If anybody had started trading in Nifty with an investment of 20000 in 1/4/2005 as per this strategy, and using all the profits to continuously trading under the same strategy , due to compound effect it would have become 60 crores by now. This is nothing new. one of the oldest strategies (is it a strategy first???)
In EOD chart 1. Buy above 34 EMA. Sell when price cuts 8EMA from above. Again buy when price crosses above 8EMA (provided it is above 34ema) and sell when again it comes down 8EMA 2. Short sell below 34 EMA. Buy back when price goes above 8EMA. again short sell when price goes below 8ema (provided it is still below 34 ema) open icharts (EOD) for nifty . set 5 years period. select 8ema and 34 ema. and see the charts. you will find it. i have conservatively considered 20% margin for nifty , and 10points per lot per trade as expenses towards brokerage etc. it is a plan which will work both the times. bull or bear. attached an xcel file for calculation too we may say that it wont be possible for nifty to move again like this past 5 years. if we see the chart for last 2 years it is visible that nifty will keep on moving either side. it is upto the traders to make use of it
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