Sunday, June 19, 2011

Silver can be Bought

Buy : Silver Futures above 35.56

Target : 38

Stoploss : 34.4 ( Risk Reward  2.8:1)


Stocks to be Bought/Sold for next few sessions

Buy : MPHASIS BFL Futures above 457.25

Target : 477.5 (( Risk : Reward  4.5:1)
Stoploss : 452.65


Buy : India Infoline ( Cash)  above 84.55

Target : 88.77 ( Risk : Reward  2:1)
Stoploss : 82.8 

Buy : KLG Systel ( Cash)  above 53.6

Target :  58.2 ( Risk : Reward  3.2:1)
Stoploss : 52.15

Sell : BPCL Futures below 628.7

Target :  601.79  ( Risk : Reward  4.6:1)
Stoploss : 634.55










Friday, September 24, 2010

Trading system Development

Hi All,
I am posting a message after a very long time.
Trading system optimisation is very difficult : in the sense that whether it should be done or not.
Everybody does some kind of optimisation in trading systems , isn't it an optimisation when we discard one system over other simply because it has performed well over others in the past.

It is neccessary that we start with the right kind of logic which suits our personality : whether we are comfortable doing trend trading or mean reversion trading.

Ideally if the logic of the system depends on the personality of the trader , it would be easier emotionally to trade it in real markets.
Here one should search for stable parameters and not curve fitted ones.

After developing the logic which can be as simple as crossover of two moving averages or crossing of high of past 20 days (turtle traders used it  as system 1)  one should think about when to enter.

Here , it would be prudent to know that only entering a buy trade if the high of buy signal bar is broken and entering a short trade only if a low of short signal bar is broken.
Then the exits should be planned which can come in observing the MAE and a trailing stoploss is advisable.
Welcome for comments from readers ..................

Tuesday, May 25, 2010

Eurozone Crisis

In 2008, we saw a flight from corporate paper to sovereign paper, now we might see a flight from sovereign paper to something else, seeing the eurozone crisis ,which could be good for countries in Asia especially India and China which have fundamentally strong economy and currencies. There is also a possibility of rally in Commodities on similar lines that happened in 2008.

Wednesday, May 5, 2010

Ranbaxy 06/05/2010

Buy at / above: 451.56 Targets: 456.66 - 462.01 - 467.4 - 472.82
Stoploss : 446.26
Sell at / below: 446.26 Targets: 441.22 - 435.98 - 430.77 - 425.6
Stoploss : 451.56

Kotak Bank 06/05/2010

Buy at / above: 749.39 Targets: 755.87 - 762.75 - 769.67 - 776.62
Stoploss : 742.56
Sell at / below: 742.56 Targets: 736.13 - 729.36 - 722.62 - 715.92
Stoploss : 749.39