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Seshareddy's Advanced SPF 2.0 system |
mayurnsk
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Location: Nasik, Maharashtra
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Post: #1  Posted: Thu Nov 05, 2009 11:05 pm Post subject: Seshareddy's Advanced SPF 2.0 system |
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Hello ichartians.
Our fellow friend and ichartian trader has come up with new trading system based on his old system SPF. This version is advanced form of old SPF system. I sincerely thank Mr. Seshareddy for his willingness to share with all of us with open heart. Its for you guys make some profits with it. Hip Hip Hurray Seshareddy
About System:
This system is integration of positional, swing and day trading way of trading.. So friends my sincere advise to you is before embarking on this system go through the earlier form of SPF trading system, plus get some thorough knowledge about positional trading , swing trading and also Fibonacci trading methods and off course bit of math.
System requirement:
1. Jcharts Premium Charts
2. Time frames – Daily ( EOD) and 20min
3. Parabolic SAR
4. 13 and 30 SMA
5. Fibonacci Calculator ( retracement & expansion)
6. Average Values of lows of 2 days & 5 days similarly Average values of highs of 2 days & 5 days. Calculated from current candle counted backwards.
7. Open Low and Open high levels of the Price opening for the day.
8. Some basic candles stick patterns.
How the advanced SPF system works or put to use:
1. On Daily chart locate the two PARSAR Swing lines. One PARSAR swing line will be ending and other will be starting. The end point of the ending Swing Line will be a B and A will start point of the starting swing line. Note these two values.
2. Put these two values in Fibonacci calculator appropriately as per the direction of the current swing of the price. PARSAR swing line which has just started can give guideline for that. ( read SPF again)
3. Note down the four Fibonacci ratios, primarily 0.38%, 0.618% & 1.270%, 1.618%. The price between 0.38% and 0.618% is called decision making zone for taking entry while the price at 0.38% and 0.618% are two decision making points for entry into trade. Similarly in the case of the 1.270% and 1.618% as well. But it is exit zone and those two levels are decision making points for exits.
4. Calculate and note down the Average Values of lows of 2 days & 5 days similarly Average values of highs of 2 days & 5 days. Calculated from current candle counted backwards.
5. Also Note down daily PARSAR high and low points. These two values also act as break out and Breakdown values. The end point of the PARSAR swing line above the price candle act as Break Out point, and start point of PARSAR swing line below the price candle act as Break down point.
6. When all basic values and levels are calculated and noted, it comes the time for execution. In long setup i.e when PARSAR is below the price, we will wait for price to retrace to at least to 0.38% level, a entry point in entry zone. Here an aggressive trader may enter positional long and keeping stop loss below at average of 2 days lows plus 15points as filter.
7. Suppose price may not retrace and simply trades above the PARSAR line in that case it is treated as breakout. Just go long then and there or on retracement with stop loss same as mentioned earlier.
8. Once Price crosses 0.618% level, target it to 1.27% and above. Once it comes above 1.27% level it enters exit zone. The price may reach the next important Fibonacci ratio of 1.618% You can do partial profit booking here if you see price is still moving up.
9. Once the price has crossed 1.618% level you need to recalculate Fibonacci ratios again by taking new high value above 1.618% level and keeping the old low value same. Rest strategy remains same.
10. If price nears the average value of the 2 days lows, then it may reverse from here or may try to reach average value of 5days lows. And after that it may find support at average value of 20days lows.
11. If the average price value of the 5 days lows is broken so does the lower PARSAR line is breached and the price is closed below the PARSAR, then only we will open positional shorts trade other wise no.
12. Exactly same procedure can be repeated from 1 to 11 for short trade but in opposite manner than long trade explained above.
Risk management.
13. Once you are already positional long based on above set up, and suppose next day price start falling you can always short intraday targeting average level of 2days lows where one must cover his intraday shorts. While keeping positional long position open.
14. After taking entry for long and if price reaches exit zone, then we must hedge our long position between 1.270% & 1.618% level by shorting nearest call option to our 1.618% target level. For hedging there are some separate sets of rules.
They are as follows:
a. The hedging decision has to be taken at 3.15pm of the day.
b. If next day price open flat or open and low of the opening price is same close the hedge position and re open the call option short again later at 3.15pm of the day.
c. Once price continue to trade above 1.618% dont hedge now but recalculate new Fibonacci targets and trade accordingly.
d. Suppose price action continue to go against our positional long position and hedge is still open, carry it keeping stop loss for hedge at average level of 2 days high. We can keep this position open for 2-3 days, because by then it will trigger our long position stop loss and we are setup to go full positional short in futures.
e. If the open and high of the price at the opening is same we can use it for shorting call option and if we are already hedged then can carry for next day, keeping stop loss for this hedged position as explained in earlier point.
f. Once our positional long position gets stopped out means lower PARSAR line is breached, come out of the hedge as it will get killed eventually. Here onwards focus on positional short position and think about shorting nearest put option at 1.618% level.
15. If positional long is stopped out means all average levels broken as well as lower PARSAR line is breached one must go short closing long position.
16. Suppose Open and low of the price is at 0.38% one can go long very confidently and if the Open and high of the price at opening is at 0.618% then one can short confidently for the day only.
17. Always upgrade your trailing stop loss level using Fibonacci calculator to lock in gains in the position. This is left up to trader’s discretion.
18. Many time price breach PARSAR swing line and moves opposite to it. Suppose we are already positional long and bearish engulfing candle occurs, then it will breach the lower PARSAR swing line at that point we must reverse our position completely. Opposite will be true if bullish engulfing candle occurs.
19. Suppose already positional long/Short set up is in place and we have no position as of yet we can take the position in middle making use of 13SMA & 30 SMA. If 13SMA has already crossed up the 30SMA and price is above 13 SMA one can go positional long at this point and vice versa.
20. If one is afraid of taking naked open position then he can enter with hedge by shorting suitable option ( call or put) and remove it once price level crosses 0.618% level and again re hedge once price crosses 1.270% level.
21. One must check on 20min time frame at the end of the day for price level and placement of PARSAR swing line. If the latest PARSAR swing line is below the price one can anticipate the next day price opening in green or bullish.
Note: Improvement in the system are most wellcome.
Regards
Mayuresh P. Jahagirdar
Nashik
Maharashtra
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smsmss
White Belt
Joined: 13 Oct 2009
Posts: 123
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| Post: #2 Posted: Fri Nov 06, 2009 1:08 am Post subject: |
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| thanx to SESHA and MAYUR for posting this...i will backtest and come up with some doubts if u dont mind ...i have fully read and understood the previous thread
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san77s
White Belt
Joined: 13 Jan 2009
Posts: 41
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| Post: #3 Posted: Fri Nov 06, 2009 8:55 am Post subject: |
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Hello Mr.Mayur,
Last two days i was expected your reply regarding this new version you mentioned few weeks before. Today morning when i open the forum the surprise waited for me..
Thanks a lot Mayur for your valuable input and too Sesa Sir also
Regards,
S.Saravanan
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drsureshbs
White Belt
Joined: 22 Oct 2008
Posts: 58
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| Post: #4 Posted: Sat Nov 07, 2009 1:27 am Post subject: |
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| Good work mayur, sesareddy .Little tougher than earlier post. Thanq both for being generous
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mayurnsk
Moderator
Joined: 18 Jan 2007
Posts: 216
Location: Nasik, Maharashtra
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| Post: #5 Posted: Sat Nov 07, 2009 11:30 am Post subject: |
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| drsureshbs wrote: | | Good work mayur, sesareddy .Little tougher than earlier post. Thanq both for being generous |
Hi
Yes it initially appears as bit complicated system but once you understand its algorithm then it is as easy as simple SPF system.
Regards
Mayuresh Jahagirdar
Nasik
Maharashtra
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rajanx12
White Belt
Joined: 25 Jan 2008
Posts: 18
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| Post: #6 Posted: Sat Nov 07, 2009 9:02 pm Post subject: Re: Seshareddy's Advanced SPF 2.0 system |
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Dear sirs,
tq for the system . it is nice. please clear following points
1)The value of 1.270%(4725) given on chart is not matching with fibo calc. It matches with 2.270% value on fibo calc only.Pl confirm we need to use 1.270 or 2.270.
2)Same problum for the value of 1.618% also. but 0.38% and 0.618% fibo calc values are matching with values on chart.
Tq&Regards
rajan
| mayurnsk wrote: | Hello ichartians.
Our fellow friend and ichartian trader has come up with new trading system based on his old system SPF. This version is advanced form of old SPF system. I sincerely thank Mr. Seshareddy for his willingness to share with all of us with open heart. Its for you guys make some profits with it. Hip Hip Hurray Seshareddy
About System:
This system is integration of positional, swing and day trading way of trading.. So friends my sincere advise to you is before embarking on this system go through the earlier form of SPF trading system, plus get some thorough knowledge about positional trading , swing trading and also Fibonacci trading methods and off course bit of math.
System requirement:
1. Jcharts Premium Charts
2. Time frames – Daily ( EOD) and 20min
3. Parabolic SAR
4. 13 and 30 SMA
5. Fibonacci Calculator ( retracement & expansion)
6. Average Values of lows of 2 days & 5 days similarly Average values of highs of 2 days & 5 days. Calculated from current candle counted backwards.
7. Open Low and Open high levels of the Price opening for the day.
8. Some basic candles stick patterns.
How the advanced SPF system works or put to use:
1. On Daily chart locate the two PARSAR Swing lines. One PARSAR swing line will be ending and other will be starting. The end point of the ending Swing Line will be a B and A will start point of the starting swing line. Note these two values.
2. Put these two values in Fibonacci calculator appropriately as per the direction of the current swing of the price. PARSAR swing line which has just started can give guideline for that. ( read SPF again)
3. Note down the four Fibonacci ratios, primarily 0.38%, 0.618% & 1.270%, 1.618%. The price between 0.38% and 0.618% is called decision making zone for taking entry while the price at 0.38% and 0.618% are two decision making points for entry into trade. Similarly in the case of the 1.270% and 1.618% as well. But it is exit zone and those two levels are decision making points for exits.
4. Calculate and note down the Average Values of lows of 2 days & 5 days similarly Average values of highs of 2 days & 5 days. Calculated from current candle counted backwards.
5. Also Note down daily PARSAR high and low points. These two values also act as break out and Breakdown values. The end point of the PARSAR swing line above the price candle act as Break Out point, and start point of PARSAR swing line below the price candle act as Break down point.
6. When all basic values and levels are calculated and noted, it comes the time for execution. In long setup i.e when PARSAR is below the price, we will wait for price to retrace to at least to 0.38% level, a entry point in entry zone. Here an aggressive trader may enter positional long and keeping stop loss below at average of 2 days lows plus 15points as filter.
7. Suppose price may not retrace and simply trades above the PARSAR line in that case it is treated as breakout. Just go long then and there or on retracement with stop loss same as mentioned earlier.
8. Once Price crosses 0.618% level, target it to 1.27% and above. Once it comes above 1.27% level it enters exit zone. The price may reach the next important Fibonacci ratio of 1.618% You can do partial profit booking here if you see price is still moving up.
9. Once the price has crossed 1.618% level you need to recalculate Fibonacci ratios again by taking new high value above 1.618% level and keeping the old low value same. Rest strategy remains same.
10. If price nears the average value of the 2 days lows, then it may reverse from here or may try to reach average value of 5days lows. And after that it may find support at average value of 20days lows.
11. If the average price value of the 5 days lows is broken so does the lower PARSAR line is breached and the price is closed below the PARSAR, then only we will open positional shorts trade other wise no.
12. Exactly same procedure can be repeated from 1 to 11 for short trade but in opposite manner than long trade explained above.
Risk management.
13. Once you are already positional long based on above set up, and suppose next day price start falling you can always short intraday targeting average level of 2days lows where one must cover his intraday shorts. While keeping positional long position open.
14. After taking entry for long and if price reaches exit zone, then we must hedge our long position between 1.270% & 1.618% level by shorting nearest call option to our 1.618% target level. For hedging there are some separate sets of rules.
They are as follows:
a. The hedging decision has to be taken at 3.15pm of the day.
b. If next day price open flat or open and low of the opening price is same close the hedge position and re open the call option short again later at 3.15pm of the day.
c. Once price continue to trade above 1.618% dont hedge now but recalculate new Fibonacci targets and trade accordingly.
d. Suppose price action continue to go against our positional long position and hedge is still open, carry it keeping stop loss for hedge at average level of 2 days high. We can keep this position open for 2-3 days, because by then it will trigger our long position stop loss and we are setup to go full positional short in futures.
e. If the open and high of the price at the opening is same we can use it for shorting call option and if we are already hedged then can carry for next day, keeping stop loss for this hedged position as explained in earlier point.
f. Once our positional long position gets stopped out means lower PARSAR line is breached, come out of the hedge as it will get killed eventually. Here onwards focus on positional short position and think about shorting nearest put option at 1.618% level.
15. If positional long is stopped out means all average levels broken as well as lower PARSAR line is breached one must go short closing long position.
16. Suppose Open and low of the price is at 0.38% one can go long very confidently and if the Open and high of the price at opening is at 0.618% then one can short confidently for the day only.
17. Always upgrade your trailing stop loss level using Fibonacci calculator to lock in gains in the position. This is left up to trader’s discretion.
18. Many time price breach PARSAR swing line and moves opposite to it. Suppose we are already positional long and bearish engulfing candle occurs, then it will breach the lower PARSAR swing line at that point we must reverse our position completely. Opposite will be true if bullish engulfing candle occurs.
19. Suppose already positional long/Short set up is in place and we have no position as of yet we can take the position in middle making use of 13SMA & 30 SMA. If 13SMA has already crossed up the 30SMA and price is above 13 SMA one can go positional long at this point and vice versa.
20. If one is afraid of taking naked open position then he can enter with hedge by shorting suitable option ( call or put) and remove it once price level crosses 0.618% level and again re hedge once price crosses 1.270% level.
21. One must check on 20min time frame at the end of the day for price level and placement of PARSAR swing line. If the latest PARSAR swing line is below the price one can anticipate the next day price opening in green or bullish.
Note: Improvement in the system are most wellcome.
Regards
Mayuresh P. Jahagirdar
Nashik
Maharashtra |
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mayurnsk
Moderator
Joined: 18 Jan 2007
Posts: 216
Location: Nasik, Maharashtra
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| Post: #7 Posted: Sun Nov 08, 2009 12:42 pm Post subject: |
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rajanx12 Hi,
I have clearly mentioned in system requirement about need of fibonacci calculator. You need to have it. I have not mentioned icharts fibonacci display or even calculator of icharts.
Here I am mentioning to fibonacci calculator either you need to make your own in excel sheet or search for it on net. you can search for it on website like mypivots.com or actionforex.com There are many sites which offer one such. It is not in my perview to provide you one. Search it or create it in excel sheet.
Hence that level is 1.270% and not 2.270% please note that. And this is derived from seperate fibonacci calculator.
Secondly the figures may not be perfect . it is posted to have an idea of system.
Regards
Mayuresh Jahagirdar
Nasik
Maharashtra
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san77s
White Belt
Joined: 13 Jan 2009
Posts: 41
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| Post: #8 Posted: Mon Nov 09, 2009 9:16 pm Post subject: |
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Hi Mayur/Sesa Sir,
Today (09/11/2009) Nifty fut. EOD initiate new PARSAR.
Here the levels are High 4843.35 Low 4530.70
Based on that Fibo Numbers are
.382 - 4650.13, .618 - 4723.92
1.27 - 4927.77 , 1.618 - 5036.57
2 Days Low 4767.57 5 Days Low 4649.58
2 Days High 4872.30 5 Days High 4795.27
Today market end at 4903.15, its above .618 and bellow 1.27 Fibo. In this stage if we want to initiate a new position whether long or short, at what level we get an indication and whats our stop loss.
Please explain sir, it will help us to study the method in live market.
Thanks & Regards,
S.Saravanan
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seshareddy
White Belt
Joined: 06 Jan 2009
Posts: 95
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| Post: #9 Posted: Tue Nov 10, 2009 5:10 am Post subject: eod sar |
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sarvanan
as per eod sar calculations correct which u mentioned we have to go long above 4927 tsl maintain as per eod high and low fib calculations 61.8 and we can expect sar 1.618 and 2.618 as tgts now 2days low is main sl to reverse the trade tgt to 5days low and sar downside 1.618 and 2.618
if u back test prev eod sar u can get details cycle should start from 2days high or low then we should continue the pos as per tgts
when cycle entry time just keep a eye on 20min sar and avg lines which already mentioned
sehsareddy 
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san77s
White Belt
Joined: 13 Jan 2009
Posts: 41
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| Post: #10 Posted: Tue Nov 10, 2009 9:11 am Post subject: |
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Sesa Sir,
Thanks for your reply with all input i need. I will keep mind this note and back test.
Regards,
S.Saravanan
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