Playing since 2005 lost 13+3 lakhs

[Smart_trade]

But ST,

again back tested from 2000 and the results are

2000-565
2001-340
2002-110
2003-580
2004-565
2005-495
2006-400

if we divide these points to the average nifty of that particular year and averaging for 12 years the percentage is 20%. I guess in other word the deployed capital will give yearly 20% return . is that poor performance ? ST , pls guide .
the other question is by these mathematical system we are not falling in to dilemma..that too the action we need to take at the time of closing the market whether to hold long , or go short or exit.

pls advise

Hi stock,

This system is giving average Rs 500 per year.....assuming that it is a position trade system I would trade 1 nifty contracts for a capital of 1.5 to 2 Lacs ( assuming stops at 35-40 points distance, so we risk 1-2 % of the capital on a trade ) ....then for 5 L capital we will trade say 3 contracts or 150 Nifty Fut....so we make 150X500 = Rs 75000 per year or 15 % per annum.

Not saying 15 % is bad ,when bank FD giving around 10 % pa....but if one is actively trading then it is much on lower side.....we cannot take larger positions as it will violate MM ...so we wont go on the margin required....

ST

 

[Ramesh1979]

Focus on one or two scripts alone , which will help you trade better.
i have been doing the same for the past 2 years in tata steel and ICICI bank script. which works for me . So try your luck,

Regards
RRK

 

[timepass]

20% is ok. 1000 pts is ok. It's ok if you are a part time trader and you don't have to nurse your trades. A full time trader may find it deficient.

 

[sumosanammain]

Margin of error, buddy, margin of error.
A system that shows 200 points pe rmonth on paper, may actually give you only 70 or 80 points in that month with actual emotions, and actual trades, including mistakes, emotions, etc.

So, look for more points per month, so that errors dont take your profits to zero.

And yes, unless you are a super hero, you are going to make mistakes, mathematical model or not.

Also, all months should be roughly equal in profits, in a robust system, which would go to show that your system can handle all types of market movements almost equally.

 

[stock72]

Here margin of error is zero ... that is the main reason i am looking out for mathematical model of trading rather than chart based ...
if number is x u r long and y u r short etc...

Margin of error, buddy, margin of error.
A system that shows 200 points pe rmonth on paper, may actually give you only 70 or 80 points in that month with actual emotions, and actual trades, including mistakes, emotions, etc.

So, look for more points per month, so that errors dont take your profits to zero.

And yes, unless you are a super hero, you are going to make mistakes, mathematical model or not.

Also, all months should be roughly equal in profits, in a robust system, which would go to show that your system can handle all types of market movements almost equally.

 

[jain.er]

How much monthly return is a good performance from a system ?
Please guide everyone here... (specifically requesting TP and ST)

 

[sumosanammain]

Here margin of error is zero ... that is the main reason i am looking out for mathematical model of trading rather than chart based ...
if number is x u r long and y u r short etc...

Traderji officially now has its own Super Hero.

Since only super heroes have no margin for error.

Hail stock72!!!

 

[stock72]

seriously .... in mathematical model how to have an error ... it not about probability .. .2+2 =4 is a constant always.. anyway thanks for your compliment....

Traderji officially now has its own Super Hero.

Since only super heroes have no margin for error.

Hail stock72!!!

 

[TraderRavi]

seriously .... in mathematical model how to have an error ... it not about probability .. .2+2 =4 is a constant always.. anyway thanks for your compliment....

good stock72 , now u have become superhero acc. to sumo ..now please tell how to recover lost money.....:clap:

 

[anuragmunjal]

seriously .... in mathematical model how to have an error ... it not about probability .. .2+2 =4 is a constant always.. anyway thanks for your compliment....

Gap up, Gap down, slippage, sl triggers but not getting filled..the mkt moved so fast that within 3 minutes ur purchse price is ur sl...now do I take position here or not..

the system signalled buy in the morning... suffered a loss, sell in the afternoon... suffered a loss, and again a buy in the late aftermnoon.. do I take this trade...

these are just a few possibilities..

regards