Nifty Futures Trading Strategy

#11
arun said:
Also can you explain the logic of this system?
The logic of the system is to exploit the situation of weak hands vs strong hands.

Please open the attached chart below before reading on!

Prices are engineered by the strong hands to take advantage of the weak hands. Its always been that way, and it always will be that way, unless, somehow, human nature can find a way to change without the help of divine intervention.

Look at the attached chart below to see some engineering by the strong hands.

1 Prices start dropping down into a major low area.

2 Prices pull back and consolidate for an extended period of time.

3 Prices are squeezed even lower by the strong hands, sufficiently lower to drive out all of the weak hands. Anyone bullish on this market is now ready to or has already capitulated. During and following the squeeze, the strong hands accumulate everything available at low, low prices. The strong hands now own this market.

4 Since there is no one left to sell, the only thing that can happen is for demand to take hold and prices to rise. The strong hands sell into rising demand. The transfer of wealth eventually changes from the strong hands to the weak.

You can see this same scenario time after time on quarterly, monthly, weekly and daily charts. It also takes place intraday. Only the players and the magnitude of what takes place are different. The driving force, however, is always the same greed.

The strong players in the market are patient. They can afford to be. They know they need only a few large well-planned moves to make their fortunes even fatter than they already are.

My trading system helps to visually see what is happening in the battle between the weak hands & the strong hands. And also of course joining the strong hands (winners) in this case!!!

Open your price charts and check it out for yourself!
 

Attachments

#12
Phew! This happens all the time and many of us choose to ignore it. Having a mechanical trading system like the one in this thread is a great advantage to keep your cool and time your entry into the market.

Also according to your post the intermediate term trend has turned bearish. This of inidcates lower prices ahead.

Good analysis. I like the idea of using a mechanical trading system for my trading.
 
#13
TradingSystems said:
Today I have attached two charts. One is the daily chart which has also been shown in my earler posts.

The other is a weekly chart of the Nifty which shows the beginning of a new downtrend after 35 weeks of being in an uptrend. This clearly indicates that the intermediate trend has turned down after being in an uptrend of 35 weeks.

Any comments please post them here.
Fantastic system , Trading systems.
Regarding data for futures , which data is to be applied as the expiry date nears ? This is due to the fact that the next month futures either trade with discount(dividend,etc.) to the existing month futures or either due to short-covering , the existing futures may carry a huge premium to spot(or next month futures) in last couple of days. Is this likely to change the BUY/SELL signals for your system ?
 
#14
raj69 said:
Fantastic system , Trading systems.
Regarding data for futures , which data is to be applied as the expiry date nears ? This is due to the fact that the next month futures either trade with discount(dividend,etc.) to the existing month futures or either due to short-covering , the existing futures may carry a huge premium to spot(or next month futures) in last couple of days. Is this likely to change the BUY/SELL signals for your system ?
I prefer to use the current month contract till the last trading day and then switch positions in the last few hours.
 

sh50

Active Member
#15
Very interesting post. Well explained.
You can see this same scenario time after time on quarterly, monthly, weekly and daily charts. It also takes place intraday. Only the players and the magnitude of what takes place are different. The driving force, however, is always the same greed.
Itmay not be a bad idea to do a similar exercise for two extreme situations-intraday and quarterly charts since you have said different magnitudes. I have met traders who do only intraday nifty and even from that perspective, it would be an interesting exercise.
 
#16
TradingSystems said:
I prefer to use the current month contract till the last trading day and then switch positions in the last few hours.
Well , I have few more doubts about your fantastic system . It is impossible to take action in the last few hours of expiry date as your system looks to be based more on closing prices . In a volatile market , the latest example may be of todays closing hours , about more than 50% of huge morning gains were washed out during closing hours . Though the trend is important factor here , how to get to the entry price , exit price & most important STOP-LOSS ?
 
#17
TradingSystems said:
I prefer to use the current month contract till the last trading day and then switch positions in the last few hours.
Few more doubts . Your system seems to be based more on closing prices .
i.e. If price closes above the previous highest high , BUY & vice-versa . Is it really possible to take positions in a volatile expiry date (as on today , almost more than 50% of the gains were washed out in the last hour & players were caught on wrong-foot ) ?. Even though trend is more important here , so also the entry price & stop loss are . How does your system calculate these figures ?
 
A

amarnath

Guest
#18
TradingSystems said:
The logic of the system is to exploit the situation of weak hands vs strong hands.

Please open the attached chart below before reading on!

Prices are engineered by the strong hands to take advantage of the weak hands. Its always been that way, and it always will be that way, unless, somehow, human nature can find a way to change without the help of divine intervention.

Look at the attached chart below to see some engineering by the strong hands.

1 Prices start dropping down into a major low area.

2 Prices pull back and consolidate for an extended period of time.

3 Prices are squeezed even lower by the strong hands, sufficiently lower to drive out all of the weak hands. Anyone bullish on this market is now ready to or has already capitulated. During and following the squeeze, the strong hands accumulate everything available at low, low prices. The strong hands now own this market.

4 Since there is no one left to sell, the only thing that can happen is for demand to take hold and prices to rise. The strong hands sell into rising demand. The transfer of wealth eventually changes from the strong hands to the weak.

You can see this same scenario time after time on quarterly, monthly, weekly and daily charts. It also takes place intraday. Only the players and the magnitude of what takes place are different. The driving force, however, is always the same greed.

The strong players in the market are patient. They can afford to be. They know they need only a few large well-planned moves to make their fortunes even fatter than they already are.

My trading system helps to visually see what is happening in the battle between the weak hands & the strong hands. And also of course joining the strong hands (winners) in this case!!!

Open your price charts and check it out for yourself!



Hi all,

Trading LEFT HAND side is not a problem to any member here i think :D
 
#19
I will be posting a new EOD chart here everyday for the next one month for all of you to see. I think that the chart will speak for itself.

If you are short term trader one can use this trading system in the intra-day time frame. After I finish the one month EOD posts I will start with the intra-day posts.
 

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