Is this calculation correct :
Crude Oil : Lot size 100
Margin required as per 7th Aug Closing Price of 2848 (Zerodha site) : Rs.19103/- i.e. approx 6.75% of Lot Value
Considering max value of Crude in 2015 at Rs.4000/- the max margin required would be Rs.27000/-
Adding Rs.54000/-(27000X2) for MTM, we use Rs.81000/- for trading 1 lot of Crude.
To earn 100% p.a. we need to earn consistently at an avg of : 6750/- per month. (81000.00/12)
For expenses and slippage we add 13500 to 6750) i.e we need to get a profit of approx Rs.20000/- per lot
Rs.20000/- per lot comes to 200 points per lot ! (20000/100)
So taking the worst scenario we need a gain of 200 points per lot per month to min. double our Capital applied !
It can further be said that, to get 200 points per month, we need just 10 points net per trading day, considering 20 trading days a month!
So any strategy for doing it successfully with least heart burns !
And not on serious note :
Can we further say that one needs to gain just 2 points per hour (actual calculation comes to less than 1 point per hour) of trading to double his/her Capital in Trading Crude on MCX!!