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Published by
Bandaru Nageswara Rao,
Plot No.19, SLN Colony
BMR Enclave, Nagaram, Keesara Mandalam
Ranga Reddy, Hyderabad,500 083, AP, India
Chapter-4 Crude oil mini-Illustration of process and profit for Volume Model
The profit and reliability are higher for the volume model. But it involves some
calculation for each candle. You can use Automatic/Semi-automatic Algo Trading
software.
.
Bandaru Nagesswara Rao
14th Febuary.2016
Hyderabad
Chapter-1
Principle of the Model
Use 1minute candle chart.(candles of more duration also can be used
(2m,3m,4m,5m,1d etc.,but ROI will be less,volume targets to be fixed)
******ebook converter DEMO Watermarks*******
1.Buy conditions
Current candle is green/blue.
Current candle low is greater than previous candle low
2.Sell conditions
Current candle is red
Current candle high is less than previous candle high
3.Exit conditions
a.Follow price with SL order to exit at maximum profit.
b,When opposite transaction is selected, exit at small loss/profit and switch
over.
3. Volume of current candle is greater than 100 (Volume targets to be fixed
for each asset)
4.Use same principles for all stocks, futures, options, all commodities
5. Have trading account with one of the least brokerage firms like Zerodha,
Bangalore).You can use cover order offered by Zerodha. The margin for
one lot of crude oil mini will be in the range of INR 250-350.
5.Can be used for carry forward trading also-but ROI is very much
less. Sometimes there is risk due to overnight global news.
Thefollowing two charts are given in the next pages to explain the
principle.
1. Crudeoilmini chart of 2/11/2015 to show the principle for intraday
trading
2. Crudeoilmini chart of July-October,2015 to show for CARRY
FORWARD TRADING.
Principle: The price of any scrip/commodity will change significantly with volume
rise/drop
If the price rises with rise in volume it indicates more buyers.
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If the price falls with reduction in volume it it indicates reduction sellers.
If the price falls with rise in volume it indicates more sellers
If the price falls with reduction in volume it it indicates reduction buyers
If the changes by 0.1% from open price at the end of 5 minute candle with significant
volume rise/drop entry can be done in the direction of change.
Use 5m candle chart. Download the excel table of chart of 28/01/2016 fortrading
on29/01/2016.uUse tableof 29/01/16 for trading on 01/02/2016 to calculate Average
Volume per candle.
Calculate the average volume per candle.AV
Target VolumeTV = 0.8AV
Calculate AVand TV at 12-00 noon to know latest AV for that day, Volumes may change
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from previous day. Use latest TV for trading from 12-00noon.