iCharts Discussions

[Rahulsharmaat]

Natural gas short at 184-- now 181---

TSL at 184.50-- and hold

[opportunist]

Rahul

I think this kind of strategy sounds good...backtesting may show good net results but it hides its inefficiency disguised as inevitable SL hits and incidental losses to be treated as expense of trading.

Whether it is 100 SMA high or 89 EMA high or any other EMA crossover strategy, exit strategy is most crucial. This is because exits ensure the real profit . The entry may be defined but after sometime the price peaks (or bottoms) and then it turns to not only eat up all profits but may also hit SL and result in losses.

In case of 834 method the exit, along with entry is clearly defined. Exit is when price cuts 8 EMA, much before it reaches 34 EMA. That ensures that as the trend reverses one can book profits at a good level and obviate the need to hit SL. In fact SL is nothing but avoiding large unprecedented volatility to suddenly go against overall trend. SL is not something we want to get hit but just a safety net.

Exit at some ad hoc level like 5 point target doesn't convince me. In fact it makes it seem like gambling, not a very well planned strategic trading decision.

These are some of my thoughts at this approach which I feel needed to be brought out lest people start making large unnecessary losses or highly inefficient small profits.

Regards,

Oppo

[Rahulsharmaat]

Thanks for your observation

What i am trading-- thats what i have posted

There are many many threads-- which are better in trading-- with all TA
i request people to follow them-- If they feel --setup posted by me will bring them loss---

Its my humble request




i will go on trading like this

I trade-----

Nifty
bank nifty

Relinfra
Tata steel
Hero Moto
Can bank

Nickel
natural gas


thats it

[smsmss]

[Rahulsharmaat]

I am not a call provider-- neither i have any motive of gain-- for posting my findings

Neither i claim and ask any one to trade this set up
I gave it here-- one can look into it-- if suits can trade-- else skip

[Rahulsharmaat]

natural gas TSL hit at 184.50

Long made at 187 yesterday went to 191

Now TSL at cost