iCharts Discussions

[Alchemist]

Hi Friends,

While I have been using yorker strategy on 30 mins TF for a long time, I have always been asked by fellow traders to develop this strategy for a smaller TF so that the entries can be taken quicker and SLs can be smaller as compared to 30 mins TF. Based on this request, i have been tinkering with 10 mins TF (my dear friend sumesh's fav TF) and happy to present this strategy now.

WARNING BEFORE YOU READ AHEAD : Smaller TF means more trades and more trades would mean more loss trades as compared to 30 mins TF. However advantages would be early entry into trend trades and smaller SLs than 30 minutes. If you are happy with 30 TF trades, dont bother about this thread.

Next post will be around entry, exits, profit booking rules.

cheers
SH

[Alchemist]

Entry:

- Like in 30 minutes, we use NIFTY spot charts only (or BNF spot charts) however 10 minutes TF

- We use same 3 EMAs : 5/34/200 EMAs

- Same entry rule : 5 EMA crossing below 200 EMA and the lows of the candle that led to the EMA crossvers needs to be breached to trigger shorts. Similarly 5 EMA crossing above 200 EMA and the highs of the candle that led to the EMA crossover needs to break to trigger a buy.


Stoploss:

- After the initial entry, the stoploss is when the opposite trade triggers. It becomes a stop and reverse situation.

- If the position moves into profit though after the initial entry, we use 5/34 EMA crossover as trailing SL. Only difference here is that instead of booking out, we simply hedge by selling some options. For examples if we are short and 5/34 bullish crossover happens, instead of booking shorts I would simply sell some puts (same qty) and hold until opposite trade triggers.

Profit booking

- I strongly recommend partial profit booking in all my system. So book 50% profits once nifty position is around 50 to 75 profits. The range depends on current volatality and ATR, if mkts are consolidating and not much movement is happening, even 50 pointts is good. However if mkts are trending, you can hold until 75 points. Again, bullish trades you can choose to book partial at 50 points (we know upmoves are slower and laboured), whereas in shorts you may want to wait for 75-100 points (falls are quick and bloody). Use your own discretion here...

- For rest of the position, continue to hold until you end up hedging as explained above under stoploss. Once hedging is done, you can book the shorted option at 200 EMA price touch (shorted option should be in profits) but hold the future position as is. Reason being often 200 EMA acts as resistance and price would fall down again (if we are short for example)... if it doesnt stop and gives a bullish crossover, so be it. We will exit shorts and open new longs.

Gap rules

As we are trading smaller TFs, gaps can really be dangerous. So here are some rules to tackle gaps. I apply these in all TFs to be honest. i have explained these rules in the 30 mins thread. Please read.

Hope this helps all.

Cheers
SH

[anilnegi]

[anusantosh]

[Alchemist]

I am surprised that such a few people have shown interest in this thread.

Anyways - previous sell signal was generated on 23rd Feb at 7166 NF. Feb series expired at 6970 without giving any 34 EMA crossover. First 50% should have been booked at 75 points profit and rest expired with 196 points profit.

However I rolled over the rest 50% to March series instead of exiting shorts. Hence shorted March series on expiry day at 7015 and carried.

Next day gap up rule kicked in and 5/34 EMA crossover also happened which forced me to hedge by selling 7050 PE at 175. I was able to book 10 points profit in these shorted option at around 165 and held to NF shorts (200 EMA kiss rule).

On budget day, we made a low of 6864 (massive 150 points profit at this stage) however mkts swiftly reversed and finally closed at 7037.

Eventually today we got a bullish crossover and exit at around 7140 so shorts closed and fresh longs opened at 7140

Profit in shorts

75 points on first 50% (Feb series)
196 points profit on rest 50% (Feb series)
10 points profit on 50% puts sold in March
Loss of 125 points on 50% NF future (March series)

Current long trade taken today

Bought at 7140
50% booked at 7220 (80 points)
Rest 50% holding and NF closed at 7236 (96 points M2M profit)

Cheers
SH

[Alchemist]

Huge gap up ...... first candle low 7319 becomes TSL now .... 180 points profit locked.

cheers
SH

[smartcancerian]

Nice Initiative by Alchemist...
Can anyone paste the Gap rules here in this thread for easy reference..
Thanx..

[smartcancerian]

[Alchemist]

smart cheers - now we re-enter on any of below 3 points :

1. above days highs (50% qty only, SL will be days lows)
2. 34 EMA kiss, if it continues to fall, we hedge based on 5/34 rule.
3. OR 200 EMA touch in cas of any gap downs.... SL will be opposite crossover.

Cheers
SH

[vinst]

[DarkKnight]

Greetings of the Day Alchemist!!! Nice to see a new thread from your side. I always admire your strategies.

But I would like to ask you what happened to your earlier thread regarding" Add Strategy". Where you have give some guarantees of turning capital into 15lkhs. I am following that thread religiously.

Earlier you gave some excuses in SB about not finding time to update due to professional commitments and left updating it abruptly.

Requesting you to update it regularly so that we can see our capital growing to 15 lkhs!!!

Best of Luck!!!.

Regards,
DarkKnight

[Alchemist]

Hi Dark Knight - I will make it 15 lakhs by end of this year dont worry .... but i will update it as and when i have time.... i have been keeping very busy and will continue to be busy till March end due to financial year closing and that thread requires me to watch charts throughout the day.

and i dont need to make any excuses for updating or not updating any thread...its my free will dude.

Cheers
SH

[sirdhar123]

[Alchemist]

[pkholla]