Consistant Profits from last 8 Years.

#1
Hi,
I know a trader who is making money consistently from the market but don't know how he is doing it. He is the CEO of a financial company and one of a big PE player has invested in his company. I saw him making 7-8 Crores consistently every year after all brokerage and charges.I tried to understand his method but didn't got it yet. I am discussing this topic here to get more insights from more experienced traders in this forum. Some of his Trading Patterns that i have observed are:
1. He plays only Buy Trade. (No Short Selling in any market Condition)
2. 90% of his trades are in Futures and 10% are in Cash Market.
3. He Cut his losses. Increase position size when price moves in his favor. If prices start to move against him he start to reduce position.
4.Most of his trades are Intraday (Day Trading ) and at a time he could have positions in 7-8 Stocks.
5. He started to buy OMC's stock futures as market open in bulk quantity and keep averaging them upward. All OMC's closed up by 5-6% today. I don't know how did he do that? I checked the charts of OMC and most of them made Bearish Engulfing Candle yesterday.I am 100% sure He is not trading the charts.
Please ask me any question if anyone have or if anyone got idea of his trading method.
 
#2
Hi,
Some of his Trading Patterns that i have observed are:
1. He plays only Buy Trade. (No Short Selling in any market Condition)
2. 90% of his trades are in Futures and 10% are in Cash Market.
3. He Cut his losses. Increase position size when price moves in his favor. If prices start to move against him he start to reduce position.
4.Most of his trades are Intraday (Day Trading ) and at a time he could have positions in 7-8 Stocks.
Definetly there could be any strategey which is not revelaed by him. Wihtout Short Selling, He cant make profit in down trend market. But you are saying, He is always taking long position only. Let us wait how others are thinking about other points
 

Contra

Well-Known Member
#3
He might be a Quant trader -- These are traders who rely on numbers, statistical probability, confirmation patterns and other signals to take trades. They tend to develop their own unique patterns that they discover from extensively studying the movement of just one or two specific instruments where they feel they can gain an edge.
 

suri112000

Well-Known Member
#4
Point 1.......
In the hindsight, profit looks extra ordinary. His actual return can be calculated only if we know his trading capital. On a trading capital of Rs.100 crores, this profit is negligible. But on a capital of Rs.1-10 crores it is a whopping return.

Point 2.........
It is very clear from your statement, he is not averaging a loosing trade. He is scaling in the profitable trades, and he is scaling out on loosing trades.

Its just some maths to understand his technique.

Say for example.........SBIN opens at 200.
He buys 10000 shares @ 200.
If the market tanks after his buy position, he scales out 2000 shares with each Rs.1 rupee down move. His last exit is 195. And his loss is Rs.30,000. This is called fixed lot scaling out.

Instead if it climbs he adds 5000 shares at 201, 2500 at 202, 1000 at 203, 500 at 204. All exit 205. And his profit is Rs.80000. This is called pyramid scaling in.

You can guess.....what to do if the stock moves back and forth without hitting final stop loss and final profit target.:D (You can understand the trick if you make some algorithm to dig deeper and understand it).

The risk reward looks 1:1 because your stop is 5 points and profit target is 5 points. But as in your example if the stock makes straight moves your risk reward is 1:2.66.

=========================================================

Just share with me if any other tricks/insights in this game if i fail to understand it.
 
#5
Any return in absolute terms is meaningless unless we know the capital employed to earn that return. If a large PF player has invested, means his capital could be more than 15-20 Cr .So we should know on what capital he is trading.

Anyone trading stocks knows that last 3 months oil marketing companies,cement and financial services companies are on the roll...many in these sectors are hitting all time highs.

Anyone trading profitably needs to be congratulated.

Smart_trade
 
#6
He comes under the whopping return category. He maintains 20-25 crore in his account.
@suri112000 he do what you exactly pointed out. If he bought Sbi and it came down rs. 2 he start to reduce position and if price start to move up again he start buying again.
 

Rish

Well-Known Member
#7
Any return in absolute terms is meaningless unless we know the capital employed to earn that return. If a large PF player has invested, means his capital could be more than 15-20 Cr .So we should know on what capital he is trading.

Anyone trading stocks knows that last 3 months oil marketing companies,cement and financial services companies are on the roll...many in these sectors are hitting all time highs.

Anyone trading profitably needs to be congratulated.

Smart_trade
This is the point...
 
#8
Few weeks back he made a killing in Ujjivan the day it was up 17-18%. He started to buy in morning and keep scaling up. At end if day he has made 16 lakh in a single day in Ujjivan. I never saw anyone making this much money in my entire career.
 
#9
Oil Marketing companies were on roll today again. He is buying them from tomorrow morning. I kept searching for any news or the reasons he bought OMC but found nothing on internet.
 
#10
The best thing i like about is startegy is as soon as he bought the price start,to move up. I have saw as he start with his first tanche the price move up by 0.50%-1% and he keeps buying till price get stable or stop at some point for few minutes. Sometimes he missed some buying orders when scalimg up due to sharp price upmove.
 

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