5-Day Positional System (F&O)

[bigbullinside]

Hello BigBullInside,

I've worked on many contra systems (atlest 100+) and frankly none are reliable. As they say .... go with flow and you will be wrong only once.. when market takes a turn.

Dude if you specialise in contra systems, you surely must have noticed that market only trends for 20-30 % of the time and for the rest of the time it is a range-bound action and that is where these systems work best.
What do you say?

 

[Ketan.Javiya]

Ok I got your point. 25 positions might require around 6 to 12 lacs, correct?

Additionally I am curious to know roughly expected return per month or year, if 6 to 12 lacs is on risk?

Dude, as i said earlier i am not trading this system and i am continuously asking others to do the same and just monitor it for a while.
As for the capital requirement, this system trades the entire f&o space so can't say as to how much capital would be required. Because i dont know how many signals would be generated in the next 5 days.
Although we do have a cap of 25 positions at a given time.
M2M margin would be additional.

 

[johnnypareek]

Hi,

Okay, Please note that what I am writing below is just what I thought or guess, there is no intention to criticize the thread owner.

Well, Till now as there is no information about his system, I tried to find out the reason behind buy sell and what I got from my little knowledge that almost all stock's buy call was bearish in daily chart. Now, as he mentioned that this is his contra system, I scan weekly chart and found that those stocks are bullish in weekly time frame. So, I think his picking is to ride for correction. As those stocks are bullish in weekly and falling in daily TF and as his holding period is 5 day means one week so what I understand from UNIONBANK call is, stock made low of 214.30 in week ending 23.11.12 and started rising till 288 in the week ending 04.01.13 and after that means last weak correction started and stock came down to low of 256.25 formed a black weekly candle. Now, I set TF to daily and found that only one candle is white in last week and stock fall rapidly.

Now, Just look at daily chart and there is no reason to buy but why he picked it. Stock has retraced to 38.2% of its rise, from 214.30 to 288, which is 259.85 so as stock is in bullish mode in weekly TF he is trying to ride on correction of this fall and as it is first fall he must be expecting a 61.80% correction of this fall which gives target of 275.90 or at least 50% which is 272.

Hope, this will be useful for the traders who are keen to know the reason behind his calls. Please note that this my just my thought only.

johnnypareek

 

[gunsho]

I saw what happened in Jan 2012 with this system and that is what prompted me to add these additional filtering rules. All the contra systems are mean reverting so there will be plenty of opportunities to make profits.

We can tune our system when unexpected situations happen in future (I see that is what you have done), but what happened in Jan is not unexpected. There will be move like that 2/3 times in an year. When you build a system, think about all possible scenarios. Just because something have not happened in the past 2 years, doesn't mean it won't happen in future. There is a famous saying all over this forum, if history repeats always, librarians will be the best traders .

For example, Sep 2012, trend is up. Incase if we were taking a contra trades and check the gap ups that happened during that time. It is huge to take away previous month's profit itself. Check what happened in Infy during the result ~200 points gap. Since there is not much of stop loss, atleast try to implement a hedging mechanism. Coz most of the time, one single loosing trade is going to wipe out few month's earnings, if no proper exit plans are available.

All the best If the system is just a baby, give more thoughts on making it robust and tolerable. In the last 6 months, most of the trend following systems would have taken a hit. But what is most important is, how much damage it has done to the capital.

 

[SaravananKS]

Dude, as i said earlier i am not trading this system and i am continuously asking others to do the same and just monitor it for a while.
As for the capital requirement, this system trades the entire f&o space so can't say as to how much capital would be required. Because i dont know how many signals would be generated in the next 5 days.
Although we do have a cap of 25 positions at a given time.
M2M margin would be additional.

Big Bull,
Since you not disclosed your system yet briefly and asking others to monitor it.I think you will not get much feed back from other senior members.

only traders in early learning cycle would be attracted which will not going to usefull for you even if you use this thread for any commercial purpose.Since nowadays most of members in traderji are well experienced would not be attracted.......

I personally Know lot of Famous Thread owners used their thread for commercial purpose and failed to sustain commercially.....

if your intension not commercial then disclose the system then you would get good feedback from that you can improve it.....

 

[bigbullinside]

i guess you guys are right.
After all this is an open forum.
I want you guys to know that my methods might be wrong, but my intention was to share this strategy with you guys. And there is no commercial purpose behind this.
In fact, this is not my strategy, I just read it in a book.
Ok, i guess the time has come to come out with this one.
And I am sure that most of you guys might know this one, as it is quite basic.

 

[bigbullinside]

I hope you guys help me out with this, as I really think this is strategy is worth something.
Starting a new thread now.
Cheers.

 

[SaravananKS]

I hope you guys help me out with this, as I really think this is strategy is worth something.
Starting a new thread now.
Cheers.

let me to share one my experiance from other open forum one member climed he had find a method to find out sideways market and he gave it in Excel format Putting Date and Status Like Trending and Sideways.

he did not disclosed the formula and asked backtest result of his Strategy..

But there was no response from seniors there after he disclosed his formula

in hours he got backtest results from more then 4 members.....

Based on that results he realised that his formula not worked ....

this is best example of give and take example

 

[vinst]

I hope you guys help me out with this, as I really think this is strategy is worth something.
Starting a new thread now.
Cheers.

starting another thread? for what ? let's be complete with this one first.

 

[bigbullinside]

New thread that has the strategy name as its title.
So that people can track it.
I'll be posting it in Advanced Trading Strategies section