Tuesday, January 24, 2012

Positional Trading System for Nifty and Liquid NSE Stocks


Today I am going to share positional trading system for Nifty and also can be used for liquid stocks in and outside Nifty which moves with Nifty. Source: Internet (Some Tweaking By ME)The same above thing is applicable for BSE and BSE stocks.

Rules of SAM 65*3 Positional Trading System for Delivery Trading in Index and Stocks:-

This is very simple but robust trading system and can be used for many markets. And many positional traders use this for taking Delivery in Stocks. This Positional Trading System only consists of 65 and 3 SMA. Why 65 SMA? 65 days is approximately a quarter of the year.

  • Plot Price charts, 65 SMA , 3 SMA on charts.
  • Chart Timeframe- Daily
  • Buy Rule --when 3SMA Cross above 65 SMA then in intraday also buy with 30 to 40  points stoploss in Nifty or can wait for close above the crossover. (in stocks use max 2%  stoploss or wait for close if close is above the crossover then hold the delivery)
  • Sell or Exit rule--- Sell when 65 SMA crosses 3 SMA on downside then in Nifty one can Make Short position. (In stocks one can Exit the delivery that held)
  • Risk Reward is Fantastic in this system.
  • Backtest yourself before using in markets and also can combine with other parameters.
  • Please Note that no system is foolproof but every system may have whipsaws.

Please see below chart of Nifty and Reliance below and see circles in the chart which shows excellent Return in both.

Nifty_POSITIONAL_Trading_SYSTEM

 

Reliance_Positional_trading_system


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

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