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Seshareddy's PARSAR & Fibonacci (SPF) Trading System |
mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #1 Posted: Wed Jul 29, 2009 12:19 am Post subject: Seshareddy's PARSAR & Fibonacci (SPF) Trading System |
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Hi
Here I am posting one trading system or strategy which is developed byMr. Seshareddy friend and a fellow member of icharts. I am just putting it here what I have understood about it through his explaination in shoutbox. This I am doing on popular demand from other fellow ichartians.
Mr.Seshareddy If I am wrong do correct me and also suggest improvisation in it. If you have any objection about this post and you want it to get removed then do let me know I will promptly remove it. But I know you won't ask me to do that
If you have any doubts please do ask Mr. Seshareddy in shoutbox if you have access to it or else just ask here in the forum by posting querry to him. Well its upto him to answer it or not.
And yes I am writing this post keeping in mind newbie and totally inexperienced trader or trader would be.
Seshareddy's PARSAR & Fibonacci Based Trading System And Strategy
System Requirements:
1. 20min time frame of icharts -Jchart premium if you are trading futures also or Jchart basic is sufficient.
2. PARSAR button on ( Second button in second row at the top)
4. Ichart Fibonacci Calculator. ( you will find the calculator link on icharts left hand side panel between Breadth charts and Education links.
4. If you want any indicator you can have it as per your wish.
Working Of the System
Set up a jcharts for 20min time frame for your scrip but here i am taking a example based on Nifty Futures ( July Contract) NIFTY-1m
Press PARSAR button to depress it so as to have PARSAR Swing lines visible on the chart.
Now suppose you want to take trading position based on this set up, you will need two points of value of nifty futures. These two values will be A & B as shown in the picture. These two values are to be fed in in fibonacci calculator to get swing targets in direction of the trend as well as reversal with stoploss.
To get these values PARSAR is used. You will need two PARSAR Swing Lines. You need PARSAR Swing Line which has just started and one which is previously ended PARSAR Swing Line.
Now take a value corresponding to end point of previous PARSAR swingline by putting cursor at it and notting value on the Y-Axis of the chart. This is point B for fibonacci calculator as we are thinking of going long.
Similarly take a value for Point A by putting cursor at the start point of newly started PARSAR Swingline and noting value on Y-Axis of chart.
Now you have two values A- 4527 and B- 4586
RULE: Always Take Point A as start point of the lastest started PARSAR Swing line and take point B as End point of Previous PARSAR Swingline.
Put these values in the fibonacci calculator of icharts. You will get following results:
Long 4563.46
Stop Loss 4549.54
Target 1 4599.92
Target 2 4622.46
Target 3 4658.92
RL Target 1 4513.08
RL Target 2 4490.54
RL Target 3 4454.08
So now you will go long at 4563.46 with Stoploss as 4549.54 but remember you must take the trade only after closing of the candle at or above entry level. Even same in case of stoploss order with some filter if you wish. Start booking profits at targets fully or partially. That is purely up to you. Experience will teach you how to go on booking profits fully or partially. I think one should book 50% at the first target and rest on hitting next target and if next target is not hit just book fully. Do not forget to keep trailing (raising) the stoploss if you want to as per calculated levels to secure the profits as trade starts going in your favour.
Now what if stoploss gets hit. Here is what the risk management steps in. Just enter the Stoploss order with double the total quantity of the trade you have taken. For e.g if you have entered long with one nifty lot then your stoploss order will be of 2lots of nifty futures. It will serve two purposes first it will make you exit from earilier failed trade (long) and makes you enter immediately in reverse trade (short) at 4549.54. Which is needed to cover your loss made earlier in failed trade or even making good profits. In this reversal trade there are reverse targets too as RL Targets as per calculator.
Now one thing is to be kept in mind if your first trade (long) is in profit and if you have raised your stoploss then you may not need double quantity stoploss order.
Off course you are not going to enter this reversed trade without stoploss. In this case your stoploss becomes the previous entry point of long i.e 4563.46 . Well in this case i won't advise a double quantity stoploss order,as there is always a possibility of getting this stoploss gets hit too ( Whipsaw) on a choppy day, and we don't want to get our trading capital ruined too fast and have prematurely getting our trading career over.Well its a part of the trading game so can't help it. So if you hit couple of stoplosses in a row ,at this point better stop trading for the day.
I would like to add in the last that,this system you can use on any time frames like any intraday timeframe , EOD basis and weekly Basis too as per Mr.Seshareddy.
Lastly i would like to thank Mr Seshareddy for sharing his strategy with us in open forum of ichart shoutbox.
Note1: One can use his own fibonacci calculator for using this system and carrying out trades based on his own calculated levels.
Note2: One can blend this system with fibonacci pivot levels, camarilla pivot levels, basic pivot levels and off course Swingtrader's trading levels. This can be used so that it will become easier to take trading position in strong trending movement after new PARSAR Swing start. The price may not come to buy or sell entry level at all, in this scenario these pivot levels will help you to enter into a trade.
Mayuresh Jahagirdar
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Just Trade Brown Belt
Joined: 15 Nov 2007 Posts: 2388
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Post: #2 Posted: Wed Jul 29, 2009 3:12 am Post subject: Seshareddy's PARSAR & Fibonacci (SPF) Trading System |
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This is a very good and simple system if followed as explained by Mayuresh. Thank you Seshareddy for sharing this system with us and many thanks to Mayuresh for putting it all together. It is people like you which make ICharts a great place. Thank you both.
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seshareddy White Belt
Joined: 06 Jan 2009 Posts: 95
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Post: #3 Posted: Wed Jul 29, 2009 9:13 am Post subject: Re: Seshareddy's PARSAR & Fibonacci (SPF) Trading System |
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mayurnsk wrote: | Hi
Here I am posting one trading system or strategy which is developed byMr. Seshareddy friend and a fellow member of icharts. I am just putting it here what I have understood about it through his explaination in shoutbox. This I am doing on popular demand from other fellow ichartians.
Mr.Seshareddy If I am wrong do correct me and also suggest improvisation in it. If you have any objection about this post and you want it to get removed then do let me know I will promptly remove it. But I know you won't ask me to do that
If you have any doubts please do ask Mr. Seshareddy in shoutbox if you have access to it or else just ask here in the forum by posting querry to him. Well its upto him to answer it or not.
And yes I am writing this post keeping in mind newbie and totally inexperienced trader or trader would be.
Seshareddy's PARSAR & Fibonacci Based Trading System And Strategy
System Requirements:
1. 20min time frame of icharts -Jchart premium if you are trading futures also or Jchart basic is sufficient.
2. PARSAR button on ( Second button in second row at the top)
4. Ichart Fibonacci Calculator. ( you will find the calculator link on icharts left hand side panel between Breadth charts and Education links.
4. If you want any indicator you can have it as per your wish.
Working Of the System
Set up a jcharts for 20min time frame for your scrip but here i am taking a example based on Nifty Futures ( July Contract) NIFTY-1m
Press PARSAR button to depress it so as to have PARSAR Swing lines visible on the chart.
Now suppose you want to take trading position based on this set up, you will need two points of value of nifty futures. These two values will be A & B as shown in the picture. These two values are to be fed in in fibonacci calculator to get swing targets in direction of the trend as well as reversal with stoploss.
To get these values PARSAR is used. You will need two PARSAR Swing Lines. You need PARSAR Swing Line which has just started and one which is previously ended PARSAR Swing Line.
Now take a value corresponding to end point of previous PARSAR swingline by putting cursor at it and notting value on the Y-Axis of the chart. This is point B for fibonacci calculator as we are thinking of going long.
Similarly take a value for Point A by putting cursor at the start point of newly started PARSAR Swingline and noting value on Y-Axis of chart.
Now you have two values A- 4527 and B- 4586
Put these values in the fibonacci calculator of icharts. You will get following results:
Long 4563.46
Stop Loss 4549.54
Target 1 4599.92
Target 2 4622.46
Target 3 4658.92
RL Target 1 4513.08
RL Target 2 4490.54
RL Target 3 4454.08
So now you will go long at 4563.46 with Stoploss as 4549.54 but remember you must take the trade only after closing of the candle at or above entry level. Even same in case of stoploss order with some filter if you wish. Start booking profits at targets fully or partially. That is purely up to you. Experience will teach you how to go on booking profits fully or partially. I think one should book 50% at the first target and rest on hitting next target and if next target is not hit just book fully. Do not forget to keep trailing (raising) the stoploss if you want to as per calculated levels to secure the profits as trade starts going in your favour.
Now what if stoploss gets hit. Here is what the risk management steps in. Just enter the Stoploss order with double the total quantity of the trade you have taken. For e.g if you have entered long with one nifty lot then your stoploss order will be of 2lots of nifty futures. It will serve two purposes first it will make you exit from earilier failed trade (long) and makes you enter immediately in reverse trade (short) at 4549.54. Which is needed to cover your loss made earlier in failed trade or even making good profits. In this reversal trade there are reverse targets too as RL Targets as per calculator.
Now one thing is to be kept in mind if your first trade (long) is in profit and if you have raised your stoploss then you may not need double quantity stoploss order.
Off course you are not going to enter this reversed trade without stoploss. In this case your stoploss becomes the previous entry point of long i.e 4563.46 . Well in this case i won't advise a double quantity stoploss order,as there is always a possibility of getting this stoploss gets hit too ( Whipsaw) on a choppy day, and we don't want to get our trading capital ruined too fast and have prematurely getting our trading career over.Well its a part of the trading game so can't help it. So if you hit couple of stoplosses in a row ,at this point better stop trading for the day.
I would like to add in the last that,this system you can use on any time frames like any intraday timeframe , EOD basis and weekly Basis too as per Mr.Seshareddy.
Lastly i would like to thank Mr Seshareddy for sharing his strategy with us in open forum of ichart shoutbox.
Note: One can use his own fibonacci calculator for using this system and carrying out trades based on his own calculated levels.
Mayuresh Jahagirdar |
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seshareddy White Belt
Joined: 06 Jan 2009 Posts: 95
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Post: #4 Posted: Wed Jul 29, 2009 9:21 am Post subject: sar method |
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thank u mayur iam very happy to c this
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sandew White Belt
Joined: 02 Feb 2009 Posts: 174
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Post: #5 Posted: Wed Jul 29, 2009 10:27 am Post subject: |
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It is extremly comendable of you to pen this down as a structured strategy with cues from none but SB. Congratulations.
1. By impute, do you suggest to play Nifty swing on 20 min TF ?
2. Have you back tested any other TF, please?
Thanks
Sandew
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #6 Posted: Wed Jul 29, 2009 10:54 am Post subject: |
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Seshareddy Garu hi,
Even I am happy to see your response. As I was penning it down in structured manner i came to know its simplicity and ability to catch trading swings. Hats off to you
Thanks alot for allowing me to do post this.
Mayuresh Jahagirdar
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #7 Posted: Wed Jul 29, 2009 11:02 am Post subject: |
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sandew hi
Sir, the system can be used on any time frame, its self explaining as it will only take swing high and low using PARSAR so time frame becomes im-material per se. But since seshareddy is very successful in using 20min time frame then one can follow that.
Yes I have checked on various time frames and it works. You can check it yourself. Since backbone of this system is PARSAR and Fibonacci it gives lesser failed trades.
As we cannot control market and its way of movements so those limitations are there in this system too. But definitely this can be used on any time frame. Seshareddy is using it for intraday and for swing trading. You can always ask him in shoutbox and he will be really happy to answer your querries.
Thank you
Mayuresh Jahagirdar
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #8 Posted: Wed Jul 29, 2009 11:05 am Post subject: Re: Seshareddy's PARSAR & Fibonacci (SPF) Trading System |
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sabh005b wrote: | This is a very good and simple system if followed as explained by Mayuresh. Thank you Seshareddy for sharing this system with us and many thanks to Mayuresh for putting it all together. It is people like you which make ICharts a great place. Thank you both. |
Thank you from me , on behalf of seshareddy and off course icharts too
Mayuresh Jahagirdar
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #9 Posted: Wed Jul 29, 2009 11:11 am Post subject: |
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Seshareddy garu
I have given a simple name to your system you might have noticed.
SPF Trading System
S= Seshareddy's
P= PARSAR
F= Fibonacci
Trading System
I hope you liked its short form. It will be easier to call out the name of system hence forth.
Thank you.
Mayuresh Jahagirdar
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san77s White Belt
Joined: 13 Jan 2009 Posts: 41
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Post: #10 Posted: Wed Jul 29, 2009 6:40 pm Post subject: |
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Sir,
Here i attached 20min chart of y.day close and pls guide which one to choose the high to calculate FIBO.
Low was 4556.
If you get time please post the Chart for the next few days and it help us to learn how it work on different type of market move like today's one.
Thanks & Regards
S.Saravanan.
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RKM White Belt
Joined: 06 Apr 2009 Posts: 137
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Post: #11 Posted: Wed Jul 29, 2009 7:18 pm Post subject: |
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Hello, Seshareddy and Mayur,
Thanks for posting this wonderfully simple strategy. It is a reminder that one can gain without following anything very complicated and, I think, in this case one can even dispense with any indicators, because the entire action is based on Fibonacci calculations.
I also thank you both because before this I was unable to understand the meaning of the Fib values given by the Icharts calculator - I was only working out the conventional retracement calculations.
Best wishes,
Makhijani
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #12 Posted: Wed Jul 29, 2009 7:35 pm Post subject: |
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san77s Hi,
First of all thanking you for showing interest in Mr.Seshareddy's original work.
Secondly I will only suggest yoiu to reread the original post again. In that post I have posted same chart which you have posted and i have clearly indicated there what is A and What is B , and how they are arrieved arrived.
So please again throught the origianl post your all questions are answered in it. I will be happy to answer other querries other than this at my capacity if only i can answer, otherwise you need to ask Mr. Seshareddy.
Mayuresh Jahagirdar
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mayurnsk Moderator
Joined: 18 Jan 2007 Posts: 216 Location: Nasik, Maharashtra
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Post: #13 Posted: Wed Jul 29, 2009 7:45 pm Post subject: |
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Makhijani Hi,
Thank Seshareddy for such simple and original trading strategy idea, well i can take your wishes only for understanding this system from him and putting it in simpler explaination.
Yes you are right it does not require any other indicator hence it does not clutter your screen , in turn makes your decision making easier.
By the way any improvisation you can think about this system , you are free to express, you are most welcomed.
Now as for fibonacci calculator in icharts is concerned have you gone through the link in the calculator page in which working of calculator is explained in very simple way? If you haven't then better go through it.
And my advise is explore ,explore and explore there is explaination for everything in this world
So explore this site completely and thoroughly, it is for peolpe like you it has been put up with so many tools and things so that you can make some good amount of money and help you make your life bit easier in this wild wild world
Mayuresh Jahagirdar
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RKM White Belt
Joined: 06 Apr 2009 Posts: 137
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Post: #14 Posted: Wed Jul 29, 2009 8:31 pm Post subject: |
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Thanks, Mayur, for your very sound advice. I was trying out the calculator just now to get the levels for NF in downswing mode (at least that is what it looks like to me, if you ignore the upward reversal today). Let's see tomorrow how valid these levels turn out to be. Only I need a clarification, which I should really get from ST, which is the 'C' value they are talking about in "Instructions on how to use the calculator".
Best wishes,
Makhijani
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svkum White Belt
Joined: 14 Feb 2007 Posts: 321
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Post: #15 Posted: Wed Jul 29, 2009 8:44 pm Post subject: |
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DEAR SESHA GARU AND MAYUR ,
Its my observation that parsar displayed in chart premium or livecharts,are more accurate , and decesion oriented ,THAN parsar shown in RTcharts, I DONT KNOW WHY , AND HOW.
S V KUMTHEKAR
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