1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

Whether the latest MTP v2.2 tool is useful?

  • YES. The tool helps to take safe positions using FLOW and Renko Charts

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  • NO. The tool is not useful

    Votes: 2 7.1%

  • Total voters
    28
  • Poll closed .

healthraj

Well-Known Member
#1
Is it possible to make 652 lakhs in 497 Trading days with a starting capital of 1 lakh using NIFTY Futures.

Yes theoretically it is possible.

So what is the Principle behind this strategy?

1. NIFTY is Trending only 20-25% of the time and so why always take 20 points Stoploss when 80% of the time you are going to loose. Why not take 7-10 points loss and close the trade if stoploss hit.
2. 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points. So in those cases NIFTY always gives on an average 55 points on the LONG side and 77 points on the SHORT Side.
3. 80-20 Principle. 80% of the losses comes from 20% of the trades and so 80% profit can come from 20% of the trades.
4. Why do we need to spend hours before the monitor, while we can spend maximum 30 minutes a day. (15 minutes during opening and 15 minutes during closing)

So let us say we do hundred trades.
75 trades with a loss of 10 points = 750 points loss
25 trades with a gain of 65 points = 1625 points gain
Net gain = 875 points in 100 trading days.
If you started trading with a capital of 1 lakh and 2% Risk, the profit would be Rs 1,75,000.
With pyramiding (reinvesting the profit ) it would turn to crores.

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.

Also attaching back tested result for the SBIN stock. SBIN unlike NIFTY falls in the 50:50 category. ie 50% of time is trending and 50% it is Rangebound. So it is one of the highly Trending stock. The Parameters are different for SBIN. For eg... your stoploss should be around 1% in SBIN where as for NIFTY your stoploss should not be more than 0.2%.


Will explain the strategy in detail in the next post.

Please visit the post number 839 for Latest links and Settings to be done for the Excel tools

http://www.traderji.com/advanced-tra...tml#post720252

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.
 
Last edited by a moderator:

gambler

Well-Known Member
#2
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Just subscribed to ur thread. Is it possible?!!!!
 

hmp

Well-Known Member
#3
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

How to stay short in SBI for over night position?
 

healthraj

Well-Known Member
#4
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

The Strategy.

It is not a Real positional method because I don't want to take the positions to the next day. It is also not Intraday because I am not going to sit the whole day for Trading. The above statement with the assumption that the backtested results of last two years data will work for future also

So coming to steps.
1. End of day, Take the OHLC (Open, High, Low, Close)
2. Calculate the 25 DAY EMA on the HIGH - We will Go LONG only above this Price
3. Calculate the 25 DAY EMA on the LOW - We will Go SHORT only below this Price
4. Calculate the 15 DAY EMA on the OHLC - We will use this to calculate the BUY/SELL signal
5. Calculate the 25 DAY EMA on the OHLC - We will use this to calculate the BUY/SELL signal
6. To Confirm the UP trend, there should be HIGHER HIGHs and HIGHER LOWs. For DOWNTREND it should be LOWER HIGHs and LOWER LOWs.
7. Using the above rule, we will get a BUY or SELL signal for 15DAY EMA and 25 DAY EMA. If we can use TOD for TODAY and PRE for PREVIOUS Day. Then we will get a BUY Signal if TOD_HIGH >= PRE_HIGH and TOD_OPEN >= PRE_OPEN and TOD_LOW >= PRE_LOW and TOD_CLOSE >= PRE_CLOSE
8. For a SELL Signal we have to check the LOWER LOWs and LOWER HIGHs.
9. We will get one signal for 15DAY EMA and another for 25DAY EMA.
10. If both are BUY then for tomorrow we will go LONG or if both are SELL then for tomorrow we will go LONG.
11. If both of them do not give any BUY/SELL signal then no trade for tomorrow.
12. If the signals are different then we will go with the 25DAY EMA Signal because we want to go with the Trend (so we use higher EMA value)
13. IF it is a LONG, then we will go LONG above the Price (Calculated in Step 2)
14. IF it is a SHORT, then we will SHORT below the Price (Calculated in Step 3.)
15. We will have to calculate the Stoploss Price so that the Win Ratio confirms with the Trend. For Example if NIFTY is trending only 25% of the time and 75% of the time it is Rangebound, then we will have to find a stoploss so that we will win the Trades only 25% of time. The value from my tool comes to around 7-10.
16. Once you open the trade around 9:15 AM to 9:30 AM after checking the opening price, then put a Stoploss trade and close the Trading Terminal.
17. At around 3:15 PM to 3:25 pm, you need to close the trade if Stoploss was not hit.
18. After market hours download the OHLC for today and continue the steps for tomorrow.

All the above steps and calculation have been done in the Excel tool. The only thing which needs to be done is daily add a row and update the OHLC manually and check the column W for LONG Signals and column AB for SHORT signals in the tool.

I have not actually used this system. So please use it if you feel confident and that you are convinced. I am planning to paper trade for some time before actually using it. Please share the tool and please don't sell this tool for money... It is supposed to distributed freely...
 

healthraj

Well-Known Member
#5
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

How to stay short in SBI for over night position?
Handling GAP UP and GAP DOWNS are not in our control and So in my strategy I don't recommend holding any overnight positions.

Open your positions in the morning and close the positions around the closing hours.
 

healthraj

Well-Known Member
#6
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

In the Excel Tool for Calculating the Profit at the end of day I have used a VBA Function. Sharing the code so that people need not wonder how the Profit/Loss is calculated.

The below function is needed because for example we have a LONG signal and we have gone LONG at the opening price and during the day NIFTY might trade lower and hit the stoploss (Even though the Closing price might be greater than the Opening Price). We cannot predict the Closing and if Stoploss is hit so be it....

Function CalculateProfitAndLoss(OpenTrade As String, _
BuySellSignal As String, _
OpenPrice As Double, _
HighPrice As Double, _
LowPrice As Double, _
ClosePrice As Double, _
TriggerPrice As Double, _
BuySellPrice As Double, _
StopLoss As Double) As Double

Dim StopLossTriggered As Boolean
Dim TradeTriggered As Boolean

StopLossTriggered = False
TradeTriggered = False


If (OpenTrade = "LONG") Then
If (BuySellSignal = "CLOSE LONG") Or (BuySellSignal = "") Then
CalculateProfitAndLoss = 0
Exit Function
End If
' ===================== CALCULATE PROFIT/LOSS for LONG TRADES
If (OpenPrice >= TriggerPrice) Or (LowPrice >= TriggerPrice) Or (HighPrice >= TriggerPrice) Then
TradeTriggered = True
Else
' ===================== Trade NOT Triggered
CalculateProfitAndLoss = 0
Exit Function
End If

' CALCULATE IF STOPLOSS TRIGGERED
If ((BuySellPrice - LowPrice) > StopLoss) Or _
((BuySellPrice - ClosePrice) > StopLoss) Or _
((BuySellPrice - HighPrice) > StopLoss) Then
' STOP LOSS TRIGGERED - Calculate LOSS
StopLossTriggered = True
CalculateProfitAndLoss = -StopLoss
Exit Function

Else
' CALCULATE PROFIT
CalculateProfitAndLoss = ClosePrice - BuySellPrice
Exit Function
End If


ElseIf (OpenTrade = "SHORT") Then
If (BuySellSignal = "CLOSE SHORT") Or (BuySellSignal = "") Then
CalculateProfitAndLoss = 0
Exit Function
End If
' ===================== CALCULATE PROFIT/LOSS for LONG TRADES
If (OpenPrice <= TriggerPrice) Or (LowPrice <= TriggerPrice) Or (HighPrice <= TriggerPrice) Then
TradeTriggered = True
Else
' ===================== Trade NOT Triggered
CalculateProfitAndLoss = 0
Exit Function
End If

' CALCULATE IF STOPLOSS TRIGGERED
If ((HighPrice - BuySellPrice) > StopLoss) Or _
((ClosePrice - BuySellPrice) > StopLoss) Or _
((LowPrice - BuySellPrice) > StopLoss) Then
' STOP LOSS TRIGGERED - Calculate LOSS
StopLossTriggered = True
CalculateProfitAndLoss = -StopLoss
Exit Function

Else
' CALCULATE PROFIT
CalculateProfitAndLoss = BuySellPrice - ClosePrice
Exit Function
End If
End If
End Function
 

healthraj

Well-Known Member
#7
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

BANK NIFTY is also like NIFTY trends only 20-25% of time so do not take traditional stoploss of 40-60 points and loose more. Take only 0.2% (20-25 points).

Bank NIFTY in Trending days gives a profit of around 150 points on an average.

So if we make 20% of profit trades for around 500 days using Bank NIFTY with stoploss of 20 points, 5% as margin and 100% pyramiding, then 1 lakh would become 1697 lakhs.
 

labdhi

Active Member
#9
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

dear raj
we u know that in practical it is not possible to gain such huge amounts , than why now a days in tj a hype is created and telling that there system is too good , array bhai if u have too much good system than why u r creating hype go home and trade and be a millaonary why so much hype.
u share here ur stratgery that's good and also stratgery seems good but in other threads they r seeing it on teamviewer and they also don't confident when they stop seeing it and also no members r getting there afl or system free they r indirectly advt. there system so that newbies get attracted toward them and subscribed to them .


p.s. : i didnot want to be in any lafda but didnot resist myself to comment .
 

rh6996

Well-Known Member
#10
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

dear raj
we u know that in practical it is not possible to gain such huge amounts , than why now a days in tj a hype is created and telling that there system is too good , array bhai if u have too much good system than why u r creating hype go home and trade and be a millaonary why so much hype.
u share here ur stratgery that's good and also stratgery seems good but in other threads they r seeing it on teamviewer and they also don't confident when they stop seeing it and also no members r getting there afl or system free they r indirectly advt. there system so that newbies get attracted toward them and subscribed to them .


p.s. : i didnot want to be in any lafda but didnot resist myself to comment .
:D Good to see that I am in NEWS.. even its for wrong reasons !! Could have responded to you in detail here, but why disturb someone else's thread!! I dont mind criticism, but please do it on my thread... and more so your comment are the truth though partly only!! :D
 

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