1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

Whether the latest MTP v2.2 tool is useful?

  • YES. The tool helps to take safe positions using FLOW and Renko Charts

    Votes: 26 92.9%

  • NO. The tool is not useful

    Votes: 2 7.1%
  • Total voters
    28
  • Poll closed .
healthraj

healthraj

Well-Known Member
#391
#391
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

aimer said:
Looks like u are busy , raj...
want to discuss on ur OTP...
Want to trade OTP but I am finding it difficult in getting in the trades...
when free plz let me know so that I can put in my doubts...
thanks
Click to expand...
Aimer, It is always better to do paper trading before you try any new strategy so that you will get some hang on the strategy. Otherwise whatever I tell or somebody tells, it would be difficult to implement in the actual trading.
 
Probability

Probability

Member
#392
#392
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj,

I have added 2 point brokerage+tax per lot to every trade since jan 12 in Nifty OTP and returns in the sheet is reduced from 12 times to just 2 times,

This means in the sheet profit was 2 times and 10 times was cost of brok+tax
this is not at so encouraging.
 
healthraj

healthraj

Well-Known Member
#393
#393
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Probability said:
Raj,

I have added 2 point brokerage+tax per lot to every trade since jan 12 in Nifty OTP and returns in the sheet is reduced from 12 times to just 2 times,

This means in the sheet profit was 2 times and 10 times was cost of brok+tax
this is not at so encouraging.
Click to expand...
The right way to calculate the points after brokerage would be to modify the function called CalculateProfitAndLoss...

So If I substract a brokerage of 2 points in all the trades (Where I am trading), my returns is 3.7 times(with max quantity and 100% pyramiding).

with 0% pyramiding it is 2.5 times

With 2% Risk (200 quantities for 1 lakh) and 0% Pyramiding it is 1.1 times
With 2% Risk and 100% pyramiding, it is 1.5 times...

If you are able to multiply your capital to 100% in 7 months, then to me it is GREAT... Even if you get 1 times your capital it is great.... Remember a lot of people have lost the capital... Here we are talking about Returns of 200% in 7 months

Please note that I am using 7 points as the stoploss. So in a day where I make loss, my loss would be 9 points instead of 7 points...
 
Probability

Probability

Member
#394
#394
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
The right way to calculate the points after brokerage would be to modify the function called CalculateProfitAndLoss...

So If I substract a brokerage of 2 points in all the trades (Where I am trading), my returns is 3.7 times(with max quantity and 100% pyramiding).

with 0% pyramiding it is 2.5 times

With 2% Risk (200 quantities for 1 lakh) and 0% Pyramiding it is 1.1 times
With 2% Risk and 100% pyramiding, it is 1.5 times...

If you are able to multiply your capital to 100% in 7 months, then to me it is GREAT... Even if you get 1 times your capital it is great.... Remember a lot of people have lost the capital... Here we are talking about Returns of 200% in 7 months

Please note that I am using 7 points as the stoploss. So in a day where I make loss, my loss would be 9 points instead of 7 points...
Click to expand...
Yes agreed, even otherwise 50 to 100 % return per annum is great, but brokerage+taxes is a killer.
 
Probability

Probability

Member
#395
#395
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

System can be improved if some how we can figure out when not to trade on losing trade days, ie 80% of the days...added saving of taxes.
 
S

shrividhya srinivasan

Active Member
#398
#398
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Is it possible to make 652 lakhs in 497 Trading days with a starting capital of 1 lakh using NIFTY Futures.

Well :) theoretically it is possible.

So what is the Principle behind this strategy?

1. NIFTY is Trending only 20-25% of the time and so why always take 20 points Stoploss when 80% of the time you are going to loose. Why not take 7-10 points loss and close the trade if stoploss hit.
2. 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points. So in those cases NIFTY always gives on an average 55 points on the LONG side and 77 points on the SHORT Side.
3. 80-20 Principle. 80% of the losses comes from 20% of the trades and so 80% profit can come from 20% of the trades.
4. Why do we need to spend hours before the monitor, while we can spend maximum 30 minutes a day. (15 minutes during opening and 15 minutes during closing)

So let us say we do hundred trades.
75 trades with a loss of 10 points = 750 points loss
25 trades with a gain of 65 points = 1625 points gain
Net gain = 875 points in 100 trading days.
If you started trading with a capital of 1 lakh and 2% Risk, the profit would be Rs 1,75,000.
With pyramiding (reinvesting the profit ) it would turn to crores.

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.

Also attaching back tested result for the SBIN stock. SBIN unlike NIFTY falls in the 50:50 category. ie 50% of time is trending and 50% it is Rangebound. So it is one of the highly Trending stock. The Parameters are different for SBIN. For eg... your stoploss should be around 1% in SBIN where as for NIFTY your stoploss should not be more than 0.2%.

All the prices for SPOT

http://www.4shared.com/file/582KqrC8/Positional_Trading_-_NIFTY-Bac.html

http://www.4shared.com/file/CcpeHgKq/Positional_Trading_-_SBIN-Back.html

Will explain the strategy in detail in the next post.
Click to expand...
hi,

I am not able to view the xcell file cud u please upload it again. Thanks a lot

Regards.....vidhya
 
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