Trading With The Flow!!!

Here We will be doing our best to answer any questions pertaining to the intraday miniflow method.

Regards,
Moderators OF TS

Hi,
Today I sold Mininifty @2997 (Low of 1st 5min bar 3011-F14).
My SAR was 3039 (High of 1st 5 min bar (3032+F7).I closed position and bought again @3039.
I booked profit at 3050 mainly because I wasn't sure of the new SAR.
1. Was 3039 SAR correct
2. What should have been the new SAR
I am following Intraday Miniflow method.
Regards
Bhagyashree

Hi,
Today I sold Mininifty @2997 (Low of 1st 5min bar 3011-F14).
My SAR was 3039 (High of 1st 5 min bar (3032+F7).I closed position and bought again @3039.
I booked profit at 3050 mainly because I wasn't sure of the new SAR.
1. Was 3039 SAR correct
2. What should have been the new SAR
I am following Intraday Miniflow method.
Regards
Bhagyashree

The 5 min bar had a low of 3012, next bar low of 3005, so no trade triggered. Shift the entry for shorts to 10.30 bar low -f, even that did not trigger. So, the shorts did not trigger today in the morning. First trade that triggered was a long. Short triggered after that trade.

Kapil

Thanks Kapil

hi MJ

would u mind telling me whether i can use mini flow for stocks as i cant afford to trade in futures yet……. also i m not able to view 30 min charts in AB 4.9 n 30 min charts is the crux of mini flow….. plz help me

hi MJ

would u mind telling me whether i can use mini flow for stocks as i cant afford to trade in futures yet……. also i m not able to view 30 min charts in AB 4.9 n 30 min charts is the crux of mini flow….. plz help me

Yes Rahul you can trade stocks with miniflow. There is no problem in that.
Now coming to your second problem, I think you mean you can't watch 30 min charts in Amibroker. Go to Tools, then go to preferences, click on Intraday. Here you can give the Custom Time Intervals. That should solve your problem.

Kapil

hi kapil

many thanx for solving my problems…………..

cheers

Saint or anyone who can answer money management/risk management:

When you take miniflow after 5 min bar say for an example you are risking 5000rs for a trade, say in HDIL high is 200 and low is 190 and i use a filter of 5 for ease of calculation. Then I'll be risking 20 points and will buy 250 shares (cash). now if in next bar HDIL goes to a high of 204 our new orders will risk 24 points which essentially means i should buy less than 250 share.

Question is: Do we calculate new risk and no of shares every half hour or do we assume bit more risk? I have been recalculating things after every half hour and it's a hassle for days like in last friday where everything only happened in last hour. Becomes more difficult when you trade in F&O where initial trade might fit my risk but after couple of bars and no trades triggered it may be little bit more than my risk capacity and in the past i have gone through to take a trade and got burnt.

Please share if you use any tools and share if you have any ideas.

Thanks
Pattel

Pattel, we take the trade only after calculating the new risk. Otherwise as you have mentioned yourself the risk might be much more than that we are prepared for. I agree that it becomes difficult at times, but this effort is a must in this profession. You can make an excel sheet where you can give the trigger and Stops to calculate what should be the position size.

Kapil

Pattel,

I think you are undercapitalised. Say for example you want to risk 1% for a trade. With that check what is the position size. Is it worth taking the trade? If yes, then check if it is still worth taking the trade at 0.5% or 0.75% risk, if yes, then take initial position with these risks. Then as the trade progresses you may want to add a lot (or some more shares) and sometimes SL may not shift. So work with a range of risk limit say from 0.5% to 1.25% - you will know the variation required for a particular script you are trading.

Calculating risk at every rise, every half hour or at every add will divert your attention from the actual trading.

My views.

Bee

Thanks Kapil and Bee for clarifying. I trade 3 scripts in 60(0.75%) and 2 in 30 min(0.5%). 60 flows good but 30 has some hiccups as i just started trading recently, so on a day reversal for 60 and and 2 loosing trades in 30 would account for a 3-4% drawdown on a single day(don't happen everyday!!!). Drawdown was on higher side when didn't take care of risk assessment every half hour. Thats why i thought of asking how others been managing trades.

Pattel,
The range of 0.5% to 1.25% is for one script or one trade. If you are trading a number of scripts simultaneously then total exposure should not exceed more than 6 to 7%. I think, I read Saint writing this somewhere. I am quoting from memory. Too tied up now to look up the exact passage. With this I think you are doing fine. But if you feel this is too much then tone it down a bit.
Bee

Hello kapil sir,
Can you please help me ,how to make an excel sheet where i can give the trigger & stops to calculate what should be my position size.
Thanks ,
gitesh

quoted text

Hi Bee,

I remember reading this rule in Teach a Man to Fish…. thread on TJ. Saint has mentioned MM in Teach a man to fish…

regards,
Monk

Pattel,
The range of 0.5% to 1.25% is for one script or one trade. If you are trading a number of scripts simultaneously then total exposure should not exceed more than 6 to 7%. I think, I read Saint writing this somewhere. I am quoting from memory. Too tied up now to look up the exact passage. With this I think you are doing fine. But if you feel this is too much then tone it down a bit.
Bee

Bee,
This is how i handle for 60 3x0.75=2.25 and for 30 2x0.5=1. On normal days i risk 3.25% and of course on a day which opens gap opposite to our holdings 60 min's risk have gone high. Experimented with ambush and realised i'm not prepared yet to be there so now concentrating on 30, baby steps first!

From your reply i could see that i'm within 6-7% levels, makes me feel better.

Add saint's quote if you come accross. Monk's post didn't have quote's.

-Pattel

Pattel,
Have uploaded money management file of Saint from "To teach a man—-" thread. Hope it helps.
http://rapidshare.com/files/256318429/Money_Management.doc

Bee

IMO total exposure shoud not cross 3%…..
I stay below 2%….

MJ-

Thanks Bee for the file.

MJ, I'm going to reassess my MM plans, it went up after i started trading 30 min flow also and those draw down days don't make me feel better. Thanks for your input.

Hi Seniors,

Thanx to all of u for such a great educative forum…All that i know of TA is cos of Saint n u fellas. .. A heartfelt thnx.

I have studied the Intraday Miniflow method..Will start paper trading it asap.I had a query which i wanted to be cleared.

1. Say we take a short position.We know where our SAR is… The trade turns in our position..Then say SAR is hit..We would go long..Fine
But what about the lost profits?Do we let it go ,or do we book profits somewhere?

Asish, There has been a lot of discussions about profit booking. Let us first understand that markets cannot be predicted, so the idea is to devise a method which takes care of two very important aspects of trading. The first is after substantial profits, if the market reverses, do we have something in our pockets. And second is that if the market trends strongly in one direction only, are we able to capitalize on that. Now the problem is if we try to book profits at fixed points, then we might miss out the large trend day and if we keep on waiting for the large trends, the market might reverse and we might see our profits going away.

The best way to tackle this is part profit booking. For this one can have his/her own method. For example we might book a part when profits are equal to initial risk, another when profits are equal to double the initial risk and last part for EOD or when the reversal comes. Another method could be to book at important resistances or supports, but for that one has to be able to make out these points and the price action around these points and so this method can be used once one has gone through quite a lot of charts.

Kapil