A simple investment strategy to beat Nifty returns

ncube

Well-Known Member
#21
Tracking the Trades:

If one can code the strategy it will be easier to track, however since the strategy is run end of day, one can easily track the trades using excel sheet. Attached is a simple excel sheet I have created to help you track the trades. The content are as follows:

1568202853993.png

At the end of each day, one need to update the columns in green for new trades and if a trade is already in place, just update the current price to know the current P/L percentage in the last column highlighted in orange.

To make it simple to calculate the quantity of stocks one need to purchase based on the buy price value, he can use the following table, by entering the values in green cells.

1568202995052.png
 

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ncube

Well-Known Member
#22
What to expect from this strategy:

This investment strategy is robust as it is based on solid price action & momentum concepts. When you are running this strategy you can expect the results as follows:

1. Many small winners.
2. Few big winners.
3. Few big losers.

But overall the portfolio will be in profit. Also the strategy is structured in such a way that one will be slowly taken out of the market when the markets are not favorable. Also the multi-part investment will ensure that we have enough cash in hand when new opportunities come up. Also taking regular profits out of the market will keep the capital in circulation and ensure portfolio value keeps growing. As the capital grows, the compounding effect come into play and individual trade sizes also start growing.

This is how I am using this concept, however my intention is not to make you all trade the same way, there can be many variations to this strategy and people are welcome to explore and improve upon this and share their progress.

What Kind of returns one can expect?

Keep a conservative returns expectation of about 15% and with few good years you will be pleasantly surprised with the actual returns...:)

I have shared my Investment strategy...hope it will benefits traders who want to include equity and investment strategy into their portfolio and have learnt few concepts which will help them in developing new systematic rule based strategies...:)
 
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ncube

Well-Known Member
#26
If I understand the concept right, then today buy signal executed in Bajaj Finance, Titan, Kotak Bank, Asian Paints when taking yesterday's candle as the first day.
No we do not initiate buy when the price is extended or already in the trend, we need margin of safety, hence we initiate buy only after a pullback. You may post the charts for any clarification. The bajfinance chart is as follows:

1568218194288.png
 

ncube

Well-Known Member
#27
Very nice, easy to understand, easy to execute. Nothing ambiguous. Thanks for sharing this strategy. Can you kindly also specify the maximum turnaround time if we start off with the max drawdown straight away.
Draw-down happens over the course of running the strategy and market dynamics. Since we scale up and scale down based on market condition, the draw-downs is much smaller than fully invested strategies, hence the recovery will also be faster.
 
#28
No we do not initiate buy when the price is extended or already in the trend, we need margin of safety, hence we initiate buy only after a pullback. You may post the charts for any clarification. The bajfinance chart is as follows:

View attachment 37540
Is the red colored line is 200 EMA. Mine chart is showing as below (Just conforming)
Untitled.png
 
#30
Hello

HA candles are not price candles in true sense but they are an indicator (derivative of price)

The fills that we get will be based on current price being traded and not the current HaClose

When putting in entry/exit/SL orders how do we adjust for this difference?

For e.g. on daily chart of BNF the HA Candle Open=Low=27489.4, where as the actual LoD is 27828.4
and as of now the CMP on HA candles is about 100 points below that of actual price being traded.

Thanks


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