iCharts Discussions

[stevenmat]

Since i have never seen any one posting this method of trading ... I thought i'll start...

Basically during the course i will post on this forum when there is a crossover. The best way to make use of this is to buy calls/puts. P

Although this method has almost a flawless profit making strike rate, the only problem with the method is that you get to take only a few trades. But the risk reward is quite appealing.

Just to give a recent example nifty had a bearish 3 - 15 day EMA crossover On feb 1st. and since i knew that this crossover would happen i bought 6100 puts at a price of 111.8 just before the close on 1st. and i squared off the position on feb 5th at 152 (Return of approx 36 %).

This way we can trade on the index when ever there is a cross over.

I will post on this forum when the crossover is just about to happen.

I know this forum will be dormant most of the time. But this method is for patient traders.

Cheers !!

[sonila]

[deepakms]

Hi Steve,

If it works well on the index,could work for stocks as well.
Please share ur views on this.

Thnx/Rgds
Deepak

[stevenmat]

[s.muthuswamy]

Though targets cannot be fixed in advance,
1. A LONG trade may be continued till the EOD candle closes below 3dema
line in RED.

2. A SHORT trade can be continued till the EOD candle closes above 3dema
line in GREEN.

Though a logical reason cannot be given for this , by an observation of charts of various indices and scrips , the above holds good.
Remember , all these on EOD basis only.

Further RSI(14) must be >50 for Long trade
and RSI(14) must be <50 for a short trade.
In the case of the long trade on 28-5-12 , RSI(14)=47 only. This may be the reason for this trade resulting in a loss.
Regards.
S.Muthuswamy

[skd2012]

Do not know much about the method. But happens to scan this. I see HDFC and MARUTI future are falling in the category for fresh short trade?

HEXAWARE in fresh long scan.

[anilnegi]

[stevenmat]

[stevenmat]

[Andre]

Stevenmat, Muthuswamy.....
Just for academic reason....why r we choosing 3*15 EMA crossover...why cant we shd choose 5*20...for the sake of taking better and reliable trend following...
since i am novice in technical trading pls pardon my ignorance in case of foolishness ...my limited understanding is this method has inbuilt advantage of stop loss and trend following....so how come 3*15 EMA crossover is best strategy rather than taking any other crossover....

Thanks
Andre

[stevenmat]

[opportunist]

This method I believe was developed and fine tuned by Alchemist. I had the privilege to learn directly from him though I no longer use it. However made a quick assessment on nifty EOD chart. Found that in 250 calendar days one could have made 1181 points on nifty - 1M.

Also the method I have chosen is a very SAFE one. Enter only after EMA crossover happens and one candle closes, that is the next day. Exit on flattening of 10 period Bollinger Band. It is so safe I can claim that never will anyone see a negative exit.

However ROI is low - around 23% in a month. (still very high for a sitting income). Stress is also very low as one needs to check only once a day.

For one nifty lot of assuming Rs.30,000/- one can make Rs.59,050 from 1181 points in 250 calendar days. Assuming 10% deduction in terms of brokerage, STT and transaction cost one can still make Rs. 53,000 from one lot of nifty -1M in 250 calendar days. So if some body can put in Rs. 12 lacs he can make Rs.21.3 lakhs in 250 calendar days almost risk and stress free.

Regards,

Oppo[/b]

[SUNILA]

Hi opportunist,

Can u explain exit in detail (Exit on flattening of 10 period Bollinger Band)

Thanks
Sunila

[opportunist]

[SUNILA]

Thanks opportunist for explanation.Yes flattening of BB is very vague and wll vary from trader to trader.i wll check the other option of exit and if any query i wll revert back to you.

Thanks
Sunila