Point 1.......
In the hindsight, profit looks extra ordinary. His actual return can be calculated only if we know his trading capital. On a trading capital of Rs.100 crores, this profit is negligible. But on a capital of Rs.1-10 crores it is a whopping return.
Point 2.........
It is very clear from your statement, he is not averaging a loosing trade. He is scaling in the profitable trades, and he is scaling out on loosing trades.
Its just some maths to understand his technique.
Say for example.........SBIN opens at 200.
He buys 10000 shares @ 200.
If the market tanks after his buy position, he scales out 2000 shares with each Rs.1 rupee down move. His last exit is 195. And his loss is Rs.30,000. This is called fixed lot scaling out.
Instead if it climbs he adds 5000 shares at 201, 2500 at 202, 1000 at 203, 500 at 204. All exit 205. And his profit is Rs.80000. This is called pyramid scaling in.
You can guess.....what to do if the stock moves back and forth without hitting final stop loss and final profit target.
(You can understand the trick if you make some algorithm to dig deeper and understand it).
The risk reward looks 1:1 because your stop is 5 points and profit target is 5 points. But as in your example if the stock makes straight moves your risk reward is 1:2.66.
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Just share with me if any other tricks/insights in this game if i fail to understand it.