I have been backtesting Banknifty with a simple strategy in order to find an edge in probabilities of trading. My sole aim is to find a positive expectancy even if it a small one. If the strategy proves to have a positive expectancy we can increase lot size and increase profitability.
A minimum of 200 points is scored in a month. I find as much profit as 1500 points in a cool month. The drawdown in negligible. This strategy is only for intraday trades.
I have data from 05/2013 to 09/2013. I have backtested for the month of Jan 2014 banknifty futures on Sharekhan TT.
The results are as follows :-
May 2013 : +439 points
Jun 2013 : +240 points
Jul 2013 : +230 points
Aug 2013 : +1515 points
Sep 2013 : +1433 points
Jan 2014 futures till date : +315 points
Maximum two trades per day. No third trade under any circumstances.
Zerodha intraday margin (MIS) is Rs.9000/- approximately. Even if we trade with 3 lots per day, monthly profit comes to around Rs.5000/- (collectively on 3 lots because the strategy envisages so). On Rs.50000/- capital, we are able to earn 10% profit monthly.
Is it ok to start real trades or should I be missing something in testing the strategy?
Suggestions/Comments are welcome.
A minimum of 200 points is scored in a month. I find as much profit as 1500 points in a cool month. The drawdown in negligible. This strategy is only for intraday trades.
I have data from 05/2013 to 09/2013. I have backtested for the month of Jan 2014 banknifty futures on Sharekhan TT.
The results are as follows :-
May 2013 : +439 points
Jun 2013 : +240 points
Jul 2013 : +230 points
Aug 2013 : +1515 points
Sep 2013 : +1433 points
Jan 2014 futures till date : +315 points
Maximum two trades per day. No third trade under any circumstances.
Zerodha intraday margin (MIS) is Rs.9000/- approximately. Even if we trade with 3 lots per day, monthly profit comes to around Rs.5000/- (collectively on 3 lots because the strategy envisages so). On Rs.50000/- capital, we are able to earn 10% profit monthly.
Is it ok to start real trades or should I be missing something in testing the strategy?
Suggestions/Comments are welcome.