Nifty SL theory

My friend who is a very smart day trader has some unique, unconventional theories on the market - which work most of the times ( better than most MFs performance :) ).

In his own words


"I did not apply my SL rule correctly. most long stop losses should be XXX5.05. So it should have been 5105.05 and trigger 5105.90. Most short stop losses should also be above XXX4.90, better XXX5.90. So if u want to short at 5139 - SL should be 5145.90. why that 5.05 and 5.90 rule ? there are common SL hunting algos. have u noticed that days lows are closer to XXX7.XX. Check this link.. if u put a SL close to XXX5.05 - it works quite a few times. yesterday even 5005 was caught. similarly on days when we are in a down trending market. highs will be at XXX3 or XXX4"


Interesting ?