Trading System for trend following trades using super trend and simple moving average.
Here in this post we have discussed a trading system where using indicators we may take entry and follow the trend and where to place stop loss and how we can trail SL.
Based on manual back testing of this system for last three month, in Nifty, accuracy of this strategy is nearly 50 to 55 % for
Trade 1 RR 1:3
Trade 2 RR 1:2
Trade 3 RR 1:1
With one single entry for RR 1:2.5/3, accuracy is higher than 65%.
Trade 1 is the 1st entry, Trade 2 is the second continuation entry and trade 3 is the last continuation entry which we have discussed in the trade.
Drawback of the setup- sometimes we may wait for whole day, and may not get a single trade, as it takes multiple confirmation in this setup.
Even after multiple confirmation for sideways market, multiple SL may hit.
Disclaimer - It is a basic trade setup and purely for beginners. Experienced traders may skip it.
For any trader it is always important to first self back test any set up before implementation.
Personally I use few more tweaks in this setup, but due to time constraint not able to discuss everything in this video.