Updation of Futures trading Strategy - May 2010.
# So , far it has been very good following daily mSAR, now im facing some different problems.
# Intraday Idot-Like trades & Loss` are all gone. due to following of mSAR.
# After bumper april month, i m not good in may (as on 15th may 2010) so i digged my problems. and i have identified them as below.
No.2 No. 3
This is how i trade futures. - April 2010.
# So , far it has been very good following daily mSAR, now im facing some different problems.
# Intraday Idot-Like trades & Loss` are all gone. due to following of mSAR.
# After bumper april month, i m not good in may (as on 15th may 2010) so i digged my problems. and i have identified them as below.
No. 1
I didn’t followed last trade as per daily mSAR (FOR ENTRIES)
Earned / Notional Profits are lost. (not captured due to swing trading & trend following nature of strategy )
Intraday Oppurtunities are lost.
For above problems after brainstorming i m proposing following solutions which should be followed religiously.
1) Follow mSAR At any cost daily – Period.
2) To De-clutter trading im proposing a system which will take care of your Positional & intraday trades. – monitor only 2 timeframes i.e. 15 min (n=45) & daily (n=6).
3) Book IN/OUT as per 15 min (n=45) chart for positional plays (u can wait nxt one or two candles to finish to avoid whipsaws) – THIS WILL ENSURE RETENTION OF NOTIONAL PROFITS IN POSITIONAL TRADES.
4) Play intraday only on 15 min (n=45) chart but initiate strictly only ONE LOT while starting the day, and add further qty after u get cushion of some profits (gain some more experience in this field)
5) WHILE TRADING INTRADAY U MUST FIX UR EXIT BEFORE ENTERING DAY-TRADE. (as told by some pro)
6) Rate Your trades daily.
This is how i trade futures. - April 2010.
# Use Dinesh_Rishiji`s mSAR for Banknifty trading.
# After so many backtesting its established that for futures trading BN is best, nifty is giving more whipsaws.
# Take entry only when mSAR signals , otherwise stay out of trade. and book out profits using 10 min & n=21 mSAR on intradays.
# Backtesting reveals that on average BN gives 670 points each month . (Tested from 31.10.08 to 31.03.10,)
# Optimum results achieved when used N=6, average no. of trades but max profit. compared to N= 7 & 5.
# Check Backtest file i have uploaded to my google docs. - for further improvements.
# The only problem is when BN gives closing near mSAR, and it keeps opening Gap up & Dn. (this is the problem to be solved).
