Hi Mech,
Hope you are doing fine. After going live with my positional nifty trading system for past one month, following are the issues am facing. Kindly let me know your inputs to handle these scenarios.
System is SAR based, (Stop and Reverse). So there are no profit targets and fixed stop loss. I trade on 15 mins TF.
Sometimes when am on long position and the following day if gap up occurs in Nifty with 80 to 100 points, I wanted to book profits and wait for my next trade signal or wait for re entry levels. However, I feel if I bring in my discretionary decisions into system it may affect the over all performance. So I just follow the system blindly without any manual intervention. Due to this many times, a profitable MTM in the morning will be changed to negative by EOD.
How do we handle such scenarios?
Hope you are doing fine. After going live with my positional nifty trading system for past one month, following are the issues am facing. Kindly let me know your inputs to handle these scenarios.
System is SAR based, (Stop and Reverse). So there are no profit targets and fixed stop loss. I trade on 15 mins TF.
Sometimes when am on long position and the following day if gap up occurs in Nifty with 80 to 100 points, I wanted to book profits and wait for my next trade signal or wait for re entry levels. However, I feel if I bring in my discretionary decisions into system it may affect the over all performance. So I just follow the system blindly without any manual intervention. Due to this many times, a profitable MTM in the morning will be changed to negative by EOD.
How do we handle such scenarios?
If you have tested your system, then believe in the backtest. Donot mix discretion, unless the discretion is also paper traded for a month.
Deviating from the system will cost u and cause alot of stress.
P.S. The Sar based systems tend to have a bigger DD. I hope you have tested it thoroughly before going live. Also, keep in mind that the parameters that you use are stable enough.
Thanks,
MT