1 Lac turns into 22 lac in 1 yr 2 mths 6 days

[niludeepak]

even though i've backtested the method extensively and have got good profits to rely upon,

to look at so much of loosing trades (reds in the image below) is very taxing to our psycho, so i have thought out a few new rules which takes cues from my 15 min strategy.

because i'm unable to write an afl combining the two so i've not back tested, but i'll show with markings on the charts and try to formulate something which is less neurotic to senses.

 

[niludeepak]

here's a recap of the whole thing again :

step 1 : buy nifty just before close when it is above 8dema, OR
sell nifty just before close when it is below 8dema,

step 2 : keep a stop at 35 points from entry at open,

step 3 : if gaps more than 35 points opposite of our position book loss immediately at open,

step 4 : put a profit booking limit order at 200 points from entry,

step 5 : reverse( book profit or loss in old position and make new entry ) if at eod price is opposite of 8dema vis a vis our position
start from step 1 on the same day eod when booked at sl or profit.

new plan :

rule 1. we'll not take the signals on the day when in 15 min method its opposite the signal of what is on the daily method.

rule 2. if we r in profit in the method we'll not let the profits go into the drain just waiting for our profit target of 200 points, rather we'll come out of the positon on the first sign of opposite signal in 15 min.

few explanations on a chart will follow in next post.

thanx.

 

[niludeepak]

we cud not have had avoided whipsaws in long signals on 7/5/2012 and 7/6/2012, as closing in 15 min was also long and market whipsawed to hit 35 pt. SL ( both days showed as pink eclipse )(marked X in excel)

we cud not have had avoided whipsaws in short signal on 7/12/2012, as closing in 15 min was also short and market whipsawed to hit 35 pt SL on 7/13/2012. ( both days showed as pink eclipse )(marked X in excel)

rule 2 new plan wud have saved our whipsaw in long on 7/9/2012 as we wud have exited on first opposite signal i.e., sell in 15 min on 7/11/2012. (green eclipse)(marked ^ in excel)

again, rule 2 new plan wud have saved us in short on 7/13/2012 because we wud have exited on 7/18/2012.(green eclipse)(marked ^ in excel)

rule 1 new plan wud have saved us for we wud not have entered long on 7/19/2012 as it was a sell in 15min. (green eclipse)(marked ^ in excel)

so out of 6 signals i've tried the new rules, 3 cud be saved and even cud earn us some profits, we'll try these rules in our future endeavours.

thanx for bearing.

awaiting comments !!!

 

[RamonaSalvia]

here's a recap of the whole thing again :

step 1 : buy nifty just before close when it is above 8dema, OR
sell nifty just before close when it is below 8dema,

step 2 : keep a stop at 35 points from entry at open,

step 3 : if gaps more than 35 points opposite of our position book loss immediately at open,

step 4 : put a profit booking limit order at 200 points from entry,

step 5 : reverse( book profit or loss in old position and make new entry ) if at eod price is opposite of 8dema vis a vis our position
start from step 1 on the same day eod when booked at sl or profit.

new plan :

rule 1. we'll not take the signals on the day when in 15 min method its opposite the signal of what is on the daily method.

rule 2. if we r in profit in the method we'll not let the profits go into the drain just waiting for our profit target of 200 points, rather we'll come out of the positon on the first sign of opposite signal in 15 min.

few explanations on a chart will follow in next post.

thanx.

Dear Niludeepak,

Appreciate if you can explain your new rules in more details.

Your previous set of rules were very simple and lucid.

I am now confused with addition of the 15 minute option.

Thanks,

Ramona Salvia

 

[CamelToeJoe]

backtesting is backtesting.
forward testing/live will expose the truth.
Good luck to you!

If you ever find a pattern that you keep seeing over and over...don't post it on the internet The better I get as a trader, the more often I find myself holding my tongue.

 

[augubhai]

here's a recap of the whole thing again :

step 1 : buy nifty just before close when it is above 8dema, OR
sell nifty just before close when it is below 8dema,

step 2 : keep a stop at 35 points from entry at open,

step 3 : if gaps more than 35 points opposite of our position book loss immediately at open,

step 4 : put a profit booking limit order at 200 points from entry,

step 5 : reverse( book profit or loss in old position and make new entry ) if at eod price is opposite of 8dema vis a vis our position
start from step 1 on the same day eod when booked at sl or profit.

new plan :

rule 1. we'll not take the signals on the day when in 15 min method its opposite the signal of what is on the daily method.

rule 2. if we r in profit in the method we'll not let the profits go into the drain just waiting for our profit target of 200 points, rather we'll come out of the positon on the first sign of opposite signal in 15 min.

few explanations on a chart will follow in next post.

thanx.

Nilu,

Since I am also trying out other systems, I plan to continue trading per the old backtested rules, with minor changes and hedging.

One of the reasons that I started trading the daily system was it's simplicity - based on the old rules. The other reason is the huge RR ratio. I like the fire-and-forget approach where you place SL and target orders at the beginning of the day, and need to check only at the end of the day.

Appreciate your efforts to enhance the system. I will not be able to help you with the backtest since I do not have Amibroker or any other software. But there will be others who could help you code an afl that refers to both the 15 min and daily timeframes. I have coded in AFL's earlier, and I think TimeFrameSet() and TimeFrameRestore() should do the trick.
http://www.traderji.com/amibroker/25061-multiple-timeframe-ribbons-one-chart.html

 

[niludeepak]

in the morning

 

[augubhai]

Trade 3 closed on Friday. SL hit. SL was at 5222, but order got executed at 5219 due to slippage.

Trade 3:
Entry at close on 19th July.
- Bought NF at 5259
- Bought 5200 Put at 17.85
Exit on 20th July (SL hit)
- Sold NF at 5219
- Sold 5200 Put at 28
(5219-5259)+(28-17.5) = loss of 29.5 points

Trade 4:
Entry at close on 20th July.
- Sold NF at 5220
- Bought 5300 Call at 10


Results so far

Trade 1		Futures: -63	Option Hedge: +28	Total: -35
Trade 2		Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3		Futures: -40	Option Hedge: +10.5	Total: -29.5

All trades	Futures: -116	Option Hedge: +19	Total: -97

Trade 4 rolled over to August series today. I am treating Trade 4 as still open.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8

For August NF, I have kept target as 5046 , SL as 5294, EOD SAR as 5181

 

[jyotixxx]

Trade 4 rolled over to August series today. I am treating Trade 4 as still open.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8

For August NF, I have kept target as 5046 , SL as 5294, EOD SAR as 5181

Hi ,

Thanx for posting your trades consistently.

Just curious, how do u put stoploss on the option. Suppose tomorrow market gaps up 200 pts and comes 100 points down later, then u'r future will get squared off at 200 points loss and option will comes down fast. So.actually u'r stoploss won't work.
Is there any broker or trading system where if one order gets excuTed second order gets triggered?


Thanx

 

[niludeepak]

thanx augubhai for keeping the thread alive, i m a bit busy in personal things, will return back soon. thanx