Trade with Ajeet Singh

A Free trading Hub for fellow traders, updated fortnightly.

Who actually is paying

A friend recently shared a very witty allegory on the state of economics in current times and the making of a financial crisis. It was both hilarious and scary. We thought it was very important that our readers know about it. So here it is... 

John, a bar owner in Europe noticed that almost all his frequent customers were unemployed alcoholics. That means people with no jobs plus a drinking problem. What to do? If they had no jobs, they would soon run out of money and stop visiting the bar. And the business would have to shut down. How could John avert this impending crisis and salvage his liquor business? 

After much brainstorming, John had his Eureka moment. He came up with what he thought was a genius marketing idea. The idea was simple: drink now, pay later. 

So his customers could have as many drinks as they desired and not worry about having to pay immediately. John, on the other hand, kept track of all the bills and granted customer loans to his loyal drinkers. Both seemed happy. The customers didn't have to bother about paying up upfront. And John was able to revive a declining business. The marketing plan created a buzz and John had his sales grow exponentially. From time to time, he was able to easily hike prices of the drinks. And his customers never complained. John was now the proud owner of one of the busiest bars in Europe. Not to forget the real cash earnings existed in the future, if at all. 

Seeing his growing business, the bankers were happy to increase the borrowing limits for John. They saw the debts of unemployed alcoholics as valuable future assets. Some young ambitious geeks at the bank saw a big opportunity here to transform the customer loans into securitized tradable bonds. Then of course, these securities were bundled and traded on the international bond markets. The investors do not know that what was on offer was really a bundle of debt of unemployed alcoholics. They simply joined in the extravaganza of this new hottest-selling bond and the bond prices went flying skywards. 

Guess what? Everybody seemed to be making money and getting richer. John had a thriving business. His customers were happy. The bank was doing great business. The brokers were earning great commissions. The rising bond prices also made investors rich. 

Sounds like the economics of happiness? Well, this story, as you may have guessed, certainly does not have a happy ending. Finally, a newly joined risk manager at the original bank saw the debt pile and decided it was time that the debt be repaid. He approached John, who in turn demanded payment from his customers. But well, where was the money? Most of them were still unemployed. And this was precisely where the party ended. John was forced into bankruptcy. The bar shut down. 

But this is not all. When the news of the non-payment spread, the bond prices came crashing down. Investors saw a massive wipe-out of wealth. The local bank that had lent heavily to John witnessed a critical credit crunch and was unable to issue new loans. 

And there were even more parties involved. For instance, John's suppliers had significantly relaxed their credit terms. Some of them had to shut down. Others had to downsize their operations. 

But there were some who came out of the crisis untouched, in fact, much richer. Who were these people? Can you make a guess? Well, the answer is bankers and brokers. Their cronies in the government were happy to help them out with a multi-billion euro cash infusion, all in the name of saving the economy from a systemic collapse. But where did all this bailout money come from? As it turns out, the bailout money was raised by levying higher taxes on employed people, most of whom were non-drinkers. Now you see who paid for all those drinks? 

If you have been wondering what's going on in the global economy, this allegory does explain quite a bit. Many of the developed economies are in a mess right now because they consumed a lot more than they could pay for. They were consuming their future incomes in the present with this magical concept called debt. But when you have too much of it, you have a crisis eventually. We saw how the global financial crisis that broke out in 2008 rocked the world economy. 

And to tell you the truth, we believe that the world economy is even more fragile now than before, thanks to reckless monetary policies by various developed economies' central banks. We will talk more about this a bit later. 

For now, there are some crucial points that we would like to highlight to our readers. Some may think it is pointless to worry about the world economy or the monetary policies of the developed economies. How does it concern India and Indian equity investors? 

Well, let us tell you that the world economy and the global financial markets are way more interconnected and interdependent than ever before. If developed economies pump in cheap money, a lot of it finds its way to developing and emerging markets. We just saw recently how the Indian markets soared following European Central Bank's (ECB) announcement of Euro 1.1 trillion (about US$ 1.25 trillion) quantitative easing program. The reason you should be worried is that this flood of money is not coming out of real earnings and savings. It is a dangerous monetary experiment that various central banks are toying with. Whenever this money changes direction or reverses back, it could rock the already fragile global financial markets. And India would be no exception. 

In conclusion, we would repeat the same old wisdom, however boring it may sound. Invest in value. Don't become a slave of stock price movements. Corporate earnings or the Indian economy didn't get any better because of ECB's QE plan. So don't be shocked when you see stock prices falling when this money changes its course. 

Source:  Internet

Simple Odin to Ami

This is age long method to get quotes from odin to amibroker but still serves the purpose.

All of you must be aware of AmiBroker and Diet ODIN
Here is the mystery unrevealedamibroker's DDE plugin and Microsoft excel

1> Amibroker
2> Diet Odin with Open in MS-Excel feature enabled by your broker(just right click any scrip and u should see open in ms-excel option. click that and it should open Arbitrage.xls in ms-excel with your scrips and live data). Not all brokers enable this feature. im a sub broker so i got it enabled easily

1> 100% FREE Intraday Data
2> NO DELAY. Things happen in seconds in stock/futures market so what is the use of data that comes after the move is already gone.
4> Realtime Data

1> Tedious configuration
2> Tedious Backfill 



1> Login to you diet odin and open the desired market watch 

2> Right click in the market watch and select open in ms-excel

3> Small box appears asking for select sheet. select sheet1

4> A file named Arbitrage.xls will open with all the scripts/futures/options and u will see the rates changing.this is your source we need to purify this as we don't need most of the data.


6> i use office 2007. create a new blank workbook by clicking the office button and then new and then select blank workbook and then click create button

7> A blank workbook opens with name book1

8> click Cell A1 and type the name of the scrip you want here i will use example of commodity market. the steps will be same for any other market.

9> In A1 we type Gold in Cell A2 we type Silver in cell A3 we type CrudeOil

10> Now select Cell B1which is next to Gold and type then go to Arbitrage.xls and select the column which corresponds to gold's last traded price and hit enter. now ur blank workbook will show golds last traded price besides Gold which u manually typed and it will keep on changing as per the trade. when u double click the cell u will see something like =[Arbitrage.xls]Sheet1!$L$18. this means for me the gold last traded price is on Cell L18

11> Do the same for rest of the symbols. here is how my excel file looks Screenshot

12> Now select Cell C1which is next to gold last traded price and then type then go to Arbitrage.xls and select the column which corresponds to gold last traded quantity and hit ur blank workbook will show golds last traded price and last traded quantity and it will keep on changing as per the trade. when u double click the cell u will see something like =[Arbitrage.xls]Sheet1!$K$18. this means for me the gold last traded price is on Cell K18

13> Do the same for rest of the symbols. here is how my excel file looks Screenshot

14> Delete sheet2 and sheet3 to avoid confusion from the blank workbook 

15> Rename Sheet1 to MCX as we are fetching mcx data and now save this workbook to ur desired location and name it MCX.xlsx

16> Now select cell B1which is gold last traded price and then go to formulas menu there u will see define name. click that and a box will appear saying new name type Gold_lt in name field and click ok

17> Now select cell C1which is gold last traded quantity and then go to formulas menu there u will see define name. click that and a box will appear saying new name type Gold_vol in name field and click ok

18> Repeat the above steps of all the symbols. now click the name manager button and u should see something like this Screenshot. once ur done save the file MCX.xlsx


19> Open AmiBroker and create a new tick database. in Data Source select DDE universal Data Plugin. in number of bars type500000. now hit ok button

20> Select Symbols>New in amibroker and type Gold in enter new symbol name box and click okREMEMBER THE SYMBOL NAMES ARE SENSITIVE. TYPE THE NAMES EXACTLY THE SAME WHAT YOU HAVE TYPED IN MCX.XLSX A1 A2 CELLS 

21> Now go to File>database settings and hit configure button. Configure DDE plugin box will open.Select generic2 {Ticker}!{Field} in preset. type Excel in DDE Server. type MCX!{Ticker}_lt in Last field. type MCX!{Ticker}_vol in last size field. your dde settings should look like this Screenshot

22> Click Ok button on Configure DDE plugin box.and click ok button on database settings box. and now u will see in bottom right hand corner of amibroker as CONN WRITTEN IN GREEN and also the charts will be updating real time with tick data


How to extract live data from NEST/NOW/ODIN

Here's the simple procedure, of how to extract data from NEST/NOW/ODIN and then transfer to amibroker, free of cost.
Backfill is from google, so it works only for NSE cash segment.
Before starting, have dotnet framework 4.5 + java runtime + office 2007, I'm not saying this is needed for this or that but they must be in your system.

Open Nest/Now/Odin, right click script then select link to excel.

paste it on excel, note its columns as well

Download excel linker from here
Install it and open it.
Go to settings

Click real time then select columns of excel where you have placed LTT, LTQ, Volume n Symbol.
Mind it, use symbol instead of trading symbol in Nest/Now/Odin. You can have others columns also in trading terminal but we'll use only these for data extraction.

Click IEOD and select Manage symbol. if it says create new file then create it.

Select days, time frame and other things yourself.
Open Amibroker then click start IEOD from prev. menu, it will backfill from google.
Click start realtime update for realtime quotes.
Only 1 instance of excel must be open while RT data stream.

Happy Trading, Take care !!!

Nifty Level Calculator

This file generates Nifty levels automatically, please keep eye on it.
Updates every 2 mins.
Needs Office 2007 or higher with Macros enabled by default.
This file available for use of 5 days.
After that kindly register it by filling activation form HERE !!!
Activation is totally Free of Cost for personal use.
Have a try!




Gann Square

How to use Gann's Square of Nine Intraday Calculator

Gann Square of 9 - Introduction
Gann relied heavily on geometrical and numerical relationships
and created several tools to help with his work. Among these
tools are the Square of Nine, Square of 144, and the Hexagon.
The Square of Nine, or Square as we will refer to here, can be
constructed in at least two ways. The static Square has the
number 1 at the center and the dynamic Square has the historic
low of the time series in the center.
The Square of 9 is basically a spiral of numbers. The initial
value can be found in the center of the spiral. This value is
then increased by moving in a spiral form. Normally the center
value is 1 and the step is one creating the spiral

1. This calculator is meant for trading only intraday.
2. Enter the LTP ( or WAP - Weighed Average Price )of any stock / index/ underlying anytime during the market hours.
3. The ideal time is 15min - 1hr after market opens.
4. If you are unable to find the WAP price, you can also enter average or last trade price of the stock / underlying.
5. After entering the price, click calculate button.
6. You will get the buy and sell recommendations.
7. Follow the recommendations you get to trade.

Needs Office 2007 or higher with Macros enabled by default.
This file available for use of 5 days.
After that kindly register it by filling activation form HERE !!!
Activation is totally Free of Cost for personal use.

Have a try!


Nifty Doctor Simple System

---The system uses five averages:   
  • 3 day close average (3 SMA),
  • 3 day  high average ( 3 HMA),
  • 3 day low average. (3LMA),
  • 8 day close average. ( 8 SMA),
  • 34 day close average (34 SMA)

---Initiate long when the close is above 3 day high average (3 HMA) and 3 day close average (3 SMA) crosses above 8 day close average (8 SMA). (Stop loss 3 day low average)
--- Initiate short when the close is below 3 day low average (3 LMA) and 3 day close average (3 SMA) crosses below 8 day close average (8 SMA). (Stop loss 3 day high average)

1)      When 8 SMA > 34 SMA then the Trend is UP (score +1)
2)      When 8 SMA < 34 SMA then the Trend is DOWN ( score -1)
3)      When 3 SMA > 8 SMA then the Bias is UP (score +2)
4)      When 3 SMA < 8 SMA then the Bias is DOWN ( score -2)
5)      When Closing is above 3 HMA then Momentum is UP ( score +1)
6)      When Closing is below 3 LMA then Momentum is DOWN ( score -1)
7)      When Closing is in between 3 LMA and 3 HMA then Momentum is NEUTRAL( score 0)

1)      All averages are simple moving averages.
2)      Stop loss works on closing basis.
3)      Use scoring system for trade quantity.
·        Trade four lots when score is +4 or -4
·        Trade three lots when score is +3 or -3,
·        Trade two lots when score is +2 or -2
·        And trade one lot when score is +1 or -1.
4)      Always remember that trading system works best in trending market (When ADX is rising ) and give poor returns in trading range market (When ADX is falling ).

Robo Stock Calls

Robo Calls

This file generates stock calls automaticallyplease keep eye on it.
Updates every 15 secs.
Needs Office 2007 or higher with Macros enabled by default.
This file available for use of 5 days.
    After that kindly register it by filling activation form HERE !!!
    Activation is totally Free of Cost for personal use.
    Have a try!

Download !!!