this is a sequel to my earlier article
"how market beat my best tools"
http://thebestbusinessintheworld.blogspot.in/2012/07/1.html
http://www.mudraa.com/trading/139606/0/how-market-beat-my-best-tools-js.html
the limitations of the tools as discussed by me in the above mentioned articles are not deathknell.
they are real and necessary evils which i accept.
and have resolved to use as contours of a strategy.
1. rsi / william
= i stop following them at the first sign of "bermuda triangle" effect. for rest of the occasions i continue to trust them.
in fact, by not behaving in the copybook fashion, rsi and william tell me silently and indirectly what i should know.
2. options data spread
= don't look at it for first 7 days. thereafter, the sting is generally out.
3. 8-34 sma
= using this to segregate between up and down trends and rangings
and hence take btst stbt and pro-trend intraday shots
also, using this as a confirmation tool.
4. elliot wave
= use as a guide and confirmatory tool to double-check trend and thus take better shots.
5. intraday options data
= i don't use it at the start of trends (range breakouts and sma 34 crossovers)
for rest of the times it works ok especially if i resist the temptation of anti-trend bait by it.
6. yesterday range breakout
= they are less but that is not their fault. just can't say no to those. take it as per availability.
7. btst
= take these and increase the number of profitable trade beyond the "yesterday range breakout" ones
8. call/put options strategies
= just buy plain vanilla options for intraday and btst stbt. risk is limited to give sound sleep and time decay is minimal.
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