Can you share an overview of your trading strategy?

[RS1162]

There is no single trading strategies that will work in all market condition. So combine four types of indicator in you chart with volume panel. If all your indicators are showing the same market trend then trade according to it. I use to combine SMA .OR. EMA with RSI, MACD, Bollinger Band and volume.

If you are not trading based on chart and using pivot, camarilla . gann , or breakout method consider all the rules before entering a trade .

If you are trading stock specific always select shares with good liquidity. Select a script whose trading volume is abnormal. The Normal yard stick for this is , The selected script volume should be atleast 50% above the previous 5 days average trading volume.

If you are trading for intraday check what is the time left out for trading.

Do not risk more than 1% of capital. (but I use to burn my fingers without following this rule).

Finally maintain a good computer net works and power backup otherwise whatever the strategy it is all sure waste

[ravi_lamba]

Serious money can only be made following trends and no trend following strategy is worth it's salt if you don't trade a bigger position when you are right. (Am a big fan of Richard Dennis)

Am going to illustrate my strategy (the crux of any trend following system) mathematically.

Buy/Sell rule can be any rule ( 20 day breakout, MA crossover etc.)  but if I buy 100 quantity of a stock at price x with a stop y

Max loss = 100(x-y) = ML

z=(x-y)/3

I  buy 100 more at

x+z ....with max loss ML only and again 100 more at

x+2z ....with max loss ML only and again 100 more at

x+3z ....with max loss ML only.

So in all if price goes above x+3z I would be carrying 400 quantity with stop such that max loss would be ML only. Exit of the complete position can be with reversal or maybe a sell rule.

I also pyramid with a 4,2,2,1 rule wherein if I buy 100 at first go, I buy 50 at the first level another 50 at the second and 25 at the last level. This keeps the stop closer to the initial stop and absorbs volatility.

Am attaching a screenshot

After a buy every time the price crosses a successive blue line additional quantities are bought as per rule and the corresponding stops are raised higher denoted by the violet lines.

Thats my mantra......trade bigger when right...........

cheers

[Ranjith]

I use RSI as my trading tool, simple that is +ve divergence and then range shift happens market is UP side, -ve divergence and the range shift happens market is DOWN, this works well in all market all time frame, basic money management is mandatory and finally volume plays a major role. Simply by following the below 1. Price 2. Momentum 3. Volume 4. Time and 5. Personal Emotions.

[MayurDetroja]

Trading is gaining more traction now a days due to more fluctuations/Volatility in market & human perspective to earn more money in less time.

My trading strategy is very simple with disciplined approach of fixed % of gain and keeping strict stop loss.

I mostly do frequent trade in delivery (Cash segment) and sometimes in intraday as well.

As per my strategy i try to get profit of approximately 10% from any stock and i exit the positions as soon as it satisfies that, Also i prefer to not wait for more than 1 month for any positions. I keep strict stop loss of 15-20% so that my money will not be blocked for long time and it will not wipe out by choosing any incorrect script.

As thumb rule no one can predict fluctuations so instead of going after finding lowest bottom price of stock i prefer to enter the stock with good fundamental and technical statistics and exit once my profit criteria matches or duration of 1 month elapses.

Hope this will add some value to your current strategy and may be useful for further trades.

Happy Trading!!!

[najsalman]

I always go with the flow of market if market is going up goes for buy, keep the eyes on other commodities if i sees the other commodities are going down change my position in opposite and go for sell. mostly days market moves within the range watch the market for half an hour and you will get the direction of market (going positive/negative) and always trade with a flexible target.

[MohsinHanif]

I look for consistent profits with a proper risk to reward ratio. Switch off the terminal once you placed Entry, Exit and SL order.

[vishyvishy]

I mainly use “ Volume Spread Analysis”! I have developed my own Indicators over 5 years for Amibroker. I use them. VSA helps me in doing the Surgery of price volume action - as “what is happening right now”. See them carefully. You might have never found such meaningful charts till now! Whenever Volume is velow average price is represented by BAR and whenever volume is above average it becomes a Candle! This way you can seperate active market from dull market.

Every Price Volume Bar is important! I trade on 18 Min Timeframe.

18 min TF  is because it is non-standard also sometimes standard (18x5=90 Mins!).

 It shows what market is trying to hide in regular 15 min or 30 min TF.

Trading Timeframe:- Intraday. No Carryover positions overnight.

Risk: - Below 2% of my current capital in EACH and EVERY Trade. 2% is not a holy grail. There are many ways to optimzing risk. e.g. optimal f stuff. But 2% rule works great. The more you earn the more your risk appetite due to more 2% factor and the more your position size.When jobless I used to work for an old American Pilgrim at pune osho ashram(Retired Very Successful Trader!). Once I asked him,"can I double our capital in one trade?!" He replied ,"Why not! But are you ready to to lose all your capital for that attempt?". We have to float enough to survive. If we lose 5 Rs. from our 10 Rs. in one trade. Then making again from 5 to 10 using 5rs. capital is not that easy as making 5 using 10 rs. initial capital. This is a negative sum game.

Reward: -  Try to catch whatever Markets is ready to give on that winning day. Exit is a most difficult part. there is a quote I always remember -- "While amateurs go broke by taking large losses, professionals go broke by taking small profits!" Even you manage to keep your risk below 2- 3% in each trade, you wont be making big unless you let your profits run! 

I trade two low risk and highly rewarding setups.

Accuracy is secondary to me. I have bought and tried all so called 95% or 99% accuret buy sell systems and that proved to be stupid stuff. 

Risk: Reward possibility is only thing to be considered in EACH and EVERY trade.

My other simple Rules are

1. “Stay away from the market – Price Volume Action - which you don’t understand!” Staying away doesn’t hurt your capital
2. Trade only in active market for higher R:R. By Active I mean Volume and Price activity.

Type Of Trades I try to Trade:-

1. “Smooth Breakout” Trades,
2. Quiet Pullback  in “Active market” Trades
3. I don’t bet on “V” (Recovery after Downfall) or “A” (Crash after rally) style Price formations.

Entry Timeframe: - 18 Minutes

Trade Exit Timeframe: - 5 Minutes and 18 Minutes TF.

Position Size :- It is Decided based upon my initial entry and Stop Loss Levels so that in any case I won’t lose more than 2% of my capital in any given trade.

A1) Short Breakout Trade:-

Entry:-

Price Breaks the Green or Red Zone (I call it challenge zone) convincingly on the downside.

Volume should not be Climax Volume. (More than 2 times the Average Volume)

Exit in Short Breakout Trade:-

If Price touches initial stop loss – Losing Exit.

If we see Climax Volume down move after entry.

If price crosses Red Trend Line on 5 minute Timeframe after Entry Then Manual Exit

If there is heavy Volume Upbar with Hammer like Candle formation then manual exit.

If market gets sideways after entry then also Manual Exit.

If Current Time goes about 10.30 pm Manual Exit. No Need to test Reverse Move Poison.

A2) Short Pullback Trade

Check Image. Exit Rules as above.

B1) Long Breakout Trades

Picture is worth Thousand Words. Check Image.

B2) Long Pullback Trades

Picture is worth Thousand Words. Check Image.

… These are all Cherry Picked Examples. Not every day market gives you these setups easily. Market has its own ways to behave.  But whenever you catch such thing, You Keep your Risk optimum and you get rewarded heavily for the given risk! That is the only key!

That’s all!

Screenshots of setups (Click on Images for better view) -

[RK0523]

My strategy is very simple for INTRADAY.

1. I pick up a stock which shows more %change in NSE official website. ie. https://www1.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm

• I pick up the stock with low trading price & more fluctuations to reduce brokerage. eg. JINDALSTEL, VEDL etc.

2. I check the fluctuations in Zerodha’s Kite portal.

3. I also check the stock behavior in terms of the following:

   a. No. of Buyers & Sellers for the above chosen stock.

   b. No. of Active & Passive Buyers & sellers for the above chosen stock. (For this you need to watch for the stock).

   c. I also check for the high volume trades direction.

   d. And other things like Open price, Avg. Traded Price, Day’s High & Low price,

4. I also following the law of averages.

5. I play with only 1000 units of the stock & wait for Rs 1 positive fluctuation & Rs 0.50 negative fluctuation.

6. The MOST important thing: I DO NOT TRADE EVERYDAY & I DO NOT CONSIDER THIS AS THE SHORTCUT FOR GETTING RICH. I trade when I can guess the stock movement based on the above mentioned parameters & the news related to the stock.

7. I do not follow any advisory firm’s calls.

THANKS FOR READING

[nishit2696]

Hellooo, Trading is fun its even better when you make money ittt. I started 2years back as i started my first year at BBA from knowing nothing about it so by now i have lost enough money and tried enough shortcuts to get no where but somehow by learning and knowledge balancing college and trading I got to a point NOW when I can trafe profitably in college durring my college hours and obviously outside. So how I TRADE is pretty simple I trade 3ways. 1. Divergence on 15mins using macd and stocastocs 2. Pivot point trading combined with some candlestick formation and pattern makes it ultra powerful 1hr 3. Simple S&R with again candle stick formantions 1hr I did try many other methods by great coaches by the repeated truth is everyone has there own way and one way might not work. All you need to do is not give up and it will jist happen.

[towelman]

First of all,I must admit that I am a beginner.

I would like to share a few observations…

First of all,there is nothing called a best stratergy.Even if there is,why would anyone share it you know!!

Broadly indicators are of 2 types,trend approach & countertrend approach…So MACD,Moving Avgs,CCI etc…are trend approaches. It means here you’ll notice,the buys would come slightly late,i.e. after confirming the direction/trend…(Much like arranged marriage,you meet,your families meet, all are in agreement with each other…then you take the relation higher up).Counter trend approach is like a disaproved love affair,not everyone will be in agreement.Mother/father,any one or both might show their disaproval,might be fights,quarrels etc…But you know/believe,that things cant get any worse than this…You are ready to take the leap of faith and (buy) this relation forward,right at the bottom,expecting the best is yet to come…

Enough of these silly examples…In trend approach,normally the SL is slightly larger as you notice when you look down,youve already come up a bit…In Countertrend approach your risk is to reward is high(Need not be always safe). Both are bad in their own ways,as they are good,so choose your own poison.

Secondly,there are a whole host of stocks,futures,commodities to trade. The best instrument I feel is Index options…As the risk is to reward is quite high.A stock/commodity/future very rarely would double…An option can…and it does.Options have limited liability but unlimited rewards…Option trading is subject to Market risks and if you dont know Markets and God forbid,you dont know RISK…then God help you…You’ll be taken to the cleaners!!

Thirdly,profit booking.When you achieve your monetary objective book some profit…with the remaining wait for the market to move further…Ideally,a 1:1.5 profit booking ratio can be fantastic!! See, for example,if you take 10 trades and you make money in 4…means you made Rs.6(1.5 4) and you lost money 6 trades, means you lost Rs.6(11) …Even with such a pathetic hit rate, you break even…CONGRATS!!!

[Vidyesh]

The answers stated above are quite interesting and intriguing. I do not have a commerce background the strategy I follow is simple, Supply and Demand.

In my opinion, the charts and numbers better suited for someone with experience in the stock market or with commerce background. I’m not an intra-day trader. I purchase stocks as an investment. The whole idea of stock market to me is a company seeking to grow themselves and stay competitive.

Here are a few things I follow when buying / selling stocks:

1. I read about the current market and learn more about the company which I am interested in and what it has to offer. I try to break down the core offering of the company to understand better the underlying the prospects of the stock increasing in value and making a profit.

2. Once I understand the product offering, I analyze what the growth prospects of the company are in the said field. This includes researching to find out growths and developments in the sector, governmental support / change in policy towards the sector and really to understand if the core offering would make sense atleast a year from now and future.

3. Now we come to the interesting part of digging dirt. Here, I go through financial summary, annual reports of the company to get information on the company and their capabilities in the segment. I research to find any notices issued to the company in question but any government body. I seek out to find information on the background of the promoters and their stake in the concern. The major thing I look for in the company financially is how much debt the company has, income of the company over a period of 3 years, stock value of the company and debt to equity ratio of the company. Other than that, I also look into details such as asset and liabilities, any deferred taxes, investment in other countries / companies and cash reserve of the company.

4. The final thing I look for is competition and how they fare in the market and stock movement of the company. This gives me a brief comparison of how the company is faring and what growth I can expect from investing in it.

Overall, I have now framed a picture of the company in question and can make my decision to invest or not in the company. This gives me a sense of security. I know now briefly where my money would be going when I buy stocks of the company.

[ThyagarajKrishnappa]

I strongly believe on positional trading. As per my strategy, we should follow one profitable system and be in trade in continuous, because the losses may be less, but one rocket trade will wipe all losses and take the trade into positive numbers. However the entries (sl) as per system should be in allowable risk/bearable. This type of trading keeps disciplined, emotions on control, constant regular qty (avoids overtrading). But as per me and system rules no trading (no positions) during events. Ex. We have cleared our positions before event day (brexit outcome day) and kept quiet till the event finish. Then entry will be decided in favorable position.

[Shamshadul]

Nothing new to share as most of us already aware and have learn lots… the experience I gain by following some principals is mention below, it may help the investors not the gamblers…

1. Read company’s cash balance, current valuation, it should be sound business and should have good growth prospective, A good company too gives you attractive investing point during bad market.

2. Look for Price to Book value if less than 0.5 go for the stock

3. Don’t waste your time to follow 100s of companies, Subscribe a good resource who provide you in-depth analysis report for the company you choosen for investment.

4. You only make money when you buy sound business at attractive price, so wait for the price to come on safe zone, You may loose money on safest stock if you purchase on costly valuation.

5. Keep at lest 40% of your money into a mutual Fund, i earn 20% in last two month by L&T cycle Growth by investing on right time.

6. Keep 20% of your money into fixed income instruments.

7. Always close your position once it hit your target ,

8. Never listen to what mob is saying…

Do only what you logically think is good… Keep faith on your decision, do not over optimistic… As if any one really 100% knows how to build wealth, then he must not be writing here to win 10K bug… LOL

[satishbodla]

My trading strategy is simple, buy quality stocks by picking one or two from a sector and leave them in the portfolio, I invest some amount of money and buy stocks in SIP manner

[ameheta]

Simple Strategy work every where. You must have three strategy to beat the market.

1. The uptrend Strategy

2. The Downtrend Strategy

3. The sideways Strategy

With this you have to knowledge of timeframe. Example You trade on 1 min timeframe then must buy on deep when 15 minutes time frame is in uptrend.

When to Enter can be decided by price action.

I have coded a afl for this and uploaded to wisestocktrader.

Here is the link

http://www.wisestocktrader.com/indicators/4856-yogya-daily-trading-guide-version-2-0

Read REMINISCENCES OF A STOCK OPERATOR and market wizards series.

[ShanKarPadmanaBhan]

Hi,

Thank you for the step taken. by this we can share from others and its a mutual growth progress for all. I am from a Engineering background and knowledge zero in Fundamental analysis. I Trade based on Technical and mostly Elliot wave. I believe Trading is a Business till one knows the risk involved and reward attained for the risk taken, if One don't know the risk involved and more eager for the rewards then there is better casinos out there than trading for gambling.

Strategy name = Downocci

Entry = Based on Trend and fibo

SL = recent HL

Exit = LH+LL made

I always formulate a plan and trade the plan. My mentor always says Trend is a friend till it ends. So, for me knowing the trend is more important be it any instrument.

I generally find the trend via Dow Theory the created by father of Technical analysis and Enter at the retracements based on Fibonnaci. I believe fibonnaci is the best tool for any trader. 

The above is chart of nifty as on august 2014 and if want to take position on nifty on that day. I will apply the simple concepts of dow and find the trend.

Once i had applied the dow theory concept the chart will look like the above. here its clear that nifty was making higher highs and higher lows meaning its in uptrend. so my trend friend is now in up. so i will look for long setups.

After few days of waiting i ll get my long setup based on fibonacci of the recent swing HH and HL.

and once i enter recent HL becomes my Stop loss and will trade the trend till nifty makes LH and LL together.

After 8 months of trading I m in profit of 1010 pts with return of 190% on capital and 285% return PA.

Remeber i never tried to enter at a low nor exit at the high. I just tried to ride the trend. sometimes simple things make more money than complex things.

[Thamil]

Buy at support. Sell at resistance. Strict with stoploss. Don’t invest all the money. Don’t take revenge trades. Dot.

[JhanjeeMohit]

Lets understand what a strategy is!

A strategy is a process which is penned down in to steps to achieve the desired outcome.

My strategy is :

Go long in uptrend 
Go short in downtrend
No trade in sideways

(trends are defined by time frames one trades)

I use top down approach and enter in opportunities on the lower frames when the tide turns towards the major wave. It makes it more rewarding since as a trader all i have to do is sit and let markets do the rest.

Tools which helps me

Trendlines,SMA,RSI, Volume

Trendlines : helping to find the least resistance area.
SMA : SMA slope helping to define if its a sideways or trending move.
RSI : helping define the momentum (shift in momentum)
Volume : helping define strength of the move.

Above four mixed with position size & money management is my process done to trade.

Attached screenshot of my chart & contract note.

Contract note screenshot

[Nishit]

I always try to minimize my losses in wrong trade, and I always book my profit in right trade which I pre-decides before taking any trade.

[ssnkumar]

My strategy is for long term investment.

Study the fundamentals of the given stock - P/E, Earnings for past 5 quarters and 5 years, Profit growth, P/B ratio, peers in the same industry and their performances, competition, share holding pattern, its 52 week low/high, beta. Also, try to find out projects/orders in pipeline and its prospects.

If all these look good, then invest in that stock.

If after investing, if the share price falls 10%, then invest again. And if it goes down another 10%, then invest double the amount.

If it goes up 20% within 1 week or 1 month, then sell 50%. And enter again on correction.

If it constantly goes up (say, 30% in one year or so), then whenever market corrects, invest a small amount in this stock.

In this way build a portfolio of strong stocks.

Review every long term stock once a year. If any change has happened in fundamentals or the sector as a whole or a new competion/threat, then revise your decision.

Keep aside one portion of your amount for small caps.

Use this for stocks in uptrend. Don’t wait for more than a month. Don’t expect too high returns.

If the stocks moves up 5-10% within a week or month, exit. Even if it hasn’t moved or given loss, still exit these stocks.

So, for this small cap portfolio, quick buy and sell is the strategy.

Don’t allow sentiments to get in the way. Don’t be too greedy.