Manoj's Trading Diary

manojborle

Well-Known Member
#1
Hi friends.
I will start my trading diary, in fact paper trade records so that I will get the data required for my trading system and trading plan.
I will start paper trading from monday and before that I will share my trading plan here.
I have tried to accomodate almost all important things for trading but still suggestions are welcome.
I will share the setups everyday morning/evening and will be committed to do it.
People can share their views about my setups and seniors please comment where I am doing it wrong.
So, friends wish me best luck and I hope I will come with something good this time. I will really appreciate response from the forum.
Trades will be in Equity, Futures, Selected commodities and selected currency.

Thanks
 

manojborle

Well-Known Member
#2
a. For swing trades, make 50 - 100 pips per week or 200 - 400 pips a month consistently for the first 6 months, using 2% of the capital for a given trade. If goals are met, use 3% of the capital for next 6 months. Once I make my weekly goals, I will trade on my paper trading account unless there is another high probability setup.

b. For day and momentum trades, make 50 pips per week or 200 pips per month consistently, using 5% of the capital for a given trade.

c. I will keep my portfolio risk to 20%, so that even if I am stopped out of every open position in my account, I will still have 80% of my original trading equity.

d. I will never add to or “average down” a losing position.

e. I will always have an actual stop in the market.

Number of trades per week – take no more than 10 trades per week for swing.

For day trades, take no more than 5 trades a day on Current month Nifty/Stock Future OR 3 trades a day on Stock segment.

NO DAY TRADE ON THURSDAY (Possible Power Cut any time).

1) For swing trades, I will take positions based on the Monthly and Weekly charts, but I will use Daily charts to fine tune my entries. I will review the Monthly and the Weekly charts first and note the trend of the current Daily candle.
2) For day and momentum trades, I will enter positions based on Daily charts and will look at the hourly chart to fine tune my entries. I will make sure that the Daily is in sync with my positions and note the trend of the current Daily candle.

a. Profit rules

i. My weekly trading goal on swing trades is to make 50-100 pips a week. (10-20 pips a day). Once I make my 50-100 pips for the week, I will stop trading for the week.
ii. My weekly trading goal for day trades is to make 50 pips per week. (10 pips per day). Once I make my goal, I will stop trading for the week.


b. Drawdown rules

i. Daily drawdown maximum is 5%. If I exceed this level on a given day, I will not trade the following day. If I exceed this level in a week, I will stop trading for the rest of the week. If I am down to a 20% total drawdown, it is time for a 2-week trading break until I can figure out what I am doing wrong. I will trade on the paper trading account instead.


a. Performance scoring
i. Profit target hit.
ii. Out at a different price from target, but trade is profitable.
iii. Breakeven trade.
iv. Out at a different price from stop, but a losing trade.
v. Stop is hit.

b. Execution scoring
i. Executed the trade as dictated in the trading plan.
ii. Followed the trade entry, but closed out the position before the predetermined target was met.
iii. Followed the trade entry, but changed stop and target levels.
iv. Entered the trade late by chasing it and didn’t set target or stop loss.
v. Impulse trade.
 

manojborle

Well-Known Member
#3
Trading Capital = 500000

As I have no previous data, I will use following data for Allocating Capital.
Once I have a data set of 25 trades, I will use the data on continuous basis for next trades.

Risk Percentage = 2% of Trading Equity.

Once I get 25 trades data, I will use the Win Ratio & Payoff Ratio to calculate optimal Risk, which in turn will be used to calculate Proper Trading Size.
 

amitrandive

Well-Known Member
#4
a. For swing trades, make 50 - 100 pips per week or 200 - 400 pips a month consistently for the first 6 months, using 2% of the capital for a given trade. If goals are met, use 3% of the capital for next 6 months. Once I make my weekly goals, I will trade on my paper trading account unless there is another high probability setup.

b. For day and momentum trades, make 50 pips per week or 200 pips per month consistently, using 5% of the capital for a given trade.

c. I will keep my portfolio risk to 20%, so that even if I am stopped out of every open position in my account, I will still have 80% of my original trading equity.

d. I will never add to or “average down” a losing position.

e. I will always have an actual stop in the market.

Number of trades per week – take no more than 10 trades per week for swing.

For day trades, take no more than 5 trades a day on Current month Nifty/Stock Future OR 3 trades a day on Stock segment.

NO DAY TRADE ON THURSDAY (Possible Power Cut any time).

1) For swing trades, I will take positions based on the Monthly and Weekly charts, but I will use Daily charts to fine tune my entries. I will review the Monthly and the Weekly charts first and note the trend of the current Daily candle.
2) For day and momentum trades, I will enter positions based on Daily charts and will look at the hourly chart to fine tune my entries. I will make sure that the Daily is in sync with my positions and note the trend of the current Daily candle.

a. Profit rules

i. My weekly trading goal on swing trades is to make 50-100 pips a week. (10-20 pips a day). Once I make my 50-100 pips for the week, I will stop trading for the week.
ii. My weekly trading goal for day trades is to make 50 pips per week. (10 pips per day). Once I make my goal, I will stop trading for the week.


b. Drawdown rules

i. Daily drawdown maximum is 5%. If I exceed this level on a given day, I will not trade the following day. If I exceed this level in a week, I will stop trading for the rest of the week. If I am down to a 20% total drawdown, it is time for a 2-week trading break until I can figure out what I am doing wrong. I will trade on the paper trading account instead.


a. Performance scoring
i. Profit target hit.
ii. Out at a different price from target, but trade is profitable.
iii. Breakeven trade.
iv. Out at a different price from stop, but a losing trade.
v. Stop is hit.

b. Execution scoring
i. Executed the trade as dictated in the trading plan.
ii. Followed the trade entry, but closed out the position before the predetermined target was met.
iii. Followed the trade entry, but changed stop and target levels.
iv. Entered the trade late by chasing it and didn’t set target or stop loss.
v. Impulse trade.
Fantastic Manoj !!!
I really admire the way you have written your trading plan.Looking forward to this thread.
:clapping::clapping::clapping:
 

manojborle

Well-Known Member
#5


1. Breakout qualifier 1 is satisfied. So if Nifty opens around 7485, it will be a valid breakdown and an approximate target of 182 points can take it to 7303.

2. Selling Pressure is at 7574.1, so on Monday if Nifty opens around this price and starts going down, Intra-day breakdown will be valid around 7585 and Short can be taken with a stop loss above 7593

3. If Nifty goes up and closes up on Monday, the setup remains valid, the levels will change.
 
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manojborle

Well-Known Member
#6
Idea Cellular Monthly


Idea Cellular Weekly


Idea Cellular Daily


On Monthly Idea Cellular has given a breakout with entry @ 138, Stop Loss around 124(Closing Basis) and a target of 180.3

On Weekly chart, Price is between Supply and Demand lines, so Supply line breakout will give a Long entry.

On Daily chart, on Friday Idea Cellular has given a valid breakout with a long entry @ 140.8, Stop loss below 135 (Closing Basis) and a target of 155.6

Note: In all charts, if Opposite direction signal is triggered, we don't wait for Stop loss to hit and exit @ signal.
 

manojborle

Well-Known Member
#7
Right now I am just using Thomas Demark Supply/Demand lines only, may be by next week will combine analysis with TD retracements and Al Brooks Price Action to filter the trades.

As these are all EOD Positions, eod price can be too far from breakout level, So I will try to go further into shorter interval(say Hourly) to fine tune entries.

Basically my methodology will be as follows:

1. Confirm breakout/breakdown on Monthly chart.
2. When price is near breakout zone, look at Weekly chart and find out if entry can be made in the direction of monthly chart.
3. Similarly if weekly chart does not give entry, I will look into Daily chart and try to find if any entry possible.
 

manojborle

Well-Known Member
#8
NMDC Weekly Chart


On weekly chart, friday close confirmed Supply line breakout for which target comes around 292.7 and Stop loss is 146 (Closing Basis).

On Daily chart, first entry is missed which was around 181, so now we will wait for another entry.

I don't have hourly data for NMDC, so can not find an entry on Hourly chart.
 

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