When you plot the BN/Nifty spread in the ratio of 2:3 this is the chart you will get. (I have used a 3min chart as this method is positional and we just get/want one or two trades a day. Moreover a 3min. chart takes less space on the screen to explain.
http://prntscr.com/jk83aj
Now i have taken away the spread line and we are just left with the 2 averages of this spread line.
The 200wilder Moving average starts the trade (When it changes from Red to Green then buy gets initiated and Vice versa for sells)
You add to your positions when the 36Wilder MA changes from red to green for longs and viceversa for shorts.
You take adds only in the direction of the 1st trade. Meaning if 200Wilder MA is green and has initiated a buy then you only add to your long positions. ANd same way for shorts.
http://prntscr.com/jk84nf
I have marked the green boxes as possible adds. (when 36Wilder MA changed back to green).
This is a trend following system and that is all there is to it.
You may get back with any querry.
Thanks.