RKK, don't know how I missed your post earlier. but thanks for posting the 30min chart and putting in some rules for intraday trading.
Just sharing my views here
- I agree with your proposal of 30min TF cause it reflects the complete trading time of the market with complete bars of equal duration.
- To start with, using 5 points filter is fine. I would have preferred to attach it to say 10% or 20% of current ATR of 30m bar. So that it is adjusted for current volatility and price level of market.
- I was looking at chart and found that probably, it would be better to wait for 1 bar, after getting NR7 bar.. and then place stop limit entry order for trade. Most of the cases, whipsaws on 30m chart is not lasting for more then 1 bar.
- After enter ordre, stoploss can be stop and reverse order.
- IMO, the profitablity of the system will go to different level, if the position is taken overnight (swing position). Cause when we have NR day developing, we might see NRx on 30m bar as well. That range will be broken, but whole market is not showing any movement, so even if we are right, the potential opportunity will still be small.
Infact, in my view, on such low action days, market is at the mercy of operators and they are master in taking out hidden stops. so our entry on 30m TF will have more whipsaws.
But next day, when expansion takes place, we will be standing on sideline.
Position sizing can help here.. where we reduce position to 1/4th or 1/10th and take it to next day.
Another approach could be to use options to hedge overnight risk and remove the hedge when trading starts next day.
- Whatever I have mentioend are only my feeling, and logic. Until it is not backtested, we can't use these points to trade.
- Better to backtest the system over longer period (say from Oct 08 till now is reasonable period). If we are looking at manual backtesting then maybe we can find the period when market was in uptrend, sideway, downtrend and test for those specific days/periods..
- I also suggest Satya, some time back, to keep track of daily TF and see if NR7 is developing there. This will certainly give NRx bars on smaller TF and their break as well. So use that as entry, with much smaller stops and carry it over to next days, when daily TF also gets into expansion.
Hope this gives some more ideas about developing a system around it.
Open for further discussion on it.
Happy Trading
Just sharing my views here
- I agree with your proposal of 30min TF cause it reflects the complete trading time of the market with complete bars of equal duration.
- To start with, using 5 points filter is fine. I would have preferred to attach it to say 10% or 20% of current ATR of 30m bar. So that it is adjusted for current volatility and price level of market.
- I was looking at chart and found that probably, it would be better to wait for 1 bar, after getting NR7 bar.. and then place stop limit entry order for trade. Most of the cases, whipsaws on 30m chart is not lasting for more then 1 bar.
- After enter ordre, stoploss can be stop and reverse order.
- IMO, the profitablity of the system will go to different level, if the position is taken overnight (swing position). Cause when we have NR day developing, we might see NRx on 30m bar as well. That range will be broken, but whole market is not showing any movement, so even if we are right, the potential opportunity will still be small.
Infact, in my view, on such low action days, market is at the mercy of operators and they are master in taking out hidden stops. so our entry on 30m TF will have more whipsaws.
But next day, when expansion takes place, we will be standing on sideline.
Position sizing can help here.. where we reduce position to 1/4th or 1/10th and take it to next day.
Another approach could be to use options to hedge overnight risk and remove the hedge when trading starts next day.
- Whatever I have mentioend are only my feeling, and logic. Until it is not backtested, we can't use these points to trade.
- Better to backtest the system over longer period (say from Oct 08 till now is reasonable period). If we are looking at manual backtesting then maybe we can find the period when market was in uptrend, sideway, downtrend and test for those specific days/periods..
- I also suggest Satya, some time back, to keep track of daily TF and see if NR7 is developing there. This will certainly give NRx bars on smaller TF and their break as well. So use that as entry, with much smaller stops and carry it over to next days, when daily TF also gets into expansion.
Hope this gives some more ideas about developing a system around it.
Open for further discussion on it.
Happy Trading
