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ST Da,eku prashna 
We keep 1-1.5Lac to trade 1 lot Nifty Fut..
How much MM wise I should consider to trade 1 lot NF Option?
We keep 1-1.5Lac to trade 1 lot Nifty Fut..
How much MM wise I should consider to trade 1 lot NF Option?
Another nice post from OMSAI and Tlahuicole (name sounds complex like Guacomole but very nice post)
http://www.traderji.com/members-dis...tant-notes-newbies-traders-3.html#post1025339
but very nice post)http://www.traderji.com/members-dis...tant-notes-newbies-traders-3.html#post1025339
Originally Posted by Tlahuicole View Post
TP buddy you are stuck in a limbo. Come out of it.
As per my view you are in one of the below limbos, Sorry if I sound rude, but it is my intention not to advice you but just to tell you what I assume so that you can use my view points as well for evaluation.
1) You have system hopped to scalping from trend following method quite some time before, you have not backtested this scalping strategy. Scalping is very tough these days TP bro as most of the scalping systems have been automated, as per my assumption, any robot is designed for trading only to scalp, it is difficult to design a robot to follow trend following or range trading ideas as both of these need situation analysis to decide on whether to take the trade or skip it which is not possible as per my view to efficiently perform by something which is non human being.
2)You have not identified a technique and made it as part of your trading system that can distinguish between trending and ranging markets. This part is the most important and without crossing this path it is difficult to become a consistently profitable trader.
3)You are actually doing reverse trading, a good trading system must have a sample set of 10 trades assuming 2 trades per day as, consider R as risk which we can assume as 1000Rs which should be 1-2 percent of the capital for day trading, not more than this if we want to remain stress free while day trading,
Ideal strategy: R,-R,-R,-R,-R,1.5R,-R,R,4R,-0.5R which totals to 2R per week which is 2 percent of the capital gained per week. But your strategy might give results like, R,R,R,R,R,R,-R,-7R,-R,R which results to -2R per week, for an ideal trading strategy, any one trade wont kill the profit of the week but any one trade can make the week profitable but mostly in scalping strategy, it will be like any one trade can kill the profit of the week but it cannot make the week turn profitable.
My getaway for whoever feels this is useful,
Step 1: Prepare a trend trading system that has positive expectancy.
Expectancy = ( Average win % * Average win per trade) - ( Average loss % * Average loss per trade)
Expectancy should be positive, at least back test a system for one month data and derive at the expectancy in R terms, any system not having expectancy of more than 0.25R is not good for day trading.
Step 2: Identify a technique that will help you to differentiate trending and ranging markets.
Most difficult stage in my trading career so far, before becoming consistently profitable. Anything that works in trending market will perform very very poor in ranging periods or consolidation periods. If you are using a ranging method it will get run over by momentum once markets start trending.
Step 3: Decide on scrips that you are going to trade, by this time you should be having clear ideas on the below,
a)your methodology - Trend trader or Range trader or both.
b)market mood identifier -market trending or not trending or ranging or volatile.
Not trending doesn't necessarily mean it is ranging, so make sure you have an accurate identifier for reading market moods.
If your system doesn't allow you to re-enter once stopped out or re-entry rules are rigid, please go only for index scrips, like NF and BNF.
If your system has clear cut re-entry rules, and very low SL parameter, then you can trade high volume scrips that trend at least twice a week during the day time, like SBIN, REL, TM, TS and DLF.
DLF is volatile compared to others, for beginners I would advice NF and SBIN alone.
BNF is very good for trend trading systems as BNF respects support and resistance better compared to others as per my view.
Step 4: Add an exit method to your system, decide whether you are going to go out all at once or lot by lot, whether it is by trail stops or plain exit. These decisions should not be changed during market time.
Step 5: By now you are already profitable for at least 10 weeks a quarter, once you have reached this stage with one lot trading, you are in a stage where you have to expand your business. Design an idea for making adds, like pyramiding or towering. This stage is most needed if you want to become rich trading rather than just living on trading.
Step 6: Not reached yet maybe Pratap bhai or ST can add here.
Regarding money needed for day trading, I would suggest that for the scrips mentioned by me we can trade 1 lot per 50000 to be safe. After every time your account increases by 50000 just use second lot as a form of adding, do not increase on base lot directly. For every 1 Lac you can increase your base lot size.
Sorry for the long post, just wanted to explain what I had in mind, if this sounds as already read, please ignore. If this is useful to you I am happy that I was of some use. This is not just for TP bro but for all bros.
TP buddy you are stuck in a limbo. Come out of it.
As per my view you are in one of the below limbos, Sorry if I sound rude, but it is my intention not to advice you but just to tell you what I assume so that you can use my view points as well for evaluation.
1) You have system hopped to scalping from trend following method quite some time before, you have not backtested this scalping strategy. Scalping is very tough these days TP bro as most of the scalping systems have been automated, as per my assumption, any robot is designed for trading only to scalp, it is difficult to design a robot to follow trend following or range trading ideas as both of these need situation analysis to decide on whether to take the trade or skip it which is not possible as per my view to efficiently perform by something which is non human being.
2)You have not identified a technique and made it as part of your trading system that can distinguish between trending and ranging markets. This part is the most important and without crossing this path it is difficult to become a consistently profitable trader.
3)You are actually doing reverse trading, a good trading system must have a sample set of 10 trades assuming 2 trades per day as, consider R as risk which we can assume as 1000Rs which should be 1-2 percent of the capital for day trading, not more than this if we want to remain stress free while day trading,
Ideal strategy: R,-R,-R,-R,-R,1.5R,-R,R,4R,-0.5R which totals to 2R per week which is 2 percent of the capital gained per week. But your strategy might give results like, R,R,R,R,R,R,-R,-7R,-R,R which results to -2R per week, for an ideal trading strategy, any one trade wont kill the profit of the week but any one trade can make the week profitable but mostly in scalping strategy, it will be like any one trade can kill the profit of the week but it cannot make the week turn profitable.
My getaway for whoever feels this is useful,
Step 1: Prepare a trend trading system that has positive expectancy.
Expectancy = ( Average win % * Average win per trade) - ( Average loss % * Average loss per trade)
Expectancy should be positive, at least back test a system for one month data and derive at the expectancy in R terms, any system not having expectancy of more than 0.25R is not good for day trading.
Step 2: Identify a technique that will help you to differentiate trending and ranging markets.
Most difficult stage in my trading career so far, before becoming consistently profitable. Anything that works in trending market will perform very very poor in ranging periods or consolidation periods. If you are using a ranging method it will get run over by momentum once markets start trending.
Step 3: Decide on scrips that you are going to trade, by this time you should be having clear ideas on the below,
a)your methodology - Trend trader or Range trader or both.
b)market mood identifier -market trending or not trending or ranging or volatile.
Not trending doesn't necessarily mean it is ranging, so make sure you have an accurate identifier for reading market moods.
If your system doesn't allow you to re-enter once stopped out or re-entry rules are rigid, please go only for index scrips, like NF and BNF.
If your system has clear cut re-entry rules, and very low SL parameter, then you can trade high volume scrips that trend at least twice a week during the day time, like SBIN, REL, TM, TS and DLF.
DLF is volatile compared to others, for beginners I would advice NF and SBIN alone.
BNF is very good for trend trading systems as BNF respects support and resistance better compared to others as per my view.
Step 4: Add an exit method to your system, decide whether you are going to go out all at once or lot by lot, whether it is by trail stops or plain exit. These decisions should not be changed during market time.
Step 5: By now you are already profitable for at least 10 weeks a quarter, once you have reached this stage with one lot trading, you are in a stage where you have to expand your business. Design an idea for making adds, like pyramiding or towering. This stage is most needed if you want to become rich trading rather than just living on trading.
Step 6: Not reached yet
maybe Pratap bhai or ST can add here.Regarding money needed for day trading, I would suggest that for the scrips mentioned by me we can trade 1 lot per 50000 to be safe. After every time your account increases by 50000 just use second lot as a form of adding, do not increase on base lot directly. For every 1 Lac you can increase your base lot size.
Sorry for the long post, just wanted to explain what I had in mind, if this sounds as already read, please ignore. If this is useful to you I am happy that I was of some use. This is not just for TP bro but for all bros.
Another nice post from OMSAI and Tlahuicole (name sounds complex like Guacomole but very nice post)
http://www.traderji.com/members-dis...tant-notes-newbies-traders-3.html#post1025339
but very nice post)http://www.traderji.com/members-dis...tant-notes-newbies-traders-3.html#post1025339
Regards
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