Kirubakaran Rajendran Profile picture
Jan 20, 2020 9 tweets 5 min read Read on X
Many traders follow different types of moving average crossover #TradingStrategy but the main problem with such MA/EMA cross over system is whipsaws. How one could reduce such false breakouts and also gain from large trend ? Image
The answer is move to larger time frame.
Buy rules: Go long when 10 EMA is greater than 50 EMA
Sell rules: Exit when 10 EMA is lesser than 50 EMA
Time frame: Weekly
Many of us must have invested in stocks like Yes Bank, #DHFL, #Graphite, #HEG etc. All these stocks were once a fundamentally strong stocks but due to sudden shift all these stocks tanked. Following this strategy rules would have helped you to exit at the right time.
DHFL Trade results: It gave only two trades, both together ended up with 130% returns. Image
Graphite Trade results: Graphite gave multi fold returns with 653% returns in just one trade Image
Stock went from 90 Rs. levels to Rs.1000 levels but many investors were stuck in this stock as it tanked to Rs.200 levels now, however following this strategy would helped you to exit at the right time, as it gave exit signal when stock was at Rs.700. Image
Even if you apply to Index heavy weights stocks like #HDFC, #KOTAKBANK you make exception returns. ImageImage
And this EMA cross over system helps you in identifying multi-bagger stocks as well, we tested this strategy with huge historical data sets. These are some of the stock list that returned multi fold returns Image
You can download the historical results of all #NSE stocks from this link, bit.ly/ema1050 it has been tested from 1994 to 2019. Blog post here squareoff.in/single-post/A-…

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More from @kirubaakaran

Dec 31, 2024
Everyone do SIP for their future, be it for their own retirement or Daughter's education or Son's marriage. What would you do if your SIP corpus goes down 50% due to market crash when you need money? How can one handle the risk involved in SIP? Here's the ideal solution 🧵
When it comes to SIP everyone knows that if you invest X amount every month, you are going to get 10X after n number of years. Everyone talks about returns but hardly anyone talks about the risk involved. Let's see how markets behaved historically.
Sensex moved from 100 to 80000 in 44 years. Most SIP investors just focus on the destination not the journey, during this 44 years, Sensex has witnessed multiple instances where it has seen more than 50% corrections. Image
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Read 13 tweets
Dec 27, 2024
Removal of weekly expiry triggered many traders to look for alternative markets, one such market is Crypto. But it involves too much noise, people say it's illegal, not safe & too much of tax. I spent last 30 days exploring Crypto, let me uncover all the myths. 🧵
Am totally new to Crypto, I dont know ABC of it. First learnt some basic stuff. Just like how we trade stocks in cash segment and F&O segment, Crypto market also follows similar approach. Like stocks, Crypto market has coins. Just like how you buy Reliance shares, you cant buy Bitcoin, ETH etc from India. Spot trading is not allowed in India. You can only deal with Futures & Options. That's why many people say Crypto Trading is illegal. No, it's not illegal. You just cant trade in spot, thats all.
If you want to buy Bitcoin in spot market you can use exchange like Binance but it involves too much of an hassle. Lot of my friend's bank account was frozen when they did transaction through Binance. Let me explain why it happens. When you deal with stocks trading, you transfer money from your bank account to broker's account and then you purchase the necessary stocks that gets credited into your demat account.
Read 13 tweets
Oct 14, 2024
Ever wondered how to combine the power of equities and gold to boost your returns while cutting down risk? I backtested a Dual Momentum Strategy using ChatGPT that returned 1221.50% over the last 14 years! Here's how you can do it too—no coding required. 🧵👇
As we know Equity and Gold are two completely uncorrelated instruments. Compared to Gold, Equity is highly volatile and prone to huge drawdowns. Mostly Gold price tend to go up when Equity corrects since investors move to safer asset like Gold. Image
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💡 Here's the idea:
We combine Niftybees and Goldbees ETFs to create a dual momentum strategy. Simple rules:

1️⃣ Compare last 3-month returns of both ETFs.

2️⃣ If Niftybees outperforms, we invest in Niftybees.

3️⃣ If Goldbees takes the lead, we switch to Goldbees.

4️⃣ Every quarter, recheck and rebalance if needed."
Read 12 tweets
Sep 26, 2024
One day, my 10-year-old kid asked me, "What do you really do?" He was curious, seeing me either watching Netflix or reading books most of the time, and rarely working on my laptop. "I want to understand what kind of work you do," he said.
I explained to him the basics of investing—how you invest in companies, wait for them to grow, and as they succeed, your shares increase in value, helping you build wealth over time.
Without missing a beat, he asked, "Can I invest in Roblox?" I told him, "Yes, Roblox is listed in the US markets." To make it more fun, I suggested, "Let’s create a demo account on Investopedia. You can pick 10 companies you know, and we’ll invest in them.
Read 14 tweets
Jul 31, 2024
SEBI has released a 18 pages consultation paper related to F&O Trading, more than 78 lacs traders lost close to 50k crores in FY24, this is the major reason for SEBI's action, here's the short summary what it means and how it can impact active traders,especially Option Traders🧵
Here's the proposal from SEBI regarding index derivatives.

1. Limiting the no of strikes upto 4% with regular intervals, after increase the width of the strikes interval. Say Nifty is at 25,000, 4% of underlying is 1000, Nifty strikes will be between 24000 to 26000 - 50 interval Image
At the max Index can have 50 strikes only, in the above example we have close to 40 strikes, so remaining 10 strikes can be added, 5 in put and 5 in call. So below 24000 and above 26000, strike intervals will not be in 50s, it could be in 100s or 200s or 500s.
Read 17 tweets
Jul 30, 2024
I went on a ten days family trip to Ladakh, what was suppose to be an adventure trip turned into a nightmare. If you are planning a Ladakh travel, this thread might help you in what you should expect once you land in Leh. 🧵 Image
Many people have Ladakh trip in their bucket list mainly because of the picturesque landscape, high altitude motorable passes for bike ride. But we always wanted to go there because of low light pollution that lets you do star gazing where even Milky Way is clearly visible with naked eye.Image
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Before we started our travel, we did a complete research about the places we wanted to cover. Nubra Valley, Pangong Lake, Tsomoriri lake, Lamayuru, Hanle. It’s hard to cover all these places in short span of time, you need minimum ten days to explore the landscapes of these places.
Read 15 tweets

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