50000 to 20 lacs in 1 year

[flskamal]

it is very intresting and it is possible in nifty future. i already plan this in nifty. in market (with 2yr exp.) one can earn 100 points for week. for month 400 points. for every three months if one can earn 1000 points he get 50*1000=50000. our capital is 50000 + 50000= 100000. and now we will do the same process for 2 lots.....

 

[bhaveshdj]

I agree with flskamal. I find trading nifty f/o much easier than individual stocks. We may start with minifty/nifty options near expiry day which cost v little, and after trading them for few months graduate to normal futures. But it is as easy to lose your account if you dont know what you are doing.

 

[AmoghG]

try backtesting your emotions...

that's the next and a far bigger challenge..

Well said!

 

[CreditViolet]

Well said!

Not really, we are talking about a system here not discretionary acrobatics to worry about emotions. Emotions are a by-product of inadequate coping mechanisms in face of market uncertainity ( i.e. trading without a system ) so the comment is not very relevant.

 

[CreditViolet]

What are the possible bottlenecks??

Just one, dont put real money in it.

Evaluating system performance is an art, you cant judge it by a single criteria.

 

[CreditViolet]

it is very intresting and it is possible in nifty future. i already plan this in nifty. in market (with 2yr exp.) one can earn 100 points for week. for month 400 points. for every three months if one can earn 1000 points he get 50*1000=50000. our capital is 50000 + 50000= 100000. and now we will do the same process for 2 lots.....

What you are talking about is money management, not a trading system. Remember without a method, money management is just something to sound smart among newbies.

 

[hari09omkar]

Several posts from CreditViolet in several threads in quick intervals today!!! Well,a backtesting engine is in process in the other computer(s)?

 

[scorpion]

nice quote! i agree with u.

What are your buy and sell formulas?

I used a similar system in amibroker which generated terrific returns on paper. When I used it in real life I lost around rs.35000/-
Reasons:
1. They used future values in formulas.
2. The period you are using and which I used was the biggest bull period in Indian history, but this may not work in current bearish times.
3. We dont have the discipline and patience to trade this type of systems.
4. I am not sure whether our brokers give 50%margins.
5. If you employ entire capital in one company, using 50% margin, it if you have 50k and buy 1lac of shared in one company, and due to some unforseen circumstance or bad news or big fall like we say recently or due to continous lower circuits, the price of that co falls 50%, your entire capital is wiped out.

So I advice you to first paper trade your system manually for full six months.
Then never use margins, dont be greedy.
Buy shares in 5 companies of 10k, so that you live to fight even if one co. falls drastically.
Also go long only in bull market. for eg, you may decide to go long only when nifty is above 50day avg and liquidate all positions if nifty falls below the 50day avg, this will save you during falls like we experienced recently.
Finally read books on trading psychology, money management, position sizing, etc.
There is no holy grail or magic formula.
Only if you have a solid business plan, entry rules, stop losses and exit rules, and follow your plan consistently with discipline, you will succeed.
If you follow any magic formula, you will lose 50k and probably lot more.

Take care,
Bhavesh.

 

[kkseal]

... Evaluating system performance is an art, you cant judge it by a single criteria.

Exactly, and the fact is most of us (including and not the least myself) do not know how to test properly or simply do not have the time and/or resources to carry out the elaborate data partitioning etc. So i rely more on the logic - the 'if-its-logical-it should-work' approach (& by the same logic when it won't work. Like it's easy to see why a trader primarily trading currencies where prices are rangebound most of the time will loath MAs & the MACD and love something like the Andrew's pitchfork or regression channels). But obviously it's hardly the best approach.

Regards,
Kalyan.

 

[kkseal]

Also loved the other two from CV.

Regards,
Kalyan.