iCharts Discussions

[hansraj456]

Hi

I am back testing a system for trading in Nifty Future Positional trading with the swing. So far it seems to be working fine. The idea is to get around 1000 points in a year and there will never be any stop loss or target. We will be either short or long in nifty at particular given levels and will continuously remain invested. No fear of gap up or down opening etc. But the condition is, we have to do it for one full year with effect from the first entry. I will begin these calls during January contract month. I will further elaborate the rules of the game after finishing the paper work and back testing.

Thanks

[suprithvi]

nice.let the new year throw blessing on us by your method.we are eagerly waiting.

[hansraj456]

Yeah, so please wait for 2010

[hansraj456]

Hi

I am attaching Excel sheet indicating my trades in Nifty Future during 2009. Before giving the levels of Nifty Future to be traded, I will elaborate simple rules very soon. And of course, I will also disclose how trigger price is being decided.

Any querries, so far, in this regard are welcome.

Thanks

[kripalsinh8888]

hi!
hansraj >>>>

the members of icharts r very grateful to have a person like u over here............who is so open n kind in all aspects..........having no attitude or ego for the knowledge contained in him.........we r very grateful to have a person like u over here...........who shares all the knowledge n also the real practical techniques of earning......which I think very less people reveal in today's materialistc world >>>>>>

U r really doing a great job..........n keep up the same........

n as far as ur this swing trading strategy is concerned ........its also gud with consistent profits n fixed rules which r mechanical in nature.........so tht we stay out of the "Mayajaal of Greed n Fear " .

We hope to have this new strategy frm u as a gift n new starting of the New Decade of this Millenium with Profitzzzzz >>>>>>>

Thank u very much friend ,

Kripalsinh

[suprithvi]

well said Mr.kirpal.
People in this forum just dont believe on getting calls,they want to know why,how it works.Hansraj sir is just great ,he explains how it works.what to do and not to do.Hope we are heading towards a nice journey because of Hansraj sir.

[kripalsinh8888]

Yes Suprithvi ,

This shows tht a Common man with a Common Sense can do far more better than Superlative Minds........as.........Market is all abt common sense n nothing more........

as u might have heard :

" Common Sense is a Rare sense found in Rare people . "

Mr. Hansraj is just down-to-earth n very helpful !

[hansraj456]

Hi

Thanks for such an overwhelming response. My humble request to you all. When you get first payout of profit from my strategies, please buy some school bags, pencil boxes, painting colors, toys for poor children studying in community/public schools. This is the only remuneration I want from you all in return of my knowledge sharing and calls.

Thanks

[hansraj456]

Main Rules for Trading in Nifty Future Position Swing System

1. Always control your emotions. Never allow panic, greed and fear control your mind.

2. Never believe on news, believe on you way of investment. Avoid trading on the basis of open news.

3. When you are investing in this Nifty Future swing trading, DON'T MIX UP the trades of this plan with my other plan 'Future & Option Hedging Strategy'. Both have different sanctity, you may be long in Nifty Future in one plan but you may have short position in other plan.

4. So far as possible, trade in different plans in your different trading accounts. as it helps in keeping an eye on different positions as a particular time. I trade through off-line accounts by calling my broker to place trades on my behalf and I have different trading accounts for different strategies. I avoid to sit at broker's place during trading hours as frequently watching prices and atmosphere there also sometime instigates to take position, which may later prove to be wrong.

5. Now let's come to the point. As per my previous trading chart uploaded here, I am long in nifty since 23.12.2009 from the level 5034. I will hold this position till I decide to go short. I will be giving one figure for nifty future where I will short Nifty. For example, I am long in Nifty Future from 5034 with 1 Lot (50 Points), and my figure to go short on next trading day is 5074. If this level comes on next trading day (29.12.2009) I will go short with 2 Lots i.e. one for exiting the long position made earlier and other lot for making fresh short position in Nifty. Suppose nifty future does not trigger 5074 level, nothing will happen and my Nifty Long position will continue. Then after close of the market on 29.12.2009, another figure will be decided, which will surely be different from 5074 level and will be higher from this level. Again on 30.12.2009, if that new figure does not trigger, again I will hold the long position. That trigger may happen on next day or it may not happen for months. I have experienced both situations during last year (see my trades for last year).

6. So the summary is, you will always be either short or long in nifty. As I am already long in nifty as per this plan, next move will be to go short in nifty future. We will go short on 29.12.2009 at 5074 level, if that level comes, otherwise nothing will happen. We will place trigger price in our trading account on daily basis on a particular price point decided on daily basis on previous days closing and taking into account various other components of calculation. The trigger price point will keep on changing till nifty future price and that trigger point meet during any trading day. When they strike, only then we will go short in nifty future, otherwise, we will wait. Only Nifty future movement and price decided by us will decide where and when they meet and trade is effected. I will keep on giving that trigger price to go short till it is triggered, the day it's triggered, nifty may move in opposite direction, but that's not sure. There may be a chance that it trigger that point and again move up instead of coming down. On that day, no action will be required, next move will be decided after the close of the market and a new trigger point will be decided to go long. If that point triggers next day, we will automatically be in long position. We will keep on putting trigger points on daily basis in our trading account and will let the nifty decided what it wants to do.

7. If you see my last trading chart, there are few occasions, where I had to book loss due to gap ups or down or misbehavour of nifty around the trigger prices. There have been two types of occasions, one where I have bought or sold nifty 10 points away from the trigger prices. That happened as I used to place two trigger points in the system, even before opening of the market. For example, if I have to go long in nifty future, I place one bid for trigger price and another bid 10 points above that trigger price. If I have to go short in nifty future, I place one bid for trigger price and another bid 10 points lower than that trigger price. Out of 57 trades occurred, during last year, on 5 occasions, nifty triggered 10 points up or down from the actual trigger price. On second type of occasion, I had to decide during the market hours what to do and in such cases I booked loss of 63 points to 158 points in a day on different occasions. To over come such situation, I have carved out one another policy, but that policy is yet to be actually tested. From last few months, when my trade triggers, I am placing stop loss of 50 points above (if short) or below (if long) in the system. But that's yet to trigger as I am placing such stop losses since October. During the last year, on 6 occasions, such incident happened and I had to book loss of 590 points during the year. Now I have studied such situations very carefully and I believe that if 50 point stop loss (of course for two lots) is placed in the system as explained above, the loss can be minimised substantially.

8. Expected target for one year is around 1000 points, if we get more than that, that's just bonus, but 1000 points can be gained as per my previous experience and actual trades. Trading in Nifty future without any cushion is a risky game and risk is involved in this plan. You have to be prepared for initial losses, but when you will fully established with the swing of nifty prices, you will start getting actual profits. This plan is for one year, you have to be invested in this system for full year to reap the actual benefits. I expect you should not be panicked by seeing initial losses. As per my experience, initial losses are bound to come, but will be automatically covered by strategy itself. Whatever initial points we may lose, will come back as we will be either being short or long in nifty. We have to abide by all the rules indicated above in a very strict manner.

9. For one lot of nifty you need margin of around Rs.25000/-, it may differ from broker to broker, some are charging 23000 and others charging around 28000. So average brokers are charging aproximately Rs.25000/- on current nifty future levels. For one lot total capital is required around 35000 to 40000 (25000 for margin and remaining 10000 to 15000 mark to market cushion). During last year, on one occasion mark to margin cushion upto Rs.8000 was required to be used on my trades. After you get profit of around 200 to 250 points from the first investment, you can withdraw the additional money kept for mark to market cushion.

10. My suggestion is to start with miminum number of lots of nifty, even small traders can start with mini-nifty (20 points nifty). Only after they get acquainted with this system, they can increase the number of lots. Another suggestion - if want to increase number or lots, never indulge to start in-between but start placing bids for additional number of lots, and get invested only if price triggers otherwise, don't get indicted on the wrong side in between.

11. After a few weeks, I will also let you know how I reach that particular trigger point and after that you will be doing it on your own. First of all just get acquainted with the system and practice trading in nifty future in this way.

12. Don't compare this system with my other option and future hedging system. You should use both the systems simultaneously. if you want to stick to one system only, prefer option and future hedging system. If you capital does not permit that much, then use this system. After gaining sufficient profits, you should try to be invested in both the system as for longer period of time, both work as cushion for each other and ultimately, will result in more profits. As much as you invest in this way, you will get to know how these both work together.

12. So on next trading day i.e. 29 December 2009, place bid for nifty short at 5074. If that triggers or does not trigger, next trigger point will be decided on close of market on 29 December 2009 and will definitely be given before open of the market on 30 December 2009 and so on.

14. Please submit your querries on this system of trading in nifty future. I will try to give detailed answers to all the questions and doubts.

Thanks

[suprithvi]

Wow, we are ready sir. 1) can we place the order at 9.55 itself ? can we maintain order after 3.00p.m if it doesnt trigger.

[hansraj456]

Hi suprithvi

Yeah. You can place your bid as indicated before the opening of market or at 9.55 am and forget it. I place my bids at 9:30 am, however, it does not make much difference if you place your bid before or exact opening of the market. But you must get to know almost immediately when it is triggered. My broker's operator always immediately calls me back when my trades are triggered. That's why I prefer off-line accounts and I chose best operator with the broker to operator my account. If you are using online account, you will have to track yourselves whether the price has triggered or not.

If trade is triggered, place 50 point stoploss above that point i.e. 5074+50= 5124. If first triggers, you will be short in nifty. If both trigger, you will be long in nifty with 50 points loss at the time of trigger. But one thing will be decided, that's next trend of nifty. If you are short, nifty will probably go down, if you are long, nifty will probably go up. If nothing happens, just hold your breadth and wait for next day. start doing it from 29 Dec. and let's see on which day price triggers. Thereafter, you will always be invested in nifty either short or long.

Yeah you can maintain order even after 3.0 pm i.e. till the close of the market.

Thanks

[chandrujimrc]

Hi Hansraj,
As per your earlier chart ,I think sell already triggered @5185 on24/12/2009.Let me kindly clarify please.


Ravi.

[chandrujimrc]

Hi Hansraj,
As per your earlier chart ,I think sell already triggered @5185 on24/12/2009.Let me kindly clarify please.


Ravi.

[chandrujimrc]

Hi Hansraj,
As per your earlier chart ,I think sell already triggered @5185 on24/12/2009.Let me kindly clarify please.


Ravi.

[sandew]

Hi to all, back after a while.

Hansraj,
browsed through yr writings. questions which i think all want to know
1. how is the trend for next day decided - will it be range, up or down
2. how is trigger value decided

Thanks