Last hour run at the greedy 4700CE writers!
12 years ago
HHEma-HLEma system
HHEma - Hour high EMA is calculated using 5-EMA of hourly highs.
HLEma - Hour low EMA is calculated using 5-EMA of hourly lows.
Trade setup -
When hourly closing price closes below HLEma-filter , take a short trade
When hourly closing price closes above HHEma+filter , take a long trade
This trade becomes CURRENT TRADE.
When hourly closing prices continue to stay between HLEma and HHEma, continue with CURRENT TRADE.
When hourly closing prices changes direction ( as indicated above ), close CURRENT TRADE. Now new trade is initiated in reverse direction and now CURRENT TRADE becomes new trade.
Stop loss -
When hourly closing price changes direction, a trade is closed and new trade opened in reverse direction.
Trader can override to have a stop loss based on their comfort levels ( loss percentage, support/resistances etc )
Taking profits -
If trading multiple lots, one can start taking profits as early as 0.5% to 1%. There is no set rules on this. But I would recommend to let a minimum amount run till the trade reverses that way giving you the opportunity to max profits.
Other notes -
For Nifty, filter is between 10-15 pts.
For S&P, filter is 8-10 pts.
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many Tks GD , will try this out from today
ReplyDeletergds
Dear Sir,
ReplyDeleteI felt I can contribute my experience to further purify the move.
First wait for a an opportune moment to close the price above 5ema hi/lo on daily or hrly or half hrly T/F
Then get ready yourself for taking a position on the same side only on break of the said bar high/low
Now after positioning yourself you ride on the move upwards/downwards
Book as per your appetite
However if any of the band mid/hi/lo comes nearer be very cautious as it can take a turn.
S/L can be placed on close abv/blow close ema at the initial stage and it can be trailed on a successful move accordingly
However before taking any position daily or hrly or half hrly trend must be kept in mind as remaining on the side of trend is always comfortable until any reversal signal appear on the chart.
hope I have not caused you any inconvenience.
Regards
Sagormoy Banerjee
Thx, sagormoy. Setting SL is tricky. I feel keeping some important supports and resistances in mind helps.
DeleteGood method, gd, except that I've found it nearly impossible to make a profit by it. Have you had good trades with it? The problem remains the SL unfortunately for all ema methods.
ReplyDeletesorry for the late reply. I have made profits ( but I didnt hold till the end ). I feel having a small SL ( 20-30 pts max ) is worth it in the long run even including whipsaws. Also some money management has to be included ( partial booking ).
Delete