iCharts Discussions

[hansraj456]

Sell Nifty Future at 5233 on 19/01/2010. If Nifty Future triggers at 5233, then place stop loss of 5283. The stop loss is valid for 19/01/2010 only. The trigger price is 12 EMA on closing price of Nifty Future as on 18/01/2010.

[cmulukuri]

[hansraj456]

[amitrajangulati]

Hi! Hansraj,

Can you please re-confirm the following:

Have taken a short position today at 5233.

For tomorrow (20-Jan-2010), if Nifty Future is above 5233 only AFTER 9.10am, then only we should go long.

The 12 EMA comes to 5232.43. I have rounded it off to 5233. Maybe, you would take 5232.

Thanks & regards,
Amit

[amitrajangulati]

Hi!

This is with regard to a post put up in this thread that mentioned about the compounding effect of Hansraj's system.

Attached is a snapshot of the logic behind making an astronomical amount after 5 years if one were to make 1200 points in a year, starting with an investment of 1 lakh.

I have not done the calculations, but this was posted on a blog of someone who is a full time trader.

Something to think about ...

Regards,
Amit

[hansraj456]

[mbkwillbe]

Hans,

The close price of nifty jan future is 5220.70 from the NSE site.

regards,
karthik

[amitrajangulati]

Thanks Hansraj for your reply. Actually, I wanted a clarification on the 9.10am rule. We need to wait till 9.10am, right, to see if Nifty Future is trading above the 12 EMA.

Thanks,
Amit

mbkwillbe: The closing price is 5224.15

[hansraj456]

[hansraj456]

Hi All

Hope all the members have now gone Short at at 5233 in Nifty Future Swing trading. So following is the call for going long in Nifty Future.

Buy Nifty Future at 5232 on 20/01/2010. If Nifty Future triggers at 5232, then place stop loss of 5182. The stop loss is valid for 20/01/2010 only. The trigger price is 12 EMA on closing price of Nifty Future as on 19/01/2010.

[amitrajangulati]

Hi Hansraj,

Went long in the morning at 9.10pm as Nifty Future was more than the 12 EMA (5232) and it was also more than the opening price.

For tomorrow (21-Jan-2010), the 12 EMA is coming to 5229
Nifty Future closed at 5214.55 which is already less than 5229

Could you please guide on how one should trade tomorrow. We could then add this as a rule.

Thanks,
Amit

[hansraj456]

[hansraj456]

Hi All

Hope all the members have now gone long at 5232 - 5242 in Nifty Future Swing trading. So following is the call for going Short in Nifty Future.

Sell Nifty Future at 5229 on 21/01/2010. If Nifty Future triggers at 5229, then place stop loss of 5279. The stop loss is valid for 21/01/2010 only. The trigger price is 12 EMA on closing price of Nifty Future as on 20/01/2010.

Thanks

[amitrajangulati]

Hi Hansraj,

Could you please help me with the following points:

1) Do we need to give more importance to the Nifty price at 9.10am compared to the Opening price or the 12 EMA.
Reason for asking is because I thought the 12 EMA is the value, based on which one needs to take the trades.

2) Stop Loss
Should the Stop loss be + / - 50 points from the 12 EMA or the Nifty price at 9.10am (whenever we need to take a position)
Reason for asking is because today, I had placed a SAR at 5182, which is 50 points away from the 12 EMA whereas you had placed a SAR at 5192 which is 50 points away from your buying price.

-----------------

Tomorrow’s trade
1) If the Nifty is trading below 5229 at 9:10am, but the price is above the Opening price, then what should one do … Hold longs or go short
Reason for asking is because we would be below the 12 EMA, but the price is above the Opening price at 9:10am

2) If the Nifty is trading below 5229 at 9:10am, and the price is lesser than the Opening price, then we would short. Would our stop loss be 5279 (5229 + 50) or + 50 points from the short price

3) If the Nifty is trading above 5229 at 9:10am, then we would be holding our longs. What should our stop loss be for the day? Would it be 5179 (5229 – 50)

Sorry if I am bothering you, but since this is new to me, I need your help. Thanks a lot for your patience.

Thanks,
Amit

[hansraj456]

Hi Amit

Here are your point-wise answers :

1) Do we need to give more importance to the Nifty price at 9.10am compared to the Opening price or the 12 EMA.
Reason for asking is because I thought the 12 EMA is the value, based on which one needs to take the trades.

Ans.: For opening price you have to place only two bids, one as per 12 EMA and other 10 point above or below, as the case may be, from the EMA, if both do not trigger in the opening then follow the rule of going short or long at 9.10am.

2)Stop Loss
Should the Stop loss be + / - 50 points from the 12 EMA or the Nifty price at 9.10am (whenever we need to take a position)
Reason for asking is because today, I had placed a SAR at 5182, which is 50 points away from the 12 EMA whereas you had placed a SAR at 5192 which is 50 points away from your buying price.

Ans.: You have to place 50 points stop loss from your actual trade price. Yesterday I went long at 5242 hence i placed SL 50 points below from 5242.

-----------------

Tomorrow’s trade

1) If the Nifty is trading below 5229 at 9:10am, but the price is above the Opening price, then what should one do … Hold longs or go short
Reason for asking is because we would be below the 12 EMA, but the price is above the Opening price at 9:10am

Ans.: Very good question, Amit. I have given answer for such situation in Hedging strategy, let me repeat here also. If at 9.10 price is above opening price and we are already long, we won't take any action because we are already long and price is moving up, but place bid to go short at opening price. Suppose now Nifty opens at 5200 and at 9.10 it is 5210, hold it until either it reaches 5229 or again 5200, if it goes below 5200, go short. If it comes above 5229, then revise trigger price for going short at 5229.

2) If the Nifty is trading below 5229 at 9:10am, and the price is lesser than the Opening price, then we would short. Would our stop loss be 5279 (5229 + 50) or + 50 points from the short price

Ans.:Then go short at whatever price is at 9.10 am and place SL 50 points away from the actual traded price.


3) If the Nifty is trading above 5229 at 9:10am, then we would be holding our longs. What should our stop loss be for the day? Would it be 5179 (5229 – 50)

Ans.: If Nifty is abovbe 5229 then don't do anything but go short if nifty again comes at 5229. You have to place 50 points stoploss if the trade takes place, otherwise if nifty remains above 5229 you have nothing to do but hold your long position with selling bid at 5229. If thereafter nifty triggers 5229 then place bid of 50 points.

Thanks