03.13
http://i.imgur.com/kG2iRjp.png

How do you place the order? Do you keep an eye on CCI and as soon as it reaches beyond 100 then you place an order on the last candle (long for CCI > +100 and Short for CCI > -100 of course after being on the proper side of EMA), while keeping in view the filter rule? What if the order is not executed on that candle because of the filter safety? Do you then keep moving the order to the next candle until either the order gets executed or the CCI value becomes less than 100? Why I am asking this is because sometimes the price moves so fast that by the time you identify the trade the target is achieved in the next candle itself and if you don't have your order intact you might miss the opportunity.

 

[karthik_sri]

How do you place the order? Do you keep an eye on CCI and as soon as it reaches beyond 100 then you place an order on the last candle (long for CCI > +100 and Short for CCI > -100 of course after being on the proper side of EMA), while keeping in view the filter rule? What if the order is not executed on that candle because of the filter safety? Do you then keep moving the order to the next candle until either the order gets executed or the CCI value becomes less than 100? Why I am asking this is because sometimes the price moves so fast that by the time you identify the trade the target is achieved in the next candle itself and if you don't have your order intact you might miss the opportunity.

Yes...if the filter rule is not executed in the candle I keep moving the implication to the next candle. FAST & ACCURACY is important in placing the order here as we have 300 seconds to place our order!

 

[moneywise]

Yes...if the filter rule is not executed in the candle I keep moving the implication to the next candle. FAST & ACCURACY is important in placing the order here as we have 300 seconds to place our order!

And you are doing this simultaneously for all the six scrips that you have under your scanner because the price on each chart is always either above the EMA or below it and is always offering a long or short opportunity?

 

[asnavale]

Let's go to the strategy!!

Setup

1). Timeframe : 5min chart
2). EMA : 110 period
3). CCI : 14 days

Why EMA 110? To be frank no idea but when tested proved with results to guage the TREND!

RULE

BUY / GO LONG CONDITION

a). The 5 min candle should be above 110 EMA.
b). CCI should be > 100. We consider CCI reading only for ENTRY not for EXIT. This CCI will act as a FILTER to avoid false Traps
c). A 0.10% filter on the High price

SELL / GO SHORT CONDITION

a). The 5 min candle should be below 110 EMA.
b). CCI should be < -100. We consider CCI reading only for ENTRY and not for EXIT. This CCI will act as a FILTER to avoid false Traps
c). A 0.10% filter on the Low price

EXIT : Rs.10/- min

SL : Rs.10/- (as I want to keep RR as 1:1)

Recommended Scrips : MARUTI, AXISBANK, LT, TCS, ICICIBANK & SBI

I have tested the strategy with the above scrips and hence posted as recommendation. Why I have selected the above scrip is bacause of the highly traded volume.

I will explain in detail with the Charts

Karthik

Hi Karthik,

A small doubt about the set up. You are recommending 5-min time frame. EMA of 110 periods which means 110 5-min candles. But CCI is mentioned as 14 days? Is it correct? I think it is a typo. It should be CCI 14 periods ( 14 5-min candles). Am I right? Or it is really 14 day CCI?

-Anant

 

[karthik_sri]

Hi Karthik,

A small doubt about the set up. You are recommending 5-min time frame. EMA of 110 periods which means 110 5-min candles. But CCI is mentioned as 14 days? Is it correct? I think it is a typo. It should be CCI 14 periods ( 14 5-min candles). Am I right? Or it is really 14 day CCI?

-Anant

Anant ji,
Yes...it is 14 period (14 5-min candle)...typo error of 14days...tks for pointing out!

Karthik

 

[paras_123]

great going Karthik............
CHEERS!

 

[kchandy442]

Dear kartik,
please advice on todays movement of ICICI (cash)
at 11:55 it crossed 110EMA and cci was -109 c=1056.55 L=1056.50 Sell signal generated
at 12:00 it crossed the 0.10% L= 1055.15
Target = 1046.55 NOT acheived
SL 1066.50

near end of day
at 15:24 it crossed 110EMA and cci was +109 c=1059.25 H=1059.95 Buy signal generated
at 15:30 it crossed the 0.10% H = 1062
Target = 1069.95
SL = 1049.25

My question is
1. is my target and SL numbers correct
2. since 1st sell set up was not achieved should i close the sell because buy set up appeared at 15:25
3. should the set up be c/f for next day
4. can i use the cash setup and trade in future