- Once I have bought futures, how long would I hold them, before I sell them?
- You would hold onto your open positions (open positions mean positions that have not been closed by a corresponding opposite transaction) until (1) you get an exit signal from BSAR OR (2) the Futures Contract Expires.
- What are the Exit Rules or Exit Signals
- Calculate BSAR after markets have closed
- If today's closing price is lower than today's BSAR then;
- We inquire about the Quotes of the underlying asset around 10 am tomorrow
- IF tomorrow at 10 am, the underlying asset (spot prices) is still quoting below BSAR for today then we close our positions immediately
- Is there an astrological significance of 10 am?
- NO. The first one hour and last one hour of trading are characterized by higher volatility, as a rule of thumb. And because our BSAR Trading System is not based on volatility, so we avoid these two time periods in our trading. Which means we could take positions between 10:00 am to 2:30 pm
Monday, November 29, 2010
BSAR Trading System - Exit Rules
Subscribe to:
Post Comments (Atom)
Latest News
CNBC Top News
MarketPulse
Reuters: Top News
Reuters: Business News
Economic Times Headlines
Sensex
NSE NIFTY
Indian Economy
Gold and Crude Oil
Currencies
World Economy
Macro Economics
Tech News
Posts
Hi Sir,
ReplyDeleteexit signal from BSAR means, closing price is less than BSAR. Is this understanding current ?
What would be entry rule , if some one is willing to take short position. Will this be extactly opposite to long ?
Devendra ji,
ReplyDeleteI have segregated BSAR implementation into three categories, Simple, Intermediate and Advanced.
Shorting the market would be discussed in Intermediate level Implementation.
Very Briefly, we use Put Options to short the market, so you would agree that beginners would find it very difficult to comprehend
and Yes your understanding is correct.
ReplyDeleteSir,
ReplyDeletesimple and lucid. If @ 10 A.M if nifty trades above /below the BSAR @ very high levels/gap up/down situations, whether to trade or keep simply. Small investors wants to know with minimum capital how to take lone/short in call/put. Is there any site showing the nifty volatility with prices like RSI etc. In yahoo chart . I want to know.Thanks
Akthar Saheb, before this post the entries and exits were rather confusing to me. Now I am clear. Thank for the lucid explanation of the system
ReplyDeleteI am regularly updating the BSAR for the stocks you used to provide automatic updates, after downloading the files provided by you and I am using them for trading. Thanks again
ReplyDeletesir plzz update gold & silver bsar
ReplyDeleteJaved Bhai,
ReplyDeleteIf we sell nifty at todays BSAR i.e 5788 what would be the sl and exit points.
pl guide