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Intraday Commodity Trading Part-2 (Learn before trade)

Jay Kumar at 03:39 PM - May 27, 2016 ( ) Views: 5,654

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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.

http://www.mudraa.com/trading/212126/0/how-to-intraday-commodity-trading-learn-before-trade.html



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.


(1 to 20 out of 29) - Latest Replies on Top | First | << Previous | Next >> | Last |
Jay Kumar at 02:50 PM - Jun 21, 2016 ( )

JK

Jay Kumar at 02:33 PM - Jun 21, 2016 ( )

Jay kumar crossover

Vik M at 12:04 PM - Jun 21, 2016 ( )

Dear Jay,

As suggested I am posting the cross over chart for crude - thanks for helping me out

 

Heiken Ashi

 

CANDLE



Jay Kumar at 07:15 PM - Jun 14, 2016 ( )

 

Hi Vik , how r u ?

Bro I dont trade algo or software based style means its not neccessary that i trade on every EMA crossover. After crossover  I try to analyze mineself with the help of Heiken Aishi candelstic or others method that I describe in part 1 . After that I decide that I have to enter in trade or not. Due to mine this self analysis Many time I also traped in a false crossover and booked loss and many time I missed a big rally :). I used initally stop loss normaly 10-12 points in crude means 1000-1200 rupees and when crude come 8-12 point in my winning direction then I trail Stop loss to +2/3 or -2/3 points. My aim to not loss a big amount in a single trade by any way. 

Now lets talk about method,

I used 5/20 EMA just for find trade direction. after crossover I wait for a Big Bullish or Bearish candel (not just green or red candel) in a same direction. (Hope you know Heiken Aishi candel type and how to read it.)

Vik M at 06:25 PM - Jun 14, 2016 ( )

Crude where should be the entry decision point? short developed @ 1700 hours would say not clear indication to short again as ema crossover kissed and then fell back for the sake argument lets says its a short setup. Second Heiken Ashi candle is also red -- looking for some guidance.

Almost forgot there was a mention to compare Heiken Ashi  with candlestick should those be red or simply reply on Heiken Ashi

 


Vik M at 06:20 PM - Jun 14, 2016 ( )

Have a question

  • When you say next candle should be green should we wait till closing of the candle to enter the trade? TF being 15 minutes again.
  • In the below cited example should I entering the trade @ 1445 i.e post closure of second candle which will tell me whether it red/green post cross over

 

 

 

 

*********************************************************

Long :
  • When 5 EMA crossover 20 EMA from down to up.
  • Genrate a green candelstick with close above or near 5 EMA
  • Next candelstick should also green
  • Stop Loss should be some below the 5EMA and 20 EMA crossover or where you comfort.
  • Target, where you will comfort you can book or trail Stop Loss as you wish 

Dilip Nilekar at 04:22 PM - Jun 08, 2016 ( )

Good Evening Jay !!

Honestly speaking i tried to practice Heikin Ashi, but unable to continue due  my own problem's.

Kindly maaf kar deejiye, 

My Broker's Odien terminal give's now nd then problem's.

Jay Kumar at 04:04 PM - Jun 08, 2016 ( )

If any body applied above method honestly, hopefully he got a good return.

Ajay Kumar Eklof at 10:17 PM - May 30, 2016 ( )

Till now the crude..........

Jay Kumar at 08:57 PM - May 30, 2016 ( )

Ajay sir, thanks for post chart. You can compare this chart with 15 min haiken aishi too. So you can escape few wishpaw also. Trail Stop loss is playing key role in it.

You can check it for STBT/BTST also. you can check with previous charts.

Ajay sir, can u tell me name and price ofdata provider for ur mt4. I am also plsnning to use mt4 or ambibroker do need data.

Thanks

Ajay Kumar Eklof at 08:36 PM - May 30, 2016 ( )

This is the scenario till now.

Jay Kumar at 07:42 PM - May 30, 2016 ( )

Thanks Rahul sir for your code for ambi borker. :)

Basicaly I dont use any algo trading. I just use this method for observation and then self decide that I have to go for trade or not by look some factors for example haiken ashi is also behaving same or not, prefare to trade after 5pm for avoid day time range bound market but after this also some time miss good trade and some time SL hit. :D..

but thank u so much for your coding .. it will realy helpfull who is using ambibroker :)

 

Rahul Nayak at 07:36 PM - May 30, 2016 ( )
thanks JAY KUMAR SIR BELOW AFL FOR AMIBROKER ACCORDING TO UR STRATEGY SetChartOptions(0,chartShowArrows | chartShowDates); HaClose = (O + H + L + C)/4; HaOpen = AMA( Ref( HaClose, -1 ), 0.5 ); HaHigh = Max( H, Max( HaClose, HaOpen ) ); HaLow = Min( L, Min( HaClose, HaOpen ) ); xDiff = (HaHigh - Halow) * 10000; barcolor = IIf(HaClose >= HaOpen,colorGreen,colorRed); PlotOHLC( HaOpen, HaHigh, HaLow, HaClose, "", barcolor, styleCandle ); _SECTION_BEGIN("EMA"); P = ParamField("Price field",-1); Periods = Param("Periods", 15, 2, 300, 1, 10 ); Plot( EMA( P, Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") ); _SECTION_END(); _SECTION_BEGIN("EMA1"); P = ParamField("Price field",-1); Periods = Param("Periods", 15, 2, 300, 1, 10 ); Plot( EMA( P, Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") ); _SECTION_END();

Jay Kumar at 11:36 AM - May 28, 2016 ( )

@ Rajev sir, your system is working fine. Basicaly no one system work gud in sideways market and even no one trader make money also in sideway market. Basic priniciple of trading is the avoid sideway market.

you are using 144 SMA , so you have to understand that 144 SMA is will react slowly to change market direction.  for avoid sideway market , may be you have to use higher time frame also just for confiramtion. you can use heiken aish candel for avoid sideway market. If there is any Big Bulish Heiken Aishe candle or Big Bearish Heiken Aishe candle then only you should take position.

When I ll explain method , I will try to indicate it also.

Happy Trading :)

Jay Kumar at 11:28 AM - May 28, 2016 ( )

@ Balram sir, you can use any software like from your broker. I am using trade tiger from sharekhan. you can use ODIN , NEST, PI .. most of borker house provide ODIN and NEST.

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