CONJBNSAR is a number (shown Right side of the blog), It is a stop and reverse number and calculated based on spot value of banknifty. Hence it gives entry and exit value in spot price of banknfity . One can take entry in banknifty future whenever CONJBNSAR triggers signal in spot.
To check whether it sustain above/below CONJBNSASR keep entry +/-15-25 points away from CONJBNSAR...
For eg. CONJBNSAR triggered @ 10054 on 11th sep 2012, than one can take entry near 10075-85 .
Minimum 2 lots is advisable. Book one lot with gain of 100 points and hold the other one till a reverse trade is triggered based on each subsequent day's CONJBNSAR .That time book another lot and take reverse position with minimum 2 lot once again.
This way you are always in a trade.
If position is taken based on CONJBNSAR and it triggers once or twice again on same day than dont reverse the position again and again on that day. keep your position open and do so on next day's CONJBNSAR. Keep the filter of 0.6% on CONJBNSAR for 2 days thereby giving a chance to CONJBNSAR to survive.
Backtested this strategy (from Feb 2011 to till date ) and found it has given 4 wipshow out of 25 trade. Belief in the system is must... wipshaw may shatter the confidence and there by one may tempted to change the trading strategy every time the loss incurred... and ultimately never gains the confidence.. Hence, be mechanical and follow whichever strategy you are following continuously with confidence...
One can check trade based on CONJBNSAR in "Trade Diary (POSITIONAL)" tab. Which I will update daily.
If any further clarification needed then feel free to write a comment.
NOTE: Will soon incorporate a strategy for banking stocks too.. It will be totally a different strategy which ensures a gain with minimum risk.
Dare,
ReplyDeleteThanks for CONJBNSAR.
Is it necessary that the rate pierces CONJBNSAR? i.e. for current 10318, is a decline to say 10358 and bounce back up to 10350 go long ?
Similarly, how is whipsaw dealt with -? If rate for today goes to 10278 and comes back to 10358 - how is this trade placed - long or short?
Thanks
Real Pilot,
ReplyDeletefirst of all on the day when conjbnsar triggers the signal u have to take the position like it triggered buy signal on 11th sep 2012 when it crossed conjbnsar 10054... we have taken entry around 10075... than after entry even if banknifty falls upto 10000 ... u dont have to reverse the trade on same day... wait for next day conjbnsar and allow a filter of 0.6% on conjbnsar for 2 days that will be ur stoploss... after 2 days no filter conjbnsar it self is stop and reverse...
one have to trade mechanically in above pattern whether it gives rally or wipshaw... because if u r not following mechanicallu than u might be lucky to overcome wipsaw once but not every time.. so be mechanical and accept even if stop loss hits...so this way even if u get 85% accuracy in ur trade than its good..
i hope i cleared Ur doubt..
Trade with minimum 2 lots
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