20% ROI per month on captial above 1 Cr possible?

[marimuthu13]

Can you post some more charts?

Brother, no chartsss..as you can't scan using charts of 140 stocks

 

[marimuthu13]

Guys one clarification..

Scanning of stocks, you can do it through AFL, chartlink, etc etc...

After scanning stocks, manually test entry exit etc etc..while doing so you will see some repeated pattern where breakout is failing...so use these to redefine entry, or stock selection....

 

[lemondew]

Ok let me try for some weeks as and when time permits.

Guys one clarification..

Scanning of stocks, you can do it through AFL, chartlink, etc etc...

After scanning stocks, manually test entry exit etc etc..while doing so you will see some repeated pattern where breakout is failing...so use these to redefine entry, or stock selection....

 

[trade4learn]

Review about ORB Part II

As I said earlier, I've tested it in many ways. Let me share where I got the best curve.

Instead of 15 mins , take 1 hour as Opening Range.
Limit yourself to 1 trade a day.
Set time based exit say 15:15 is exit time.

So, ur setup will take only one trade a day , which will either exit at stoploss or at specific time. No other thoughts ,..

Why this is helpful?
Simple, as it would be 100% mechanical system, it won't affect ur psyche or wont increase ur blood pressure. After punching the trades, u can simply go out for a walk or relax or even can do some other creative stuff.

Stocks selection method :
Use any u prefer like ATR or trend following .. Any what gives u the best Risk to reward ratio.

Advantages :

U will get stunning gains on a trending day. And risk to reward will be more then 1:4 on ur lucky day.

Disadvantages :
Sometimes u may give up ur initial gains and end up ur day with a losing trade.

More ....:

Dont try to over tweak any trading system, like adding a trailing stoploss to protect ur gains. That simply doesnt work. Backtest it properly before punching any real trade. Amibroker have a neat and fast backtester. DO NOT estimate anything, backtest it. Trust me when i say so.
Stay disciplined. Don't lose faith when drawdowns occurs, I mistook it and paid for it. So trust ur system and ur backtested results. U will need one good day to coverup 2 days loss.

Hope this helps...

Still I wont say it will give u 20% per month... But as a trader, U opted a good performing trading system which I've traded for a long long period of my trading life. I put my observations if that helps u.

Good luck...

 

[marimuthu13]

Review about ORB Part II

As I said earlier, I've tested it in many ways. Let me share where I got the best curve.

Instead of 15 mins , take 1 hour as Opening Range.
Limit yourself to 1 trade a day.
Set time based exit say 15:15 is exit time.

So, ur setup will take only one trade a day , which will either exit at stoploss or at specific time. No other thoughts ,..

Why this is helpful?
Simple, as it would be 100% mechanical system, it won't affect ur psyche or wont increase ur blood pressure. After punching the trades, u can simply go out for a walk or relax or even can do some other creative stuff.

Stocks selection method :
Use any u prefer like ATR or trend following .. Any what gives u the best Risk to reward ratio.

Advantages :

U will get stunning gains on a trending day. And risk to reward will be more then 1:4 on ur lucky day.

Disadvantages :
Sometimes u may give up ur initial gains and end up ur day with a losing trade.

More ....:

Dont try to over tweak any trading system, like adding a trailing stoploss to protect ur gains. That simply doesnt work. Backtest it properly before punching any real trade. Amibroker have a neat and fast backtester. DO NOT estimate anything, backtest it. Trust me when i say so.
Stay disciplined. Don't lose faith when drawdowns occurs, I mistook it and paid for it. So trust ur system and ur backtested results. U will need one good day to coverup 2 days loss.

Hope this helps...

Still I wont say it will give u 20% per month... But as a trader, U opted a good performing trading system which I've traded for a long long period of my trading life. I put my observations if that helps u.

Good luck...

Thank you brother...

Yes ..making it as simple as that is also one of the key here to sustain in long run

 

[mohan.sic]

I didn't understand your question brother..please elaborate with example of EMA...

I mean if we had to pick 5 different stocks every day and then apply ORB on those stocks and if only then we can get consistent results, then what is the edge of ORB ? If selecting the stocks to trade is the key to consistent success then the strategy ( ORB in this case ) is not playing the vital role in outcome.

Ofcourse there are many ways one can trade ORB but the fundamental rule is nothing but the price going above/below a certain range formed during first N minutes ..right ?

MA is not a literal example but I just used it to make a point that be it ORB or any other strategy, should perform same irrespective of stocks we choose. So even if we trade same set of stocks everyday, a strategy with edge should give a positive outcome over series of trades and only then its a successful strategy.

 

[Happy_Singh]

Just encountered the phrase on another thread
I have not seen anyone do it . . .

It is a very funny term

It's like stating the very obvious fact that
I have never ever experienced anything outside of my own reality tunnel


This is very much relevant to the discussions happening on this thread

The conclusions that we draw are influenced by our own past experience
No matter how we approach the testing process a certain bias to reinforce our own thinking is always there . . .

.

 

[Happy_Singh]

I mean if we had to pick 5 different stocks every day and then apply ORB on those stocks and if only then we can get consistent results, then what is the edge of ORB ? If selecting the stocks to trade is the key to consistent success then the strategy ( ORB in this case ) is not playing the vital role in outcome.

Ofcourse there are many ways one can trade ORB but the fundamental rule is nothing but the price going above/below a certain range formed during first N minutes ..right ?

MA is not a literal example but I just used it to make a point that be it ORB or any other strategy, should perform same irrespective of stocks we choose. So even if we trade same set of stocks everyday, a strategy with edge should give a positive outcome over series of trades and only then its a successful strategy.

the same filtering process that works well with orb,
may not work equally well with other entry methods.

A trading method / system will have many components

1) Risk Management
2) Money Management
3) Trade Setup (filtering the scrip to trade comes here)
4) Entry Method
5) Exit Method

ORB is just the entry method, which does have an edge, a positive expectancy
Trading without leverage and splitting / diversifying in 5 parts/scrip takes care of 1 & 2

You are right about using any different entry method with very good setup/filtering process will also give excellent results


.

 

[mohan.sic]

the same filtering process that works well with orb,
may not work equally well with other entry methods.

A trading method / system will have many components

1) Risk Management
2) Money Management
3) Trade Setup (filtering the scrip to trade comes here)
4) Entry Method
5) Exit Method

ORB is just the entry method, which does have an edge, a positive expectancy
Trading without leverage and splitting / diversifying in 5 parts/scrip takes care of 1 & 2

You are right about using any different entry method with very good setup/filtering process will also give excellent results


.

no bro am referring to something different....also not saying that orb does not have a edge....

 

[marimuthu13]

no bro am referring to something different....also not saying that orb does not have a edge....

Sir
if you wanted ORB to have an edge, you have to select different stocks for every day...because ORB works based on momentum, the same stock won't have momentum every day...