Intraday Commodity Trading Part-2
This is the second part of Intraday Commodity Trading Methods. If you want to see first part then you can visit following link.
From: Jay Kumar
at 04:37 PM - May 27, 2016( )
Heiken Ashi and 5/20 EMA Candelstic Method
Hello friends, I am going to share mine one trading method in commodity. Before explaining method, I want to clear some things about this method. I am using two chart in it and compare them and take mine decision. First is 5/20 EMA crossover with candlestick chart and second one is Heiken Ashi chart. Both chart are using 15 min Time Frame.
First I have used 5 min time frame but I got many whipsaw signal generated by 5/20 EMA crossover then I changed to it 15 min time frame and It’s gave a good result with less whipsaw. When I changed time frame to 30 min time frame then mine whipsaw further reduced but its create a trouble for Stop loss. So at chart its looking best at 30 min time frame but in practical trading its creating problem for me to manage mine Stop loss as I am a small retail trader. So as a profitable view, I decide to go with 15 min time frame. You can choose your one time frame as you feel comfort as I explained here that why I chooses 15 min time frame.
I applied this method in Crude Oil as there is a good liquidity in the crude oil. I traded Gold Mini and Silver mini also with this method and it’s gave good result there also. I have never applied this method in Base metals, so I can’t say about them.
In this method, I trade 1 lot crude oil and found following result:
60% trade finished with 3500+ rupees profit,
30% trades finished between 200 rupees loss to 200 rupees profit
10% trade finished with 1000-1200 rupees loss.
So, in this method I found 60% trade with profit and 30% with no profit/loss and 10% with loss. But you have to keep in mind, I used mine mind and observation also to escape whipsaws or atlest manage that trades to finish with no profit and no loss.
I developed this method for intraday trading but I also amazed to see its result about BTST/STBT trade also. So you can look in this way also.
I will post next 8-10 days chart of Crude oil and will discuss this method on that charts. Because it’s not possible to understand a method with a single day chart. I will use future chart daily, so I also don’t know that how crude oil will trade in next coming days. So I can’t show you a method friendly chart and make you fool. How crude oil will trade, we will see that this method is working or not. When a whipsaw is coming and how could we avoid it or mange it with zero loss or with small loss.
Note: I am self-trading on this method last 2-3 months and got good money, then only come here to explain it. I am not any technical analysist, I am just a trader. If you have any advice to improve it then kindly share your advice. I will really grateful to you people. One more thing, if anyone want to mine leg pull or want to prove that it’s a rubbish system or its just nonsense then kindly don’t waste your time here, as I am making money from it and My bank account balance is loudly telling me that this method is correct atlest for me and I don’t care about others. So if this method work for you then you can try this method 1-2 months on paper otherwise leave this method. No one is forcing you to learn. All information is given here only for educational purpuse only.