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Aneesh Philomina Antony Profile picture
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22 Oct, 4 tweets, 1 min read
designing a #tradingsystem

Price- Bar/Candlestick/Heike Ashi
Supply Demand - Volume, Vwap, Volume Weighed MA
Momentum - Rsi/Macd/Stoch
Volatility - Bollinger Band/Keltner Band/ATR
Support/Resistance - Swing Pivots, MA, HVN, DP, Weekly/Monthly HLC

1/4
Use one from each category

Do not overload with multiple tools from same category
For example,
do not use stochastic and macd together.
Both measures momentum.
And both are imperfect in its own way.
Same goes true with other tools as well

2/4
One system to start with I would suggest here

Candlestick charting for price
Volume for supply and demand
Macd for momentum
Bollinger band for volatility
Swing Pivots for Support/Resistance

This is a good logical start

3/4
Once u r comfortable with it,
u can slowly tweek it based on ur expertise developed by then
A simply kept sensible plan is very hard to fail unless u act upon it with lack of common sense

4/4

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More from @ProdigalTrader

Aneesh Philomina Antony Profile picture
23 Oct
Components of a focussed trading journal

A trading journal isnt just about recording basic trade details
Its a live market forward test report as well.
For that u need to assess & analyse various facets in trading separately

Here are the components of trading journal

1/12
1. Trade-specific details

The entry, SL, exit price/time,
Traded instrument,
Trade direction,
The result of the trade etc.

2/12
2. Analysis

logic behind the entry, SL and target levels.
Potential reasons for why trade might not work
Review of the same after trade completed.
Notes on scope of improvements etc.

3/12
Read 12 tweets
Aneesh Philomina Antony Profile picture
19 Oct
Often u would find a struggling person talks philosophy
Bcz, that's easy
Kind of accepting what's happening as inevitable
It's fate & u r bound to take it

But very few guys,
refuse philosophy
decide to fight
Make a plan
start from scratch
&
persist with hard work

They win

1/4
Relate it with trading
Each and every successful trader was a struggling trader once
It's just becoz he decided to keep philosophy aside and worked upon his core weaknesses,
he became what he is now

2/4
Behind his present success, there would be lots of painful experiences and sacrifices wold be there
which he committed to fullfil his ambition.
That's the solo route to success in trading career

3/4
Read 4 tweets
Aneesh Philomina Antony Profile picture
19 Oct
thr exists no way of building conviction on ur trading process
except "backtesting"
Its not just about the response in price after the chart set up is formed,

scaling in potential
Volatility risk
Impact of demand etc etc
thr r lot many important parameters to b quantified.

1/5
All the trading decisions u take in ur trading
has to be backrtested for the last min 5 years data.
Suppose u havent done any backtesting, and u have position which goes against u
u would be just holding it based on ur emotions.

2/5
u dont have any idea about what are the chances for price to regain all the losses
But if u have done the BT, then u will have an exact point of price beyond which there is no hope for any recovery.

3/5
Read 5 tweets
Aneesh Philomina Antony Profile picture
18 Oct
Volatility based Stoploss in day trading
Why closing based SL is fraud idea?

when u day trade with chart analysis,
u need to use OHLC charts
That means u use bar charts or candlestick charts.
U should never use line chart for that

1/10
This is quite obvious and everyone knows that
But the question is why is that?

Pls read on

In OHLC charting,
High and Low of every candle denotes the volatility in that time period.
This parameter is of atmost important in day trading as

2/10
this determines the stoploss for the trade
If a trader measure the volatility of every bar properly,
he is well informed about how much price can swing
away from a certain price point at any given period of time.

3/10
Read 10 tweets
Aneesh Philomina Antony Profile picture
24 Sep
psychology behind attempting to find and trade tops/bottom is quite straight forward.

suppose price is going up and near resistance
conceptually trade here is short
if the price fell from resistance and confirmed trend reversal,

1/5
one needs bear a bigger SL here
trend reversal point after confirmation being quite far
So we would wait for pullback so that risk would be lesser
When pullback actually happens,
he assess it as correction and assume the previous trend strength is lost already

2/5
Now, when price completes pullback and resumes falling again
he find himself in the same dilema, that SL quite wide as price fell already

Amateur traders find its solution as picking the top
so that he would be quite close to the SL level when making the entry

3/5
Read 5 tweets
Aneesh Philomina Antony Profile picture
23 Sep
Patterns and its trend requirement to qualify as a pattern

in charting, thr can be only 2 types of patterns possible

1... continuation pattern
2... reversal pattern

Simply it means there has to be trend behind every pattern to either continue or reverse.

1/7
that means u cannot draw a pattern,
after a sideways move

be it anything like head and shoulders, cup and handle, triangle etc,

u need to find a pattern after a strong trending move
in other words,
patterns are mere consolidations after a trending move

2/7
Such consolidation usually takes some geometrical shapes
which we name it based on the overall shape of the price action

if there was no trading move prior to the pattern u r finding out,
there is no such pattern exists.

3/7
Read 7 tweets

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