NIFTY Futures Mechanical Trading

[MaxBombay]

Re: You Need Money Management

Hello friends

Nobody is replying to the question about maximum drawdown given by the system.

On page no 94 i.e. on 29th July 2008. Profit of the system was 2248.
Todays profit is 1684
2248 1684 = 564

Since 29th July system has lost 564 + brokerage & other expenses.

One should be prepared for similar loss in future

July August series was the bad series, specially for the nifty futures. And it is very bad in September too (till today).

A trader who started trading as per the system, since 29th July has lost around 600 points i.e. a trader who started trading this system, since 29th July has lost his 100% trading capital.

Here we go, you need money management. If your account size is Rs.200,000 you must not have traded more then 2 lots of nifty (hell, 1 lot for beginners).

If you lost 600 points then also your total loss was Rs.60,000 (Rs.30,000 for beginners) and you still have Rs.140,000 and are still in trade. You will definitely earn rs.60,000 back in next 60 days but since you had no money management your account is tossed and you are out of trade.

If you back test mechanical trading, (approx levels, you can have your own levels).....

2004 nifty gave 700 points returns (nifty 1800 level)
2005 nifty gave 800 points returns (nifty 2800 level)
2006 nifty gave -100 points return (nifty 3900 level)
2007 nifty gave 2000 points return (nifty 6000 level)
2008 nifty has given 1200 point return (approx) (nifty 4400 level)

As, you can see in 2006 nifty gave NO return due to choppy market (swing trades all around), so you should be patience and prepared to down by 40% of your total capital.

 

[nadodav]

Dear All,

If SL hits today, I will not take new short position as Max drawdown will exceeds 500 points. I will prefer to avoid trading for sometime. I will keep posting levels as usual.

Vinod

 

[nadodav]

Exited Long position. No new position

 

[sikandar]

Exited Long position. No new position

Hi nadodav
How long take break from trading? for the health of good money management.
sikandar

 

[xtalk]

till market shows some signs of breakout either side (i guess the new range is 4200-4550), we should stay away.

 

[vinst]

Vinod,

Can u still keep posting levels?

regards,
vin

 

[nadodav]

Vinod,

Can u still keep posting levels?

regards,
vin

Yes. I will keep posting.

Vinod

 

[nadodav]

NIFTY FUTURE For September 11,

Current position : Nil

Nifty Fut Closed at : 4417.25

Net Profit/Loss since thread started : +1618.00

Support : 4395
Resistance : 4479

Happy Trading.

Vinod

 

[skr]

Dear skr,

Here is the proof of Pudding.

Cheers

"Dear All,

If SL hits today, I will not take new short position as Max drawdown will exceeds 500 points. I will prefer to avoid trading for sometime. I will keep posting levels as usual.

Vinod "


Hello Pakatil

How is this proff?

Trading is psychological game but heavy draw down screws trader's psychology & discipline

SKR

 

[devangan123]

Hello Pakatil

How is this proff?

Trading is psychological game but heavy draw down screws trader's psychology & discipline

SKR

Dear SkR

Buddy never try to make fun at bad times , if this system was going on then u must have recovered more than 100 points till now, because after changing the position we would have been in short position at this moment .