Tuesday, November 15, 2011

SAR- Simple but Profitable Trading System


Nifty_Positional_SAR_Trading_SYSTEM

 
 
 
 
 
 
 
 
 
I must admit that after I discovered this type of trading system, it changed my trading style completely and I started making profits.

So what is this SAR trading System?
SAR
is nothing but STOP AND REVERSE trading system. It is a mechanical trading system which is having certain set of rules. SAR is a particular number which when come on screen we have to reverse the position. So if we are already in a long then we will go short when our SAR no is triggered.

Example: Suppose for 15th Nov SAR is 5200 and Nifty closed at 5148.35 on 14th Nov, so as closing price is below 5200 we are presently short as per SAR system. And now if on 15th Nov 5200 comes on screen then we have to reverse our short position to Long with small SL(may be 20 to 30 points)

This way you will always be in a trade either Long or Short. To get full out of SAR one must take position in more than two lots so that profit booking can be done in certain intervals like 30/50/80/100 points. One must remember that at least one lot should be there till the reversal point so as to get full juice out of the trade.
Why you should be always in trade?
Because you don’t know which trade will be converted into huge profitmaking trade. So you should always be in a trade.  There are many traders who are using SAR Trading System as their prime trading system successfully. One of the reasons behind their success is DISCIPLINE. One should follow the system religiously despite of your emotions.

Are you following SAR. You can follow any other’s SAR or you can Design Your Own.
 
Advantages of SAR Trading System:-
  • Its complete Mechanical Trading System that is based on the rules made for the system.
  • You are always in a trade either Long or Short, so never miss a Big Trade.
  • Small SL to manage trade.
  • No knowledge of Charts/Technical Analysis Required.(If  you have it is better.)
  • Trading in Multiple Lots so one can part book Profits.(Locking of profits is taken care.)
  • Sitting continuously in front of screen is not needed.

Disadvantages of SAR Trading System:-

  • After a big Profit Making Trade there is a possibility of Whipsaws.(But you have to look at overall Profits.)
  • Proper Backtesting is required before implementing the system.

So Start Designing SAR any help is needed Just ask me.


For Further Reading,
Nifty Trading System, Positional Trading System, SAR Trading System, Trading Systems and Setup

7 comments:

Nnumber Game on December 8, 2011 at 2:48 PM said...

It would be better if you have given one example of how to start developing SAR for ppl like me as i am not that much friendly with computers like your guys. Also pls tell me what are the steps to develop the SAR.

thanks in advance.

SAM on December 8, 2011 at 3:06 PM said...

Dear Nnumber Game

Every body can develop his/ her own SAR as per one's requirement. As I for myself have developed My Own SAR which I have made a AFL (Amibroker Formula) for it which I always have on my chart. Just check the Chart which gives me Signal For My SAR on Chart it self. Of course I have properly backtested it. This gave me more than 200 point in previous trade and present trade short triggered at 5002 and gave me more than 70 points and am still holding rest.

http://3.bp.blogspot.com/-DpjQSh1vHU8/TuCEcftHW5I/AAAAAAAAAKo/O-dYvlEwe6c/s1600/MY_SAR_Trading_System_Chart.gif

And one more thing you can Develop your own SAR if you are not suitable with other's SAR or else can follow one of those who are publishing freeely online like JNSAR.

For developing SAR you can start with an Idea may it be SMA, EMA, or any other indicator or any other mathematical calculation that suits your time frame. Before using it in market always properly backtest it.

Hope this is helpful to you ... as I have attached chart and of course I can't Disclose you my Formula.

Regards

SAM

Nnumber Game on December 8, 2011 at 3:15 PM said...

Sam

thanks for the reply but pls tell me which is more suitable EMA or SMA and also in which time frame u trade or best suitable for new entrant. If possible pls share some part of it.

thanks

SAM on December 8, 2011 at 3:24 PM said...

Dear Nnumber Game

Either EMA or SMA or Some other complex mathematical Calculations.... whatever may be the base you can use ... but if it is shorter time frame it may give lot of whipsaw... longer may give little less whipsaw.

As far as my Trading is concerned I always trade in my positional trades also. So even if SAR is triggered Short for my System I have also made some trades in it to utilize intraday moves.

Time frame Suitable for New Entrants may be for on daily time frame. I use my system on 5 min Chart but that I have modified from daily time frame as I wanted Signals on my chart.

Hope this gives answer to Some of your questions.

And Sorry but I can't disclose my system. ( By the way ARU Nifty System... where ARU is my daughter's name ..Arushi)

Regards
SAM

SAM on December 8, 2011 at 3:27 PM said...

And of Course as you know I follow Ilango Sir's JNSAR closely in combination with my Own System.

Nnumber Game on December 8, 2011 at 3:34 PM said...

No issue SAM
but can u help me to write my SAR cos i dont know how put values in AFL.

SAM on December 8, 2011 at 8:06 PM said...

Nnumber Game, I am not that much expert in Ami Formula Language... but I have got help from TJ(Traderji)and IndiTraders Members.. many of them are expert in Ami Formula Language(AFL).

You can tell there your requirement ... like what condition you want to Revert your position ... then there are many who help you out.

I have also got helped by TJ members.

Regards
SAM

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