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What if the Super Trend Indicator Repaints?

by 14 Comments

Here is the Question From Mr.Kumar

Thanx for posting your system. I checked it whole day, its quite good but sometimes i was surprised bcoz stoploss was hit & it showed that STOPLOSS hit but after few moments it started showing again continue with trade.
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Reply

@Kumar : Trade Should be taken only if you see the next bar open. Iam trying to avoid that repainting happening. Working on that. As a temporary Measure introduced Time Left for the new bar is formed. This will help you to take the decision on the next bar open or near to the previous bar close.

Nifty Spot 5min Chart Displaying the Timer (Secs left for the New Bar formation)

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About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

Comments

  3. srinivas murthy says

    Hai ,
    rajendran

    My observation for supertrend is ,it works fantastic ,when the parameters are changed as per trend
    and strictly used for 10 min or hourly charts, 5min gives false signals
    A. If the hourly supertrend charts in sell mode ,the paramters are factor = 3 and atr =10
    B.if the hourly supertrend charts in buy mode ,the parameters are factor =2 and atr = 11

    Reply

  5. Amirishali says

    Hi Rajandran,
    Hats Off !!! Yet another Gr8 work by you.One more suggestion from me.I use 2 Stop Losses in my system.Although I could not incorporate it into AFL it.I’m still working on it.As I’m not expert like you,it takes lots of time.Idea is,I use SL1 till it achieves certain target,in your case you can chose T1 OR T2 & then it shifts to SL2 (brings it closer,in your case optimised SL).At present I implement it mechanically.For your info,mine system also producing signals almost at same time like yours,plus or minus 1/2 bars.
    Special thanks for making it live available.

    Amirishali

    Reply

  6. Amirishali says

    Hi Rajandran,
    Using 2SL you can avoid (at least I avoid successfully) whipsaws created by optimised SL.I hope you got my point.I missed this point in my last comment,so added it again.

    Amirishali

    Reply

  7. says

    @Srinivas,

    Why Super Trend Should not be used for Higher Time frames?

    I had tested Supertrend indicator with 5min, 7min and 10min , 15min, 30min time frame and almost all the higher time frames upto daily.

    The Problem is though the higher time frame looks less noisy on the charts and gains higher probability 42-46% roughly when compared to lower time frames like 5min and 10min (approx 42%) I prefer to avoid higher time frames as in higher timeframe is involved huge risk and it is increasing w.r.t to higher time frames Though the winning ratio is increasing, the profitability of the system is decreasing w.r.t to higher timeframes

    I feel comfortable with 2 and 11 parameter for both 5 and 10min time frames as the risk in much reduced and i wont recommned to trade with higher time frames as the winning ratio is not even 50%. 5 continious losses on higher timeframes will make your portfolio bankrupt.

    I hope you understand.

    Reply

  8. shaggy boo says

    @srinivas murthy
    Rajandran is right on above point.. higher time frame charts look attractive & less noisy but the profitability hugely vary from signal candle to 2nd candle & some time overnight risk also be there as you get to see only 6 candles in hourly case and you will not have clarity on shorter time frame.. you are right for positional
    trading but again you have to be alert with the combination of shorter time frames…

    finally i learnt that, focusing on not losing money will lead you to profits… so as rajandran said we should play
    with the system having less risk as profits will flow once you are on the right side…
    good luck

    Reply

  9. says

    Hi Rajandran,
    I’m not able to converty my Ami background from normal to black as yours. With the normal background, I’m not able to see your “Last sell signal” msg. How can it be done? Please explain.

    Reply

  10. says

    @Babu Kothandaraman,

    Which AFL version you are using Older Amibroker Version or the newer one?
    If you are older version some of the funtionalities are disabled but your can see the Stop loss levels
    and signals in the white background.

    Reply

  11. linkon says

    You have not accounted for brokerage….! assuming 3 point brokerage and 3142 trades(according to back test report)… it works to Rs 9,42,600 on brokerage alone…

    Also a huge number of positive scratch trades would be negative. Overall, stats of the system will paint a rosy picture but reality will be something else all together…!

    Reply

    • says

      @Linkon : Yes you are right. I havent worked on commisions/brokerage as many people had a many brokerage slab structure with their brokerages. And there are many brokers provide even as very low as Rs20/Lot per leg.

      To work on this strategy you need a have a ultra low brokerage slabs. Nothing rosy is pained here. The Backtested Results and Code is kept open so
      that anyone can work on that in eliminating noise and to study the risk involved in the trading system.

      Reply

  12. says

    Thanks Rajandran for your response. Yup! Mine is older version Ami. Got to live it.
    Btw, this super trend indicator of yours resemble much like NMA system posted by Karthikmarar. Isn’t it?
    Regards!

    Reply

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