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

siddhant4u

Well-Unknown Member

checkmate7

Well-Known Member
just checked his profile... he is a new member, so thought he must be posting similar 'advt' on other...
I let these posts of his go through for the members' reaction, but deleted two others which were borderline spam.
 
Do not want to discourage anyone... but is not this fantasy? Really 20 % p.m. Like come on. Think logically if this was possible would not the mightiest with the money capacity trade this...?And if any individual would succeed in making 20 % pm he would in a few years make it to top 500 list..!Be realistic 2-3 % pm tops is more like it....
 

marimuthu13

Well-Known Member
I think some misconception about stock selection, back testing here..

Checkmate -- you should not take one stock and test it for 10 years for some condition of entry/exit....

First assume you have condition , and filter etc etc..
Based on that condition, shortlist stocks for every individual day for 1 years data, once stocklist for 1 year ready, then do back testing manually....

Stock selection can be automated but back testing results should come from manual testing....

Example ..your condition of stock selection is gap up/ gap down with 1%..

Any given days , you may get more than 10 stocks ..now apply filter of based on higher % gaps, etc ..

Now you have stocks ..maximum 5 ..minimum 0...depending on market condition.....

After getting stocks for a year or so....now back testing to be started based your entry /exit rules...

As you test manually for a year data, you will redefining your entry/exit..etc...
Has anyone attempting to get some results?

So far ONLY happy singh ji responded with some less than 5 % return using a ORB

Another guy who called me over the phone, said he was getting around 10% - 15%.

Anyone is else trying?

Another important criteria while selection of gap stock is gap above PDH/gap below PDL...

So stocks should be open 1% higher /lower from previous close and same open price should be either PDH/PDL...


This is only sample pertaining to trading GAP ....

And further filter can be applied looking at first 15 minutes candle ( whether green or red) , etc etc....

Also 5 stocks per day ,and R:R of 1:1 and win rate of 70% is only broad guidelines..if someone looking at ONLY these criteria wont get desired results..

Whole idea is make it fully mechanical , right from stock selection to qty calculations to entry/exit rules...
 

marimuthu13

Well-Known Member
Do not want to discourage anyone... but is not this fantasy? Really 20 % p.m. Like come on. Think logically if this was possible would not the mightiest with the money capacity trade this...?And if any individual would succeed in making 20 % pm he would in a few years make it to top 500 list..!Be realistic 2-3 % pm tops is more like it....
We have lively examples of people who make 4x , 5x in single trade and making it consistently

Look at NF traders thread, who trade based on Sanit ji pivot method , avarage results per month is 200 point per lot..means 15k per lot..margin take as 1 lakhs per lot..so they earn 15% per month consistently...if you consider 50k margin per lot , then return per month 30%
 
Has anyone attempting to get some results?
So far ONLY happy singh ji responded with some less than 5 % return using a ORB
Another guy who called me over the phone, said he was getting around 10% - 15%.
Anyone is else trying?
Another important criteria while selection of gap stock is gap above PDH/gap below PDL...
So stocks should be open 1% higher /lower from previous close and same open price should be either PDH/PDL...

This is only sample pertaining to trading GAP ....
And further filter can be applied looking at first 15 minutes candle ( whether green or red) , etc etc....
Also 5 stocks per day ,and R:R of 1:1 and win rate of 70% is only broad guidelines..if someone looking at ONLY these criteria wont get desired results..
Whole idea is make it fully mechanical , right from stock selection to qty calculations to entry/exit rules...
Working on it,
so far not able to break that 50-55% barrier on back-tests
but its work in progress

This weekend I was going to post on this thread,
but got caught up with other things


This thread has been a very interesting learning experience for me,

this 20% thingy was like no way, here comes another one :)

The only reason for engaging with the OP was, that he is been around for a while
and comes across as a genuine person

As I started working / testing the method,
I realized with 8/10 years of actively trading,
there are so many biases that I have collected
all along there has been this nagging resistance about the 20% thingy
its like universalizing our own limitations and projecting it over markets / other traders

If I can't see it obviously no one else can either,
also it keeps getting reinforcement with so many fake gurus
there are 100's of examples of "told you so"

So whoever talks about 100/200 % is either naive or a fraud :)

But with all the efforts put in,
if we can stretch our own trading result,
even by 1/2% its worth it

Its a paradox,
don't want to be taken in by all the 1000% twitter nonsense being dished out
but at the same time, also not kill the dream by starting to believe in our self imposed limitations


Happy Trading
 
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