How to Calculate Return of Multi Positional Trading Strategy

Asked by: Dean Portillo

Which is the best moving average for positional trading?

50-days and 200-days EMA’s are considered best suited moving averages for positional trading strategy. Traders look for trading opportunities when the moving average lines cross each other. When the fast moving average crosses the slow MA line from below the point of intersection is called the golden cross.

How do I find the best stock for positional trading?

7 Proven Ways to identify stocks for trading

  1. Track top gainer and losers. …
  2. Look at open high / open low. …
  3. Monitor volume of trades. …
  4. Note market news. …
  5. Observe the change in open interest. …
  6. Watch on relative performance. …
  7. Eye on bulk and block deals.

How can I do positional trading in Nifty?

Bank Nifty Trend Following Positional Trading Strategy

  1. Buy if Bank Nifty crosses above last 2 days highest high.
  2. Short if Bank Nifty crosses below last 2 days lowest low.
  3. Exit from Long position if Bank Nifty crosses below prev day low.
  4. Exit from Short Position if Bank Nifty crosses above prev day high.

What is positional buying?

Positional : As the name positional define itself that a trader can open a position for the long time. It is also known as ‘Buy and Hold’. In positional trading , traders can hold the position for a number of days as per the requirement. Trader can open a position for a few days, a for few months, a for few years.

Is positional trading more profitable?

The stocks are traded within a few weeks to months. Positional trading offers higher returns in the long term. In this type of trading, you need not devote all your time and energy to the market. If you are a beginner in the stock market with a low-risk capacity, positional trading is for you.

Is positional trading profitable?

The securities are either equity or debt-based., which can continue for relatively long periods of time, and earning profits from such trends. Generally, position trading may provide lucrative returns that will not be erased by high transaction costs.

How do you do stop loss in positional trading?

There are 2 types of Stop-Loss orders:

  1. SL order (Stop-Loss Limit) = Price + Trigger Price.
  2. SL-M order (Stop-Loss Market) = Only Trigger Price.
  3. Case 1 > if you have a buy position, then you will keep a sell SL.
  4. Case 2 > if you have a sell position, then you will keep a buy SL.

How do I identify a positional call?

  1. Positional Calls identifies stocks on basis of technical analysis and derivative. Calls are released during market hours as an when opportunities are available.
  2. Each calls includes a target price and stop loss.
  3. What moving averages do day traders use?

    5-, 8- and 13-bar simple moving averages offer perfect inputs for day traders seeking an edge in trading the market from both the long and short sides. The moving averages also work well as filters, telling fast-fingered market players when risk is too high for intraday entries.

    What is the most popular moving average?

    The 50-day simple moving average (SMA)is popular with traders and market analysts because historical analysis of price movements shows it to be an effective trend indicator. The 50-, 100-, and 200-day moving averages are probably among the most commonly found lines drawn on any trader’s or analyst’s charts.

    Which moving average is best for daily chart?

    The 20 EMA is the best moving average for daily charts because price follows it most accurately during a trend. The price that is above the 20 can be considered as bullish and below as bearish for the current trend.

    Which moving average is best for long term?

    200-day moving average

    For example, a 200-day moving average is considered a long-term indicator and is therefore usually used to get long term trends. Similarly, 50 or 100-day moving averages are used to get medium-term trend and 10-or 20-day moving averages are used for short-term trends.