- Take 256 or more lows' values of the period of trade you are interested to trade in
- Calculate the average of the first 8 values, and put it in the same row as the 8th value.
- on the 9th day, use this formula, (The average value of the first eight periods)+0.2 * (Low for the 9th period-The average value of the first eight periods)
- From the tenth day onwards, Previous BSAR+0.2*(Current Low-Previous BSAR)
- The current period's BSAR is used as a point of Stop and Reverse for the next period.
- If you are using the EOD data to calculate BSAR, which is most recommended, you should calculate BSAR everyday after the market has closed.
- If the closing price for today is higher than BSAR, remain long tomorrow.
- If the closing price for today is lower than BSAR, remain short tomorrow.
- If yesterday the closing price was above BSAR, and you were long, and today's closing price is below the BSAR, and if tomorrow (on the following day), Nifty or any other underlying, trades below BSAR for one hour, you must square off your longs and go short.
- If yesterday the closing price was below BSAR, and you were short, and today's closing price is above the BSAR, and if tomorrow (on the following day), Nifty or any other underlying, trades above BSAR for one hour, you must square off your shorts and go long.
- You would always be in trade.
- The system has been found to be profitable in all time frames.
7 months ago
