The Ultimate Momentum Signal for Position Trading the Nifty Futures & Options
This blog by momentumsignal discusses the position trading of Nifty Futures and Options in the Indian markets, using The Ultimate Momentum Signal for Nifty Futures. This trading system consists of a proprietary multi-factor trading signal and it's risk management rules. The Ultimate Momentum Signal and the risk management rules were invented and refined after a research of more than ten years.
Daily technical analysis will be part of the updates. This blog also comments occasionally about the Nifty heavyweights stocks, markets, investment, trading, psychology, risk management etc. It is assumed that the reader is having the basic knowledge about futures and options trading.
My journey of trading futures and options as a full time independent trader started seven years ago. In these seven years period, I've also made all kinds of mistakes in trading except for the creation of an extremely big and unmanageable positions. And this exciting journey of the untamed land of capitalism, the world of leveraged futures and options, is still continuing .....!
My own creation 'The Ultimate Momentum Signal', which combines some selected technical indicators and oscillators in to a single signal, and the accompanying rules, have saved me from all kinds of trading disasters. The Ultimate Momentum Signal and it's risk management rules, which has kept me in the trading game with positive expectancy till now, is being published for the benefit of other traders. This blog will also publish the daily updates of the trading system, barring any unforeseen circumstances.
Profitable leveraged trading of futures and options is one of the frontier areas of capitalism and it is a common secret that at least eighty five per cent of all participants won't make any money from this business in the long term ! Another ten percent or so of the traders would manage to break even and may remain in the trading game. The remaining five percent or so of the traders are the ones who make the real money from trading, after considering all the efforts and expenses of trading.
Profitable leveraged trading of futures and options is one of the frontier areas of capitalism and it is a common secret that at least eighty five per cent of all participants won't make any money from this business in the long term ! Another ten percent or so of the traders would manage to break even and may remain in the trading game. The remaining five percent or so of the traders are the ones who make the real money from trading, after considering all the efforts and expenses of trading.
The Daily Updates
'The Ultimate Momentum Signal" is calculated by use of a spreadsheet and the front page of the spreadsheet showing the updated signal will be published daily on this blog.
Example of The Ultimate Momentum Signal Spreadsheet Update
The Signal 1 and the Signal 2 in the spreadsheet shown above are the respective Ultimate Momentum Signal values of the Nifty Futures and it's underlying S&P Nifty Index as on the closing of trade for the indicated dates. These Momentum Signal values are calculated daily on the basis of the last traded prices. The Ultimate Momentum Signal is designed to oscillate in a fixed range between -100 and +100 values.
As the Ultimate Momentum Signal can be calculated only after the daily close of the market, the projected levels of closing values required for a momentum shift, neutral momentum and/or continuation of momentum as on the close of the next trading day will also be published daily as part of the update.
As the Ultimate Momentum Signal can be calculated only after the daily close of the market, the projected levels of closing values required for a momentum shift, neutral momentum and/or continuation of momentum as on the close of the next trading day will also be published daily as part of the update.
Example of Updates - Projected Momentum Signal Values and Closing Ranges
You can click on the table to enlarge.
The above table is an example of the daily updates and is normally published one day in advance of the trade date. The above table was applicable to the trade dated 4th Feb. 2010 ( please see the trade date in the table ) and it was published on 3rd Feb. 2010. This table or ready reckoner shows the projected Momentum Signal values applicable to various closing values of the futures and the underlying index in advance. Therefore, a trader who checks the market near the closing time can easily know the Momentum Signal value applicable to the impending close. These daily updated Momentum Signal values are essential to all the three stages of a position trade namely entry, trade management and exit.
The table's contents are explained below :
(a) The close equal to or above the value given in this row (a) indicates maximum upward momentum of +100 as per the model.
(b) The close equal to or above the value given in this row (b) but below the value given in the row (a) indicates momentum signal values between +50 and +100.
(c) The close inside the ranges given in this row (c) indicates neutral momentum corresponding to the momentum signal range between -49 to +49.
(d) The close equal to or below the value given in this row (d) but above the value given in the row (e) indicates momentum signal values between -50 and -100.
(e) The close equal to or below the value given in this row (e) indicates maximum downward momentum as per the model.
You are welcome to ask any questions about the signal, and it's risk and position management rules available in the later pages.
For more information on how to trade with the Ultimate Momentum Signal, please read the page named The Signal.
Important note: Please click here to read on the new mode of the daily updates available from 1st April, 2013.
You can also read the page titled Evolution from here...!
Cheers and Prosperous Trading!!!!
For more information on how to trade with the Ultimate Momentum Signal, please read the page named The Signal.
Important note: Please click here to read on the new mode of the daily updates available from 1st April, 2013.
You can also read the page titled Evolution from here...!
Cheers and Prosperous Trading!!!!
You can download / read the brief Info and Instructions document from here.
You can also checkout the five year history of The Momentum Signal Spreadsheet from here.
Disclaimer:No research, information or content contained shall be construed as advice and is offered for information purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy.
