Thursday, August 31, 2017

Day Trading - NIFTY - 30, 31 August 2017

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Since my last post, I had been system hopping, and trying out different trading systems - mainly mechanical trading systems.


NIFTY M3 Price Action Chart
NIFTY M3 Price Action Chart


Since yesterday afternoon, I decided to try the Range Compression Trading System once more. This time, though I have rules, I have kept the system discretionary to a larger extent. Also, I do not intend to restrict myself to just the Range Compression Trading System, and will also use other methods. However, for now, the majority of the trades have been based on Range Compression.

Update:
1. Today's second trade - the Stop and Reverse to Long... I think that was really brave of me to go long when there was 9850 just below. Forgot to mention this on the chart.
2. I do not keep watching the chart all the time. This has caused me missed entries, and trails. The first 2 trades entries were almost missed, because I wasn't watching. Also, I was lucky to have avoided a SAR to short of trade 2, again because I wasn't watching.
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Monday, August 28, 2017

Discretionary Day Trades - Monday, 28 August 2017, Intraday

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Today, I wanted to be more patient than I was on Thursday. In the end, I did get into many trades, but with slightly better entries than on Thursday. The objective remains to take entries with small Stop Losses and trail the ones that work out.


NIFTY M3 Price Action Chart
NIFTY M3 Price Action Chart


Did not short the first bar: The pre-open had indicated a higher open. If it opened higher and fell, I wanted to short at 9900. The opportunity was there but I avoided it. Had I taken that entry, I would have exited in the 2nd bar at the entry price, and not made anything.

Ignored BOF of PDH: Was being patient... also, was confused about the direction, though the trend was clearly up. That probably would have been good entry.

Trade 1: Long as Breakout Pullback of Day High. Could have bettered my entries, but I was being patient. If I had followed my original trailing plan, I would have been in the trade until Day High, but would exit with just 5 points, and miss the downmove.

Trades 2 & 3: During the upmove, I decided to look only for shorts, though trend was clearly up and everything told me that it was going up. The first short hit SL immediately, but the second moved. M1 bars of the entries are shown on the chart.

Trade 4 & 5: Was looking for a break of 9900 with high volume to go long. Neither happened, but I still took the Long that I thought was risky. Then, reversed to short.
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Thursday, August 24, 2017

Discretionary Day Trades - Thursday, 24 August 2017, Intraday

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NIFTY


Context: At open, I was undecided on the bias.

NIFTY M3 Context Chart
NIFTY M3 Context Chart


NIFTY M3 Price Action Chart
NIFTY M3 Price Action Chart


Held back: I was tempted to go long on the 9:38 and 9:41 bars, as a continuation of yesterday's up move, but held back.

Trade 1: Took short hoping for downward momentum into yesterday's fluid zone. Lost. Then decided to look for shorts only at Day High or below 9850.

Trade 2; Was trying to improve my short entry after breach of Day High. Bad.

Trade 3: Took breakout pullback above Day High. Another loss.

Trade 4: SAR to short on breakout failure. Could have improved my exit.

Trade 5: Another breakout failure entry with small Stop Loss. Lost.

I took one too many trades. Maybe, yesterday's missed trades were playing in the back of my mind. In the afternoon trades, the resistance at Day High held, but the reversal there could at best be scalped, and I was targeting at least 9850.

Not good excuses. Got to learn how to earn with discretionary trades after almost an year of trading the Princess System mechanically. That is, if I do not System Hop before that.


INFY


Context: Nifty was being boring, so I decided to look at Infosys, which showed up as the most traded underlying in NSE at that point of time. I did not bother to look at Bank Nifty.

Infosys has been trying to move up after the crash last week.

INFY M3 Context Chart
INFY M3 Context Chart


INFY M3 Price Action Chart
INFY M3 Price Action Chart


Trade 1: Opened the chart at around 11:55. Though the bias was up, I immediately liked the Breakout Failure at Day High. The low of the big red bar had already been breached, but I took the short when the price went up in the next bar. I have not been tracking INFY or any other stock for that matter, but what I saw from the previous day charts was that INFY often spikes down with stopping volumes. I was hoping for that, if not a ride to the Day Low.


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Discretionary Day Trades - Wednesday, 23 August 2017, Intraday

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This month, I paused trading the Princess System. I had traded the Princess System continuously for 11 months. That's the longest that I have traded any single system, longer in duration than any of my multiple attempts with the Opening Range Breakout system. So, back to system hopping.

Yesterday, I tried discretionary trading once again. I am attempting to take trades with small stop losses, and try to trail as best the ones that work out.



Nifty M3 Context Chart
Nifty M3 Context Chart

I have removed more clutter from my charts. I thought that the bias was downward, and so was looking on the short side... probably a break of a pivot low.



Nifty M3 Price Action Chart
Nifty M3 Price Action Chart

Price started off by hanging around 9800 Spot, in the middle of previous day's range. So, had nothing much to do. The Spot Prices that I have marked on the chart may not be accurate, because I wasn't thinking of posting a chart. Also, it is tiresome to watch all numbers all the time.

Trade 1: Then there was spike. Took a short when price fell. Could have had a better entry below the 9:56 doji low, but I did try to improve my entry slightly to 9820. The target was 9800. The exit too could have improved, but I had pre-decided my trailing until 9800, and the trials did not happen.

Trade 2: After the exit, the price again started moving down, but I would not enter as there was no room. So, my bais was still down. Took trade 2 as a reversal from range high. Target and trailing plan was the same as in trade 1. Had I been patient, I would have taken the better entry below the higher volume 12:23 pin bar.

Avoided short: I avoided the short below the 12:23 pin bar, and the attractive short below the congestion marked on the chart, because I already had 2 losses on the short side. At this point, I was looking for a breakout pullback entry at day high. That order converted into trade 3 later. On the short side, I decided to wait for action below 9800. In any case, had I entered, I don't think that I would have gained much, because I think I would have exited on the 1:53 spike.

Avoided long: 2:20. Breach on 9800 and reversal, but I had my doubts. Instead, I decided to try a momentum short downwards.

Trade 3: The price zoomed upwards. I had my doubts about price continuing above day high, but I decided to let my long stop at day high stay, and put a small stop loss when hit. Trailed well, but exited by a typo. Turned out to be a good exit.

Trade 4: Tried a loss of momentum short. The stop loss was hit quickly, but I was not aware of that for more than 5 minutes because I was watching the chart only, and the price never touched Stop Loss in the chart.
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