Many Traders might be using #supertrend with different time frames, starting from 3 minute to 1 hour in #Intraday on #banknifty & #nifty . Some days they make profits and some days they make loss. Have you ever wondered what is the best or ideal time frame to trade super trend?
If you are using higher time frames, you realize that at times when market reverses, you lose more as we have to wait for that one full candle to complete. That’s why many traders prefer trading super trend in smaller time frame. But have you tested it with historical data?
beginners simply consider only brokerage as charges, and think that if we make above Rs.40, we are going to make profits. But totally 6 different charges we end up paying for every trade we make.
Brokerage
Transaction charges
GST
STT
Sebi fee
Stamp duty
I tested the super trend intraday trading system on Bank Nifty from 2009 to 2019 with various time frame 3 mins, 5 mins, 10 mins, 15 mins, 30 mins and 1 hour.
Once in a while you can make very huge returns in lower time frame like 3 mins, on days like Nirmala Sitharaman day
Do you think, you could keep getting such trades? You make big returns when you are right, but lose little when you are wrong, so based on risk reward basis, do you think 3mins time frame is a very good trading system and you can make profits in the longer run?
Super trend when applied on 3 mins time frame, it generated 351% before charges, but after we applied the cost, we realized it doesn’t generate any profits at all. If one continued trading it on lower time frame, he would have blown off the trading account multiple times.
In this chart, it is clearly visible that the lower the time frame - higher the charges, trading on 3mins time frame, you end up spending 10+ lacs on transaction charges alone. We should neither trade on very low time frames nor on very high time frames.
Only 15 mins time frame is able to generate better returns after all charges. Trading Super trend on very lower time isn’t profitable which is proved statistically, if you are doing so, please avoid it squareoff.in/single-post/Be…
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