1 Lac turns into 22 lac in 1 yr 2 mths 6 days
- Thread starter niludeepak
- Start date
Pls dont call me sir. I wish your quote above is in English, so that I can also enjoy it! (I do not know Hindi).
NSE site has the data, or some of our trader friends here were kind enough to post historical data. You could search or make a post requesting for data!
I would say that you are on the right track of system testing. The negative aspects that you should keep in mind - Please do take it in the right sense and improve upon it.
The worst case that can happen is that there is no margin available to take a position!
Test for longer periods, and, check out the worst case scenarios, like if you had entered at the beginning of the longest continious loss making phase.
While history may repeat itself, it need not in the time slot you would want or expect! So add some buffer margins.
Ploughing back the profits, need not necessarily result in whopping profits.
Think of taking some money out at periodic intervals.
Instead of a close above/below an EMA, try a short period MA cross over long period MA. That might, well, reduce whipsaws, avoid the range and capture the longer trending moves. Continious Loss trades does no good to the morale of a trader. Tweak the margin amounts and check the system.
Plot your equity graph (Rs in hand) and check it. Have a look at your equity graph.
Document your results and compare them, and also for future checking.
These may result in not so spectacular profits, as I had mentioned that a 3 pt transaction charge brings down the profit by almost half. But I hope that this will help you be better prepared for eventualities.
Wish you all the best!
NSE site has the data, or some of our trader friends here were kind enough to post historical data. You could search or make a post requesting for data!
I would say that you are on the right track of system testing. The negative aspects that you should keep in mind - Please do take it in the right sense and improve upon it.
The worst case that can happen is that there is no margin available to take a position!
Test for longer periods, and, check out the worst case scenarios, like if you had entered at the beginning of the longest continious loss making phase.
While history may repeat itself, it need not in the time slot you would want or expect! So add some buffer margins.
Ploughing back the profits, need not necessarily result in whopping profits.
Think of taking some money out at periodic intervals.
Instead of a close above/below an EMA, try a short period MA cross over long period MA. That might, well, reduce whipsaws, avoid the range and capture the longer trending moves. Continious Loss trades does no good to the morale of a trader. Tweak the margin amounts and check the system.
Plot your equity graph (Rs in hand) and check it. Have a look at your equity graph.
Document your results and compare them, and also for future checking.
These may result in not so spectacular profits, as I had mentioned that a 3 pt transaction charge brings down the profit by almost half. But I hope that this will help you be better prepared for eventualities.
Wish you all the best!
Attachments
Another black swan day:
Date Open High Low Close
14-May-04 1717.05 1722.8 1566.95 1582.4
17-May-04 1582.5 1583.8 1292.2 1388.75
From previous day close to low, nifty fell 18% intraday on 17th May 2004
From previous day high to current day low the fall was 25%.
Seems like black swan days are as common as the leap year.
Date Open High Low Close
14-May-04 1717.05 1722.8 1566.95 1582.4
17-May-04 1582.5 1583.8 1292.2 1388.75
From previous day close to low, nifty fell 18% intraday on 17th May 2004
From previous day high to current day low the fall was 25%.
Seems like black swan days are as common as the leap year.
yesterday at close sold at 5230 spot, 35 points sl = 5265 spot
our SL goes
will have a buy signal at eod if it closes above 8ema
will have a sell signal at eod if it closes below 8ema (5275 spot),
y'day's 8ema works well so we will follow that
Few more suggestions to tune your system.
1. Never back test a system on Nifty Spot (Using buy/sell @Nifty Spot).
Your calculation is not real as Nifty Spot is not tread able. Trade able is Nifty Future which has variable premium/discount.
Use buy sell value from Nifty 1 month future only.
Also EOD of Nifty Spot is always different than actual market closing as NSE uses average price of last 30 min or so. Even last traded price for Nifty Spot is not useful bcoz variable premium/discount in future.
So, use Nifty 1 month Future data always.
2. Many years ago, when I back tested my systems (like u) on nifty future used the following link to got required data since 2000 [my old link from old nse site still active]! :clapping:
http://nseindia.com/content/fo/fo_contractsdata.htm
Download nifty future contract of every month using expiry date of current month (from previous month's expiry).
Download files in csv format one by one. If your browser don't support Downloading file in csv format, install OPERA BROWSER.
Ultimately merge all excel files one by one to get continuous data from 2000-2012. Back test again deducting brokerages & all taxes every time to get more realistic value. Start real life trading & be successful. :thumb:
Best Wishes. Cheers.
dear gkpc,
u sud not take it as a lesson i m giving to u
the adding on all the profits to buy new positions is just symbolic and for backtesting, i have previously also mentioned in my motive that ploughing all profits into the system is impossible practically,
by testing it that way, our losses r also compounded and so it kicks out even slightly weaker combinations of ema, sl, profit booking points. only the best combination stands out and remains as the best.
there r multiple theories, and practically, when we'll have money and "the taste of the market" (see below) to go for such big lots, why wud we put all the money into the same strategy.
the puzzled mind of a new comer goes for complex strategies, my method is to comfort some one with very less time and even inaccessibility to data that very simple things can work
i want to tell everyone that don't start with 1 lac capital, start with just 1 or 2 lots of minifty, and if find your self following the rules with discipline,(the taste of the market = i mean if being able to take losses in the same spirit as gains and being able to ride till the last point of profits, truthfully i ve not yet perfected myself to the taste of the market) , increase the no of lots, be prepared for a very untoward day, if possible go for hedging if playing for even 2 lots of nifty, i m not well versed in that so learn it from somewhere.
having a method is only 5% of the skill, the main & major portion is "the taste of the market " and money management.
this thread suffices only 5% for which we spend 95% of our time.
my other ideas of improvement in this strategy wud be (theoretically even i ve not tested any one of them )
one, to have a trailing SL, say if we r in a profit of say 35-50 ponts we'll trail to breakeven, and trail further 35-50 points on every 35-50 points rise in profits.
two, we may not wait for eod to reverse or position and may have a trigger at 35 points away from 8ema
three, hedging is an area to be worked upon because we r carrying overnight open positions.
this much of complexity is enough for this system
the main driver in doing a rigorous search for such a system was to find out something for my child so that besides her studies and fun, she can just delve a bit into the market with a simple strategy with only 1-2 lots of mini and have a "taste" of the ginger that the market is.
u sud not take it as a lesson i m giving to u
the adding on all the profits to buy new positions is just symbolic and for backtesting, i have previously also mentioned in my motive that ploughing all profits into the system is impossible practically,
by testing it that way, our losses r also compounded and so it kicks out even slightly weaker combinations of ema, sl, profit booking points. only the best combination stands out and remains as the best.
there r multiple theories, and practically, when we'll have money and "the taste of the market" (see below) to go for such big lots, why wud we put all the money into the same strategy.
the puzzled mind of a new comer goes for complex strategies, my method is to comfort some one with very less time and even inaccessibility to data that very simple things can work
i want to tell everyone that don't start with 1 lac capital, start with just 1 or 2 lots of minifty, and if find your self following the rules with discipline,(the taste of the market = i mean if being able to take losses in the same spirit as gains and being able to ride till the last point of profits, truthfully i ve not yet perfected myself to the taste of the market) , increase the no of lots, be prepared for a very untoward day, if possible go for hedging if playing for even 2 lots of nifty, i m not well versed in that so learn it from somewhere.
having a method is only 5% of the skill, the main & major portion is "the taste of the market " and money management.
this thread suffices only 5% for which we spend 95% of our time.
my other ideas of improvement in this strategy wud be (theoretically even i ve not tested any one of them )
one, to have a trailing SL, say if we r in a profit of say 35-50 ponts we'll trail to breakeven, and trail further 35-50 points on every 35-50 points rise in profits.
two, we may not wait for eod to reverse or position and may have a trigger at 35 points away from 8ema
three, hedging is an area to be worked upon because we r carrying overnight open positions.
this much of complexity is enough for this system
the main driver in doing a rigorous search for such a system was to find out something for my child so that besides her studies and fun, she can just delve a bit into the market with a simple strategy with only 1-2 lots of mini and have a "taste" of the ginger that the market is.
Last edited:
Re: Historical IEOD Data for back testing.
--------------------
You can download almost 3 years of Intraday Data FREELY after FREE REGISTERED LOG IN from the following site:-
http://www.investbulls.com/download.php?list.40
They stopped giving free data since 2010 August, still there is 3years + [2007-2010] FREE Historical Intraday data.
It is good for back testing. Most of F&O scripts included.
Cheers.
--------------------
You can download almost 3 years of Intraday Data FREELY after FREE REGISTERED LOG IN from the following site:-
http://www.investbulls.com/download.php?list.40
They stopped giving free data since 2010 August, still there is 3years + [2007-2010] FREE Historical Intraday data.
It is good for back testing. Most of F&O scripts included.
Cheers.
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| P | getbhavcopy replacement | End of Day | 8 | |
| A | replacement cost theory | Equities | 1 | |
| K | Amazon CEO talking about Blackberry (BB)!!! | Equities | 0 | |
| A | Trigger Based order placement service provider with target option - bracket order | Brokers & Trading Platforms | 0 | |
| R | Best Way To invest 2 lacs for returns ? | Risk & Money Management | 2 |
Similar threads
-
-
-
-
Trigger Based order placement service provider with target option - bracket order
- Started by ajay45822
- Replies: 0
-