DYNAMIC - A SWING TRADING SYSTEM

Motivation

 

The momentum feature is well known and researched in the market. Momentum trades/signals often result in out sized positive returns when trades go well in their favor. At the same time, almost all momentum methods/signals suffer from frequent, small and multiple losses.

 

Dynamic indicator/system is a proprietary systematic method designed to capture momentum on Indian Indices of NIFTY and BANKNIFTY

 

It aims to identify bullish / bearish patterns in a systematic manner and uses volatility adjusted entry levels and trailing points. The method employs a proprietary method to filter out market noise from an underlying trend to ensure whipsaws arising from a trend-following method are removed.

 

The expected outcome of using this is to improve risk adjusted returns on Nifty and Bank Nifty.

Trade Usage

The indicator can be used either as a standalone indicator/method or can be used as an additional confirmation to user’s Long/Short method.

 

Time Frame

The edge plays out on all time frames. Most common being 30/60 Minutes for Swing Trading with holding periods of a few days to weeks and 5 Minutes for Swing Trading with holding periods of a few hours to a couple of days. 

Trade Usage

The indicator can be used either as a standalone indicator/method or can be used as an additional confirmation to user’s Long/Short method.

Elements of the indicator

BUY/SELL markers - They depict the BUY/SELL at the open of that bar. The set up is ready at the bar prior.

Trail SL Marker - Current SL of the system. Often times the trade would exit or reverse if market conditions have changed, even before hitting SL. 

A ready BUY set up is depicted by Green vertical bar. A ready SELL set up is depicted by Red vertical bar.

Example Chart: 

Back Test Performance

The initial Backtest was conducted on TradingView PineScript and following are the results: 

 

NIFTY

Time Period: Jan'14 - Nov'20

Chart Time Frame:  30 Minute Time Frame

Strategy gained 10811 points(vs Nifty points 6700) and a draw down of 1158 points (vs Nifty draw down of 4900 points)

BANKNIFTY

Time Period: Feb'2009 - Nov'2020

Chart Time Frame: 60 Minute Time Frame

Strategy gained 31529 points(vs Bank Nifty 25000 points) with a draw down of 4921 points  (vs Bank Nifty 15,000)

GET TRADINGVIEW ACCESS

FREE TRIAL

0/-

One Month Access to:

- Tradingview Indicator for Nifty and BankNifty

Lifetime Access to:

- EOD Telegram Channel Updates

QUARTERLY

3000/-

+ 18 % GST

Quarterly Access to:

- Tradingview Indicator for Nifty and BankNifty

- LIVE Automated Trade Alerts on Telegram Channel

Lifetime Access to:

- EOD Telegram Channel Updates

ANNUAL

+ 18 % GST

10,000/-

Annual Access to:

- Tradingview Indicator for Nifty and BankNifty

- LIVE Automated Trade Alerts on Telegram Channel

Lifetime Access to:

- EOD Telegram Channel Updates

Stock Market Quotes

AUTO/ALGO-TRADING

DYNAMIC Signals on 5 Minute Time frame can now be automatically executed on your trading account. The strategy is Live on Tradetron, which is an algo trading marketplace. Below are strategy statistics for period of Jan-2020 to Jan 2021. LIVE performance from thereon can be viewed on Tradetron Strategy page. iIt has two versions:

  • Futures Version - Trades Long/Short on Nifty & BankNifty futures

  • Options Version - Trades Long Calls/Long Puts on Nifty & Banknifty Weekly Options

Frequently asked questions

What is DYNAMIC?


DYNAMIC is a proprietary swing trading system developed by Decibel Capital. It aims to trade on Nifty and BankNifty Indices to generate alpha.




How much money is needed to trade DYNAMIC?


You can trade the system with 1 Lot of Nifty Futures and 1 Lot of Bank Nifty Futures. The margin requirement may vary by broker that you utilize.




How much return is expected from the system?


Systematic or Algorithmic trading aims to generate returns that are above and beyond the simple underlying returns. Returns go hand in hand with the risk undertaken and capital deployed. Decibel Capital has provided an indicative backtest on the product page and that can be used as an assessment of risk:reward of the system.




How do I get access to the system/indicator?


Currently, DYNAMIC is being offered through TradingView. You can click on the button "Request Access" on the page above and submit a request to get access.




Do I need a paid account with TradingView to access this system?


No. As a user, you can avail benefits even with a free account of Tradingview. Go to www.tradingview.com to set up your free account.




Can I trade DYNAMIC with Options?


YES. You can take Long/Short exposure in Options as well. Based on your risk appetite you can take Buying Options or Selling Options. The aim of DYNAMIC system is to provide a robust trend following edge. There are many ways to trade the system.




Do I need other indicators to trade using DYNAMIC?


DYNAMIC is a full fledged systematic system that aims to capture large trends. You can club it with more indicators to improve it's performance as per your comfort. DYNAMIC provides a starting point from which several other systems can be germinated.




How much does it cost to get access?


For a limited time, the access to the system is being provided free of cost. Just sign up and let us know your TradingView User Name to get access.




When to Buy or Sell or Exit?


The indicator comes with labels that will tell you when the system is entering a buy mode or a sell mode. For ease of visualization, an occurence of vertical "GREEN" line on the chart will indicate that the system has identified a "BULLISH" regime. If not already Long, you can initaite a position at next bar open. Similarly, a vertical "RED" line on the chart will indicate that the system has identified a "BEARISH" regime. If not already Short, you can initiate a position at next bar open.




Is this a SAR (Stop And Reverse) or Always In Trade system?


NO. The trade strategically enters and exits trades. The easiest way is to look at the bottom of the chart that shows the current state. Green - Long Position in market Orange - Short Position in market Purple - FLAT or No position in market It may happen that at the time of an exit, next entry is also triggered. However, it is not always the case.




I have obtained access, but can't view anything on charts. Help?


The following video should help you troubleshoot. Please ensure you are using Normal Candles and not Heiken Ashi or other such special candles.





Disclosure

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Decibel Capital, its affiliates or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes tax, legal, insurance or investment advice. Decibel Capital is not a registered investment advisor with SEBI or NFA and is not licensed to offer investment advise.  Please consult a qualified investment advisor before investing/trading on any information obtained from this or any other website. Decibel Capital & it's affiliates are not liable for any Profits & Losses arising out of an investor acting 

Risk Disclosure

FUTURES AND FOREX TRADING CONTAINS SUBSTANTIAL RISK AND IS NOT FOR EVERY INVESTOR. AN INVESTOR COULD POTENTIALLY LOSE ALL OR MORE THAN THE INITIAL INVESTMENT. RISK CAPITAL IS MONEY THAT CAN BE LOST WITHOUT JEOPARDIZING ONES FINANCIAL SECURITY OR LIFE STYLE. ONLY RISK CAPITAL SHOULD BE USED FOR TRADING AND ONLY THOSE WITH SUFFICIENT RISK CAPITAL SHOULD CONSIDER TRADING. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Hypothetical Performance Disclaimer

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.

©2021 by Decibel Capital

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