>>> Disclaimer

Risk Disclaimer:

All trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. Be aware and accept this risk before trading.

Never trade with money you cannot afford to lose.

All forecasting is based on statistics derived from past performance and past performance of any trading methodology is no guarantee of future results.

No "safe" trading system has ever been devised and no one can guarantee profits or freedom from loss.

No representation is being made that any account will achieve profits or losses similar to those discussed. There is no guarantee that, even with the best advice available, you will become a successful trader because not everyone has what it takes to be a successful trader. The trading strategies discussed may be unsuitable for you depending upon your specific investment objectives and financial position. You must make your own investment decisions in light of your own investment objectives, risk profile, and circumstances. Use independent advisors as you believe necessary.

Therefore, the information provided herein is not intended to be specific advice as to whether you should engage in a particular trading strategy or buy, sell, or hold any financial product.

Margin requirements, tax considerations, commissions, and other transaction costs may significantly affect the economic consequences of the trading strategies or transactions discussed and you should review such requirements with your own legal, tax and financial advisors. Before engaging in such trading activities, you should understand the nature and extent of your rights and obligations and be aware of the risks involved.

All testimonials are unsolicited and are potentially non-representative of all clients. Your trading results may vary from those case studies detailed on the website. I am not a broker or licensed investment advisor and therefore am not licensed to tailor general investment advice for individual traders.

Your actions and the results of your actions in regard to anything you receive from this site are entirely your own responsibility. This site cannot and will not assume liability for any losses that may be incurred by the use of any information received from here. Any such liability is hereby expressly disclaimed.

Hypothetical Disclaimer:

All results are considered to be Hypothetical unless otherwise specified: Hypothetical performance results have many inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading.

Also, since the trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

Furthermore, only risk capital should be used for leveraged trading due to the high risk of loss involved. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses (and incur account drawdowns) or to adhere to a particular trading program in spite of trading loses are important issues which can also adversely affect actual trading results.

There are numerous other factors related to the markets in general or to the implementation of any specific trading program, method or system, which cannot be completely taken into consideration with hypothetical performance results and will affect trading results and your P/L.

Real Time & IEOD (Tick) Data (Error free & extensive)

For the people who keep asking me for the exact values of the lines (EMAs) at any given time, please get youreself a live data feed. A nice one is here, which is very good.

->>Provides Real time data and IEOD (Intraday Tick Data at End of Day) data service for both Metastock v8.0 upwards and Amibroker 4.6 upwards.

-->>The IEOD Service has started from 15 Feb 07 whereas the Real time feed will start from last week of Mar 07. Historical Intraday data is availble from mid 2005 for most scrips and for Nifty from 2001.

-->>The Real time tick data during market hours is as of now from Yahoo and PIB. The data could be sent to Amibroker or Metastock, depending on which software you use. At present the Real Time service is in the testing phase.

-->>The IEOD data is sent after market hours and contains the following: -

1. All Futures for current month and near month.
2. Tick data from the cash segment for all the underlyings in Futures Section. 152 at present.
3. All Indices data from BSE and NSE
4. Few more cash scrips ( selected from ICICI Margin section other that that are covered in Futures above)

Click the image to enlarge

-->>A sample of this data is available at this link for examination by the members. 15 Feb - 21 Feb 07

http://www.4shared.com/dir/2055975/44461d2f/NSE_PIB_IEOD.html

-->>Help on configuring your TA software (Amibroker etc.) and setting up your trading systems would also be provided if required.

Historical Intraday data is availble from mid 2005 for most scrips, for Nifty from 2001 and NIfty -I(Fut) from 2004.

-->>The service has been priced very attractively and is very cheap.


Warm Regards to all,


True Data India
http://truedataindia.blogspot.com
Email : truedataindia@gmail.com
yahoo & Skype id : truedataindia
Tele : +91-9441279054

Java Cross Over Nifty Trading System

I have kept this Java chart because of hefty demands from everyone. However please remember that the EMAs on this chart are inaccurate and not to be followed. Use the lower chart for that. To know the details of my Nifty Trading System, please >>click here<< to go the Master chart page. Use the Java chart for a study of the various time frames.

S&P CNX NIFTY
MACD (26,12,9), RSI (14)

NIFTY (CASH)
5 Day Chart, 5 min Bars, MACD (26,12,9)

>>>NIFTY EOD Charts

A must see resource which you must analyse and study before you proceed for your trading the next day.

These charts are updated on a daily basis.

NIFTY 1 Month



NIFTY 3 Months (With 50 & 200 Day EMA & MACD - 12,26,9)



NIFTY YTD



NIFTY 1 Year (With 50 & 200 Day EMA & MACD - 12,26,9)



NIFTY All time (With 50 & 200 Day EMA)



EOD charts provided by iCharts.in

>>>Live Cross Over Nifty Trading System

Another powerful trading system from me. I have now shifted to this trading system to win the markets and have reaped huge profits. For understanding my trading system please refer to the text below the chart. Please understand it thoroughly.

This system has been backtested for the last 8 years, giving the best results possible.

FOR REAL TIME CHARTS AND IEOD DATA ON YOUR COMPUTER CLICK HERE --> True Data India or Link on this site

This system is free. For advice, improvements and suggestions if any leave a message in the forum or Cbox.

NIFTY (CASH)
5 Day Chart, 5 min Bars, MACD (26,12,9)




>>My system :

Entry/Exit: (1) Always be in a trade.

(2) Entry into long means I have also exited the short.

(3) The faster line (red ) goes above the green - > Close shorts & immideately go long.

(4) The faster line (red ) goes below the green - > Close longs & immediately go short.

Stop Loss: An initial acceptable range for the stop depending on your comfort level can be put. As the Nifty moves in your direction , iimmediately put the the stop at the purchase price + brokerage as soon as possible।

Hedge your Positions Daily : The Nifty encounters lots of gaps up and down and this could go against our positions due to many market factors / changes which take place overnight. We therefore need to hedge our positions, EVERY DAY before close.

Keep in mind hedge positions are not to make profits. It has to be used as a hedge strictly, however if the hedge position is giving a hefty profit, discretion to close the open position lies with you.

The technique I follow :- If the system is long ( & you are long 500 futures) then 10 - 15 minutes before close buy same quantity (500 in this case) just out of the money puts.

Carry over these puts. Watch the market for the first 10 - 15 minutes next day.

If the market remains long and keeps getting strong, find a good rate to close your puts. As the put was out of the money, the loss from the puts would be less, than the profit from the long.

If the market gaps down or continues going down, book profits on the puts or keep a trailing stop loss which will offset the losses incurred from the nifty long position.

Vice Versa for short positions with calls.

Remember buy "just out of the money" options, which show decent volumes. For eg ; If Nifty Cash closed @ 3920 and you are long, then you should be buying 3900 or 3850 puts.

This will always keep you tension free, what ever be the global or overnight factors.

Also remember, you all need to coax your brokers to charge you a reasonable brokerage. Keep looking for better brokerage options. But keep in mind :

Gaps are more dangerous than brokerage, so you need to secure yourself from them.

Position sizing : This is now modified and left to your discretion. However please remember, though some people try pyramiding, doing it in the nifty may be hazardous to your bank account. All entries and exits should preferably be done in one go.

Make sure you have Reload Every so that your pages keep refreshing automatically. All the best and if anyone does trade this please do write in the comments and let us know if you benefited.

Read the system carefully and try to understand it. Make sure you paper trade for some time before you take the plunge.

Happy Niftying.

>>>News Bytes

Economic Times

Capital Market

NDTV Profit

Moneycontrol

BBC Business

Business Standard

Hindu Business Line

Financial Express

DNA Money

Yahoo India Finance

>>>Why trade the nifty

If you really want to earn money in the stock market, then don't deal in stocks - trade the nifty.

For all the technical analysis I do, I rarely trade in stocks...I trade the nifty.

Years of trading experience has taught me one simple thing...it is far easier to take a directional call on the broader market than individual stocks. If the economy is doing well, the market (nifty) will anyway do well (and vice versa).

Stock movements tend to cyclical, news driven or rangebound for considerable periods of time. Not only do you have to identify the sector correctly, you should also be able to pick the right stock. And then there is this possibility - everything else rallies except what you have bought.

From a fundamental perspective, this means you don't have to worry about crude oil, interest rates, FII inflows (or outflows), quarterly results, sectors, analysts talk and whatever you can think of.

Some advantages of trading the nifty:

• Index is the barometer of the stock market. If the market does well, Nifty will anyway rise (and vice versa)
• All FIIs and Mutual funds have an exposure on index and index stocks
• All good and bad news is reflected in index (nifty)
• You can play both sides of the market and profit from rallies as well as corrections
• You can daytrade in nifty (not recommended) or carry forward positions till expiry
• Low brokerage / nil demat costs
• Excellent liquidity: The daily turnover of nifty futures and options is 2-3 times that of ALL stocks traded on BSE.
• Low volatility: no wild swings. Because the nifty index is made of 50 stocks, it is always less volatile than the individual stocks. Check latest volatility statistics.
• Low investment: as nifty is least volatile, NSE margins are lowest. This reduces investment amount substantially.

Trading strategies

Trend	Action	Inv. Amt	Profits
Bullish	Buy futures	Rs.35000/-	Profits increase as index rises (and vice versa)
	Buy call options	Rs.10000/-	Substantial profits if index rises (loss limited to inv. amt.)
	Write put options	Rs.35000/-	Profits limited to premium (risk of substantial losses)
Bearish	Sell futures	Rs.35000/-	Profits increase as index falls (and vice versa)
	Buy put options	Rs.10000/-	Substantial profits if index falls (loss limited to inv. amt.)
	Write call options	Rs.35000/-	Profits limited to premium (risk of substantial losses)
Time decay in options: If index remains unchanged, the option premium will decrease and become nil on expiry. Here, the option buyer has lost his money and the option writer has profited.

Is there any catch?

Nifty futures and options being derivatives, have an expiry period (the last Thursday of every month). You cannot take "delivery" and hold positions indefinitely the way one can do with stocks.

You can however exit a position any time you feel like...same day, same week, etc. So you can daytrade or carry forward positions till expiry date.

With stocks, you can take delivery and hold positions indefinitely. Very often, this is how traders become investors and short term investors become long term investors!

Futures trading is a leveraged transaction. In case of Nifty, every 1% change leads to 8% change in your profit (or loss). So while you can earn fantastic profits, you can also lose money.

Options trading is tricky. For buyers, investment is less and profits unlimited. But the real profit depends on the option bought, days left to expiry, implied volatility and how fast the underlying moves. The time decay can knock off your entire investment. But if you follow the trend and always buy in-the-money options, then you need not worry. Most retail investors lose money because (a) they trade against the trend and (b) they have absolutely no idea about option pricing.

One can earn 100% or sometimes even 200% return in a month (buying option). On the other hand, a wrong trade can reduce capital.

Transaction costs (brokerage) is not an issue as we are not looking at intraday trades. Since positions are carried forward for many days, this really does not matter.

Rangebound markets are a problem as technically there is no way to predetermine this situation. Unfortunately there is no solution here and one has to live with this. Fortunately nifty seldom trades in a range.

Summary: Irrespective of what you trade in - stocks, futures or options, you will earn money only if you follow the trend. If you trade against the trend, you are almost sure to lose money. So the problem is not with the instrument but with the trading style.