My Intra Day Copper Trading Technique

Hi,

First of all let me tell you I am not an expert in technical analysis. I am still learning from many gurus here. I am going to explain here an intra day system to trade with copper. So far it is giving me very good results. Thats why i thought to post the system here, so that small traders can try this their own.

The system is very simple. Indicators used here are simply PSAR and Stochastic. And if you know camarilla Pivot points that will give you extra confidence.

Input values for PSAR are step - 0.02 and Maximum 0.2
Stochastic - 
%K - 5
Slow 3
%D 3

Levels 20-70

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Trade In 15 Min Charts . Whenever A New Psar Signal Comes Have A Look At The Current Trend With Stochastic. Suppose If We Gets A Buy Stop In Psar Check Whether Stoc. Is Over Sold Or Gaining Up From Down. If So Go Long In Mcx. Other Wise Leave The Trade. Similarly If A Sell Stop Comes And If The Stock Is Over Bought Or Tending To Go Down Go Short. 

Now the safety part. STOP LOSS. Once Enters Into A Trade I Used To Put 3 Point Sl Always. But Suppose Market Goes In Opposite Direction To That Of Our Trade, I Used To Modify Stop Loss So That It Can Match With $ Sl. Dont Let Inr Variation Eat Your Sl. 

Work With 15 Min Chart And Always Book Profit 0.80- 1 Rs In Mcx. Will Get 3-4 Trades A Day. 

Enter only after closing of first candle.

If you really want to try this, do paper trade first. Then only trade with real cash.

THANK YOU .....JASSUJITH

1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures

The Strategy.

It is not a Real positional method because I don't want to take the positions to the next day. It is also not Intraday because I am not going to sit the whole day for Trading. The above statement with the assumption that the backtested results of last two years data will work for future also

So coming to steps.
1. End of day, Take the OHLC (Open, High, Low, Close)
2. Calculate the 25 DAY EMA on the HIGH - We will Go LONG only above this Price
3. Calculate the 25 DAY EMA on the LOW - We will Go SHORT only below this Price
4. Calculate the 15 DAY EMA on the OHLC - We will use this to calculate the BUY/SELL signal
5. Calculate the 25 DAY EMA on the OHLC - We will use this to calculate the BUY/SELL signal
6. To Confirm the UP trend, there should be HIGHER HIGHs and HIGHER LOWs. For DOWNTREND it should be LOWER HIGHs and LOWER LOWs.
7. Using the above rule, we will get a BUY or SELL signal for 15DAY EMA and 25 DAY EMA. If we can use TOD for TODAY and PRE for PREVIOUS Day. Then we will get a BUY Signal if TOD_HIGH >= PRE_HIGH and TOD_OPEN >= PRE_OPEN and TOD_LOW >= PRE_LOW and TOD_CLOSE >= PRE_CLOSE
8. For a SELL Signal we have to check the LOWER LOWs and LOWER HIGHs.
9. We will get one signal for 15DAY EMA and another for 25DAY EMA.
10. If both are BUY then for tomorrow we will go LONG or if both are SELL then for tomorrow we will go LONG.
11. If both of them do not give any BUY/SELL signal then no trade for tomorrow.
12. If the signals are different then we will go with the 25DAY EMA Signal because we want to go with the Trend (so we use higher EMA value)
13. IF it is a LONG, then we will go LONG above the Price (Calculated in Step 2)
14. IF it is a SHORT, then we will SHORT below the Price (Calculated in Step 3.)
15. We will have to calculate the Stoploss Price so that the Win Ratio confirms with the Trend. For Example if NIFTY is trending only 25% of the time and 75% of the time it is Rangebound, then we will have to find a stoploss so that we will win the Trades only 25% of time. The value from my tool comes to around 7-10.
16. Once you open the trade around 9:15 AM to 9:30 AM after checking the opening price, then put a Stoploss trade and close the Trading Terminal.
17. At around 3:15 PM to 3:25 pm, you need to close the trade if Stoploss was not hit.
18. After market hours download the OHLC for today and continue the steps for tomorrow.

All the above steps and calculation have been done in the Excel tool. The only thing which needs to be done is daily add a row and update the OHLC manually and check the column W for LONG Signals and column AB for SHORT signals in the tool.

I have not actually used this system. So please use it if you feel confident and that you are convinced. I am planning to paper trade for some time before actually using it. Please share the tool and please don't sell this tool for money... It is supposed to distributed freely...

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Best Regards,
                                         THANKS TO RAJ