General Trading Chat

[praveen taneja]

Blood drinker market..............

 

[mudraatrader]

WiFi routers power supply stops working and needs to be changed...last week I changed it twice. And till earlier night it works and in the morning it is gone...dont understand how it happens...same prob with all ?? It has 12 V 1 A output rating.

ST

Thanks Da
It was very much similar issue. Worked okay till previous night and in the morning stopped working.
But unable to understand why datacard too was not working.

 

[manish9300]

Right, I would use option analysis in addition to probable entries as per IDF.
Bottom line for me is to use option analysis as an additional filter to define genuineness of impending breakout out or down.

yea use it as confirming tool with trend analysis thats what i am saying all along.:thumb:

 

[vivektrader]

Thanks Da
It was very much similar issue. Worked okay till previous night and in the morning stopped working.
But unable to understand why datacard too was not working.

I would suggest you to have a 3G enabled sim in your smart phone (I suppose you must be having it already) and use your phone as a WiFi hotspot when you are away from your WiFi or when its not functional.
I use this WiFi hotspot almost daily when I am away from home.

 

[LoneWolf]

Blood drinker market..............

No action in market, Khun Passina Ho raha he

 

[manish9300]

Blooding drinking of option buyers.

 

[madank]

Hi Madan and ST Sir,

I need some help on maths here. Happy to see a maths lover like you here:

Now consider a NIFTY futures swing system which has average win of 75 points and avg loss of 35 pts. This is average but the general stop loss is about 75 points. Monthly system makes about 160 points and yearly about 2000 points. This is plain gain without any concept of changing position size based on SL. Win % is about 40% as its trend following system. Worst case system drawdown over contentious loosing trades were about 900 pts. Happened once in last 5 years or so.

1. Now I am trying to trade this with 1.5L per Nifty lot (of 75). After 3 months, I will get about 500 points , so when should I consider LOT ADDITION? Please tell me using both types that is FIXED RATION & FIXED FRACTAL?

2. Since the Initial Stop Loss is very large (75 pts) there is no use of concept of R multiple or fixed fractal, what do you say?

3. If I decide to add 1 lot after say 1000 points, then how to scale down when you start hitting loosing streak?

4. Since the largest loss is 900 pts, should I consider 900*75=67500/- gain in the account as to add next lot and then how it proceeds? Fixed ratio is great method to initially build one's trading capital. Can you provide some NICE MATERIAL where I can consider various cases like first loosing streak and then wins, and many such combinations.

Vipul,

Am not very good at math. Please bear with me if i had made any mistakes in multiplication, percentage calculations.

Let me get this straight. You have a system that makes 2000 pts per year. 900 pts max DD in the last 5 years. 75 pts avg win and 35 pts avg loss (apprx 1:2 RR) with a winning %age of 40.

1. As your max loss is 900 points, i would add 1 lot every 1350 points(1.5x) . Your max loss is high for the points you are making per year(on average)..This is the safest way to include lots but its gonna be very slow.Fixed ratio or fixed fraction would be immaterial when the max loss is high, in my opinion. Further pointers will elucidate that.

2. I thought the SL is average 35 points, but you say it is 75 points in this pointer..Initial SL is not a criterion in fixed ratio but plays a role in fixed fraction.

3. It is very difficult to devise money management for a system that has 'x' max loss and '2x' profit. It becomes more difficult when we trade less than 8-10 lots....as scaling down is very difficult...For assumption, lets say you are trading 8 lots(600 qty) and you hit a 1000 pts DD, you would have lost 6 lacs(out of your 12 lacs capital - 1.5 lac/lot)..that is 50 pct of your account size. How comfortable are you losing 50 pct of your account size?..say, your account is 2 crores..how comfortable are you losing 1 crore? It takes 100pct to come back to 2cr again. This is exactly why it is difficult to give a 'scaling down' approach for a system that has 1:2 (max loss:average profit) parameters.

But, if you add a lot only every 1350 or better 1800 pts, then there wont be a need to scale down. Say you started with 10 lots, then when you make 200 points, you would have made 2000 points (in a literal sense) and you can go to 11 lots....so, it helps to start with 10 lots with your specific system parameters.

4.Read Ryan Jones Trading game book for getting a hang of fixed ratio method. But lemme say this again Vipul - it is very difficult to devise a money mgmt system with the 1:2 (max lossrofit) parameters...

So, if i were you, i will take another look at my system and its parameters (ofc, you did not ask about your system but i thought i should add this point anyways).

Hope it helps !!

 

[mudraatrader]

I would suggest you to have a 3G enabled sim in your smart phone (I suppose you must be having it already) and use your phone as a WiFi hotspot when you are away from your WiFi or when its not functional.
I use this WiFi hotspot almost daily when I am away from home.

Thanks Vivek bro
But I am still using my old 2G mobile.

 

[XRAY27]

 

[vikas2131]

Tomorrow japan market will open...big move will happen tomorrow for sure ...