iCharts Discussions

[Alchemist]

Hi Friends,

I am putting up this strategy as I have received many emails and personal messages to create a strategy for crude traders for intraday. The strategy I am going to put here would work for positional as well as intraday.

I should work on any timeframe from 1 minute to 60 minutes however for the purpose of this thread I am going to use 5 mins timeframe only and focus on intraday trades only.

For this strategy, you just need to plot 5 minutes crude charts and SUPERTREND indicator.

Entry rules

1. Wait for 5minute candle close which triggers a change in SUPERTREND signal
2. Once that candle closes, put a buy order 1 point above the highs of that candle (if the supertrend signal has changed to a buy signal) with a stoploss which is 1 point below that candle.
3. If the supertrend signal has changed to sell, put a sell order 1 point below the lows of the candle that has triggered the change in supertrend signal, stoploss 1 point above the highs of that candle.


Profit booking

I would suggest we always take multiple lots trades which allows partial profit booking. In case of less capital, people can trade mini lots, however for the purpose of this thread, I will assume we are trading 2 lots (regular lots not mini).

Plan is book 50% (1 lot) at 1:1 RR and holding rest until opposite trade triggers.

I will post some charts as examples now which should help in better understanding.

Enjoy this new gift from my side

Cheers
SH

[prabit]

[Alchemist]

These are the 3 trades that triggered yesterday

Trade 1

At 2.20 PM ...5 minutes candle closed at 2772 which turned supertrend signal from sell to buy

High of that candle was was 2773 and 2769 respectively

Buy order placed to trigger at 2774 immediately at 2.20 PM

Buy order triggered by next candle and SL order placed at 2768 immediately.

As the risk is 6 points (2774-2768) ... first target becomes 2780 for 1 lot (entry point + 6 points for 1:1RR)

This target is achieved by 3.15 PM when crude made high of 2782. Second lot now becomes risk free.

Crude continues to make a high of 2799 until supertrend signal reverses to sell at 5.15 PM. The candle low at 5.15 PM is 2778 so last lot exited one point below that low i.e 2777 (this also triggers the reverse sell order).

Profit made 6 points + 3 points = 9 points or Rs 900 (excluding brokerage which is usually Rs 200 for 2 lots)

Chart below

[Alchemist]

[Alchemist]

The other 2 trades that followed yesterday are below, you can check them on your charts on your own and post a question with chart if it doesnt make sense.

Trade 2

At 5.15 PM, supertrend signal turned to sell and candle low at 2778 and high was 2783

Sell order placed at 2777 immediately as 5.15 PM candle closed.

Sell triggered at 5.35 PM at 2777, at this point SL order placed immediately at 2784 (7 point risk).

First target becomes 2770 so buy order for 1 lot placed at 2770 immediately, waiting to trigger.

Crude went down to 2771 however unfortunately didnt touch 2770 hence no booking profits.

At 6 PM, 2783 was hit and both lost exited at 7 point loss = Rs 1400 loss

At this stage, I placed another sell order at 2770 (1 point below recent lows) and had that trade triggered, my SL would have become 1 point above the recent highs made, however 2770 was not hit after this hence no trade. I will post a live example chart later explaining how a re-entry can be taken after initial SL is hit.


Trade 3

At 6.30 PM, candle closed at 2799 changing the supertrend signal to buy. The high of this candle was 2802 and low was 2782

As soon as this candle closed, a buy order was placed to trigger at 2803

Buy order triggered by 6.40 PM candle. SL order immediately placed at 2781 (22 point risk)

First target becomes 2825 (2803+22) for 1:1 RR so sell order placed for 1 lot in advance at 2825

2825 hit by 7.15 PM candle so 22 points booked for 1 lot. Second lot holding risk free now.

Crude continued to rally without giving a sell signal, made a high of 2931 and finally closed at 2913. Positional traders can carry this trade to next day or intraday traders can book before close at 2913

For this thread i will assume intraday trades hence booked at 2913 (113 points profit).

Total profit Rs 2200+11300 = Rs 13500

This was a jackpot trade and a jackpot day. Will all days be like these jackpot days? .. NO ..... will all days be profitable? .. NO

Is it a profitable strategy ... do your own backtest and record results

Happy scalping !!

Cheers
SH

[shashank2]

Alchemist,

Is ST indicator available in ichart?

thanks in advance.

Shashank

[Alchemist]

Yes I think in platinum charts ... Kamal also promised to introduce it for H-charts in near future.


Cheers
SH

[indexhunterr]

Alchemist if we take todays example. Short triggered at 12:20 2920 with sl 2931. sl triggerred at 12:30. And now price is coming down so how to trade that.

[Alchemist]

Today's first trade

11.45 AM candle closed at 2928 changing the ST signal to sell. The candle low was 2928 and high was 2937

Sell order placed at 2927 which was triggered by 11.50 AM candle. SL order placed at 2938 (11 point risk).

1st target 2927-11 = 2916 which was hit at 12.50 PM so profit Rs 1100

just now at 2.55 PM candle closed at 2926 so the 2nd lot exited at 2927 (no profit now loss on this lot. Overall Rs 1100 profit in this trade.

Second trade

2.55 PM candle closed at 2926 changing ST signal to buy. High of the candle is 2926 and low is 2921.

Buy order placed at 2927 with SL at 2920 which is triggered ( 7 point SL)

1st target is 2927+7 = 2934 which is achieved by next candle 3 PM so 7 points profit booked.

2nd lot is now running with SL 2920 (risk free lot).

charts below.

Cheers
SH

[amitagg]

Thanks Mr Boss for another system! And so much time taken to post trade wise comments

[mkric5]

iT IS VERY SIMPLE AND EFFECTIVE. NICE JOB, CONGRATS.

PLEASE LET US KNOW THE IN PUTS OF SUPER TREND. THANK YOU

[varun_alld]

This seems to be a very easy setup.

Wish if this could be back tested so that we could trade with confidence.

[Alchemist]

[Alchemist]

... saved for future post.

[amitagg]

Thanks Very lucid explanation including 2nd entry for 3rd trade.