Raja SAR


posted by rajapvt on Fri Apr 12, 2013 11:10 am

#81

posted by rajapvt on Fri Apr 12, 2013 11:42 am

#82

posted by rajapvt on Fri Apr 12, 2013 03:35 pm

#83

posted by kirank on Sat Apr 13, 2013 11:27 am

#84

Hello rajavt,

2  Questions.

1. Have you tried the same system for BankNifty OR some major stocks (e.g. SBIN, TataSteel, AxisBank, ICICIBank) ? My guess with same parameters, it will work and can give better result.

2. Have you thought of doing part-booking of one lot and re-entry ? 1st Lot can have Fixed number target, and re-entry can be with same parameters except 34-EMA (little faster EMA is needed).

posted by rajapvt on Sat Apr 13, 2013 12:27 pm

#85

Krian:

1. Yes, you can use the same system for BankNifty, higher volatility compared to Nifty. Stocks that you mentioned are of different volatility based but definitely volatile. If you use same parameters, you should be able to accept the whipsaws during the trendless mode and you can definitely rewarded MORE when trending trades come. I always suggest for higher volatile stocks, go higher time frame instead of 30 minutes (currently using for NIFTY trades). It reduces the whipsaws.

2. Part booking and re-entry will be considered once everyone is comfortable with the current SAR. I always mention, in case if anyone miss to enter into the SAR SHORT/LONG, enter at the pullback (near to 12EMA/34EMA) so that they can join the SAR trend. However this can be little risky for the newbie and senior traders can do this anyway. If you prefer to book profits, then I recommend 20 points (for intraday trades) and 50/100/150/200 for partial booking (if trader trade more than 1 lot, then book profits one lot for 50, second for 100, etc and last lot hold till SAR reversal). But I do not recommend this for the newbie.

Hope your questions are answered.

posted by rajapvt on Mon Apr 15, 2013 04:25 pm

#86

Went out on personal work and not tracked. Market seems to rolling over there still. SAR LONG came today, but we will checkout tomorrow for taking any positions.

posted by rajapvt on Tue Apr 16, 2013 03:43 pm

#87

Well, SAR Long triggered @5549.xx = 5550. One could have taken the long during pullback near @12EMA/34EMA (5561/5554). CMP: 5694. Keep waiting for SAR short to trigger. Current trade giving roughly 140 points, since I am not into this trade, am not keeping this in the performance.

posted by rajapvt on Wed Apr 17, 2013 01:46 pm

#88

Rule to remember, when SAR is LONG, any dip is a buy (don't forget to watch the stocha and rsi). When SAR is SHORT, any rise is a sell (again keep an eye on stocha and rsi).

posted by rajapvt on Wed Apr 17, 2013 03:41 pm

#89

17/04/2013 EOD SAR UPDATE.

posted by rajapvt on Thu Apr 18, 2013 03:44 pm

#90

SAR LONG going good. Current running profit: 431 points for two lots.

posted by Navaneeth on Fri Apr 19, 2013 12:31 pm

#91

Respected Raja sir, 1000 thanks to your system. as I am forex trader, I was using almost same system + parabolic SAR In day chart to trade in EUR/USD$ .. ITS A GOOD STARTEGY.. My question is 1} can you please explain if market in range bound (See Nifty charts in September - October month) .. What 1 can do in that situation. 2} My second question is can you pls pls elaborate option trading strategy using this method. (Give me some examples with 5700 ce 5600 pe etc..) Why did you said to short the PE + CE not to BUY them? Any differences? PLZ Enlighten US.. Thanks in advance..

posted by rajapvt on Fri Apr 19, 2013 01:00 pm

#92

First of all do not call me as 'sir'. I am a fellow trader like you and trying to share knowledge to the new traders. Like Bhavesh ji said, "You cant earn in long term by just following others call. Start learning today. " Just trying to learn and sharing what I learned.

To answer your questions 1) Well, even in range bound market also you will be getting points, but may be not too good number of points like the way we are getting now.  

2) Yes you can trade using this system for options trade. But sell the options instead of buying. Whenever a SAR Short happens, then you can sell ITM calls and whenever SAR Long triggers, try to sell ITM puts. Advantage in doing this is 'theta' component is guaranteed to your account.

Per say, if we buy call option when SAR long triggered (i) in trending market you get huge profits (as a trader we do not know whether it is really trending or not). (ii) in non-trending market, futures may move up and down and finally one day if SAR give next trade (opposite to the current trade), during that time as a trader we may loose the premium in the calls/puts. Just see the prices of 5600 CE when the SAR long is triggered (latest one) and see the prices when Nifty reached towards 5600 level and just before last big rise. You can understand that the premium will not rise easily until the big big trending moves comes in trade. 

Hope this helps you.

posted by Navaneeth on Fri Apr 19, 2013 04:44 pm

#93

Okay :-) Thanks again. But everyone tells us to selling the options is risky job .. so I asked. will see & understand these Theta/ ITM calls matter as I am new to options .. will do it in paper for few months then will try it on real trade if it succeeds .. however we are minting smart with this technique in nifty future . So no worry .. But for knowledge I asked OPTIONS trading. Won't do it without back testing .. Another thing is if we apply this strategy in stocks, which all stocks you suggest this strategy works most? (you said volatile stock, I saw that.. But in specific which stock futures in your mind / back tested? 

Cheerio.. Keep it Up friend ..

posted by Navaneeth on Fri Apr 19, 2013 05:29 pm

#94

I said to look at October month's chart.. Except October month, This strategy almost gave 400 points in every month.. I checked it .. so my point is what traders should do in these situations.. Look at the chart .. It almost gave 8 loss trades .. Any other indicator to avoid this whipsaw, or we should look at bigger time frames like 1 hr - 4hr .. (I am not asking you to give 100% perfect strategy.. it's not possible also) Just checking  - can we avoid these types of calls/signals in this SAR? 

Thanks In advance .. 

posted by rajapvt on Sun Apr 21, 2013 06:16 am

#95

Navaneeth, Trading itself is risky. Why not option writing? But trader should know which one to write and when to write that is all matters. Also traders should aware what is the risk level and stoploss. Once this is there in the plan, trader should just follow without hesitation.

Thank you for your back testing and  sharing the data (400 points, is it per one lot or two lots?). It will help other traders to follow with discipline, without any tension.

One buy is missing in your chart after 3rd sell.  I just checked in metatrader, and the trades are coming like this. 115+ points per lot, still I feel not a bad. Crosscheck and let me know if any thing you see as different.

posted by Navaneeth on Sun Apr 21, 2013 07:42 pm

#96

Thanks again. Will back test some months again, bcz i won't easily adopt a system  without back testing for many months. From last may i have calculated in Nifty. Minimum 350/370 points in 1 lot per month. (Not exactly, But average up to this April) .. so it seems very good system. As I have seen, it works good with large capital stocks (axis, sbi, Rel, LT) Not that much with RNRL, Jet airways, BPCL etc .. However I am still testing this with stock futures. Till that Cheerio :-) 

posted by Navaneeth on Sun Apr 21, 2013 07:47 pm

#97

1 of My greatest trades in forex, Using almost same system .. GBP/JPY bought @ 130 area, sold @ 145 area .. Difference is i use day chart with parabollic sar & 5 + 10 ema ..  

posted by rajapvt on Sun Apr 21, 2013 08:14 pm

#98

As I mentioned, I do not trade in other stocks and I trade in only Index (Nifty), that too options.  Please do post your observations and results for the interest of the other traders. Everyone will get benefited.

posted by Navaneeth on Sun Apr 21, 2013 10:01 pm

#99

Well Raja, Are you trading Options using same SAR strategy? If yes, Why don't you post those trades along with nifty index trades. It helps newbies to understand what options is & how to trade them. If you have record of those trades pls post it here. For example in this sar strategy sell was @ 5899 (13th march) then which Option trade you took? buy was at 5711 (1st apr) So which option trade you did took @ what price. PLS let us know if you don't have any problem. Thanks to my friend again in advance..

posted by rajapvt on Sun Apr 21, 2013 10:43 pm

#100

Navaneeth, option trading for the newbie is risky as the emotions play most of the time (trader can loose entire capital) and hence I am little hesitant to share the strategy over here. So going one step at a time and sharing the basic systems (that use basic indicators) and which brings some discipline in trading since the rules are simple for entry and exit. I can share the option trading strategy at a later point of time in a separate thread. But if you are interested in option trading with the current SAR system, just write the options (costly but less risky). Option trading strategy coming in future for NP team.



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