SMO SAR - Different entry & exit pts

Hinged on the fundamental query from Jeevan ji, is the reason for SMO SAR to exist!


G1 ji points out that, if we wait for a close above 5DHEMA or below 5DLEMA & then further wait for 5-10DEMA x-over, then we end up lose a few pts, to LATE ENTRY!

I SAY YES , HE IS ABSOLUTELY CORRECT. But SMO SAR is designed to catch W3 or Wave C, so the LATE ENTRY is more than COMPENSATED for by ACCURACY !!!

My whole aim when I came out wid the SMO SAR Algo was the following:-
1. Trading Efficiency: I.e Minimum Trades, min whipsaws, & min Re-ENTRIES after SL
2. Maximising Gain

Q: Y so?
Ans: As I cannot trade INTRADAY EEVRYDAY (due to office pressures), SMO SAR was designed for SWING TRADES (where i can quickly sneak a peek @ the market during lunch time, breaks , so on & so forth)!


SMO SAR derives inspiration from Illango ji's JNSAR. His system proposes thus:
1. When Price closes above 5 LEMA : BUY on DIPS , SL : 5DLEMA-0.1%,
2. When Price closes above 5 HEMA : BUY & HOLD , SL : 5DLEMA-0.1%
3. When Price closes BELOW 5 HEMA : SELL on RISE, SL : 5DHEMA+0.1%
3. When Price closes BELOW 5 LEMA : SELL & HOLD, SL : 5DHEMA+0.1%

Exit: When price either hits JNSAR or 10EMA

These 4 rules of JNSAR are fantastic in their own right, BUT...
BUT,
1. Trades require minute by minute observation, since one can get SLed out, due to whipsaws!
2.Trader has be vigilantly tracking 5Hi & 5Lo EMA & trend to Re-Enter every 15 mins. Else he will get confused on what position to take ?

SUMMARY:
The JNSAR system works fantastically well for the FULL TIME TRADER
For a SWING TRADER, who places a PREMIUM on ACCURACY of TREND, the SMO SAR scores
because:
1. It catches the BIGGEST in each T/F : ie Wave C or Wave 3
2. It filters out WHIPSAWS of Minute Degree (by the 5-10DEMA x-over)
3. Allows one to trail the TREND right up to the very end (exit when change in SIGN of SLOPE (dy/dx) of the 5EMA curve)

!Q: Which system should you use for trade??
!Ans: Ur choice to make , my friend. In the price Battle, a warrior should chooses a weapon to suit his "technique" , "ability" & "mentality" :-)

cheers
SMO