my trading technique

8/10/2019 My Trading Technique

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My Trading Technique

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MySAR is the price level which guides us for the trend ofthe market for that particular scrip and for that particularperiod. Price has the tendency to go up if it crossedMySAR level with conviction and has tendency to godown if it breaches MySAR level with conviction.

Hence once can take a buy call if price crosses MySAR

from below with conviction and remain in buy mode solong as price remains above MySAR level. Similarly onecan take a sell call if price breaches MySAR from abovewith conviction and remain in short mode so long as pricesustains below MySAR level.

MySAR simply guides us for the trend, but remains silentfor target and stop loss. Hence we have to take the help ofother tools such as dailyweekly pivots, daily - weeklyhigh/low ema, high/low made today and in last two daysetc to decide the level of target and stop loss. The stoploss should be put at such a level that it is not eaten awayby the market easily and then bounce again.For trades of Nifty future, generally 20/25 points stop lossis advisable, while for trades of BankNifty 60-70 points

stop is recommanded.

MySAR technique is more advantageous when at least 2or more lots are traded so as to facilitate partial booking ofprofit and riding the trend. Due to partial booking of profit,one


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can easily ride the trend,can keep his funds released to re-enter the trade,can protect the employed funds easily.

Profit should be booked at 40-50 points of price movementin case of Nifty future trades and 70-80 points in case ofBankNifty future trades. Once profit is booked the stoploss should be trailed to the entry price.

Watch higher time frame price movements and trade inlower time frame.

Take each trade with self confidence and without any fearof loss. Even if you have to incur any loss due to stop lossor gap up/down opening etc, accept it with smiling faceand try to recover it in the next trades, but step bystep.never intends to recover it wholly at once in thenext trade.

Keep habit of transferring profit to your personal a/c and

do not keep it with brokers account so that you are nottempted to trade for more quantity. Keep only requiredfunds in brokers account and not too much.

Keep habit of transferring every month some parts of profitearned into safe investment like gold/silver, bank fixeddeposits, any good sip schemes etc.

EMA rules :

Price above Lowema......it is a Buy on dips....forHighema ++Price above Highema...Hold buys...Because upwardmomentum has been picked up.


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Keep the full records of daily trades

Examine the trades done during the last few days and tryto locate the mistakes if any committed and try to learn

from those mistakes.

How to use MySAR Levels :1MySAR levels guide us about the market trend for thatparticular commodity for that particular day only.2Price tends to move up above this MySAR level andtends to move down below this MySAR level.

3One should remain in long position so long as price isabove this MySAR leveland should remain in short position so long as price isbelow this MySAR level4One can enter into a long trade when price crossesMySAR level from below with conviction and remain inlong position till the price remains above MySAR.

5One can enter into a short trade when price breachesMySAR level from above with conviction and remain inshort position till the price remains below MySAR level.

Rules to be followed strictly

1. In fact, the system is meant for positional trading

specially for future segment,but one can enjoy intra dayvolatility by watching MySAR_A levels carefully.

2. MySAR are levels are derived daily on the basis of EODand they are to be applied on the next day, hence I have


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termed it as MySAR_A (MySAR applied).

3.MySAR level guides us for the trends of the market for

that particular script for that particular day. Price tends togo up above this MySAR_A level and tends to go downbelow this MySAR_A level.

4.Hence one can keep long position so long as price isabove MySAR_A level and keep short position so long asprice is below MySAR_A level.

5.Always enter into a long position when price crossesMySAR_A level from below,and enter into a shortposition, when price goes below MySAR_A level fromabove.Means never try to catch the running train so as toavoid the risk of accident.

If the scripts has ran up or down too much from

MySAR_A level, please please do not enter into atrade of either side because script may bounce backat any time. e.g. TCS triggered for long trade on 6th Septat above 847 ran up too much. For 1st Nov its MySAR_Alevel is 1124. Here as per My Trading Technique of SAR,long entry is not advisable though the script trades above1124, because it has ran up too much. Of course it may goup further, but it may invite risk of accident of bounce backany time, or such type of trade may give little profits only.Here one should wait and seek the opportunity for theshort trade at the breach of MySAR_A level.

Better wait for the hit of MySAR_A level for any


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trade. Patience pays...............

6.In this system, one is required to remain in trade

either long or short for a long period of time.

7.At the point when price crosses, MySAR_A level, one isrequired to cut is position and reverse it soasto minimizethe effects of whipsaw.

8.After entering into a trade at the breach of MySAR_Alevel, if price goes against the expectations and again

crosses the MySAR_A level, one is required to wait for 510 minutes and then again reverse his position.e.g. If you enter into a long trade at the breach ofMySAR_A level of 5384, if price goes up.upto5395.5405..5415and if you do not book profit eitherpartically or totally, and if suddenly price starts declining..declining.and goes below our MySAR_A level of

5386, then in such circumstances you are required to waitfor 510 minutes and if during this time period price goeson declining with volume, you have to cut your longposition and enter into a short position without any muchmore delay because price tends to go below MySAR_Alevel.

Of course, you have to face certain number of whipsaw insuch circumstances, but after the completion of certaintime period the effects of whipsaw can be nullified only ifyou reverse your trade, and that will give you more returnsin total.


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Again you may also consider the levels of 5EMA, DaysHigh-Low, Previous Days High-Low etc. to reverseyour position, if the price goes against expectations.

9.It is advisable to take position for 2 - 4 - 6 - 8 - 10 lotsdepending upon your investment capacity. If the lot size istoo much large take position for few lots only so that M2Mcan be managed easily. Multiple lots are advised to betraded sothat partial profits can be booked inbetween. At least two lots should be traded to get therequisite return of the employed funds.

10.Always keep 25% of your investment capacityreservedfor M2M and other contingency events.

11.Always book partial profits in case of gap up / downopening.

12.To facilitate fresh entry of trade, always put alerts atMySAR_A levels for all the scripts before opening ofthe marketsothat whenever price reaches to MySAR_Alevel, it becomes easy to take fresh position for thatparticular script.

13.Keep position alive for few scripts only. Means do nottake positions in so many scripts that it becomes difficult totakle all. e.g. It is advisable to take positions for 2 lots ofscript A and B, and not 1 lot for script A, Script B, Script Cand Script D.

14.Always stick to the selected scripts for tradingand


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never jump from one script to another script frequently.

15.For example take position for Nifty 4 lots, Bank Nifty -

4 lots and along with these, select any one or two scriptsfor trading and try to stick to these selected script fortrading for a certain longer period of time. Of course, youcan change the position size as per your capacity.

16.This trading technique is more beneficial and givesmore return if atleast two or more lots are traded. Inthat case. one should book profit in between for one lot,

and ride the trend for the second lot.

my trading technique

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