Complete credit to @theProfessorDev. I have just modified it to be more user friendly.
So, what's different in this?
- You can now backtest this strategy on the time period you want - it is no more an indicator alone 1/n
- You can also backtest this strategy for any N period high low break. Usually, you will find traders using Day/Week high and low breaks. But, I've made this strategy generic to even test a 1/2/3/4 hour high/low breakout. 2/n
Example: You can test a 5 hour high/low breakout on a 15 min TF and trade this strategy.
Stop gambling & Start learning: I have received a few DMs about how people have lost lakhs & want a strategy to recover those losses. Here is my suggestion. If you are not profitable, do not trade FnO or anything for that matter. Stop today & vow not to trade unless you learn.1/n
But, then how does one learn? Start with Identifying support and resistances - this is the ABC of markets and everyone must know this, especially discretionary traders. Perfect this on the monthly and weekly charts. 2/n
It is pretty easy to learn this on higher TF than on 5/15/30 mins TF where there is a lot of noise. Practice this over the next 6 months and buy stocks where you see there is a proper setup. I have many charts on my timeline for reference. 3/n
Thread: All the stocks I post are from an investment perspective & I prefer to ride it with the strategy mentioned in this tweet. To know how it works, you must apply this strategy on hundreds of stocks and see it for yourself
If you are a beginner, you may choose to focus on these two strategies. Allocate 50% capital to each and practice this to see the results. Remember, without a proper strategy you are bound to lose in the long run and you will be drained both capital wise and emotionally too. 3/n
All-in-one chart! How to enter, define stop-loss, when to pyramid & exit? This took me some time but I'm sure this chart speaks a thousand words & saves a few thousand webinar fees for many if you follow this. Although this is hindsight analysis, I am sure it will help many. 1/2
This can be a very effective trading technique for breakout stocks & you will be able to ride the trend as long as the short term trend reverses. You can catch some really big trends & you need a few every year to make your PnL. Remember 80% of profits come from 20% trades.
Note: If you do follow my tweets you would notice a similarity in the setups I post & that is what I am good at & I have kept doing them for some time now. I trade and invest in many of the stocks I post. However, I do not follow up on those and I don't see the need for that 1/1
Based on a single criterion cci(34) crossing 100 on weekly TF, I scan stocks and go through the charts and pick the best setups that I feel will outperform in the future. You can trade these charts on the daily or weekly timeframe. Ignore stocks below Rs.10. 2/2
If you are a short term trader, you can choose to hold the stocks until the stock goes below 10/20 ema on daily TF or until your stop is hit. If you are a medium-term trader, you can choose to hold them until CCI(34) on daily goes below -100 or until your stop is hit. 3/3
The 80/20 management rule in trading. 80% of the effects come from 20% of the causes. In trading, 80%(big portion) of the profits come from 20% of the good trades. Do not take these numbers literally. 1/n
If you are a discretionary trader, you need to focus on those 20% good trades and the reasons behind it and try to make this number bigger. For ex: if 20% of those trades were breakout trades, then you need to trade more breakout trades to make those big winners. 2/n
If you were a system trader, you can't do much if your system already has a very good expectancy. You just need to have the right mindset to go through the drawdowns and wait for those big winners. Remember, there is no trading technique/system that will be 100% profitable. 3/n
Nifty Strategy for educational purpose only:
Not sure how many will benefit from this system, but if one does I can assure you that you will make money in the long run.
Why am I doing this? To make you aware that simple strategies with a few lines of code will work. 1/n
Let me show you the backtested statistics before the strategy.
- Nifty positional strategy tested on Tradingview spot data
- Lots considered throughout Backtesting - 1 lot
- Indicator used - CCI(50)
- Hourly Timeframe
- commission & slippage - 0.03% deducted per leg 2/n
1) Time period tested - 01.01.2014 to 30.06.2020. Didn't include current trade that is running on 378 points. 2) Initial capital considered - 300,000 (2x drawdown included) 3) Ending capital - 872209 4) Nifty Points earned - 7629.51 5) Commission & slippage points- 1477.65 3/n
A brilliant concept based on the long term and short term EMA by @heartwon. I'm here on twitter for such stuff that helps me build my systems. Really good one. Here is the trading view indicator that I coded. Please RT for everyone's benefit. 1/3
Tradingview code for 13 & 34 ema crossover explained by @Singh7575 🙏 Works pretty good on daily TF and even better on weekly TF. With good risk management & a pyramiding strategy, this can turn out to be a really good strategy for short term trading and long term investing 1/3
strategy("13 & 34 ema crossover", shorttitle="13 & 34 ema crossover",overlay=true) 1/2
strategy.entry("Buy",strategy.long, when = Long == true,stop=high)
strategy.exit("Sell",when = LongExit == true,stop=low) 3/3
My CCI based investment strategy - How does it work? A thread.
Objective: Identify stocks that are entering a phase of momentum on the upside and ride the stock until momentum weakens.1/n
About CCI: CCI is a momentum-based oscillator and a value above 100 indicates the price is well above the historic average and a value below -100 indicates the price is well below the historic average. 2/n
Strategy: This strategy will enter a stock when CCI on the weekly timeframe is greater than 100 & is overbought & exit when CCI on the weekly timeframe is below -100 & is oversold. Does that sound straightforward? Yes, simple and straightforward strategies can make money 3/n
@charts4u I use tradingview(TV) pine script for backtesting. You will find pinescript towards the bottom of TV & you can code your strategies for any script. Enter your code, save it & add it to the chart. If you are code is right, you will see the results in the strategy tester
The Pharma sector has been in a strong downtrend after the high of Apr'15 and has been falling in a channel. The first attempt to break out was in Sep'18 but failed. Another attempt is in progress now after the stock retested 61.8% of the entire rally from Mar'09 to Apr'15. 1/n
Will we see a breakout this time? No one knows, but the probability to breakout is clearly on the higher side after looking at last month's candle & the reversal level at 61.8% fib. What can one do? Start a SIP in one of the pharma funds & allocate a % depending on ur risk. 2/n
Dow Jones Possibilities - I can go 100% wrong, this is just an imagination. Forming a small HnS pattern & I expect the market to bounce next week & once we reach the resistance, another week of panic & downside, which should form the larger HnS pattern. #DJI#trendlines
A thread - Nifty and the sectoral Indices in India:
Nifty - A possible short term pullback from the trendline here. Nifty price is around the 38.2 fib level and trendline support. Probably a gap down and pullback tomorrow. 1/n
Nifty Auto - I see a short term pullback here too. Reasons being the price is now right at the downward sloping trendline and the price has retraced 61.8 fib levels of the entire rally from 2008 lows #CNXAUTO 2/n
Nifty Metal - The price is right at the lows and should show some strong buying, which could lead to some pullback from here. Also, the price is at the downward sloping trendline and the lower line of the pitchfork. This convinces me of a short term pullback. #CNXMETAL 3/n
Both the indices have been trading in a parallel channel for the last 12 years. The channel was created in the bear fall from '07-'09. Since then Nifty has been trading perfectly above & below the median line of the parallel channel. 1/n
However, Dow Jones started trading above the median line only in 2017 and has been trading above the channel since then. The median line has been an important pivot for both the Indices. 2/n
Dow Jones tried to break the median line in Dec’18 and failed. But. Nifty never broke the median line and the uptrend was intact until this month. 3/n
Thread - Why is stop loss a must for investments too?
Ask yourself this question – Why am I investing in markets? If the answer is to gamble, God save you! Else, as most of us know, we are all in here to make money! 1/n
And, if you need to make money you need to protect your money as much as possible. But, how does one do that? By defining your risk or by defining how much you can lose per stock. But, how does one define “how much” or “the risk”? 2/n
Doesn’t matter if you are trading or investing, your risk cannot be anything more than 5% of the capital. What does that mean? If one has 500,000 to invest, 5% is 25000 of that. Can one digest losing 25000 in a stock when your capital is 500,000? No, right! 3/n