Teach a Man to Fish – "Rise of Machines" version

[ag_fx]

DLF 29 May 2020

 

[Subhadip]

Nice thread..

 

[ag_fx]

Pre-Market Levels - 05-Jun-2020

Winners:
InfraTel
Bharti Airtel
JSWSteel
TataMotors
TataSteel


Losers:
PowerGrid
NTPC
BPCL
INFY
TCS

 

[ag_fx]

Pre-Market Levels - 05-Jun-2020

Winners:
InfraTel
Bharti Airtel
JSWSteel
TataMotors
TataSteel


Losers:
PowerGrid
NTPC
BPCL
INFY
TCS

Observations from today's pre-market open levels:
1. Infratel,TataMotors,TataSteel went on smoothly to make money
2. Bharti Airtel triggered a long - but close to 3 PM. System should have a rule to avoid such late breakouts.
3. JSW Steel triggered a long - went in the money for a few inr, but reverted to small loss by EOD
4. PowerGrid, NTPC, BPCL, were amongst top losers today, but had a good long trending day. in our universe it was on short list and thus no trades were taken.
5. INFY triggered a short today and went in the money by few inr. It turned around and lost.
6. TCS triggered a short and probably would have closed flat.

Overall Summary

• Long Universe: 3/5 Stocks Made money. 1/5 Lost small Money. 1/5 Was Flat
• Short Universe: No Trade on 3/5 stocks. 1/5 Hit SL. 1/5 Made Small Money

Only putting Infratel chart here. Rest the readers can review themselves.

 

[TauCeti]

This concept is simple and well explained. But I wonder how can one manage 10 different positions every day. Anyway, thanks!

 

[trader.trends]

"For winners from Trade Universe – We want this candle to be green". By this criteria, Infratel would not have qualified for today's trade isn't it since the first 15 minutes was Red?
Since the risk is the range of the first 15 minutes plus filter, the risk changes for each of the five trades during the day. On high volatatility days, the first bar happens to be a pretty long bar, how is risk managed on such days?

 

[ag_fx]

"For winners from Trade Universe – We want this candle to be green". By this criteria, Infratel would not have qualified for today's trade isn't it since the first 15 minutes was Red?
Since the risk is the range of the first 15 minutes plus filter, the risk changes for each of the five trades during the day. On high volatatility days, the first bar happens to be a pretty long bar, how is risk managed on such days?

Yes good catch. As per my rules it should have been. I ideally like to see the first 15 minutes support the pre-open move.

You see that's why it is important to code up such things

 

[ag_fx]

This concept is simple and well explained. But I wonder how can one manage 10 different positions every day. Anyway, thanks!

Indeed. It is challenging to monitor 10 positions if you are trading actively. However, for this system if you think about it, real work is required in first 20-25 minutes of the market open. Rest is all very systematic and doesn't require much monitoring.

As noted in my first post, ideally I would like to have this automated. It is pretty simple logic to code. I am not there yet. Hopefully, someday.

 

[ag_fx]

Pre-Market Levels - 08-Jun-2020

Winners:
Indiusind Bank
SBIN
Bajaj Finance
IOC
Hindalco


Losers:
VEDL

No more losers as no stocks are negative in pre-open. My bias for intraday today - LONG

 

[niftytaurus]

Hi
Very nice thread for systematic trading.Thanks a lot for this thread & for sharing your knowledge.
I have some query for MM.
A) Suppose, OR is 10 points ..we allot 10K for every stock.So, is this 10k is risk of every trade.I meant shall we buy 1000 quantity of that stock for 10 point Opening range?
b) Or do you mean that we buy as much stock which total stock value is 10K.I mean suppose stock price is 1000 rs, so shall we buy 10 quantity , irrespective of OR size?

please tell more about how to calculate risk of trade? shall we not decide it on percentage of capital.?MM & Risk management is most important for that.
Thanks