what % of the accuracy of intraday trading method is ideal

[pav]

what % (50,60,65,70%) of the accuracy of intraday trading method is ideal or pratical for the 5-10% consistent income per month.

ST da and and all traders please give your valuable inputs.


Regards
pav

 

[Smart_trade]

what % (50,60,65,70%) of the accuracy of intraday trading method is ideal or pratical for the 5-10% consistent income per month.

ST da and and all traders please give your valuable inputs.


Regards
pav

If you are thinking of totally mechanical ( no thinking ) system, it will be very difficult to get any system giving over 60-65 % hit rate. Apart from hit rate a reward to risk ratio of atleast 1.5 :1 or more is necessary.Ideally over 2:1 will give you comfort.

Smart_trade

 

[amandeep86]

If you are thinking of totally mechanical ( no thinking ) system, it will be very difficult to get any system giving over 60-65 % hit rate. Apart from hit rate a reward to risk ratio of atleast 1.5 :1 or more is necessary.Ideally over 2:1 will give you comfort.

Smart_trade

What about discretionary systems on intraday Lower timeframes ??

 

[Smart_trade]

What about discretionary systems on intraday Lower timeframes ??

There you can have 70-75 % systems with 2:1 RR if you know how to avoid sideways .

ST

 

[amandeep86]

There you can have 70-75 % systems with 2:1 RR if you know how to avoid sideways .

ST

I trade nifty on Pivot break on 5 Mins in direction of 30 TF, my trade log says that my Average loss after brokerage comes to be 10 points(Although my sample size is small).

I understand that for long term survival i need 2:1 reward atleast ,Considering 2:1 Reward ,my target comes to be 25 Points(Adjusting 4 points for Brokerage and 20 points to get desired Reward),Now problem i face is most of times i don't get 25 points and if i wait for 25 points ,most of times lose profits in hands .

Kindly advise how to come out from thus state of dilemma

 

[Smart_trade]

I trade nifty on Pivot break on 5 Mins in direction of 30 TF, my trade log says that my Average loss after brokerage comes to be 10 points(Although my sample size is small).

I understand that for long term survival i need 2:1 reward atleast ,Considering 2:1 Reward ,my target comes to be 25 Points(Adjusting 4 points for Brokerage and 20 points to get desired Reward),Now problem i face is most of times i don't get 25 points and if i wait for 25 points ,most of times lose profits in hands .

Kindly advise how to come out from thus state of dilemma

In intraday unless the trend is strong it is difficult to get 2:1 RR but 1.4 or 1.5 :1 we must get....lower RR means we need higher hit rate...on trend days it is possible to get more RR but choppy sideways days it is difficult.

Smart_trade

 

[Pradeep Narayan]

I trade nifty on Pivot break on 5 Mins in direction of 30 TF, my trade log says that my Average loss after brokerage comes to be 10 points(Although my sample size is small).

I understand that for long term survival i need 2:1 reward atleast ,Considering 2:1 Reward ,my target comes to be 25 Points(Adjusting 4 points for Brokerage and 20 points to get desired Reward),Now problem i face is most of times i don't get 25 points and if i wait for 25 points ,most of times lose profits in hands .

Kindly advise how to come out from thus state of dilemma

What I have to suggest would be slightly out of sync with norm...
a. Diversify - don't just trade NF, there are BNF & Stocks as well.
b. Aim for overall 2:1, be happy if you have 1.5:1 overall Reward to Risk
c. Mentally alter your time & trade perception.

I will explain as much as I can, but at the end it is up to each individual to treat all the 3 factors according to her/his mental make-up:

Point C - if you are a person who risks x% of trading capital per trade you take - think about risking the same x% per day you trade - irrespective of the number of trades you do.

Point A - you would need to fix the worst case and best case scenario of NF or any other scrip - i.e. your entry point, exit point in loss, exit point in profit. By doing this for more than 1 scrip you can optimize size, entry and exits - more importantly you can average your risks.

If you follow Point C & A, Point B will become clear.

All the best.

 

[amandeep86]

What I have to suggest would be slightly out of sync with norm...
a. Diversify - don't just trade NF, there are BNF & Stocks as well.
b. Aim for overall 2:1, be happy if you have 1.5:1 overall Reward to Risk
c. Mentally alter your time & trade perception.

I will explain as much as I can, but at the end it is up to each individual to treat all the 3 factors according to her/his mental make-up:

Point C - if you are a person who risks x% of trading capital per trade you take - think about risking the same x% per day you trade - irrespective of the number of trades you do.

Point A - you would need to fix the worst case and best case scenario of NF or any other scrip - i.e. your entry point, exit point in loss, exit point in profit. By doing this for more than 1 scrip you can optimize size, entry and exits - more importantly you can average your risks.

If you follow Point C & A, Point B will become clear.

All the best.

Thanks for your Advice .

Could not understand your point C,Say I risk Rs. 1000 per trade,Shall i risk 1000 for the full day?Normally i take 2-3 trades ,shall i divide my Risk to 300 or 500 per trade?

 

[Pradeep Narayan]

Thanks for your Advice .

Could not understand your point C,Say I risk Rs. 1000 per trade,Shall i risk 1000 for the full day?Normally i take 2-3 trades ,shall i divide my Risk to 300 or 500 per trade?

Correct!
If you are risking 1000 per trade (could be x% of capital), you are forced to trade sequentially as your MM ideally should not allow 2x or 3x risk. If you decide to risk the same 1000 or x% per day, you can identify trades where one trade could be a risk of 500 with Reward 500, another Risk of 100 with Reward 150 and so on. Thus you will have several trades all totalling to same Risk % per day. This will lower the overall risk as you will hit your x% risk only when you lose out on all trades that day.