Augubhai
Hello, I have seen a lot of posts of yours in the 2652 thread started by Dhiraj.
I have been working on this 2652 system and it has loopholes, which I wanted to share.
I have depicted today's trade scenario (1st Nov 2013 ) for TATA STEEL on NSE (paper trade)
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TATA STEEL
Prev. High Prev. Low
338.3 324.15
Diff (Prev. High - Prev. Low) High by 10:30
14.25 340
Low by 10:30 Factor (0.433) * Diff
334.5 6.13
Sell
Sell Buy Stop Loss
333.87 331.87 337.2
BUY
Buy Sell Stop Loss
340.63 343 337.23
I placed both the orders by 10:35 AM(Capital:3,00,000) , the BUY order hit at 340.63(High), so bought 880 shares. At 12:46PM, Stop Loss was triggered and all 880 shares were sold for 337.23, Loss is 2992.
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I feel if the constant factor .433 was lesser (like say .233 then values would have been:
BUY
Buy Sell Stop Loss
337.8 339.5 334.
Then I would have bought at 10:39AM (887 shares) and sold at 10:56 AM with a profit of 1507.9
Please do throw some light on this.
Thanks
Ethicaldeal
Result: I placed both the orders by 10:35 AM(Captital:3,00,000) , the BUY order hit at 340.63(High), so bought 880 shares. At 12:46PM, Stop Loss was trigerred and all 880 sgares were sold for 337.23, Loss is 2992.