Thursday, September 4, 2014

TIME TO BOOK SOME PROFIT ON YOUR INVESTMENTS

While Nifty is making new highs since last few weeks..... momentum indicators are not making new highs..... which suggest that big correction can come at any time... so it is better to take out some money out of market, book some profit on your investments.

Monday, January 13, 2014

TRADING SYSTEM UPDATE FOR 14-1-2014




***FIVE AVERAGES---
---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

***CALL GENERATION---
---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

****SCORING SYSTEM ----
1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

****IMPORTANT POINTS----
1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·        Trade four lots when score is +4 or -4
·        Trade three lots when score is +3 or -3,
·        Trade two lots when score is +2 or -2
·        And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).



Wednesday, January 8, 2014

TRADING SYSTEM UPDATE FOR 9-1-2014




***FIVE AVERAGES---
---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

***CALL GENERATION---
---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

****SCORING SYSTEM ----
1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

****IMPORTANT POINTS----
1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·        Trade four lots when score is +4 or -4
·        Trade three lots when score is +3 or -3,
·        Trade two lots when score is +2 or -2
·        And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).



Tuesday, January 7, 2014

TRADING SYSTEM UPDATE FOR 8-1-2014




***FIVE AVERAGES---
---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

***CALL GENERATION---
---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

****SCORING SYSTEM ----
1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

****IMPORTANT POINTS----
1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·        Trade four lots when score is +4 or -4
·        Trade three lots when score is +3 or -3,
·        Trade two lots when score is +2 or -2
·        And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).



Sunday, January 5, 2014

TRADING SYSTEM UPDATE FOR 6-1-2014




***FIVE AVERAGES---
---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

***CALL GENERATION---
---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

****SCORING SYSTEM ----
1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

****IMPORTANT POINTS----
1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·        Trade four lots when score is +4 or -4
·        Trade three lots when score is +3 or -3,
·        Trade two lots when score is +2 or -2
·        And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).



Thursday, January 2, 2014

TRADING SYSTEM UPDATE FOR 3-1-2014




***FIVE AVERAGES---
---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

***CALL GENERATION---
---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

****SCORING SYSTEM ----
1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

****IMPORTANT POINTS----
1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·         Trade four lots when score is +4 or -4
·         Trade three lots when score is +3 or -3,
·         Trade two lots when score is +2 or -2
·         And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).