1. Daily Bar System. System analyzes a of NIFTY to give signals with average holding period of 5 days.
2. Automatic Long and Short signal generation. No need to draw waves / lines and other fancy stuff on your charts to analyze NIFTY any more.
3. Backtester Results Available - Thanks to TradingView, backtest results for previous years (from 1990) are available right in the charting platform for NIFTY .
Having a good trading system is one thing and trading it to make money is a whole different ball game. One thing you must always do if you want to mimic the backtest results in live trading is to follow the rules mentioned below as if your life depends on it.
1. Each day the system gives you a Long and Short trading level. You go Long on NIFTY when the Daily Long level is breached and you go Short on NIFTY when the Daily Short Level is breached.
2. Trade using Nifty Options, In the Money calls, one strike below the nearest strike price for going Long using Call Option or one strike above the nearest strike price for going Short using Put Option.
3. Preset exit and entry orders of appropriate option contracts every day at market open. To set the levels see the difference in Nifty spot price and the trading levels given by system and then multiply it with 0.8 to give an approximate order trigger price in both directions for the corresponding option contracts.
4. Book profit when Nifty moves significantly along signal direction. Every time NIFTY moves 100 points in your direction you exit the current option contract and enter a trade in the next strike price in the same direction.
5. Rollover before expiry. Its important that you rollover (ideally one day before the expiry day) your Option contact positions by exiting the current month contract and take a new position in the next month contract of the same type and strike price of the current month contract.
6. Trade only Nifty using this system. Also has to be used for trading. System parameters have been tested and optimized for Nifty Index Daily patterns only and hence is likely to give stated results with Nifty only.
7. Trade all signals. Don't pick and choose or add your own or someone else's analysis to filter the signals. Take confidence from the objective backtest results and not any subjective interpretations.
8. Trade with only that amount of money you can afford to loose. Initial capital that you need to have to trade one lot of NIFTY Option using this system should be at least INR 150000. You need only INR 7500 - 15000 to open a position and the rest is the margin of safety you need to have in your trading account to account for drawdowns in trading. You can add the capital in a staggered need to basis to your trading account. But make sure you have the initial capital mentioned above at your disposal, if need be.
As always your thoughts and inputs are welcome. Happy Trading !!!
Excited to update the existing script with more features. Here is a list of changes
1. Updated to Pine Version 4
2. Improved algorithm for even better performance
3. Better graphics using latest Pine features]
1. User control for displaying ITM option prices close to daily long and short levels have been added. By default, the ITM option prices won't be displayed. It is important to understand that this is a Nifty Index analysis tool only. The instrument you want to trade based on the tool analysis is up to you. Me or my company don't recommend to buy or sell any financial instrument. However, the basic set of rules I use to trade using the tool and the logic I use to select the instrument I trade is published on the company website. It is for your reference only and is by no means a recommendation to buy or sell.
2. Strategy file shows next day levels. This is now clearly marked in the labels. The labels will disappear when a new real-time bar starts. So use the labels from study file when market is live.
Note: There are some rare days when the daily real-time candle hits both green and red lines. However, the strategy backtester may place only one order per day even on dual signal days. This is because the backester uses a broker emulator as published here. The base method to analyze the system is this - when the real-time bar hits the green line Nifty is likely to trend up and if it hits the red line it's likely to trend down, even if this happens intraday.
1. Next day lines shall extend horizontally in both directions
2. Now the current day signal lines and labels will display only during live market session which will come from Study file. After market close and when tradingview marks EOD around 7.30 - 8 PM the next day signals will come from this strategy file. This is to avoid display clutter when both current and next day labels are shown together after market close. After market close and till tradingview marks EOD no labels shall be displayed.
2. Tooltip info added for labels to aid user comprehension of the tool labels.
3. Settings window organized better with tooltip info fields for each option to aid user comprehension of individual fields.
No algo changes have been made as this is a 30 year backtested algorithm powering the system. All changes are basically on the visual graphics side for a better user experience. This strategy file helps user to backtest the tool and also generates the next day signal levels after market close.
1. Daily signal price levels are now rounded to the nearest integer.
2. Code cleanup for slightly faster load time.
1. Option price correction factor (OPC) added. OPC is a simple and crude experimental factor to estimate the call option price when spot price hits the daily long level. The factor is calculated as 0.9 x absolute value of difference between daily long level and close price. The OPC can be adjusted against LTP of the call option to place pre set orders in trading platform. Use it at your own risk and along with tradingview alerts near signal levels to readjust the pre set orders using OPC for better accuracy.
2. Bug fix - the label display turned off between pre market close and market open. This is now fixed.
1. OPC correction factor adjusted to 0.92 to fix rare order miss triggering.
2. Label info text modifications for ease of readability.
3. Label moved slightly to the left for easy visibility on mobile layout.
4. Minor code cleanup.
1. Upgraded codebase from PINE V4 to V5. Better performance due to more efficient code made possible by PINE V5.
2. Next day levels used to come from strategy file earlier. These levels will now come from the Study file which drastically reduces the code size of the strategy script. This will help to reduce the load time and execution time. Also less clutter on chart with one less file to load while trading with TrendShikari NTS. Only study file is needed most of the time. Use the strategy file only when you want to backtest on Nifty with TrendShikari NTS.
You can support me by opening an account with Dhan via link - https://www.t7wealth.com/trading-account
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TrendShikari NTS is a Nifty Index, Swing Type, analysis tool which can be used to build a Mechanical Trading System for Nifty. Use the strategy file for backtesting TrendShikari NTS. Visit http://www.t7wealth.com to request access to the strategy file.
Warning: please read before requesting access.