Hi Friends,
As promised [here], I am back with the live results after extending Pride's intraday method to "Inter-Days"
. I would like to thank all the members who have helped me directly/indirectly in coming up with this method. This method should suite part-time traders the most as the involvement is theoretically very less.
Following is the setup:
1. Indicators Used:
EMA: 5 and 13
Stochastic: Period-8, %D-3, %K-4
Technical Patterns [Triangles, Channels, HnS, I-HnS, Tops, Bottoms, Wedges, Flags, Pennants and Candlestick patterns]
2. Time Frame:
60 minutes [1 hour]
3. Entry:
1. Enter on a crossover of EMA 5 and 13.
2. Enter with a minimum of "2X" Lots. i.e for example for Mini NF, minimum 2*1[where X=1] lots have to be bought.
4. Reversal:
1. Reverse the trade on the crossover of EMA 5 and 13 [Wait for the current bar to complete].
2. If we have had a reversal in the last two days, reverse with "1X" lots [i.e Enter with 1X lots].
3. If we fall more than 100 points or ~[1.5% - 2.0%] from the highs of the day we reverse our trade.
4. If there is a EMA crossover due to Gap up/down against our position, we should reverse with "1X" lots.
5. Adds:
1. If the Stoch's are in overbought/oversold region for more than 8 bars.
2. Based on technical analysis, if we find a pattern in timeframes < 60mins we should add.
3. Adds should be "Intraday", unless we find a pattern on higher timeframes such as 60mins or EOD.
4. Except for point "1", in all cases adds are optional. There is no strict rule for adding other than patterns mentioned on this site. If you can't add not a problem, follow the flow.
6. Exit:
1. When we have entered with 2X lots, exit 1X lot, when the stoch has a crossover and moves from overbought/oversold region to the neutral zone.
OR
2. When we have entered with 2X lots, exit 1X lot, when the stoch has a crossover in the neutral zone.
To summarize, this setup involves following the flow using EMA's and extracting juice through adds on the basis of Technical analysis and reducing losses by having adds on intraday. I have back tested this method from December 2008 to July 2009 for Mini Nifty Futures. The results are decent enough with a minimum of ~150 points [Feb 2009] to a max of ~750 points [July 2009]. I have excluded the election results in the back testing. On an average, we could expect 250 - 500 points per month based on this method. There are certainly places were this method could be improved and very much open for the same.
People, interested, please back test this method to your comfort for atleast 2-3 months [It will not take more than 1 hour]. My personal experience is that we need to have lot of patience just watching the charts - No panicking if the price falls 30-40 points in a flash .
Regards,
-Sri
As promised [here], I am back with the live results after extending Pride's intraday method to "Inter-Days"
. I would like to thank all the members who have helped me directly/indirectly in coming up with this method. This method should suite part-time traders the most as the involvement is theoretically very less.Following is the setup:
1. Indicators Used:
EMA: 5 and 13
Stochastic: Period-8, %D-3, %K-4
Technical Patterns [Triangles, Channels, HnS, I-HnS, Tops, Bottoms, Wedges, Flags, Pennants and Candlestick patterns]
2. Time Frame:
60 minutes [1 hour]
3. Entry:
1. Enter on a crossover of EMA 5 and 13.
2. Enter with a minimum of "2X" Lots. i.e for example for Mini NF, minimum 2*1[where X=1] lots have to be bought.
4. Reversal:
1. Reverse the trade on the crossover of EMA 5 and 13 [Wait for the current bar to complete].
2. If we have had a reversal in the last two days, reverse with "1X" lots [i.e Enter with 1X lots].
3. If we fall more than 100 points or ~[1.5% - 2.0%] from the highs of the day we reverse our trade.
4. If there is a EMA crossover due to Gap up/down against our position, we should reverse with "1X" lots.
5. Adds:
1. If the Stoch's are in overbought/oversold region for more than 8 bars.
2. Based on technical analysis, if we find a pattern in timeframes < 60mins we should add.
3. Adds should be "Intraday", unless we find a pattern on higher timeframes such as 60mins or EOD.
4. Except for point "1", in all cases adds are optional. There is no strict rule for adding other than patterns mentioned on this site. If you can't add not a problem, follow the flow.
6. Exit:
1. When we have entered with 2X lots, exit 1X lot, when the stoch has a crossover and moves from overbought/oversold region to the neutral zone.
OR
2. When we have entered with 2X lots, exit 1X lot, when the stoch has a crossover in the neutral zone.
To summarize, this setup involves following the flow using EMA's and extracting juice through adds on the basis of Technical analysis and reducing losses by having adds on intraday. I have back tested this method from December 2008 to July 2009 for Mini Nifty Futures. The results are decent enough with a minimum of ~150 points [Feb 2009] to a max of ~750 points [July 2009]. I have excluded the election results in the back testing. On an average, we could expect 250 - 500 points per month based on this method. There are certainly places were this method could be improved and very much open for the same.
People, interested, please back test this method to your comfort for atleast 2-3 months [It will not take more than 1 hour
]. My personal experience is that we need to have lot of patience just watching the charts - No panicking if the price falls 30-40 points in a flash . Regards,
-Sri
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