Day Trading Stocks & Futures

[TraderRavi]

Regulatory measures introduced by SEBI to continue in view of ongoing uncertainty (short selling ban)

https://www.sebi.gov.in/media/press...nue-in-view-of-ongoing-uncertainty_46702.html

 

[AJK]

I had this problem, maybe some can relate.
Earlier, when disciplined, stop will be fixed and relatively small. ( small as in sufficient but strategically correct place )

Even then very many times, mkt takes out stop and continues into MFE. ( very many could be my perception )

Quick re-entry is very difficult, even with pro traders.
( now there is inconsistency in re-entry and on the occasion you don't re-enter, the move would've been profitable )
more like Murphy's Law.

so SLs start getting wider or maybe another approach of hold till a certain time or eod etc.
These discretionary tweaks are how losses become larger and then unexpected losses creep in.

Discretionary or mechanical, i think one rule that should always apply is to first test every single rule before bringing it live ( Does it work ? If not, why do it? If you dont know, then also why do it ? )

For discretionary style - This is very hard to do both mechanically ( ie manually testing each rule - Any test would have to cover a reasonable sample across reasonable period) and psychologically(Lots of biases in brain dont help either). Its admirable that people are somehow able to manage it, but for me - i would stay away from discretion. At best, if it works, then might consider it in a very limited form in HTF systems - but prob not.
Too much effort to test and then too much effort to execute for intraday systems and much more difficult on the mind as we deal with every pnl change.

i'll contribute an input for all.. if anyone want to test strategy or trading system, test it in olymptrade in 1 min timeframe.. almost all indicators are available, plus 24 hours everyday... of course scrips would differ in action and in timeframe...

 

[TracerBullet]

Please help me understand how to calculate the returns on the capital.

Suppose i have a Long Term Portfolio with Capital Xpf.
This Xpf is Pledged and I get a Margin Limit of Ypf.
Now I keep some amount of Cash to manage MTM.

So now total Margin Available is Cash + Ypf.

The Margin Ypf is used to trade for two systems

System 1
System 2

Whenever The Profits Keep Increasing to a certain level the amount is used to buy and invest in LT portfolio Xpf.

So now the tricky part.

How to calculate the returns.
1.Is it on Xpf (For invested capital Which Keeps increasing) then what dates should be selected
2.System 1 and System 2 independently.
3.On Cash + Ypf independently.
4. Should I use ROCE for each trade in System 1 and System 2 and the calculate cumulatively.

I may not have fully understood it, but anyway just saying without thinking too much - dont have experience with pledging.
1) Xpf + cash is your entire capital so there does not seem to be any issue in tracking this and calculating returns over this period. This seems the most logical for your entire portfolio and then you can also look at individual components separately. Dates are upto you obviously, you will probably have some live positions and maybe you can use MTM.
2) Yes so you can do that to keep track of system performance but obviously this does not cover your returns for the entire capital.
3) Seems wrong to look at ypf. Return is on your overall capital or on capital used by systems. Margin is a limitation but not your capital.
4) I have not yet tested systems in combination, so have not clearly thought about it. Within a system what i do is to look at each trade and add up returns to get full return/annualized return/or risk adjusted return. This gives more data vs looking at just the first and last value of capital. Makes it easier to see DD etc.
I think 1 might be easier to do this, but 4 gives you more data. One issue is that all of them are sharing capital through pledging, so how to combine returns of each system and that of investments. One compromise can be to just look at your daily position ( or other period) and calculate returns over that. So will have more data vs just looking at start and end and seems easier to do.

 

[vikas2131]

Regulatory measures introduced by SEBI to continue in view of ongoing uncertainty (short selling ban)


View attachment 42701

https://www.sebi.gov.in/media/press...nue-in-view-of-ongoing-uncertainty_46702.html

This is a part of much bigger problem . The moment there is any pressure anywhere in system , govt changes rule as they deem fit instead of doing any reform. Compelety business unfriendly country we are yet we talk about attracting business from other countries.

 

[travi]

Discretionary or mechanical, i think one rule that should always apply is to first test every single rule before bringing it live ( Does it work ? If not, why do it? If you dont know, then also why do it ? )

For discretionary style - This is very hard to do both mechanically ( ie manually testing each rule - Any test would have to cover a reasonable sample across reasonable period) and psychologically(Lots of biases in brain dont help either). Its admirable that people are somehow able to manage it, but for me - i would stay away from discretion. At best, if it works, then might consider it in a very limited form in HTF systems - but prob not.
Too much effort to test and then too much effort to execute for intraday systems and much more difficult on the mind as we deal with every pnl change.

Mechanically, how well does re-entry work, or what criteria do you consider for it ?
how fast is it? can you re-enter the next bar say on 3-5m tf?
ofc it depends on the trading system but lets say, specifically yours.

 

[soft_trader]

https://play.google.com/store/apps/details?id=com.fnoplay

What kind of app/broker is this? Is this some kind of Indian version of binary options? They are claiming to be SEBI registered.

Couldn't browse through the app as it is asking for mobile number and and I am reluctant to share.

 

[pannet1]

NIFTY 5 Min

this could be little off topic, but lets assume you decided to go short after detecting the minor trend change.
how many of you believe

1) your SL would not be taken out.
2) the high of the bearish bar (with arrow pointed) is first made and then your entry got triggered

remember this is zero chart

if you believe your SL will definitely be intact, then God bless you. one more thing this is just the underlying and not even future chart. i am not even talking about options chart yet.

please understand this when you design your system. i am saying this because young traders could be there believing that charts are written in stone and ticks can't swing above the highs and lows. of course, professionals will understand what i am saying.

wish you successful trading tomorrow and the day after.

 

[pannet1]

Received from Zerodha:

"Warning: We have just spotted a spam SMS sent from "BH-ZRODHA" pretending to be us, promising investors returns. This is a scam and we are raising the issue with the police. DO NOT call the number in the message."

oops, i never thought ZRODHA got some reputation that they fear ... they will loose

 

[pannet1]

You are addicted to the market! Just imagine the plight of the people who can't work in the lock down for over 60 days.

i am not pointing at at you sridhga, but this thought came. we are also working for mr. market and making him rich. we are working for him sincerely for many years without asking for bonus (and even salary). we are every employers dream.

 

[sridhga]

I was daytrading only in Nifty Futures with Zerodha for almost over 3 years...and I can say that I did not have a single large loss day in those 3 years....it is possible, just a question of ruthless discipline to cut losing trades....1-2 large loss days spoil the good work of 8-10 days or more.

Not having a single loss day in 3 years is impressive. Yes, large losses spoil entire month. But in your method, we get drained out in whipsaws and non-trending (sideways) markets. Whenever you came across this situation, what did you do? How did you handle it?