Nifty 8DMA plus minus trading stratagy

[sspagro]

As far as I have understood, you have to wait for price to come back to 8DEMA ! Logically you will have a Long and Short trade alternately ! Well this is what I have understood.

Averagely We get 4 to 5 trade opportunity in a month as per my backdated trade records

 

[gkpc]

Averagely We get 4 to 5 trade opportunity in a month as per my backdated trade records

How did the trades go on 11th Sep ! Seems the price candle remained on the 8EMA touching both 27 points up and down !
Ofcourse I am talking about Nifty futures, dont have Spot chart , if not on 11th Sep. you can find such situation. Whats your suggestion for it!
Also where the price jumps and opens above or below the 8EMA!

 

[gkpc]

It is an excellent strategy ! I was using something similar but was not getting desired results. The fixed SL and Target is the game changer here ! Moreover I was using Nifty futures levels.
The results of this strategy cannot be quantified as each trader will return separate results irrespective of following the trades with strict and similar discipline.
Two things : Seeing the Spot and trading the future, though not difficult as the levels will be determined the day before. But there would be different time lag in executing the order : Short Nifty futures when Nifty Spot is below 8058 ! And not even that, you watch Nifty spot remain below 8058 for some time (this again would differ) hence the results would be different!
But looking at the charts, visually only one word comes out : "WOW" !
Thanks for sharing!

 

[timepass]

I dont use ny technical software!! Do u suggest Any particular site where we can check NF eod charts?

1) Register at www.icharts.in (free registration, no spamming)
2) Log in with your user details
3) Click on "Charts (Premium)"
4) In the "Symbol" field, write "NIFTY-1M"; in the "upper indicators", select the indicator you want; click on "Refresh Chart".

Here's the picture.

Hope this helps.

 

[sspagro]

How did the trades go on 11th Sep ! Seems the price candle remained on the 8EMA touching both 27 points up and down !
Ofcourse I am talking about Nifty futures, dont have Spot chart , if not on 11th Sep. you can find such situation. Whats your suggestion for it!
Also where the price jumps and opens above or below the 8EMA!

SPOT Chart much better instrument for our stratagy. future chart premium/discount keep changing you may get confuse. yes for advance order placement or alert you may refer futur chart levels.

 

[sspagro]

Keep trying wit other stocks/index as well & you gyus may share your own ideas strategies plz...meanwhile im working out other stock strategies will post very soon.
Have a good weekend

 

[malunana]

There is no doubt that the strategy is simple and useful. Though RH's valid doubt was not answered, I suggest we may use 27 points level for top up. That is in case of buy, when price crosses 8 DEMA from below, buy one lot. When price crosses 8DEMA plus 27 points, add another lot. Please remember, as per strategy 8DEMA plus 27 points is also SL for short and therefore, in case of of buy, we may treat the range between 8DEMA and 8DEMA plus 27 points as high risk range and above 8DEMA plus 27 points as low risk range,. Target can continue at 8DEMA plus 70. Let me know views of others

 

[rh6996]

There is no doubt that the strategy is simple and useful. Though RH's valid doubt was not answered, I suggest we may use 27 points level for top up. That is in case of buy, when price crosses 8 DEMA from below, buy one lot. When price crosses 8DEMA plus 27 points, add another lot. Please remember, as per strategy 8DEMA plus 27 points is also SL for short and therefore, in case of of buy, we may treat the range between 8DEMA and 8DEMA plus 27 points as high risk range and above 8DEMA plus 27 points as low risk range,. Target can continue at 8DEMA plus 70. Let me know views of others

I was discussing this strategy with a senior member here! He uses something similar : 9 SMA, with 0.025 pct as SL and 0.075 as target ! He is using it to trade options. He enters on MA cross as here and looks for a 18% to 20% gain the same day. He exits 30%qty if he gets it, if he has to hold on to the position overnight then his Target is 100% profit ! He takes a position in at the money call when price crosses MA+0.025% from below. If MA is 7700, he takes a Long in 7700 CE when Nifty Futures cross 7720 ! If the MA+SL is upto 7725 he takes position in 7700CE if its 7726 to 7750 he takes position in 7750CE ! He says he prefers round figures for Options as the same are more liquid and has smaller spread! If the trade goes adverse he is not in a hurry to exit though he maintains the SL level but does not exit. If he has booked a partial profit then he is still a bit slow in exiting! He PMed me in response to my query I posted for taking the SL and Tgt in percentage terms. Have requested him to post here along with a chart !

 

[gkpc]

I was discussing this strategy with a senior member here! He uses something similar : 9 SMA, with 0.025 pct as SL and 0.075 as target ! He is using it to trade options. He enters on MA cross as here and looks for a 18% to 20% gain the same day. He exits 30%qty if he gets it, if he has to hold on to the position overnight then his Target is 100% profit ! He takes a position in at the money call when price crosses MA+0.025% from below. If MA is 7700, he takes a Long in 7700 CE when Nifty Futures cross 7720 ! If the MA+SL is upto 7725 he takes position in 7700CE if its 7726 to 7750 he takes position in 7750CE ! He says he prefers round figures for Options as the same are more liquid and has smaller spread! If the trade goes adverse he is not in a hurry to exit though he maintains the SL level but does not exit. If he has booked a partial profit then he is still a bit slow in exiting! He PMed me in response to my query I posted for taking the SL and Tgt in percentage terms. Have requested him to post here along with a chart !

Along with charts , it would be helpful if trades are also posted for a 3/4 months. This would give a better idea of the method being followed. At first thought looks good !
As risk is more here so are the returns in trading Nifty futures than Nifty options!

 

[rh6996]

No charts but the trades from Jan to Jun , Copy pasted from an email :

I trade Options based on 9 DMA of CLOSE cross as detailed in my PM to you. I will try to mail you the chart, feel it a big hassel of uploading etc. However below are my trades with dates as requested and some details of levels too:

2Jan 2014 MA 6305, Entry Point 6290 Option: 6300PE BUY @ 92 X10 Exit 2X110 same day SL of cost hit on 10th Jan in bal 8 lots : Profit: 1800
13 Jan MA 6238 EP 6253 Op 6250 CE BUY @ 79 Same day no exit Did a high of 132 before SL hit on 24 Jan at 63 ! Loss : -8000
24 Jan MA 6313 EP 9297 Op 6300 PE BUY @ 28 Same day no exit ! Exited 10 lots on 27th Janat 103.60 as it opened up with a gap! Profit 37800
07 Feb MA 6084 EP 6100 Op 6100 CE BUY @ 92 Same day exit on close as mkt was closing below MA. Exit at 85.50 : Loss -3250
13 Feb MA 6066 EP 6051 Op 6050 PE BUY @ 72 Same day exit 2 lots at 86 , Exit on SL hit at 62 on 14th Feb : Loss -8200
17 Feb MA 60757 EP 6073 Op 6100 CE BUY @ 50 Same day no exit Did a high of 135 during the month Exit on 24th Feb @ 98.20 ! Profit : 24000

No trades in March, Mkt remaind above MA most of the time.

15 Apr MA 6778 EP 6760 Op 6750 PE BUY 43 ! No exit same day ! Tgt was 86 but exited when it hit a high of 83! We exited at 76. Profit: 16500
17 Apr MA 6773 EP 6790 Op 6800 CE BUY 37 ! Exit was placed at 44 on same day, did a high of 43! Exited on Deriv Close at 36 ! Loss : -500
29 Apr MA 6801 EP 6783 Op 6800 PE (MAY Expiry) @ 240X3 Did a high of 320 ! We kept a SL at cost and exited on 9th May at 240 ! Loss: Expenses
09 May MA 6745 EP 6762 OP 6800 CE @ 218X3 Same day exit 1 lot@ 270.During the month did a high of 700+ balance 2 were exited at 429.Profit: 13000 approx
02 Jun MA 7305 EP 7323 OP 7400 CE @ 60.80 Same day exit 2 lots at 74.80 balance 8 lots were exited at 120 : Profit : 25400
13 Jun Ma 7547 EP 7528 Op 7500 PE @ 61 Exited on same day as was closing was below close at 57 Loss : -2000
18 Jun MA 7610 EP 7590 Op 7600 PE @ 64.20 Exited same day at 76X2 lots Balance 8 lots hit SL at cost ! Profit 1120

In six months 13 trades with approx : 90000+ in 10 lots of Nifty Options !


July was excellent, Aug gave initial whips and then did good in later half!
Sep one short trade on 11th whipped, should have taken short on 15th but avoided as it was a big gap down ! Sep series Holding 8 lots of 8100 CE bought 10 lots at 57 on 18th Sep. Exited 2 lots same day at 69 ! Have dome a high of 86 after entry !