Discover and read the best of Twitter Threads about #Trading

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#TRADING Intraday - #INERTIAMETHOD Inertia - A property of matter by which it continues in its existing state of rest or uniform motion in a straight line, unless that state is changed by an external force. This is the law of physics.
Inertia method applies this law of physics for selecting stocks for intraday trading the next day. Stocks that are in motion are selected with the assumption that it might continue the motion (uniform motion).
Method -
Select stocks that satisfy the following conditions - To be done at EOD
a) Stocks with latest daily range greater than 1.25 times of 10 day Average daily range AND
b) Stocks with latest body size of the candle consuming 75% of the daily range.
Read 8 tweets
#TRADING INTRADAY HTF_SR method Another Eg. #BATAINDIA daily / 1hr /5 min - Conclusion - Key level to watch out for 1363-1365; if price action bearish at this point, shorting suggested with stop of 1370; if price action bullish at this point, long suggested above 1365...…...
for a quick scalp till 1375; however above 1365 advised to wait to see how it reacts to the 1375 resistance line; if an bearish price action happens here, short suggested around 1370-1375 with stop of 1385; if price breaches 1380-1385.....
long suggested with stop of 1370. Try practicing this in as many charts as possible to get a hold of this method "Higher Time Frame Support and Resistance method" (HTF_SR). With proper risk management and defined rules, you can see vast improvement of your performance.
Read 3 tweets
#TRADING Intraday - A very simple intraday trading method; No sophisticated systems / pivots / fibbonaci / indicators / EW..... etc ; This is being followed by sum of the successful intraday traders in the world and even in our markets too. The following are the steps:
1) Open Daily Chart, say for eg.,Nifty.
2) Identify nearest support and resistance from the latest close. Mark horizontal lines (for eg, blue).
3) Now go to 1 hr chart.
4) Identify nearest support and resistance from the latest close. Mark horizontal lines with different colors (for eg., black). If S & R of 1 hr tf is same as daily tf, identify the next visible S & R in 1hr tf and mark accordingly.
Read 10 tweets
#TRADING Intraday Stock Selection - An effective method
For trading the next day, do the following prev day evening:
1) Calculate daily range (High - Low)/Low of all FNO underlyings (DR)
2) Calculate 10 period MA of DR. (ADR)
3) Calculate 0.65 X ADR. (T_ADR)
4) Select stocks that satisfy the condition DR < T_DR.
5) Calculate the ratio DR / T_DR and sort 4 in increasing order.
These are the stocks that have better chances of trending the next day.
Usually you will get not more than 8 - 10 stocks.
Concentrate on top 5 and apply your intraday strategy to these stocks.
Note : This is a method ONLY to select stocks for intraday AND NOT A TRADING STRATEGY AS SUCH.
Read 3 tweets
#TRADING Intraday Trading Setup 3 - Pivot trend relationship setup
Before getting into the setup a brief intro on pivots; Today's HLC will pave way for tom's pivots. Yesterday's HLC was used for today's pivots. In short `n' period HLC will be used for determining `n+1' pivots.
Above chart illustrates tomorrows pivots based on today's HLC. So next day's pivot Vs current days pivot position is known. In other words the pivot trend is known. If next day's pivot range is higher than today's pivot range it is called Higher value relationship;
If next day's pivot range is lower than today's pivot range it is called Lower value relationship;
Read 7 tweets
#TRADING Intraday Trading Setup 2 : Pivot - VWAP setup
1) Time frame 5 min
2) Plot Camarilla Pivot H3 / S3 and Floor pivot range (Central pivot, upper and lower pivot).
3) Plot VWAP.
4) Plot 8/21/34 Pivot emas.
5) Long conditions - VWAP should cross both Cam H3 and Upper floor pivot.
6) Entry at a bullish candle at the point of previous candle high post first pull back in between 8 and 21 pivot ema or VWAP.
7) Stop at 34 pivot ema or VWAP. Position size varies accordingly.
Advantages of this setup :
You are in the trade after confirming the direction of the average market participants which is assessed by VWAP / Pivot combination.
This setup captures the move predominantly at the early part of the day.
Read 6 tweets
#TRADING Intraday Setup 1 - 3S_Vwap breakout - High prob setup; 5 min tf - Plot VWAP along with 3 std dev VWAP band above and below. Plot 8 period pivot EMA. PRIMARY CONDITION - VWAP SLOPING UPWARDS FOR LONG AND DOWNWARDS FOR SHORT. Following is for longs; Reverse for short.
Long cond. - Price cross above 3 std dev VWAP upper band; Go long at the 1st pullback to 8 period pivot ema abv prev candle high or first pullback to 3 std dev vwap abv prev candle. If trend is strong pullback will be limited to 3sdvwap. Stop at few ticks below 8 prd pvt ema
Trail 8 prd pivot ema if pullback is shallow or 3 sd vwap . If in a strong trend, price breaks below 3 sd vwap, exit and if in a shallow trend if price breaks below 8 period pivot ema, exit. Egs attached for both shallow trend with 8 prd pvt ema pull back and 3sdvwap pullback.
Read 4 tweets
A simple intraday trading strategy:

Timeframe :
Preferably 5 min

Instrument :
Preferably BankNifty Futures

Technical tools required :
a) Standard Pivots (Floor Pivots)
b) Accumulation distribution indicator or OBV indicator
c) RSI13 (can customise)

Entering into a trade based on leading indicators that are derived from only price and volume complemented by RSI to ascertain the strength of trend.
AccumDist = [(C-O) / (H-L) ] x Volume

If AccumDist is positive, then C > O and if it is sloping upwards, then C > O along with increase in Volume. Viceversa for negative. Running total of AccumDist provides Cumulative AccumDist which is available in all technical softwares.

Read 6 tweets
Is it possible to earn above average returns in intraday? Answer is POSSIBLE , at least mathematically .

Suppose the trading capital is Rs 1,00,000.
Risk appetite per day is assumed at 3% on the trading capital, which is Rs 3000.....
...... Risk Reward accepted is min 1:2 ie you take a trade only if you get 1:2 RR.
Assuming you take 5 trades per day. Hence risk per trade is Rs 600. Reward per day is Rs 1200.
So, per month the total no. of trades will be around 100 assuming 20 working days per month.....
..... Scenario 1: At a success rate of 50%, no. of profitable trades is 50 and no. of loss making trades is 50 per month.
Hence, profit amount is 50 x 1200 = Rs 60,000 per month; similarly loss amount is 50 x 600 = Rs 30,000 per month.
Net pnl = Rs 30,000.
Retn per annum = 360%.
Read 6 tweets
#Bigdata vs Machine Learning vs Artificial Intelligence
By Irene Aldridge
☝️author High-Frequency Trading: A Practical Guide to #Algorithmic Strategies& #Trading Systems
☝️co-author Real-Time Risk: What Investors Should Know About #Fintech,#highfrequencytrading and FlashCrashes
1. ☝️🧐➿🔢 In traditional #statistics or #econometrics, researchers make assumptions about #data distributions ahead of the analysis
2. 🥇💪#machinelearning = the 1st discipline to apply #efficiency to #problemsolving brought by #computers & their enhanced computational power
3. 🤗➿🔢#ML scientists try to reduce #assumptions about the data as much as possible&let the data (&computers) decide what fits best.
4. ♾➡️🔤🌐#Datascience identifies core characteristics of the data, summarized by what has been known as #characteristic values (#eigenvalues)
Read 6 tweets
In last one week I have got n number of request
1. learning Options
2. learning TA
3. learning Python
4. Tips providing
5. please how can I get your service
6. Manage my money
And worst if them all
7. I have lost lots of money please help me recover.
The problem here, knowledge is widely Available, google it and you will have everything available. But most people want to still know best book, best method, best way to not lose money. I am sharing my thoughts to suggest that, it takes lot of time to become consistent profitable
All these people are fine individuals and very excited about prospect to learn from someone else's mistake. But there are people who might be looking for short cuts. Trust me just one good (any book) on any method is the first step to start learning in that direction
Read 15 tweets
𝐓𝐫𝐚𝐝𝐞 𝐏𝐥𝐚𝐧 𝐟𝐨𝐫 𝐓𝐫𝐚𝐝𝐞 𝟑
if this count is Correct then nifty should touch minimum 11582 and bounce towards all time high... will decide Entry Plan as per that
#neowave #trading
Bought Nifty FUT at 11691 Stop Loss Day Low
Exited AT 11679
Read 22 tweets
I might not be making money yet myself, waiting for my #ALTs to moon, but at least I'm useful to someone(my best friend since Jr. High and college roomate).

$PINK $PIVX $ONG $MTL $LIFE (I'll mention the other good coins when I'm able to get in on them 😀). Must pump these first.
#bitcoin doing well since my "extremely bullish" proclamation to my friend about 25 minutes ago at the bottom of the most recent short-term dip.

Give the fuck up, bears! You're done for! #MuellerMayhem incoming!

Read 3 tweets
Interesting movies and TV shows on finance and markets.
One such show is Billions. Check out!
A battle between U.S. Attorney and a hedge fund king.…

Comment your movie/show of your choice.

A group of investors bet against the US mortgage market. (2008 crisis)…
Read 11 tweets
Vamos a matar el tiempo hasta que conozcamos el resultado de la votación del #Brexit... Por cada "me gusta" que tenga este tweet os daremos una 'verdad incómoda' sobre el trading. ¿Quién empieza? 👍
¡Casi seguro que no te haces rico! Sólo poder sobrevivir con el #trading ya es un logro al alcance de pocas personas 😎
Trabajar desde la cocina o en la terraza puede parecer 'cool', pero no es especialmente cómodo. Mejor busca un despacho bien equipado (y sin distracciones) si quieres ser verdaderamente productivo 👌
Read 32 tweets
Perpetual Swaps are expensive to trade!

We compared Futures & Perpetual Swaps to see which is better for #trading
Futures outperformed Swaps in 13 out of 16 months. Irrespective of #bitcoin performance.
GREEN: $BTC monthly returns were +ve
RED: $BTC yielded -ve monthly returns
In DOWN months, i.e. where $BTC monthly returns were negative shorting via Futures would've yielded higher returns

This underperformance makes Perp. Swaps poor instrument for hedging

“Hedging Bitcoin balance by shorting 1x Perpetual Swap” would've cost you roughly 2% per month
For UP months ( where $BTC monthly returns were positive) a levered Long in Futures would have given higher returns.

Funding eats away from the returns of a trade!
#cryptocurrency #cryptos
Read 8 tweets
Lots of good topics covered here - I have tweeted the whole paper for you. Enjoy. #VolQ

What we heard from the thundering herd (BAML) p1
#QuantResearch #Trading #Research #MacroResearch
What we heard from the thundering herd (BAML) p2
#VolQ #QuantResearch #Trading #Research #MacroResearch
What we heard from the thundering herd (BAML) p3
#VolQ #QuantResearch #Trading #Research #MacroResearch
Read 18 tweets
#MachineLearning in System #trading. Here is a simple idea to improve your system.

#MachineLearning(#ML,#DeepLearning) is used in stock trading algorithms/system intraday or EOD based system. Mostly these systems are predictive systems.

These predictive system are based on given OHLC and other indicators (like RSI,MA,etc) tries to predict the value of next close/open/...using Machine learning/AI algorithms. There are many simple statistic based systems(call it non-AI system) also... (2/n)
Aim: to improve win ratio using #MachineLearning specifically classification algorithms
Input: your historical system trade data with various system parameters(like, rsi, supertrend , atr, etc) along with status or trade(winning or losing)
Read 15 tweets

Probabilities is the most misunderstood concept in #TRADING IMHO.

To those who haven't had some sort of gambling background, it may not seem obvious, but strike-rate matters A LOT more than most people think.


First, converting REWARD:RISK into decimal odds properly is crucial:

2:1 R:R = 3

1:2 R:R = 1.5

formula: ( [REWARD + RISK] / RISK = decimal odds)

Then, convert decimal odds into percentage odds:

1.5 = 66.7%

3 = 33.3%

the 'percentage odds' is the STRIKE-RATE required for your trade to be a 50/50 gamble, assuming you considered SLIPPAGE and FEES when calculating your R:R ratio (very important).
Read 5 tweets
$NQ 4H: Wolfe alcista no muy ortodoxa ahora que se acaba el mundo 🤓🧐📈 #wolfewave #ondadewolfe
$NQ tomen parciales no sean avariciosos 🤓📈📣👨‍🏫 #wolfewave #tradinglive #ondadewolfe
$NQ 30m: a punto de activar la proyección objetivo por #divergencias a ver cómo cierra esta vela #ojo #haganparciales 🤓📈📣 #trading #live #ondadewolfe #wolfewave
Read 12 tweets
If you haven't felt this, you haven't traded.

Just got hold of @markminervini's 2nd.

Great intro, Mark. Looking forward to getting into it.
A number of times when I started #trading I would read about common trading errors but then land up making the exact same errors.

I still do. It is a difficult process.

Most of it clicks when you figure out that what you are really trading is risk not return.
You cannot just become a good trader by wanting to become one. Just like any other skill set, it takes time, errors, disappointments, emotional fatigue and plenty other undesirable feelings to get there.

I haven't gotten over several disappointments yet.

Read 4 tweets
While some alts are still drawing higher lows/sitting on massive “supports”, a good 90% of shitcoins look like the first pics setups & are waiting on $Btc to run

Be careful what you’re buying & recognize these patterns
📉 doesn’t always mean 📈

#Trading| #Bitcoin| $Crypto $Alts
Another cheatsheat on trading both long & short positions and determining entries, stops & price targets 📉📈

#Bitcoin #Trading| $Crypto $Btc $Eth
How to spot bearish & bullish reversal divergences as well as hidden divergences based on price action & properly reading indicators

#Bitcoin #Trading| $Crypto $Btc $Eth
Read 4 tweets
Some traders believe news are unimportant, and news/narratives are always spun into prices. That's false. News are only sometimes spun into prices, and can be used effectively for speculative activities. It should be obvious, yet it's not. #trading #investing
This may sound extremely obvious to many, yet I've had many discussions where for example price of oil drops hard on a Saudi statement yet a fellow trader would argue news was irrelevant and price actually dropped because traders sold some 61.8% fibonacci retracement.
Prices are not magical self-contained entities following their own rules.

If in doubt look at the following on Trading View:

$GBPUSD on Jun/23/2016 => Brexit
$ES on Nov/7/2017 => US Election Night
$CL on Nov/27/2014 => OPEC
$BTC on Mar/10/2017 => SEC Bitcoin ETF
Read 3 tweets

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