After two years of unprecedented growth and consistent performance in the US with daily trading plans on the S&P 500 Index , we are now testing our models on the Indian stock markets with the NIFTY 50 . This is our debut for you all who have been waiting for it!
While we know this would enthrall many readers that have been asking for it, we are cautious about jumping on these trades right away - give these models a few days, see how they perform, and then begin to adapt them to your own trading style and risk appetite. And, please do share your feedback, thoughts, ideas, and suggestions about anything glaring or missing - we are new to the Indian markets and are still trying to learn its idiosyncrasies. Thank you!
(i) Use these line crosses on your choice of time frame chart.
Most aggressive - on a 1-minute chart
Moderate - 5 to 15 minute chart
Intraday swing - 30 minute chart
Note that the lower your time frame, the more and whipsawing you might experience in your results.
(ii) Cross Above (Below) - triggered when the previous close was below (above) the line and the current close is above (below). Aggressive traders may use other criteria such as high crossing the line, close crossing the line without regard to the previous close, etc.
Solid Green Line: Models would go long on a cross above this line
Dotted Green Line: Models would close out a short (buy to close an open short but NOT go long)
Solid Red Line: Models would go short on a cross below this line
Dotted Red Line: Models would close out a long (sell to close an open buy but NOT go short)
This is NOT an investment advice. This is meant for experienced traders to use as another tool to inform and guide their own trading decisions.
Good luck with your trading!