Best way of day trading - 2652 theory of trading

[virgoan_29]

Dear Yash, If u trade the same stock/Index repeatedly(2nd trade) even after gettin 0.5% profit on same day, You will increase the probability of nullifying of the first trade. As per my understanding/observation, Dhiraj has suggested not to go for 2nd trade if 1st is in profit because if u do so thre is a possibility of failed trade as already u have earned profit because of breakout in the same script.

And he has suggested to go for 2nd trade(after SL hit in 1st trade) with double Quantity and enhanced Tgt because, probability of 2nd trade hitiing Tgt is more.

Thanks

Very true Sasi , I agree with you. Chances of failed order is more in this case.

 

[uthuman]

Even the third trade works. BUy 2919 Sell 2933

Yaso..
How did u calculate the entry point for the third trade?

uthuman

 

[TraderInTheZONE]

Very true Sasi , I agree with you. Chances of failed order is more in this case.

I think this is one of the biases that most of us have (as described beautifully by Van K. Tharp)!!

Your next trade is completely different from your last trade. Next trade has nothing to do whether your previous trade was successful or not!!

TIZ

 

[niftychance]

I think this is one of the biases that most of us have (as described beautifully by Van K. Tharp)!!

Your next trade is completely different from your last trade. Next trade has nothing to do whether your previous trade was successful or not!!

TIZ

Its Not a Bias, its Probability. If everything has to be assumed as Random, we cannot have any systems

Although I have a small sample size (backtests) of about just 300 trades, I have also noticed that second breakouts in the same direction (after a successful trade) have less probability of success but breakouts in opposite direction do have better chance of success.

Thanks

 

[Sunil]

Thanks for pointing out the calculations, From yr figures your brkg comes to .02%, which makes a good difference to the monthly returns per lot.

For what kind of volumes can one get .02% brokerage. I am currently using I-Bulls. Can I have yr views, whether trading minimum one lot NF daily, could be considered for negotiating the brkg down to .02%.

Cheers
Amar

it's actually comes to 0.015%

click here for my brok. plan
(nowadays, maximum is 0.05%)

If we take 2800 as average Nifty rate, then total brokerage (both legs) comes to Rs. 42/- for 1 lot of Nifty. (I am not including other costs).
For that brokerage plan, u need to generate a brokerage of Rs15000/- in one year, to get full value of the plan.
i.e. u need to trade 360 lots of Nifty in 12 months
i.e. 30 lots in 1 month of 20 trading days.

check out other brokerage houses too, for their T&C


u know that STT accounts for more than 50% of our costs!!!

 

[rahul1983]

it's actually comes to 0.015%

click here for my brok. plan
(nowadays, maximum is 0.05%)

If we take 2800 as average Nifty rate, then total brokerage (both legs) comes to Rs. 42/- for 1 lot of Nifty. (I am not including other costs).
For that brokerage plan, u need to generate a brokerage of Rs15000/- in one year, to get full value of the plan.
i.e. u need to trade 360 lots of Nifty in 12 months
i.e. 30 lots in 1 month of 20 trading days.

check out other brokerage houses too, for their T&C


u know that STT accounts for more than 50% of our costs!!!

Sunil Bhai

since u have started thread on brokerage

i have one query are there brokerage house which allow margin trading in Futures like for nifty futures or stock futures

for eg : i heard that at some places if u give margin for one lot of nifty 20500 -21000 for 50

then u can trade in 3-4 lots intraday in nifty futures but u have to square off before 3 ????

It's like pay for 1 lot and trade in 2-3 lots intra day

 

[V.V.]

Nifty :-
============================
High : 2918
Low : 2816.35 (Yesterday)
Diff : 101.65
============================
Factor 1 : 0.433 * 101.65 = 44.01
Factor 2 : 0.7666 * 101.65 = 77.92
Factor 3 : 1.355 * 101.65 = 137.73
============================
High : 2930.50
Low : 2896.10 (till 10.15 a.m.)
Diff : 34.40
============================

High-Low Difference Here < 44.01 . So We Take Factor 1 Value For Today's Calculation .

Buy Above : [Low + Factor]
=(2896.10 + 44.01) = 2940.10 (Rounoff)
Target : [(Buy Price + 0.5 %) + Buy Price]
= ((2940.10 * 0.5)/100) + 2940.10
= 14.70 + 2940.10
= 2954.8

Sell Below : [High - Factor]
= (2930.50 - 44.01)
= 2886.5
Target : [(Sell Price * 0.5%) - Sell Price]
= ((2886.5 *0.5)/100) - 2886.50
= 14.43 - 2886.50
= 2872.10

===========================
High : 2949
Low : 2896.10 (After 10.35 a.m.)
===========================
Here Low is Showing Same But New High Register Here. So No Change In Buy Order. But We Should Chage in Sell Order.


Buy Above : 2940.10
Target : 2954.80

Sell Below : [High - Factor]
= (2949 - 44.01)
= 2905

Target : [(Sell Price * 0.5%) - Sell Price]
= 2891

Today's Nifty Trade: (Approx)
=============
First Trade : Bought 1 Lot @ 2940.10
Stop Loss : [(BuyPrice * 1%) - Buy Price]
(2940.10 * 1% )
= 2910.70 (Triggered)

Second Trade : Sold 2 Lot @ 2905 (As per 10.35 Hi-Lo)
Buy Price : (Sell Price * 0.8% - Sellprice)
=((2905 * 0.8%) - 2905)
=2882 (Bought)

Booked Loss 1st Trade : 29.40 Points
Booked Profit 2 nd Trade : (23*2) 46.00 Points
Net : 16.60 Points

1 Lot * 16.60 = Rs.830
Total 3 Lots Traded
Brokerage & Extras = 330 (Approx)
Net Profit = Rs.500

 

[rahult23]

Nifty :-
============================
High : 2918
Low : 2816.35 (Yesterday)
Diff : 101.65
============================
Factor 1 : 0.433 * 101.65 = 44.01
Factor 2 : 0.7666 * 101.65 = 77.92
Factor 3 : 1.355 * 101.65 = 137.73
============================
High : 2930.50
Low : 2896.10 (10.15 a.m.)
Diff : 34.40
============================

High-Low Difference Here < 44.01 . So We Take Factor 1 Value For Today's Calculation .

Buy Above : [Low + Factor]
=(2896.10 + 44.01) = 2940.10 (Rounoff)
Target : [(Buy Price + 0.5 %) + Buy Price]
= ((2940.10 * 0.5)/100) + 2940.10
= 14.70 + 2940.10
= 2954.8

Sell Below : [High - Factor]
= (2930.50 - 44.01)
= 2886.5
Target : [(Sell Price * 0.5%) - Sell Price]
= ((2886.5 *0.5)/100) - 2886.50
= 14.43 - 2886.50
= 2872.10

===========================
High : 2949
Low : 2896.10 (10.35 a.m.)
===========================
Here Low is Showing Same But New High Register Here. So No Change In Buy Order. But We Should Chage in Sell Order.


Buy Above : 2940.10
Target : 2954.80

Sell Below : [High - Factor]
= (2949 - 44.01)
= 2905

Target : [(Sell Price * 0.5%) - Sell Price]
= 2891

Today's Nifty Trade: (Approx)
=============
First Trade : Bought 1 Lot @ 2940.10
Stop Loss : [(BuyPrice * 1%) - Buy Price]
(2940.10 * 1% )
= 2910.70 (Triggered)

Second Trade : Sold 2 Lot @ 2905 (As per 10.35 Hi-Lo)
Buy Price : (Sell Price * 0.8% - Sellprice)
=((2905 * 0.8%) - 2905)
=2882 (Bought)

Booked Loss 1st Trade : 29.40 Points
Booked Profit 2 nd Trade : (23*2) 46.00 Points
Net : 16.60 Points

1 Lot * 16.60 = Rs.830
Total 3 Lots Traded
Brokerage & Extras = 330 (Approx)
Net Profit = Rs.500

Hey thanks 4 the explanation it cleared most of the doubts, 1 thing i still wanna ask that if Nifty had made new highs at 11am, 12 am & so on, then we need to modify the sell order with every high or we should consider new high made till 10.35 for thru out the day.

 

[bandlab2]

guys , for obvious reasons, pl do NOT reveal the actual trade details here espeically during trading hrs. we do similar thing in flow methods.

discuss only the method and doubts. all discussions about brokerage and oder entry should be done on EOD

 

[V.V.]

Hey thanks 4 the explanation it cleared most of the doubts, 1 thing i still wanna ask that if Nifty had made new highs at 11am, 12 am & so on, then we need to modify the sell order with every high or we should consider new high made till 10.35 for thru out the day.

we have to keep updating highs & lows after 10:35...
first trade triggered or not...

we do this until the first trade hits set target....

I think this Sunil's Answer will Clarify your Doubts.
Today Nifty also (After 10.35) High Register 2949 at around 12.35 a.m.


Regards,
V.V.