iCharts Discussions

SwingTrader · Posted: Thu Sep 08, 2011 11:04 am Post subject: MTT - Swing / Positional System

This is the initial draft of the MTT - Swing / Positional trading rules. Swing (holding trade for more than a day) and positional (holding trade for more than a week or so). My definitions for swing/positional could be too tight....I am just trying to post MTT system criteria that tries to get us into trends (continuing trends or reversals) that last for few days to couple of weeks.

Chart Setup:

1. Higher Timeframe (HTF) - 60 mins

Indicators : EMA(13), SMA(34), EMA(89), STS(13,5,5)

2. Lower Timeframe (LTF) - 15 mins

Indicators : EMA(13), SMA(34), CCI(5)

REGULAR TRADES

Trade Setup (Initial Criteria) :

Longs (Regular):

On HTF EMA13 must be above SMA34. The role of EMA89 will be explained later.

Shorts (Regular):

On HTF EMA13 must be below SMA34. The role of EMA89 will be explained later.

Once the above criteria is satisfied, switch to lower timeframe for signals in the direction of above trade setup.

Trade Signals :

Longs (Regular):

On LTF CCI5 must go down and hit -100 and then it should close above 0 after this to give the long trade signal.

Shorts (Regular):

On LTF CCI5 must go above and hit +100 and then it should close below 0 after this to give the short trade signal.

REVERSAL TRADES

Trade Setups (Initial Criteria):

Longs:

On HTF STS must be at or below 30. If HTF is in a strong up trend (both EMA13 and SMA34 are above EMA89) then STS between 40 and 30 also is acceptable for trend continuation reversals in the direction of main trend (uptrend).

Shorts:

On HTF STS must be at or above 70. If HTF is in a strong down trend (both EMA13 and SMA34 are below EMA89) then STS between 60 and 70 also is acceptable for trend continuation reversals in the direction of main trend (downtrend).

Trade Signals :

Longs :

On LTF go long on a close above the most recent swing high that is above both moving averages EMA13 and SMA34 OR at least the bar breaking the swing high must close above both moving averages.

Shorts :

On LTF go short on a close below the most recent swing low that is below both moving averages EMA13 and SMA34 OR at least the bar breaking the swing low must close below both moving averages.

Initial Stops :

Few points above/below the most recent swing high/low.

Trailing Stops :

Few points above/below most recent swing high/low. Optionally, one can trail using EMA13 of high/low on "Live Charts". Tweak EMA parameter as per the scrip volatility and trade holding time preference....start with 13 as the parameter.

I will continue to monitor this and tweak as necessary after rigorous testing and then release a final draft of the trading rules.

SwingTrader · Posted: Thu Sep 08, 2011 11:07 am Post subject:

rvg,

Try the settings below instead of what I gave you few days ago....I have tested these better. The only main difference is the holding time for trades - it is much longer in this system now.

sambhaji_t · White Belt Joined: 31 Mar 2008 Posts: 135

SIR,

THANK YOU VERY MUCH.

rungta1040 · White Belt Joined: 29 Sep 2011 Posts: 1

SIR,
For gold i m plotet same value as per strategy by observing it needs some modification for gold trading. i also obseving live chart on TF 15 wd additional dochain by default value nd parabolic sar defalut value nd kept duration for 5 days.
plz spair ur valuable tym nd guide for modification
on TF 60....how to observe swing pivot plz guide on chart
presently on TF 60 STS (13,5,5) is 85.22.......when reversal will occur as ema 13 nd sma 34 r below ema 89 nd candle iz above ema 89

plz guide on priorty

thanx
"tulsian1107"

tulsian1107 · White Belt Joined: 03 Jan 2009 Posts: 28

Plz provide statergies for gold,silver n crude alongwid livcharts including parabolic sar n donchain fr all menion above {specially exist statergies}....................

thanking you

tulsian1107 · White Belt Joined: 03 Jan 2009 Posts: 28

sir,
Plz provide statergies for gold,silver n crude alongwid livcharts including parabolic sar n donchain fr all menion above {specially exist statergies}....................

thanking you

tulsian1107 · White Belt Joined: 03 Jan 2009 Posts: 28

gud after nun sir,

plz provide me nam of few through momenum stocks,dat can be traded in dis startegy..........

thanking you

k.k.tulsian

SwingTrader · Posted: Mon Nov 07, 2011 7:53 pm Post subject: Re: stocks dat can be traded

SwingTrader · Posted: Mon Nov 07, 2011 8:05 pm Post subject: Update on swing/positional system

I have been trading this system live and have made the following settings changes :

60 mins : EMA (34), SMA (89), STS (34,8,5)

15 mins : EMA (34), SMA (89), STS (13,5,5)

These settings have worked better, earlier settings had too many whipsaws and were giving too many trades too.

NOTES :

1. I have traded using these settings on cash only, those who do it on futures please be careful as the SLs could be wide (as it is usually for swing/positional systems).

2. I have replaced CCI on lower timeframe with STS as one does not need CCI's fast signals here.

3. Trailing stops : I have been using a bit wider stops, implementing these using Donchian channel on "Live Charts". Please experiment and decide the setting, this depends on your risk tolerence.

SwingTrader · Posted: Mon Nov 07, 2011 8:14 pm Post subject:

One more variation I am doing a lot using this setup....when STS is overbought on HTF in an uptrend AND price is significantly far above the 34/89 EMAs on HTF then I am using 13EMA/34SMA crossover to get into a small counter-trend trade (short in this case) until moving averages catchup with price.

Example : traded TATASTEEL cash the way described above to grab three profitable counter-trend trades : Long on 04th Oct, Short on 14th Oct and Short on 1st Nov.

All my live system testing is done on cash. For futures some adjustment is necessary due to the leverage. Keep an eye on risk....which is the most important factor in a trading system. The rest works out fine eventually if risk is taken care of.

Padkondu · White Belt Joined: 23 Jan 2008 Posts: 120

SwingTrader · Posted: Mon Nov 07, 2011 9:38 pm Post subject:

Padkondu,

Very interesting stuff....would certainly like to see more info on your system. But please do this....post your system in "Strategies" section and then post a link here to it here. This is just to make sure there is no confusion.

About the indicators & settings itself....I have settled on these higher level parameters as I am trading few counter-trend variations also as part of this system. These counter-trend signals get setup when longer moving averages are used (when price moves far away from these averages). I am using this more as a positional system instead of swing. Your indicator settings could work well for swing. My holding time for this system is longer...

Anyway, I would be looking forward to take a look at your system in detail....please do post as suggested above. Thanks.

Regards.

sandew · White Belt Joined: 02 Feb 2009 Posts: 174

Padkondu,

Good work, keep posting in "Strategies"

amartulsiyan · White Belt Joined: 08 Dec 2009 Posts: 1

sir,

if apporoved plz allow par sar to add on bod time frame.
i observed on gold-mx-5feb as under; on htf before opening on 14 feb ema -13 was below sma-34 & on sts 13,5,5 blue line was below red line at value 69.73, signal was short par sar was also in sell signal prior opening.d same position existed till closing on 15 ..

on lower time frame i hav used wma 3 n ema 13 instead of ema 13 n sma 34 n sar.

on opening of 16 on htf par sar given long signal n sts 13,5,5 was already in long signal bt ema 13 was below sma 34,bod sts n par sar was in long til 17 closing . i think it wil be long on opening of 19.
on lower time frame on 16 par sar given buy signal at 12:45 pm ,whereas at 12 pm wma 3 as given buy signal at 12 pm , whereas ema 13 n sma 34 given buy signal at 2 pm.plz approved n modify d above observation fr mcx startgy using sar.

st sir,

ITS ME K.K.T WID TULSIAN 1107,EVN ITS MA OWN 2ND ID FR EQUITY N F&O TRADING,MY STAF HAS POST WID DIS ID.......PLZ REPLY FR WT I HAV MAK TO MENTION ABOVE.....

SwingTrader