Full transcript (6140 words)
So hello everyone, welcome back to our channel. For this video, we had to work hard twice. Reason, the file got corrupted in the middle and we had to make it again. So if you are working hard, then double like this video if you liked it. Anyways, so in this video you will learn 10EMA strategy. What does 10EMA mean? It is a strategy in which we are following exponential moving average and Anand Lada ji has been using that strategy for a long time. It has been backtested and now it is getting great results in the live market. So it is important for you to learn this strategy. If you want to make profits continuously, then and second if you were looking for a strategy in which you can make money by following the trend and that strategy is simple to execute, simple to learn. So this video is for you. If you like the video, then do share it. Now let's start. Let's learn this strategy with one and only Mr. Anand Lada. Pushkar, whenever we are applying any strategy in the stock market, what is our basic purpose? What do we want from the market? Making money. Making money. How simple is that? So you will know how to make money from this strategy. Right. Till now, when I work in Nifty, I look for a new strategy. I look for something else for Bank Nifty, for stocks, for different time frames, I use different strategies. Use that time frame as per your wish. Use that chart as per your wish. I am not saying only India's chart, you take international chart. Apply it randomly in any chart. This strategy will be applied because just following this trend tells you how you can follow it. So beautiful trend following strategy is very simple. Simple does not mean it is easy to apply. Because it will be easy to apply when this strategy becomes yours. Now my strategy is confidence. To increase your confidence, you have to apply this strategy. Whether you apply it in dummy, in actual market, with small capital, when you learn this strategy, you will understand. Today I will tell you option buying, option selling, in futures, in cash, in stocks, if you want to work directly, I will tell you in stocks. You can use the same strategy as per your wish. Right. Let's go. Let's start. Let's go. I am telling you the basic framework here. Then I will tell you live examples. The examples that we have already done live on YouTube. We have told the same examples in the live market. We will discuss the same examples. We will use it on multiple time frames. We will try to apply it on Nifty, Bank Nifty, whatever random chart you say. In fact, we can pick any stock. If you trade in stock options, we can pick any stock for you and use the same strategy. You can use it as per your wish. You are saying that I can use it on INR, you can use it on INR, USD. You can use it anywhere, but first understand the strategy. You understand it very basic. Yes. First of all, what we do is, we have written the name. We simplify each word, start from the very base and gradually add blocks for you. Here we have written 10. 10 means that whatever candlestick you are seeing on the time horizon you have to talk about the average of 10 candles. Here, exponential moving average. First of all, let's understand what is average. We are talking about A. Suppose Pushkar's weight is 70 and my weight is 80. If we add the weight of both of us and divide by 2, then the average weight is 75, which is the average. In the similar way, exponential moving average is this. You will get two types of moving average. One will be simple moving average, which we also call SMA. I have given you the example of SMA perfectly. One weight is 70, the other is 80. If we divide both, then my average weight is 75. So, this is simple moving average. Now, what does exponential moving average say? I am going to give more importance to the recent observation because it has just happened. For example, if I have 5 candles in front of me, then I will give maximum weight to the 5th candle and give maximum importance. For example, I have given 5 importance. I will give 4 weightage to the 4th candle, 4 points. I will give 3 to the 3rd candle, 2 to the 2nd candle and 1 to the 1st candle because the 1st candle was made before 4 candles. So, what I am trying to say is that we give more importance to the recent observation. So, it becomes your exponential moving average. Similarly, if you go to the time horizon of 10, whether you apply SMA or EMA, both the lines will be almost the same. If you need, then open your charting software. There, apply 10 SMA and 10 EMA. Both the lines will be almost the same. So, there will be no much difference. But we want to ensure that you and I use the same thing and come to the same figure, to the same base. So, for simplicity, we have applied 10 EMA for you. Strategy is because we are going to talk about a strategy that you will enjoy. So, your base is clear. Now, clear the second base. Whenever I made a line of 10 EMA, leave the time horizon and just understand that there is a line of 10 EMA. You can apply in the indicators in the Demat account where you trade. So, you will apply EMA. We will show you now. So, you will understand. 10 EMA is a kind of indicator to push. How does it look? Where does it look? We will show you all that now. So, there is a line of 10 EMA. Now, you have to understand that if your index or chart is above the line of 10 EMA, means it is above the moving average of 10 candles in the last 10 days, means this particular chart is bullish. If it is going down, then it is bearish. It is basic. The first point is clear. The second point is that if it is bullish and I am getting green candles back to back, for example, I am getting green candles back to back, means the market is bullish, I am getting bullish candles in the market, I don't have any figure, I am not getting any indication here. I am getting these green candles, the market is going up daily. The trend of the market is positive. I am getting green candles, it is supporting it. But suddenly, all of a sudden, I get a red candle. Means for the first time, the market, the bullish market that was going on, it is trying to break that momentum and go in a bearish momentum. Whether it wins or not, we will know that later. But here, an effort has been made. This candle has become a trigger candle for us. You have to keep in mind two things about this candle. First of all, it should be a red candle if you are talking about a bullish trend. Second, it should not touch at all. The 10-year line should not be touched. Just keep these two simple points in mind and this is your trigger candle. Now what is the trigger candle? The trigger candle means that the market tried to reverse. But if again the high of this candle breaks from the next candle, whether it becomes a green candle or a red candle, if it breaks, then we get confirmation that the market's previous bullish trend can continue from here and this is your entry trigger. Let's understand where the entry trigger is. The high of this candle is your entry. What is the stop loss? The 10-year line you see below this candle is your stop loss. What is the risk reward? What is the target? Whatever area you are getting, start it from 1 is to 2. Keep 1 is to 2 in the starting because in the starting, there may be some stop losses, you may face problems in how to adjust and how to trail. Start from 1 is to 2. Here I will show you live, 1 is to 7, 1 is to 8, 1 is to 10 risk-reward ratio will be easily available. Because your SL is very small. It is a very small stop loss. Now you will see that you will have a stop loss of 30-40 points. If you try to trade for 5 minutes in intraday, there will be a maximum of 25-30 points which will be your stop loss. And the entire range above will be open to meet until this trend is following. Now you want to trail it, for example, we have to keep 1 is to 2 risk-reward ratio. If someone says that I will trail, then you have multiple options to trail. Let's start with the simplest option, which majority of people can use, which is our 10-year line. I just keep trailing on the 10-year line. Very simple. If any candle closes below the 10-year line, then you will have a stop loss and you will move there. This is a simple option. It is a simple thing that a candle is made, which breaks the 10-year line and closes below. So you know that when you talk about a red candle, it is open from above and closed below. And a green candle is open from below and closed above. So we need closing below, this is important. This is the best thing about you. You get into the basics a lot. I was assuming here that you know this much, but when you get into the basics, it is the best part. 99% of people know this. But one person who will say that there is confusion here, we have to be more careful for him. Everyone else will understand. It was fun. So this is your first option for trailing. The second option is on ATR. It is only for those people who are a little professional and want to go above this same strategy and make an algo. I will not discuss what ATR is, otherwise this video would have been longer. And ATR is a completely point of different discussion. But you can go to 2 ATR or 3 ATR and trail here. If you try to make algo on it, I am trying to make its algo by the way, I am also testing it so that it can be very fun. And we can apply the same thing and leave it. So that happens for your algo which I have covered for you. Apart from this, it can happen to you that whatever the previous candle is, if the low of that previous candle is cutting, then I will go there. These are just 3 types of stop loss. If you want to start suddenly and say that Anant, say one thing, then this one thing is done for you. So basically, to trail, I told you ATR, I am just telling you the average true range. So whenever you are using a trend following thing, then ATR is useless for you. That's why they just told you ATR to trail. Basically, what happens in algo is that a system is trading for you. When the system trades, ATR does a very good job there. Especially if you work on 2 ATR or 3 ATR, then you get a chance to take full advantage of a whole trend. Whoever uses algo or understands basics, they will understand this. If you don't understand, then comment. We will also talk about algo in detail. If you don't understand, then do that first. Do it simple first. First, you reach 1 is to 2, then reach 1 is to 3. Now let's reverse this. This is a long trade. I told you that you will get all the trades in one strategy. So basically, I committed you that you can buy, sell, and do it in options. I will tell you how to do it. But till now, you have understood the buy side trade, in which you are taking a long trade. Now let's talk about how my short trade will be triggered. This is my 10 EMA line. is in bearish trend. For example, my stock is breaking and red candles are being lit.
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If my stock is below this 10-day limit, it means that my stock Stock is breaking and candle stick is turning red. But suddenly, a green candle appears. It means that in this breaking trend, this stock or index is trying to rise. It is trying to reverse the trend and go to the next trend. But if the low of this candle is cut, then I will have an entry of short. I will go here and do a short. Because here is a trend of falling. A green candle is found which is trying to reverse this trend. But that trend fails from the next candle. So, here is my short and stop loss. Target is 1-2. When you are doing short, always keep the target 1-2, 1-3 and maximum 1-5. In short, there is a limit to which the market can break. There are many other factors. For example, put call ratio is overbought or oversold. There are chances of getting reversal or retracement. In short, you have to book a profit of 50% on maximum 1-5 risk-reward ratio. Usually, you have to start on 1-2 risk-reward ratio. Instead of 1-2, I can immediately take you to 1-3 or 1-4. And you will get it easily. But in the beginning, I want you to take money to your home. This is my main purpose. Take small amount of money but it should come to your home. So, in 1-2, money will come to your home regularly and frequently. There will be days when you will work in 5-minute time horizon and do it in intraday. You will get 4-5 trades in a day. 3 of them will be correct. And risk-reward ratio is maintained. So, you will take good money to your home. I am saying 3 trades. I did live 4 days ago. I got 7 trades in a day. I talked about taking trade in just 1 strategy. I got 60 trades out of which 5 were profit. And in 3, we got risk-reward ratio of 1-5. We took it out live very easily. So, I am telling you that you should have confidence on this strategy. You should understand what is happening. When you understand and things are clear for you, you will enjoy a lot. If you want to trade here, then again, for the clarity or simplicity, We will assume that we will trade on the 10 EMI line. If any candle gives closing above this 10 EMI line, even if it is A candle, Then we will assume that our stop loss is set and we will exit for trailing. It is simple till here. Now, let's go to the live example. We are going to live example here. But I want to tell you one thing. When Anand said that when you will short, then you should not think above 1, 2, 3, 4. The reason for that is that if you are trading in Nifty, Bank Nifty Nix Stocks Then generally, what happens is that Nifty, Bank Nifty, Nix have to go up. So, when a big move comes, then an uptrend can be sustained for a long time. What will happen in short? The market immediately falls but bounces back. So, we don't know how long it will sustain our round trend. But the uptrend can go for a long time. Probably, this will be the reason for uptrend. Absolutely right. And let me tell you one more thing. What is the main benefit of this strategy? See, apart from this, there are many other indicators and strategies that we can use. But what happens in all the other strategies is that when the market is sideways, Usually, you should go to any time horizon and see. When the market is sideways, it is sideways around 10 EMI and that is for the time horizon. For example, if you are looking at a very long term chart, Then if you see the weekly chart, it is always sideways around 10 weeks. So, when it is around 10 weeks or 10 days or 10 candles which are of 5 minutes, In any time horizon, if you are passing time around it, then you will not get fake signals. So, when the market will make candles around this 10 EMI line, You are out of the market at this boring time when you do not have a market on any trend side. See, sometimes, not falling in the trend or not getting stuck in the trade and also saving money in sitting quietly. And if you do this strategy, then we will see it live. So, we have come to the screen. I will try to explain you in a basic way. First of all, I have put an intraday chart for you. 5 minutes intraday chart is put. This 10 EMI line is already set for you which you will get from the indicator. If some of you want to see what is there in 10 EMI, I will punch it exactly in front of you. You have to write 10 and 10. Your 10 EMI line will come. Let's revise it once. If any candle is above 10 EMI, It means it is in bullish trend. If it is below, it means it is in bearish trend. You got this 10 EMI line. And here the candles are below 10 EMI, It means the trend is bearish. Negativity is going on in the market. The market is going bad. In this bad environment, even while walking, you get a green candle. This is your trigger candle. Which is not touching the EMI line. It is not touching the EMI line. In downtrend, suddenly a green candle is formed. The downtrend is reversed by this green candle. For us, this is a trigger candle. Now we just have to ensure that Does the low of this candle cut on the next candle? If it cuts, then we have an entry there. This is our short entry. This is our stop loss. This 10 EMI line is my stop loss. And I have to work for 1 is to 2 target. If you see here, The target of 1 is to 3 and 1 is to 4 has been easily formed in front of you. Now here is one thing that we clear to people. I was also feeling this in the starting. And this clarity is necessary only. Because according to this strategy, When you had entered, At that time, your EMI line will be your stop loss. This point is your stop loss. Right, right, right. This point is your stop loss. So if you want to do a trail, Then you can do according to the EMI line. But your stop loss will remain the same. Stop loss will remain the same. What is the trail? The trail is that when I have come to profit, After that, I want to increase my profit. I want to have fun with my profit. Your trailing starts after the profit of 1 is to 2 comes. It will never happen that this is my stop loss. This is not your stop loss. This is your stop loss line. But when your 1 is to 2 profit is done here, Then you can do a trail on this EMI line. Then your trailing will start. Trailing starts when you have come to profit. No matter what strategy you are using, Always keep this point in mind. Sometimes, we start trailing from here. If you start trailing from here, Then if you use any strategy, The ratio of its success will be very bad. Because whenever you get an entry in any strategy, Sometimes you will get a false signal immediately on the next handle. And it will try to eat your stop loss. That's why you don't have to be afraid. Your stop loss is here. Your trail has been done very easily. Let's see the exact ratio of the reward ratio. We will see that. But if someone trails, Then it will come out on this green handle. It will come out somewhere here. Because its closing is there. Before that, the closing was not done above the EMI. Absolutely. So you can show the ratio of the reward ratio. Let's put it here. So your reward ratio is easily above 1 is to 3. It depends on you if you start at 1 is to 2. You do trailing after 1 is to 2. If you start at 1 is to 3, It depends on you. This is a perfect example for you. Now I will tell you how you can use options or futures. If you want to use futures, We will directly short the futures. I want to do option selling, Which will be very amazing in this. So for option selling, It becomes very simple for me. The area of my stop loss of 10 EMI, I will sell the call of this level. Here I have to call out of the money option. You have shorted the call out of the money. And your risk to reward ratio is very good here. You will trail the premium. Like you are getting 1 is to 2 or 1 is to 3 on the basis of candlestick. According to that, you will trail your premium. Instead of this, If someone is starting new, He doesn't know how to trail on the basis of this candle. He can keep a simple stop loss of 15% and 30% on the call premium. It will depend on you. But the call sold here will give you a very amazing profit. If you sell the call here, The market will come up to here. You will not come to loss in the majority of the time. You missed the train, stop loss, Missed the trailing stop loss, Missed the trail again, Missed the profit booking, Still you are on profit if you have done option selling. It became simple. Now if I want to buy an option, You can't be wrong at that time. If you want to buy an option, You will put buy here. As soon as your trigger happened here, You put buy. And for put buying, As soon as you see the risk to reward ratio of 1 is to 2, You have to exit somewhere here. Another reason for that is that you don't know the exact bottom. That the reversal will come from here. So now it is possible that big green candles will be made again. And the entry you did, You didn't see any profit there. On the short side, I won't look for 1 is to 2 or 1 is to 3. You will get 1 is to 10 in this. But then you have to trail. And use it after an experience. On the long side, You will say that I have bought a call. And I want to trail a little. I want to take 1 is to 3. I will say take it. No problem. But on the selling side, You have to save a little on the short side. So now we have shown you a live example. Where we got a short trade. Now let's see another example. And there is an example around the same day. Where we got a long trade. This is a complete strategy. Let's see that. Here you can see that your candles are being made above 10 EMA. If it is above 10 EMA, Means there is a market in uptrend. Suddenly I get a red candle. And I think that maybe this uptrend is going on. It can be reversed. This is the sign of reversal. This is a trigger candle for me. If the high of this candle is cut, Then I have to come to the buy side immediately. The high is cut on the next candle. I buy here. This area is my stop loss. Now let's take how much you have to take the risk to reward ratio. You think what a beautiful risk to reward ratio you are getting. Here also, your long trade was initiated from the margin. And again it is shown in 10 EMA. But see this. How much love and how much risk is there for you here. you will have a stop loss. If I want to sell options, then I
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If you work in futures, then you have to buy in futures, then have to sell put at this level. But for you, put will be out of the money. Yes, out of the money. The main benefit of selling out of the money is that you have to go against the direction to bring the market to loss. If you want to buy, then you have to buy immediately. And then you can see how strong the momentum is. If you are getting back-to-back candles, especially if I am buying call in this case, Then you just have to see when will you say momentum strong? When this candle is rising without touching 10 EMA. So, as long as this candle is 10 EMA, first of all, I need 1 is to 2 risk-reward ratio. And after that, if you want to work in a judgment that how long should I trail or what should be my mindset, As long as this candle touches 10 EMA without going up, you trail comfortably. And you will have to exit once you go to this candle. That brother, it touched, one or two candles were reversed. When we buy options, we need immediate momentum and that too in our direction. So, our tough conditions are like this. See, what happens in the market is that if we ask for one thing, then the market is very good. Here you are saying that the market should increase, it should increase in my direction and it should increase right now. So, you have asked a lot from the market. That's why you have to keep your stop-loss very tight. And when you have a sizable profit, then you will have to exit there. This is your buying strategy. I will tell you one thing that you see this strategy, see, any influencer tells you this strategy, he tells you from his experience, he has a lot of good profits, that's why he tells you. But I will tell you one thing that you have understood this strategy today. I don't say that you go and trade from this one day, do not trade. You first trade paper. You see that you are getting results, if you are getting results, then you trade with less capital. And if you get continuous results, then you know what you have to do, you have to come to this video and say thank you to Anant Bhai. By the way, here ReservoirDishab has sat for 1 issue 10 and it is not that I am doing past analysis today. I remember that I was exactly live on YouTube on the same day. You will go to my channel and see that you will get the same day. And here we talked that there is an entry in the 10th evening, here our buying trade should be initiated. We were trying to study this. What I am trying to say is, I am not saying that there will be no stop-loss here, there will be stop-loss in many places. But if you maintain your risk to reward ratio of 1 is to 2 and at some places you get a risk to reward ratio of 1 is to 5 or 1 is to 10, Here you can easily play 1 is to 10 as much as you are getting. You got it like this. There can be a very big profit, but you have to systematically follow a strategy regularly. It will be that I used this strategy today, yesterday I went to find a new strategy in Chambal Garden, then I used a new strategy. This strategy does not work like this. In one strategy, you have to work 100 trades or 3 months regularly. After that you can say that this strategy was right or wrong. No strategy is proven right or wrong by working for 1-2-3 days. I just saw here that we were on a 5-minute time frame. I was saying out of the money, but at that time people will say that out of the money, we will take a strike price of 17600 or 17650. So I would like to tell you that you are at a 5-minute time frame. You can also follow the same strategy on the 1-day time frame. I was saying this because I had to explain it to people. No, the logic should be clear. You said 1-day, let's check on 1-day. So now Pushkar said that try to put on a daily candlestick. So here the daily time frame has come for you. And in this, your put selling point, that is, the option that was out of the money, the selling point will be perfectly applied and you will have a lot of fun. For example, you got a red candle here. See, this is the line of 10 EMA. Market is above 10 EMA, which means it is positive. This red candle is made. As soon as I cut it, my entry has been made. Or I go to this level and put sell. Okay, when you sell on this daily time frame, there are two things. One thing is that if you want to make money, then you will do it with a little capital. The second thing is that you have a little patience. But if you want to make money continuously, I am telling you the truth, I don't think it is better than selling on a daily time frame. Dude, you have a momentum of 1000 points. You have eaten your full premium. What am I saying? I don't think it is better than that. But people say that we have to double or triple in intraday. So for that, you should be a person who controls the heartbeat. So see, this is your perfect trade and from here your risk-reward ratio is very easy. It has been reduced to 10. Let's take one more example where your stop-loss might have been hit. See this example. If your stop-loss is here, then marginally it would have been hit or it would have been saved. No, no, it didn't close. It didn't close, but still if it comes below this line, many people will take stop-loss. It's okay. Here you got the entry again. And this much stop-loss. How much? There is no stop-loss of 50 points and see how far the market has gone. You can bring it as far as you want. So it is not that there will be no stop-loss. Let's say you don't consider this perfect example of stop-loss, then it will work. But if you consider that stop-loss has been hit, then what is the problem? You have not given a stop-loss of 20-25 points. That is the thing. People don't understand this. When you are doing directional selling, then the theta which is dying at that time, it is fun. You are getting money from direction and theta is going according to daily time frame. According to the rose, theta is ending. So it will be fun. Depending on what you are selling, then you have to understand that you have to sell weekly, next week, monthly. Exactly my point. We will talk about it in detail later. But one more example, very recent where the market has closed. This is your 10 EMA line, this is your stop-loss, this is your risk to reward ratio of 1 is to 2. And suppose this gap up is still a little less. If there is a lot of gap up, then you can bring the low of this candle. You have to keep this much subjective matter to yourself that how much stop-loss I am taking. So this is a complete example. And if you are not doing it yet, then today you are in the market, you are inside and you are trailing and your entry was here. At the time around 17100, where everyone was afraid in the market, but your strategy gave you entry. So this is how your 10 EMA strategy is complete. Now people will say what to do now, so it is done. Now you have to do next, you have to wait for a red candle because now the trend is going well. Here red candles were made. No, no, I am saying latest now. What to do now? Now when the red candle will be made, wait for the market to close. And wait that the red candle should not hit. Not a single trigger candle because all three have been hit. So if that red candle does not touch and after that high break happens then you will understand what to do. Then sell on put at daily time frame. But I will tell you in short, it suits me that you sell it 45 days ahead, you will feel good. I mean it is my experience. We will talk about that in the next video. In this video, there will be likes, comments. If people want, they will talk in detail about it. And I have a strategy on it too. You are saying 45 days, not 45 days, I am talking about next to next expiry, which is roughly from 60 days to almost 35 days. You can sell here and how will you cover that your risk is also covered. And you will not cover the risk in monthly, you will do it in some other time frame. Okay, now you have said very good things, which new people will not understand at all. No, we will talk in the next video. No, people will demand, so we will talk. It is not necessary that it should be in the next video. It is possible that we will put the video after a week. But for that you have to subscribe to this channel, you have to click on the bell icon so that you don't miss the videos. And you will get the link of Anant Bhai's channel in the description, do check out. So this was a very simple and basic strategy in which you will enjoy a lot. Apart from this, I have made a very special course called 7 Special Strategies. There you are from basic to advanced level. I am saying you are an intraday. Even Elgo is covered there, Elgo's strategy is covered. Swing, positional, almost everything is covered there. There it is discussed, how to work on expiry specially, on monthly expiry and how to work on positional expiry. Everything is covered there as a strategy. So if you want, you can easily connect. Now you will see a number on the screen, you have to call and go there and inquire about it. Right now, we have just made a special special offer for the first 100 participants. If you want, you can use it. By the way, in that complete course, I have also made a video where I have not only shown the current but also the old, our back to back few years of P&L that how it has worked. In the crash of E1 market, which was the crash of 2008, what was there at that time, our P&L, that is also shared there. Because we are working in the market regularly, you will get to learn a lot in this course. You can enroll if you want. Limited first 100 participants special offer will be valid.