Crude Trading to Earn 100 % in a Year

[*Trader*]

Hello Friends

After Watching Charts and Learning some technical I prepared my self a trading strategy. I forward tested this strategy for 3 months and get good returns. I decided to start trading this strategy from today. My goal is to earn 100 % returns per year. I regularly update this thread with my trades to track my progress and I am expecting some suggestions from seniors to improve my trading.

My Trading Rules :

1. Trading Instrument : Crude Oil Current Month Future in MCX.

2. Position Size : 100 Barrels per 100000 ₹ Capital.

3. Type of Trading : Intraday.

4. Time of Trading : 13:00 to 23:00.

5. Tools : 5 Minute Candle Chart with EMA 10 & EMA 40.

6. Enter trade on Signal Side after completion of 13:00 Candle using SL order by breaching recent Pivot with 3 to 6 ticks filter.

7. Keep Stop @ Entry +/- Half ATR (14) of daily Candle Chart.

8. Reverse the position if reverse crossover occur and breaching recent pivot with 3 to 6 ticks filter.

9. Do not enter any fresh position after 21:00.

10. Do not enter any fresh position 1 hour before inventory report and after for that day.

11. Move the Stop to Recent pivot after 21:00.

12: Close the Position @ 23:00.

Hope this Strategy will give me positive returns.

 

[*Trader*]

My First Trade closed in Loss

Entered Long Position @ 3221 With Stop @ 3185.

Closed the Long Position @ 3189.

Loss Booked 3200 + 100 ( Brokerage ) = 3300 ₹

Returns : - 3.3 %

Max Draw Down till date : 3.3 %

Update : Entered the Short Position @ 3189 with Stop @ 3225.

 

[*Trader*]

Moved the Stop to 3212 from 3225 for the short position which is entered @ 3189.

 

[Nikhil Dogra]

Why not use crude oil mini 10 lots (10 mini lots is equivalent to 1 big crude oil lot) ? Any rule for profit target like 1.5 or 2 ATR of Daily 14 Bar ATR ? Perhaps scale in/scale out will give you more opportunity to improve your costing as well as overall flexibility.

Best of luck.

 

[*Trader*]

Why not use crude oil mini 10 lots (10 mini lots is equivalent to 1 big crude oil lot) ? Any rule for profit target like 1.5 or 2 ATR of Daily 14 Bar ATR ? Perhaps scale in/scale out will give you more opportunity to improve your costing as well as overall flexibility.

Best of luck.

Thanks for the suggestion my friend.

I am in initial stages of learning. First I decided to improve my discipline to follow the Trading strategy. After achieving that I will focus more to improve my trading strategy.

 

[*Trader*]

Closed the Short Position @ 3209

Loss booked is 2000 + 100 ( Brokerage ) = 2100 ₹

Returns : -5.4 %

Max Draw down : 5.4 %

 

[primitivetrader]

as per you what are the gaps between your backtesing and real time trading. due to which you are having losses

 

[*Trader*]

as per you what are the gaps between your backtesing and real time trading. due to which you are having losses

I did not understood What do you really mean. Pardon me for that.

In my forward testing for 3 months I get around 120 points draw down which may be around 12 % as per my position size and got returns 300 points which is around 30 %.

I mentally prepared to face up to 40 % draw down in this strategy.

I basically trying to discipline my mind to do trading based on rules.

 

[*Trader*]

Entered Long @ 3231 with Stop @ 3196

 

[*Trader*]

3rd Trade too went into loss.

Closed the Long trade @ 3209

Loss : 2200 + 100 (Brokerage) = 2300 ₹

Returns : - 7.7 %

Draw down : 7.7 %

Entered short position @ 3209 with stop @ 3245

Tension started in mind. As usual Mind started telling quit it.

But I am motivating myself to trade the system. Hope I will get succeed in following system.