MM Query

aja

Well-Known Member
#1
Hi,
Today I had some loss so again went into the depression mode.I need help on MM part.

Please answer this(weekend query)-

I have 50k capital.
I am trading smallcap scrips like VEDL,Bankindia.
50 paisa is my SL and 50 paisa is my Target.
I am buying 1000 shares and taking 4 Scalps a day to accumulate 375rsX4=1500rs a day

Queries are-
1)how many shares of VEDL should I buy
2)how much should be SL
3)is above 1:1 RR really bad
4)---
5)---

Method Using-I am taking trades based on VWAP system by Pratap Sir.
 

primitivetrader

Well-Known Member
#3
Hi,
Today I had some loss so again went into the depression mode.I need help on MM part.

Please answer this(weekend query)-

I have 50k capital.
I am trading smallcap scrips like VEDL,Bankindia.
50 paisa is my SL and 50 paisa is my Target.
I am buying 1000 shares and taking 4 Scalps a day to accumulate 375rsX4=1500rs a day

Queries are-
1)how many shares of VEDL should I buy
2)how much should be SL
3)is above 1:1 RR really bad
4)---
5)---

Method Using-I am taking trades based on VWAP system by Pratap Sir.
technically you are not even having 1:1 rr as from profit u need to deduct cost like brkg etc and if you have loss you need to add the same. with 1:1 rr you seriously need some damm good luck to be profitable. same goes with yr capital which is 50k.
i dont trade stocks so dont know wht is the price of VEDL etc but your stop loss must be as per the method you are following. if its fixed like 50 paisa thn you have not more the 1% probability of making profits. fixed sls are too much risky. rather than having fixed sl adjust your position size as per sl as you are trading in cash segment.
even if you are trading with 50k with are your trading in low price scrips. go for scrips preferably 4 figure or min above 500. else look for high beta counters for trading i think HDIL is having beta of more than 2. so if you can tame the beta beast you can make money theoretically.
 

travi

Well-Known Member
#4
Aja bhai, what is the probability (edge) of ur trading system?

Given ur R:R or 1:1, only if ur 70-75% right, u have a chance of success.
Every trade loss is 1R+overheads & profit is 1R-overheads.

Either u get 2-4R or a system around 75% right else MM wont work.
Also, what happened trading index?
NF/BNF is a very good instrument for u.
 

aja

Well-Known Member
#6
Aja bhai, what is the probability (edge) of ur trading system?

Given ur R:R or 1:1, only if ur 70-75% right, u have a chance of success.
Every trade loss is 1R+overheads & profit is 1R-overheads.

Either u get 2-4R or a system around 75% right else MM wont work.
Also, what happened trading index?
NF/BNF is a very good instrument for u.
Only 60% probability VWAP system giving.I backtested it
 

vijkris

Learner and Follower
#7
Only 60% probability VWAP system giving.I backtested it
60 % probability in ur backtests. ?? :eek::eek:

What was the profit figure ?

I told u before also, if 50 paise sl means keep target as 75 paise, otherwise statistically all the hard work will go into drain. :console:
 

aja

Well-Known Member
#9
http://www.traderji.com/futures/94330-5-pointer.html

check this thread, run bar repaly in AMI, take paper trades to find setups as per VWAP which gives you high probability trades for 15/20 points in NF, practice in on alteast 3 years data. With right mind set it can turn tables for you.:thumb:
Manish Bhai,I went through above thread earlier.He used to Scalp for only 5 Points,right?
Inn dino 5-7 points ka scalp karna kaafi risky hai.NF remains in tuktuk mode most of the times.

I'm confused why travi bhai said NF/BNF good for me?;)
 

aja

Well-Known Member
#10
60 % probability in ur backtests. ?? :eek::eek:

What was the profit figure ?

I told u before also, if 50 paise sl means keep target as 75 paise, otherwise statistically all the hard work will go into drain. :console:
Yes,that is what happened.

But,Small scrips dont give 75 paisa target everytime,they tend to bounce quickly and there always a fear of getting SL hit.So I book on 50 paisa profit(Target Order)
 

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