Made a loss of Rs.1943 (LLL)

Made a loss of Rs.320 (LPL)

Price action bias strategy with Nifty

Since morning I am practising Price action bias strategy. Below is the link for definitions. After backtesting 1 year's worth of data, I noticed that all stocks no matter what, they all go hand in hand with the index Nifty. So after losing 1 trade in the morning I observed that the Nifty was in a downtrend and I took a long call for an individual stock. After that I took a long call whenever Nifty bias changed from trading range to trend. All four stocks that I played out of this strategy with the index direction were in the green. Another point worth mentioning was that today was
a wild swing day and need to have more sample size to affirm that the strategy is profitable.

I am finding swinging and scaling out difficult so continuing with 1:1 risk/reward ratio. I will try scaling once I am well versed with this method.
http://www.trading-strategies.info/node/17

Made a profit of Rs.1474 (Today) (PPPP)

Made a loss of Rs.2859 (23/09/09)

Made a loss of Rs.1238 (22/9/09)

Catching a swing after scalping

I have yet to catch a big swing after scalping out the trade. Probably should look at backtesting that too. Do I chicken out at the first red candle or wait for LL to form to catch the swing.

Made a profit of Rs.627 (PLLP)

One interesting thing that I observed is that at lower timeframes there is a lot of noise. I scanned the AHG (Anekdoten's Holy Grail with 3 bar reversals) for 15min, 30 min and Hourly timeframes. And there were some good calls which were going in the right direction. I should probably look for atleast 15 min and above timeframes to cancel the noise. Or I get whipsawed easily.
In the weekend, I will backtest on 15min, 30 min and Hourly timeframes since beginning of 2008 to see the success ratio.

Made a loss of Rs.2000 (LLL)

Stopped for the day as my daily risk limit reached.

Made a loss of Rs.568 (LLPL)

Anekdoten's Holy Grail

Right now I am practising realtime AHG. Basically 2HH and 2HL make up an uptrend and enter on a 3bar reversal. The advantage of this system is you can swing a portion of the holding forever till the last swing low is taken out. I have stopped Wave 3 for now. This one is basically a wave 4 or the extended wave 4 by Elliott count.

Made a profit of Rs.1067 (P)

Just did one trade and scalped out most of it. The rest I tried to swing but was stopped out at the next swing low.

Made a loss of Rs.141 (LP)

Made a loss of Rs.1297

Made a loss of Rs.1267 (LPLLLPPL)

I must say it was a very exciting day. The market was flat for the whole day but I got 3 out of 8 trades right. Some were whipsaws and some went the other way.

In one of the trades the long entry bar was an Up outside bar and it confused me as to what should the stop loss be. I kept it as the low of the outside bar.

With Aban Lloyd my stop loss was skipped as the there was a gap down bar. I lost around Rs.1150 in that single trade. Among my profit ones, quantity for most of them were partially filled, so my profit was less. No excuses just retrospection!!!

Made a profit of Rs.557 (P)

The above trade was the solitary reaper for the day. Missed a couple of good trades, one was Renuka sugar which didnt retrace at all and other was Sesa Goa. Too fast for me.

Made a loss of Rs.974 (PPL)

Got scared and didn't follow the SBI trade till the end. I thought the market is turning and chickened out.

Al Brooks's book

I am reading Al brook's book to fine tune my entry. Also, watching his webinars. I will be doing that this whole weekend. Then I would be paper trading scalping until I fully understand. I would rather paper trade on Options (Nifty Put/Call). Just take either one put or call and keep buying or selling for scalping.

Made a loss of Rs.638 (L)

Nothing much I could have done.

Made a profit of Rs.613 (PP)

The first trade was breakeven because my qty was not filled. Both the trades worked though.

Made a profit of Rs.570 (PPL)

The loss trade was foolishness on my part. I waited for 3 hours for the stop loss to be hit. The scrip just went flat (barb wire) for 3 hours. I should have exited and taken other opportunities.

I will take care of that in future.

Probability and Success rate

Just some food for thought. If a trading system has to be successful, it has to atleast have a success rate for 70-75%. So for wave 3 trading system to deliver a fortune, in a month approx. there need to be 100 trades and 75 out of the 100 trades should be gainers.
For this month, i have 4 out of 11 trades which are gainers , so doing the math gives me 71 gainers and only 18 losers left. Also, given the fact that i play with a risk of Rs.600, if 75% success rate gets delivered I will be playing with Rs.60,000 (100 x Rs.600) and my gainers would be Rs. 45,000 (75 x Rs.600) and losers would be Rs.15,000 (25 x Rs.600). So net profit in a month would be Rs.30,000.

That is my monthly target.

Made a loss of Rs.870 (LLP)

Got three trades and two were losses. There were some setups coming up aftter 3.15pm some of them didn't complete and some were too risky as the end of the day was near.

The stuff in the parenthesis in the title are the Loss and Profits in abbreviated form.