PHPL-Profitable Trading Strategy For Swing And Intraday Trading

The PHPL- profitable trading strategy that I will discuss here is very simple and still profitable. It is basically useful for swing trading and sometimes for intraday as well. This is a trend following trading strategy. So this is a most profitable trading strategy for volatile and liquid instruments. It is useful for all instruments including indices, stocks, commodity and forex currency pairs.

PHPL-Profitable Trading Strategy Buy And Sell Rules

Now let’s go directly into the strategy rules. This trading strategy uses previous day high (PH) and previous day low (PL) as the level for the decision point.

When today’s price cross above the previous day high, a buy trade is initiated.

When today’s price cross below the previous day low, a short trade is initiated.

Reverse entry signal also triggers exit for ongoing trade.

Charting The PHPL-Profitable Trading Strategy

Profitable Trading Strategy For Swing And Intraday Trading
Profitable Trading Strategy For Swing And Intraday Trading

The whole method will be very much clear by the above chart example. These are 15-min intraday charts of Nifty 50 market index. When the market opens we plot previous day high and low in today’s chart. The green line indicates previous day high and red line indicates previous day low.

Now the rest is very easy to follow, we watch the price and wait for it to reach the green or red line. If the price cross green line, we buy and also exit any short positions. If the price crosses the red line we short and also exit any long positions.

How To Use PHPL Profitable Trading Strategy

PHPL Profitable Trading Strategy is one of the best strategies for traders to apply directly in their trading decision. This strategy can also be used as an auto trading strategy with suitable trading platform and brokers. The backtest results for 5-min intraday data of Nifty 50 index for last 4 years is available in the following video.

This strategy is also useful for identification of swing direction. When the price is above the PH, the swing direction is up. When the price is below PL, the swing direction is down. So this strategy can be a very good replacement for other swing direction tools like Heikin Ashi.

PHPL Profitable Trading Strategy As Swing Direction
PHPL Profitable Trading Strategy As Swing Direction

Caution With PHPL Profitable Trading Strategy

The PHPL Profitable Trading Strategy is trend following strategy so it can cause frequent losing trade when the security is non-trending or sideways. To filter if the market is trending or sideways click here.

When the previous day’s range PHPL is very large, the max possible loss will be high. To avoid this kind of drawdown one should wait for one day so that the day’s range normalized. With normal PHPL range, the max loss will be low and risk-reward will be favorable.

Watch Live Signal  In This Video:

 

To download this strategy please click here

 

5 thoughts on “PHPL-Profitable Trading Strategy For Swing And Intraday Trading

  • 01/04/2017 at 4:14 PM
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    I would like to thank you for the efforts you’ve put in writing this blog.

    Reply
  • 09/03/2017 at 7:01 PM
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    Your style is really unique compared to other people I’ve read stuff from. Thanks for posting when you’ve got the opportunity, Guess I will just book mark this blog.|

    Reply
  • 26/01/2017 at 3:16 AM
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    Hello mr rakesh ,,,, excellent ,, just just phenomenal,,, i dont have a words to express
    it works very well in nifty , but i count understand why not on bank nifty so effective
    2013 and 2014 was not good , and 2015 n 2016 profitable , but not as much as in nifty .
    please provide me your mail , i would like to have a word with you,and same time i would like to know do you have any paid services ? i very much interested to subscribe.
    once again much appreciate for your kindness and generosity to sharing remarkable work with community ,
    dr singh
    thanks

    Reply
    • 26/01/2017 at 8:04 PM
      Permalink

      Thanks you very much Gajendrasingh for your support. You can mail me at admin@nascenttraders.com, but I would prefer you contact through comments here so I can respond easily and early. There has been many request from viewers for paid service. But right now I don’t have any paid service. I am planning for that but it may take a couple of month. Still you can enjoy my blog and youtube content. If you hasn’t visited here is link to my channel page: https://www.youtube.com/channel/UC8g4zJZth5dwZgj7-uHgBXw
      Thanks.

      Reply
      • 27/01/2017 at 2:06 AM
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        thanks for your kindness , i would send you mail,
        gajendra

        Reply

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