Hey Guys ,
I have been following this forum for a while now and became a member as this a great place for traders to meet and discuss about their common interest .I am starting this thread to PAPER TRADE as a way to keep a tab & also to check the accuracy of my system.
A bit about me-
I stay in Bangalore & im 24 years old. The stock market bug bit me 3 years ago. I opened a trading a/c at geojit & started off with 50,000 bucks & although was never really successful at first but in 6 months I just about broke even which I consider myself to be really lucky as most of the amateur traders blow up their a/c. After that I got busy with my studies and I never really had time and had to discontinue trading for about a year. In the interim I was exposed to the world of derivatives especially options & also I realized that to achieve success you need a strategy or a system. When I resumed trading I immediately started trading in nifty options with just 10,000 bucks at Zerodha. Made a few intra day long trades and in about 2 months I lost 30% i.e 3000 bucks and I had to forcefully hit pause on my trading as I knew I was doing something wrong .It was again back to the drawing board. It struck me that in order to have a high probability of winning you need to be a writer of options which requires a decent account size, as the margin requirement is pretty high. For about a year I did not trade and in the meantime I became fascinated by futures and I realized that there are more advantages in trading futures than options + to make big money in the long haul you need to take positions, sit on trades and just ride the trend till it lasts. I came up with a lot of strategies and back-tested it manually as I don’t use any fancy softwares like amibroker. My systems just needed EOD data then I zeroed in on a system which was in sync with my trading style.
A bit about the system-
The system is loosely based on the infamous turtle trading system & also i look at a whole other parameters like Pcr, open interest, atr, fibo retracements, etc before taking a trade. I really don’t want to discuss much about my system here, i hope you guys can understand.
Then coming to the markets to trade I had a set of criteria like the stock/ index should be in F&O, have good volume, beta factor etc.. Then I created a watch list of about 20 stocks & 2 indices i.e bank nifty and cnx it. Although volumes in cnx it is pathetic but this was an exception as this index has given a solid 2000 points profit last year which is roughly abut 1,00,000/Lot profit. Some of the stocks that are included are axis bank, tatasteel, bharat forge, voltas, acc, ranbaxy etc .As you can see the watchlist is pretty well diversified with a good mix of both midcaps and largecaps with a slightly more weightage on banks and most of the stocks have high beta which makes it easy to catch big moves as this system focuses on riding the trend.
Minimum capital reqd-10 Lakhs
Of course the min capital reqd is high coz you need a big line as this is a trend following system . For most people out there this will be a dampner. The thing about trend trading is that you will be in a trade for a long time and as much as posiible u need to capitalize on the trend. The second reason is that the margin requirement for most of the stocks in my watchlist is about 50,000-1,00,000/ lot. I see to it that I risk only 5-7% on a single trade so I paper trade only in 1 lot or sometimes 2 lots if I have a good conviction about the signal received.
Few recent paper trades –
1lot Bank nifty long at 10967
1lot tatasteel long at 414
1lot Bharat forge long at 408
1lot sbin long at 1610
This system has given a minimum of about 70% annual return in the last 3years. I could have backtested it further but I had access to only 3years of EOD data.Most of the signals was received in the second week of february-first week of march which was the start of the bull run that we are witnessing today and already the account is up 80% and we are just 5 months through. As you can see this system looks very promising and I hope the same streak continues in the future.
From now on I will be posting all the signals received by the system under this thread. Please don’t expect me to post signals every single day as this is a trend following system but surely I will post every time I do get a singal. Remember the trades are always few in number but the profits are high.Again these are just my PAPER TRADES.
Please feel free to reply and throw in your suggestions as it has taken me almost an hour to write this thread.:lol:
This is trader4lif,
Signing Off
I have been following this forum for a while now and became a member as this a great place for traders to meet and discuss about their common interest .I am starting this thread to PAPER TRADE as a way to keep a tab & also to check the accuracy of my system.
A bit about me-
I stay in Bangalore & im 24 years old. The stock market bug bit me 3 years ago. I opened a trading a/c at geojit & started off with 50,000 bucks & although was never really successful at first but in 6 months I just about broke even which I consider myself to be really lucky as most of the amateur traders blow up their a/c. After that I got busy with my studies and I never really had time and had to discontinue trading for about a year. In the interim I was exposed to the world of derivatives especially options & also I realized that to achieve success you need a strategy or a system. When I resumed trading I immediately started trading in nifty options with just 10,000 bucks at Zerodha. Made a few intra day long trades and in about 2 months I lost 30% i.e 3000 bucks and I had to forcefully hit pause on my trading as I knew I was doing something wrong .It was again back to the drawing board. It struck me that in order to have a high probability of winning you need to be a writer of options which requires a decent account size, as the margin requirement is pretty high. For about a year I did not trade and in the meantime I became fascinated by futures and I realized that there are more advantages in trading futures than options + to make big money in the long haul you need to take positions, sit on trades and just ride the trend till it lasts. I came up with a lot of strategies and back-tested it manually as I don’t use any fancy softwares like amibroker. My systems just needed EOD data then I zeroed in on a system which was in sync with my trading style.
A bit about the system-
The system is loosely based on the infamous turtle trading system & also i look at a whole other parameters like Pcr, open interest, atr, fibo retracements, etc before taking a trade. I really don’t want to discuss much about my system here, i hope you guys can understand.
Then coming to the markets to trade I had a set of criteria like the stock/ index should be in F&O, have good volume, beta factor etc.. Then I created a watch list of about 20 stocks & 2 indices i.e bank nifty and cnx it. Although volumes in cnx it is pathetic but this was an exception as this index has given a solid 2000 points profit last year which is roughly abut 1,00,000/Lot profit. Some of the stocks that are included are axis bank, tatasteel, bharat forge, voltas, acc, ranbaxy etc .As you can see the watchlist is pretty well diversified with a good mix of both midcaps and largecaps with a slightly more weightage on banks and most of the stocks have high beta which makes it easy to catch big moves as this system focuses on riding the trend.
Minimum capital reqd-10 Lakhs
Of course the min capital reqd is high coz you need a big line as this is a trend following system . For most people out there this will be a dampner. The thing about trend trading is that you will be in a trade for a long time and as much as posiible u need to capitalize on the trend. The second reason is that the margin requirement for most of the stocks in my watchlist is about 50,000-1,00,000/ lot. I see to it that I risk only 5-7% on a single trade so I paper trade only in 1 lot or sometimes 2 lots if I have a good conviction about the signal received.
Few recent paper trades –
1lot Bank nifty long at 10967
1lot tatasteel long at 414
1lot Bharat forge long at 408
1lot sbin long at 1610
This system has given a minimum of about 70% annual return in the last 3years. I could have backtested it further but I had access to only 3years of EOD data.Most of the signals was received in the second week of february-first week of march which was the start of the bull run that we are witnessing today and already the account is up 80% and we are just 5 months through. As you can see this system looks very promising and I hope the same streak continues in the future.
From now on I will be posting all the signals received by the system under this thread. Please don’t expect me to post signals every single day as this is a trend following system but surely I will post every time I do get a singal. Remember the trades are always few in number but the profits are high.Again these are just my PAPER TRADES.
Please feel free to reply and throw in your suggestions as it has taken me almost an hour to write this thread.:lol:
This is trader4lif,
Signing Off
