Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Feb 24, 2012
J13 SAR METHOD - NIFTY TRADING SYSTEM
1.Nifty SAR is a number based on market's strength and weakness as well as the balance of demand and supply.
LONG Nifty : When price move above Nifty SAR
SHORT Nifty : When Price move below Nifty SAR
2.Maximum two attempt to trade a given day SAR should be taken. Other wise , we will trade next day.
3.Keep log of Bank Nifty ,VIX SAR => if SAR is hit in Nifty only,trade lightly with 1 lot only.
4.You may use the filter of 0.2% to 0.3% on SAR for 2 days once SAR new trade is taken to give the new trade a fighting chance & survive. For eg: For the new long trade taken @ 5468 yesterday, the SAR of today @ 5457 may be altered to minus 0.3% to 5441.
5. Position Size -2 Lots ( we trade 1 lot on exception case)
6. Close your Position using
a. Trailing Stop-loss b. Divergence c. Profit Booking
7.Money Management -
I am using Fixed Ratio Money Management. My daily goal is 5000 per contract and my weekly goal is 10000. I choose a Delta of 150000, i.e. I can increase my position every 10 weeks assuming that I achieve my goals every week.(http://perfectniftytrader.blogspot.in/2012/01/nifty-future-risk-management-plan.html)
8.Use 1 Lot to re-initiate new trade in the direction SAR during trending phase.
Add Position to Long Side -
1. A move above DHEMA
2. > 200sma
3. Channel Support
4.Weekly Support S1
5.BO Trade
6.Support
7.move above 5DEMA
Add Position to Short Side -
1. A move below DLEMA
2. < 200sma
3. Channel Resistance
4.Weekly Resistance R1,R2
5.BO Trade
6.Resistance
7.move below 5DEMA
9.Side ways Markets=>Decrease your position size considerably .out of our 2 lots we keep only one lot for sideways markets and continue our view points with previous
trend.if our weekly goal is met ,I will prefer to close my position and look for next opportunity.
10.Excessive volatile market => Decrease your position size considerably .out of our 2 lots we keep only one lot for volatile markets.
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