Creating a trading system from scratch

[UberMachine]

Dear UB,
Yesterday playing with backtest notebook dont know what happened to my system notebook....now full of errors.....then I copy pasted precious utiils file then its removed error...but its not picking scrips from my FO file ...orders showing only one scrip...

Create 2 copies of the folder. One for regular trading and the other for testing.
Once you are happy with testing, you can copy it over to the regular

 

[UberMachine]

Ya but there was some difference on the site says 209.2 and mine got trigged at 211....anyways when is the exact time to place the orders?

Regarding price, if you go a few posts back, we buy only when we are sure that the price has fallen.
I keep a constant percentage on open price which is also implemented in the notebook.
I place a stop loss order to arrive at the exact limit price

 

[UberMachine]

well i like this system because it takes the entire time from 9.15 to 3.15 so you may have 3% loss but you may also get 5-7% gain on lucky day..but my only problem is there is no hedging...i think we need to have a mixture of buy stock and sell stocks...!!!

Yeps! Trying out a long short strategy but this is basically a hedge if you have enough holdings or CALL options

 

[vinit_7801]

Regarding price, if you go a few posts back, we buy only when we are sure that the price has fallen.
I keep a constant percentage on open price which is also implemented in the notebook.
I place a stop loss order to arrive at the exact limit price

can you repeat the process again means we look at nifty then place orders?

 

[vinit_7801]

So th

Yeps! Trying out a long short strategy but this is basically a hedge if you have enough holdings or CALL options

so this is like a covered order strategy for portfolio

 

[VJAY]

well i like this system because it takes the entire time from 9.15 to 3.15 so you may have 3% loss but you may also get 5-7% gain on lucky day..but my only problem is there is no hedging...i think we need to have a mixture of buy stock and sell stocks...!!!

Dear vinit,
its one strategy ...yes our loss is fixed ...no need lucky days ..in backtests its give consistent profits i think ...its average pl is 0.5% ...yes its no need to watch ...enter orders @ 9.15 ....and close trades after 3pm...in between no need any intruption

 

[vinit_7801]

Dear vinit,
its one strategy ...yes our loss is fixed ...no need lucky days ..in backtests its give consistent profits i think ...its average pl is 0.5% ...yes its no need to watch ...enter orders @ 9.15 ....and close trades after 3pm...in between no need any intruption

well i m not as negative about the strategy as you...because i think it captures the randomness of the stock market...n we all the the stock market is anything but predictable bt ya its only captures one side of randomness..

 

[VJAY]

well i m not as negative about the strategy as you...because i think it captures the randomness of the stock market...n we all the the stock market is anything but predictable bt ya its only captures one side of randomness..

Dear friend,
Am not negative with this strategy ...with any strategy as I know well about strategies and about trading risks....

 

[vinit_7801]

Dear friend,
Am not negative with this strategy ...with any strategy as I know well about strategies and about trading risks....

sorry i think i misread it that loss is fixed..!!!

 

[UberMachine]

Dear vinit,
its one strategy ...yes our loss is fixed ...no need lucky days ..in backtests its give consistent profits i think ...its average pl is 0.5% ...yes its no need to watch ...enter orders @ 9.15 ....and close trades after 3pm...in between no need any intruption

To make things clear, the strategy gets around 800% returns in around 3 years as posted by @ncube .
But in reality, it gets around 6-8% return (after adjusting for slippages ,other charges and unexpected events) per annum. So at 5L, which is quite easy you get around 40% which is quite good.
Improving this strategy would get your around the 10-12% mark per annum but the best part is you can clone or make more strategies to smooth out and increase returns.
So the 800% benchmark return (I believe its compounded at a single leverage) is reduced to around 110% absolute returns in reality.

Actually, only 22% returns at a single leverage