I am trading this Live on experimental basis for some days. This strategy is my brainchild. Although got some idea from other people's strategy. Improvement and critics are welcome.
ATR = Average True Range
AMO = After Market Order
Some Pros:
1. No Screen watching everyday. Place order only after markets. You can do your office work during market hours. Although you can squeeze more profit if you can watch the market. Otherwise require just half-an-hour every night to place those AMO.
2. High quality money-management built-in.
3. No fear of everyday market fluctuation.
4. Adjustable capital as per one's capacity as we can purchase only one share of any security.
5. Profit in ranging and up-trending market.
6. No guess-work about target and stop-loss.
7. Works beautiful for low brokerage firm like Zerodha.
8. Difficult to defeat by operators on everyday basis.
Some Cons:
1. Only Equity market - No FnO or Options.
2. Get rich slowly.
3. Stop loss in down-trending market only, as we are dealing with equity and can not short.
4. Less profit for high-brokerage firm.
5. Everyday you have to look at your Contract note and calculate your Buy/Sell and quantity of security - although easy if you do it in excel sheet.
6. Must need to access tools like Amibroker or Metastock on an EOD basis. More on this later.
So if there is three types of market, i.e. Up, Down and Sideways, you will make profit in two types whereas make loss in only down-trend market. Although if you simply buy equity, you will make loss in downtrend market.
This strategy has many components - it will be discussed part by part.
ATR = Average True Range
AMO = After Market Order
Some Pros:
1. No Screen watching everyday. Place order only after markets. You can do your office work during market hours. Although you can squeeze more profit if you can watch the market. Otherwise require just half-an-hour every night to place those AMO.
2. High quality money-management built-in.
3. No fear of everyday market fluctuation.
4. Adjustable capital as per one's capacity as we can purchase only one share of any security.
5. Profit in ranging and up-trending market.
6. No guess-work about target and stop-loss.
7. Works beautiful for low brokerage firm like Zerodha.
8. Difficult to defeat by operators on everyday basis.
Some Cons:
1. Only Equity market - No FnO or Options.
2. Get rich slowly.
3. Stop loss in down-trending market only, as we are dealing with equity and can not short.
4. Less profit for high-brokerage firm.
5. Everyday you have to look at your Contract note and calculate your Buy/Sell and quantity of security - although easy if you do it in excel sheet.
6. Must need to access tools like Amibroker or Metastock on an EOD basis. More on this later.
So if there is three types of market, i.e. Up, Down and Sideways, you will make profit in two types whereas make loss in only down-trend market. Although if you simply buy equity, you will make loss in downtrend market.
This strategy has many components - it will be discussed part by part.
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