Quadra Safe Trading Strategy - I

[SavantGarde]

Re: Stocks To Keep A Close Eye On

Yesss.....It is a Valid Entry....!!!

SG

 

[adityasaraf007]

Re: Swing/short term Trading using Moving averages and DB/SB.

Hi TP,

Excellent idea.... will start another thread.... and move the Posts to the new thread....Guys...any ideas on the New thread name....!!!

Will mark all the Scrips mentioned and post them ....will take a little while... never marked so many charts in my life as the amount the number of charts done so far ...Today....

SG

Yeh sab sangat ka asar hai (mera).... Remember me at the starting of TTM WIP..... Yesterday, it was Kamleshji and today it's you....

BTW, looks like the rationing of Thanks Button has been uplifted....

 

[anayash]

Re: Stocks To Keep A Close Eye On

SG what's so special about Wilder's MA? Because I tried the same strategy on a few charts by replacing Wilder's MA with EMA. The trade set-ups I am getting are very much similar! The difference if any is negligible!

 

[SavantGarde]

Re: Stocks To Keep A Close Eye On

SG..


Here are my charts for LICHSGFIN 30 min charts
with 5,8,13 SMA + 50 SMA
with 5,8,13 EMA + 50 SMA
with 5,8,13 EMA + 50 EMA

for your comments........!!

[/URL] Uploaded with ImageShack.us[/IMG]

[/URL] Uploaded with ImageShack.us[/IMG]

Use of 50 EMA is better....but then people have their preferences....they are free to choose and tweak whatever works best for them...!!!

The first Short Entry is a Valid Entry marked in the Topmost Chart ....considering we are using the 30 Min. TF

Long Entry marked in the 3rd Chart is also correct.....!!!

SG

 

[SavantGarde]

Re: Stocks To Keep A Close Eye On

Hi Anayash,

Wilder's is a smoother average....and more sensitive to the trend......similar to Jurik's....!!!

Like I said earlier.....one can use any MA as long as one is comfortable with the idiosyncracies of the MA.....!!!

By the way...started the new thread in this section...it is called 'Quadra Safe Trading Strategy - I' so if you can post all relevant queries in the thread will perhaps be more helpful....for all those looking into the strategy seriously...!!!

For you... I will change the spelling to StrateGU....

SG

SG what's so special about Wilder's MA? Because I tried the same strategy on a few charts by replacing Wilder's MA with EMA. The trade set-ups I am getting are very much similar! The difference if any is negligible!

 

[asnavale]

Hi All,

I have gone through all the discussions in this thread. In less than 24 hours, this thread has come to 5th page. That speaks of the interest shown in the subject.

Several queries have been posted and SG has answered them. However, I am posting my replies also here in single post refering to each query. This way all answers would be available in a single post.

If Wilder's MA is not available in the software ??

Which EMAs can be used ?

Hi SG

Going through the charts posted for the new system ,have some doubts....

As I've understood Entry is on crossover of all 3 MA's above 50 SMA.
As I do not have Wilder's MA, did try it wth EMA's And SMA's...Looks like the entry points are much later than in Wilder's MA...Let me post the charts for yr comments..!

SG what's so special about Wilder's MA? Because I tried the same strategy on a few charts by replacing Wilder's MA with EMA. The trade set-ups I am getting are very much similar! The difference if any is negligible!

If you are not having Wilders, you can use Weighted MA (Shown in TP's query as W in the dropdown list). In fact, WMA (Weighted MA) gives earlier entries than even Wilders. But it also gives more whipsaws/pseudo entries. Unless we refine the strategy to identify the pseudo triggers we may either stick to Wilders if available or go with EMA or SMA.

@ SG, query quoted in the below chart, left side.

Sudris, the point marked by you for SL is not valid, although SG has said it is OK to tweak it. The reason is, the point marked by you is a High. The general rule for Stoploss is that, in case of Longs the SL should be previous trough (Low) and for Shorts, the SL should be previous Peak (High). Based on this Thumb Rule, the SL marked by you is incorrect.

SG, comments on your attached chart. Please let me know how would you handle it.

Please see that the Timeframe is 1 minute. Therefore, this type of doubts will arise. Change the timeframe to 5 min or 15 min, you will see clearly where is the Trailing SL and the zone you marked is well above the TSL. Till we are comfortable in interpreting the signals and choose correct ones, it is better to stick to higher time frames.

Your charts of LITL & Suzlon - the last bar is marked as a Demand Bar. I thought that a bar didn't get marked as a Demand/Supply bar till the next bar was complete. I thought that a bar gets marked only in relation to the next bar Suppose the next bar is lower ??

As SG has already mentioned that in the absence of a proper AFL for Quadra Safe Trading he is using my DBSB AFL. The DBSB AFL is based on a modification suggested by SG, in which the last Bar appears as DB or SB. Now I have made an AFL for quadra strategy and given to SG. Hope, you will see the charts in later posts with the new AFL.

SRTRASFIN daily charts with current system which is being discussed.

SG, where would you go long point 1 or point 2?

Regards.

The new AFL which I have made and given to SG will mark correctly where to enter.


I hope some of the doubts in the minds of those who are following this new thread by SG are now cleared to some extent. Further developments will result in modifying the AFL and make it more effective.

One request to all of you from me is, DO NOT JUMP AND TAKE TRADES WITH THIS STRATEGY UNLESS YOU HAVE COMPLETELY UNDERTOOD IT. TRY TO FOLLOW IT ON PAPER IN LIVE MARKET TO GET A REAL FEEL OF THE STRATEGY.


Regrads

-Anant

 

[vinst]

since most of the job is being done by 50EMA and its slope, what's the role of Wilders' MA's ?

 

[asnavale]

Here are two images of the charts, the upper one based on Wilders and the lower one based on WMA (Weighted MA). I have marked the Whipsaws in Light Blue rectangles and the Entry points in Pink Ellipses. By comparing the two images, you can see the difference in the triggers. WMA gives more Whipsaws but earlier entries whereas Wilders gives Few Whipsaws and late entries.

Wilders MA based:

WMA Based:

-Anant

 

[asnavale]

since most of the job is being done by 50EMA and its slope, what's the role of Wilders' MA's ?

EMA 50 is only telling us which direction the trend is. The Wilders MAs give us the points where the trade is to be initiated.

The EMA50 also serves as ultimate exit point.

-Anant

 

[sudris]

Sudris, the point marked by you for SL is not valid, although SG has said it is OK to tweak it. The reason is, the point marked by you is a High. The general rule for Stoploss is that, in case of Longs the SL should be previous trough (Low) and for Shorts, the SL should be previous Peak (High). Based on this Thumb Rule, the SL marked by you is incorrect.
Regrads

-Anant

Thanks Anant for the detailed explanation. I got the picture now.

I guess, I had mixed up the DBSB concept as per the auto-markings on the chart and came up with that SL.