Here is a simple Day Trading Technique.
Note the highest point (H) and lowest point (L) till 12:30 hrs
Sell when price falls below L
Buy when price breakouts above H
Keep entry point as strict stop loss
Have the guts to win big
Book profit according to your comfort level or as suggested by technicals.
Avoid carrying forward the trade to the next day below L
May carry forward the trade to the next day above H (if u can risk the profit)
===================
How far it will go after breakout or breakdown depends upon
- whether it had already gone too far since opening?
- whether it is pro-rally, anti-rally or ranging times?
- whether rsi and william%r in the favour or against that breakout or breakdown.
- whether the higher low step (in case of breakout) and lower high step (in case of breakdown) was long pending to be formed when the breakout or breakdown happened.
===================
If after clear breakout or breakdown, it comes back into the H-L zone again, reverse position can be taken with entry as strict stop loss.
Also, one may wait to take position till the lower high step (in case of breakdown) and higher low step (in case of breakout). This can help in avoiding bluff Stop loss trigger.
===================
If u back test this on FTSE for 29 sessions from 16th July to 25th Aug, you will find that
- 27 times out of 29 it gave profit!!!
- Out of 27 profitable trades, 15 were big-to-medium ones, 9 were small.
- Only 3 out of 29 times, it did not trigger
===================
If u back test this on nasdaq for 30 sessions from 16th July to 26th Aug'10
- 13 times out of 30 no trade was triggered
- Out of rest 17 times, it yielded profit in .........ALL 17 trades
- 7 big wins, 1 medium, 9 small ones
===================
If u back test this on Nifty for 30 sessions from 19th July to 27th Aug'10
- 9 times out of 30 no trade was triggered
- Out of rest 21 times, it yielded profit in .........ALL 21 trades!!!
- 13 big wins, 4 medium, 4 small ones
===================
If u back test this on India Cement for 30 sessions from 19th July to 27th Aug'10
- 12 times out of 30 no trade was triggered
- Out of rest 18 times, it yielded profit in .........ALL 18 trades!!!
- total return of 21.5% in a month!
===================
If u back test this on M&M for 30 sessions from 19th July to 27th Aug'10
- 10 times out of 30 no trade was triggered
- Out of rest 20 times, it yielded profit in .........ALL 20 trades!!!
- total return of 17% in a month!
===================
If u back test this on Praj Industries for 30 sessions from 19th July to 27th Aug'10
- 8 times out of 30 no trade was triggered
- Out of rest 22 times, it yielded profit in .........ALL 22 trades!!!
- total return of 27.5% in a month!
====================
Why this method works so brilliantly?
- A range (whether of the previous day or that of current day) has a sanctity. So when it is broken, it is for real (subject to special conditions mentioned above)
- European markets open during noon and their effects are decisive
- Markets are not random. Market forces can't be random lest they should go mad! So, the method in the madness has to be there and is evident in this method.
- If a stock or index has to move it has to have some bouts and runs. This method spots these!
No comments:
Post a Comment