Re: Algorithm
Plz someone reply to this : http://www.traderji.com/day-trading...y-strategy-profit-everyday-53.html#post328400
Algorithm as I have understood (Things that i have still not understood in red, also what I have understood might be wrong,I wud be thankful if someone clarifies)
1) Do not trade till 10:30 am.
2) At 10:30, check 30 min stoch if it is bullish or bearish. Crossover might have taken before, that doesnt matter.
Do we see OB/OS levels in 30 min TF?
2) Now till 11:00 drop down to 5 min TF and see 5 min stoch. Lets say step 2 gave us bullish. So now we see if 5 min stoch is bullish or not. However it should not be overbought. Again we check for only bullish or bearish like in point 2 and not for actual crossover. The crossover might have taken back earlier.
1)Can a oversold bearish 5 min stoch be taken as a bullish signal ?
3) As long as point 1 & 2 are satisfied, we look for EMA crossover. Here we look for actual crossover. What this means is that suppose 30 min stoch is bullish but 5 min stoch at that time is bearish and during this time EMA crosses up. Now sometime later, 5 min stoch turns bullish and the EMA is still up, so we DON'T enter the trade, we wait till EMA crosses back down and then crosses back up(and at that time both 5 min & 30 min stoch are bullish). Its then when we enter the trade.
In short, 5 & 30 min stoch are neccessary pre-requisites & EMA crossover is the entry point. If the entry point is missed, we do not enter till we get another entry point.
4) Stoploss is the low of previous bar of entry or the low of the last to last bar whichever is lower.
5) One exits when 5 min stoch changes from bullish to bearish.
Do we exit if EMA crosses back or 30 min stoch changes from bullish to bearish or at anyother combination?
1) Do not trade till 10:30 am.
2) At 10:30, check 30 min stoch if it is bullish or bearish. Crossover might have taken before, that doesnt matter.
Do we see OB/OS levels in 30 min TF?
2) Now till 11:00 drop down to 5 min TF and see 5 min stoch. Lets say step 2 gave us bullish. So now we see if 5 min stoch is bullish or not. However it should not be overbought. Again we check for only bullish or bearish like in point 2 and not for actual crossover. The crossover might have taken back earlier.
1)Can a oversold bearish 5 min stoch be taken as a bullish signal ?
3) As long as point 1 & 2 are satisfied, we look for EMA crossover. Here we look for actual crossover. What this means is that suppose 30 min stoch is bullish but 5 min stoch at that time is bearish and during this time EMA crosses up. Now sometime later, 5 min stoch turns bullish and the EMA is still up, so we DON'T enter the trade, we wait till EMA crosses back down and then crosses back up(and at that time both 5 min & 30 min stoch are bullish). Its then when we enter the trade.
In short, 5 & 30 min stoch are neccessary pre-requisites & EMA crossover is the entry point. If the entry point is missed, we do not enter till we get another entry point.
4) Stoploss is the low of previous bar of entry or the low of the last to last bar whichever is lower.
5) One exits when 5 min stoch changes from bullish to bearish.
Do we exit if EMA crosses back or 30 min stoch changes from bullish to bearish or at anyother combination?