My Trading Technique

Must read ..
MySAR is the price level which guides us for the trend of
the market for that particular scrip and for that particular
period. Price has the tendency to go up if it crossed
MySAR level with conviction and has tendency to go
down if it breaches MySAR level with conviction.
Hence once can take a buy call if price crosses MySAR
from below with conviction and remain in buy mode so
long as price remains above MySAR level. Similarly one
can take a sell call if price breaches MySAR from above
with conviction and remain in short mode so long as price
sustains below MySAR level.
MySAR simply guides us for the trend, but remains silent
for target and stop loss. Hence we have to take the help of
other tools such as daily weekly pivots, daily - weekly
high/low ema, high/low made today and in last two days
etc to decide the level of target and stop loss. The stop
loss should be put at such a level that it is not eaten away
by the market easily and then bounce again.
For trades of Nifty future, generally 20/25 points stop loss
is advisable, while for trades of BankNifty 60-70 points
stop is recommanded.
MySAR technique is more advantageous when at least 2
or more lots are traded so as to facilitate partial booking of
profit and riding the trend. Due to partial booking of profit,
one

can easily ride the trend,

can keep his funds released to re-enter the trade,
can protect the employed funds easily.
Profit should be booked at 40-50 points of price movement
in case of Nifty future trades and 70-80 points in case of
BankNifty future trades. Once profit is booked the stop
loss should be trailed to the entry price.
Watch higher time frame price movements and trade in
lower time frame.
Take each trade with self confidence and without any fear
of loss. Even if you have to incur any loss due to stop loss
or gap up/down opening etc, accept it with smiling face
and try to recover it in the next trades, but step by
step.never intends to recover it wholly at once in the
next trade.
Keep habit of transferring profit to your personal a/c and
do not keep it with brokers account so that you are not
tempted to trade for more quantity. Keep only required
funds in brokers account and not too much.
Keep habit of transferring every month some parts of profit
earned into safe investment like gold/silver, bank fixed
deposits, any good sip schemes etc.

EMA rules :
Price above Lowema......it is a Buy on dips....for
Highema ++
Price above Highema...Hold buys...Because upward
momentum has been picked up.

Price below Highema...it is a Sell on rise ...for Lowema

-Price below Lowema.....Hold shorts...Because
downward momentum has been picked up.

What you have to do.....???

Do spare 1 or 1.5 hour daily to do some homework before
opening of the market.
Download excel file from the link given in the
blog http://mytradingtechnique-mysar.blogspot.com/
Note down the following numbers on a piece of paper or in
a note book page.
(a) MySAR (b) daily 5Highema & 5Low ema, (c) weekly
5Highema & 5Lowema,
(d) daily pivots along with mid points (e) weekly pivots
along with mid points.
(f) High and Low made during last two days.
(e) after opening ORB of the day
Co-relate the above mentioned numbers with the price
movement and take decision
(a) for taking fresh entry of the trade.
(b) for booking partial /fully profit and
(c) for deciding stop loss level in such a way that it is not
easily eaten away by the market.

Keep the full records of daily trades

Examine the trades done during the last few days and try
to locate the mistakes if any committed and try to learn
from those mistakes.
How to use MySAR Levels :
1MySAR levels guide us about the market trend for that
particular commodity for that particular day only.
2Price tends to move up above this MySAR level and
tends to move down below this MySAR level.
3One should remain in long position so long as price is
above this MySAR level
and should remain in short position so long as price is
below this MySAR level
4One can enter into a long trade when price crosses
MySAR level from below with conviction and remain in
long position till the price remains above MySAR.
5One can enter into a short trade when price breaches
MySAR level from above with conviction and remain in
short position till the price remains below MySAR level.

Rules to be followed strictly

1. In fact, the system is meant for positional trading
specially for future segment, but one can enjoy intra day
volatility by watching MySAR_A levels carefully.
2. MySAR are levels are derived daily on the basis of EOD
and they are to be applied on the next day, hence I have

termed it as MySAR_A (MySAR applied).

3. MySAR level guides us for the trends of the market for
that particular script for that particular day. Price tends to
go up above this MySAR_A level and tends to go down
below this MySAR_A level.
4. Hence one can keep long position so long as price is
above MySAR_A level and keep short position so long as
price is below MySAR_A level.
5. Always enter into a long position when price crosses
MySAR_A level from below, and enter into a short
position, when price goes below MySAR_A level from
above. Means never try to catch the running train so as to
avoid the risk of accident.
If the scripts has ran up or down too much from
MySAR_A level, please please do not enter into a
trade of either side because script may bounce back
at any time. e.g. TCS triggered for long trade on 6th Sept
at above 847 ran up too much. For 1st Nov its MySAR_A
level is 1124. Here as per My Trading Technique of SAR,
long entry is not advisable though the script trades above
1124, because it has ran up too much. Of course it may go
up further, but it may invite risk of accident of bounce back
any time, or such type of trade may give little profits only.
Here one should wait and seek the opportunity for the
short trade at the breach of MySAR_A level.
Better wait for the hit of MySAR_A level for any

trade. Patience pays...............

6. In this system, one is required to remain in trade
either long or short for a long period of time.
7. At the point when price crosses, MySAR_A level, one is
required to cut is position and reverse it soasto minimize
the effects of whipsaw.
8. After entering into a trade at the breach of MySAR_A
level, if price goes against the expectations and again
crosses the MySAR_A level, one is required to wait for 5
10 minutes and then again reverse his position.
e.g. If you enter into a long trade at the breach of
MySAR_A level of 5384, if price goes up.upto
5395.5405..5415and if you do not book profit either
partically or totally, and if suddenly price starts declining
..declining.and goes below our MySAR_A level of
5386, then in such circumstances you are required to wait
for 5 10 minutes and if during this time period price goes
on declining with volume, you have to cut your long
position and enter into a short position without any much
more delay because price tends to go below MySAR_A
level.
Of course, you have to face certain number of whipsaw in
such circumstances, but after the completion of certain
time period the effects of whipsaw can be nullified only if
you reverse your trade, and that will give you more returns
in total.

Again you may also consider the levels of 5EMA, Days

High-Low, Previous Days High-Low etc. to reverse
your position, if the price goes against expectations.
9. It is advisable to take position for 2 - 4 - 6 - 8 - 10 lots
depending upon your investment capacity. If the lot size is
too much large take position for few lots only so that M2M
can be managed easily. Multiple lots are advised to be
traded sothat partial profits can be booked in
between. At least two lots should be traded to get the
requisite return of the employed funds.
10. Always keep 25% of your investment capacity
reserved for M2M and other contingency events.
11. Always book partial profits in case of gap up / down
opening.
12. To facilitate fresh entry of trade, always put alerts at
MySAR_A levels for all the scripts before opening of
the market sothat whenever price reaches to MySAR_A
level, it becomes easy to take fresh position for that
particular script.
13. Keep position alive for few scripts only. Means do not
take positions in so many scripts that it becomes difficult to
takle all. e.g. It is advisable to take positions for 2 lots of
script A and B, and not 1 lot for script A, Script B, Script C
and Script D.
14. Always stick to the selected scripts for trading and

never jump from one script to another script frequently.

15. For example take position for Nifty 4 lots, Bank Nifty 4 lots and along with these, select any one or two scripts
for trading and try to stick to these selected script for
trading for a certain longer period of time. Of course, you
can change the position size as per your capacity.
16.This trading technique is more beneficial and gives
more return if atleast two or more lots are traded. In
that case. one should book profit in between for one lot,
and ride the trend for the second lot.