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.