my first post--need help in making my trading plan and trading systems

[peeyushsingh]

hi every one,

its peeyush i joined Traderji.com a week ago, prior to it i was reading Traderji.com via Google and other search engines.

this will be my first communication to everyone hear.

first of all congratulations to everyone for being a part of such result oriented and no nonsense approach group.

i trade commodities on day trading bases from last 2 years. (whenever i do trading).

now i am planing to take it as a living . i am considering this option from last 7 months and i am working on it.
after 7 months i believe i have specific problems which will have a specific and sizable approach and solutions.

i have not left my job till now but i have made a target of leaving the job after accomplishing of following tasks.

(1) proper resources-

(i) it includes a well working computer.- done (i have 1 desktop and 1 laptop in good working condition.)

(ii) uninterrupted internet and power supply contention.-done

(iii) a good broker. kind of done (current broker gives me acceptable services on charges of 1k brokerage+ exchange expenses + government taxes which means around 1750rs per crore in total.
i am in talks with another broker who is offering me brokerage of 300rs + exchange expenses + government taxes which will come around only 750rs in total) a very lucrative offer but need to check his services first.

(iv) a properly funded trading account from market generated money- done ( thanks to silver running from 47000 to 57000 in recent times.)

(v) a charting software - done and nonnegotiable now
but i believe i did not made the best choice, i became little emotional about it as they were offering me a human support for longer period of time.
Reliable software falcon 7 (i am taking name not at all for publicity purposes i am telling it because i need some help from forum members and somebody who will be helping me should know what i have with me and what are my perimeters.)

(vi) arrangement of 6 month running expenses- done (saved it from my salary)

(2) proper trading plan-

i have not finished it yet and i need help and suggestions from you people on each or some points.


i will go point by point to my approach, few points on which i have decided or i believe that i have decided i will write done with the reasons.
suggestions are welcome on that also.

My financial goal (i) to achieve my current cost to company salary in a year.
(ii) to achieve my 6 month salary in 6 months.
(iii) to start achieving my weekly withdrawals equivalent to current salary divided by 4 after 3 months .(which i wont spend and i will virtually add them in my trading capital to reduce or increase my risk appetite on per trade bases.)
(v) any thing above to yearly target will be my bonus 30% i will put in my non trading capital and 70% i will spend and enjoy.

my account size- 1.2L

My risk appetite - loss of 6000 rs per trade on maximum side (nonnegotiable on higher end )

selecting a market -- total 20 commodities from mcx and ncdx- done and nonnegotiable on higher end.

i will trade the following time frames---- 10, 15 and 30min. time frame.
15 min time frame to place the order and 10 and 30 min. to recheck the entry and exit points.

My trading approach will be ------ technical -done and nonnegotiable.
i will neither do trading on fundamental approach and nor on statistical approach.

so on technical approach i will look for 2 trading styles

(i) trend following style
(ii) trend fading style

2 trading styles means at least 2 trading systems of totally different nature so initially i am going to avoid trend fading approach.
i will try to develop it in those 6 months when i will do only trading.
now i am left with only trend following style but i would like to have at- least 3 trading systems to compare them and select 1 out of them.

kind of charts i will use ---- (i) candlestick (ii) nicolellis range bars

nicolellis range bars are very good concept they have removed time from the charts and they introduce volatility in place of it. a very good and helpful concept for a full-time day trader because if you will combine it with moving averages it remove the lagging part to a great extend(i do not know i am right or wrong plz tell) , but this charting felicity is available in a software package of 2.9 L per year so no to nicolellis range bars.

now my chart type will be----- 15, 10 and 30 min. candlestick patterns

my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one)
my final indicator setup will be something like this
indicator 1- primary indicator or signal generator .
indicator 2- secondary indicator- conformer indicator else why or why-not indicator.
indicator 3-tertiary indicator- supportive indicator to secondary indicator.
for example- if yes then why and to what degree if no then why not and till which level not.

i am going to use trend line and trend channels for sure- done even in the real money trades .
i will not consider it in the in the set of 4-5 indicators which i am going to try virtual money trading.

before going to post my problems i would like to clear my perimeters of the knowledge regarding indicators
indicators are of 2 types
(i) trend following indicators
(ii) trend fading indicators or oscillators

agreed but their are articles on internet which tells you that if you change reading of few oscillators they will work like trend following indicators is it true or not?
practically possible or not for Indian commodity markets?
if yes then what will be the settings for them in terms of Indian commodity
market?

if we change the biases of characteristics
they can be divided the indicators in 3 categories
(i) price based
(ii) volatility based
(iii) volume based
how they are helpful in day trading Indian commodity markets ?
what will the combination if i want to try them out in set 4-5 indicators ?

on which category i should emphasis more price, volatility or volume based indicators considering i am going to day trade in Indian commodity market?
what should be the settings for them.?


my software provider has divided it in following category

(i) Averages Based
(ii) Band
(iii)Directional Movement
(iv)Oscillator
(v)Market Breadth(not much of a use for me because my watch-list is done)
(vi)OBOS(not much of a use for me because my watch-list is done)

now how this bifurcation is going to help me ?

and 1 big question regarding indicators----
does specific set of indicators give better results for a particular commodity?
if yes then what set of indicators and with what readings specifically for that commodity in Indian comm. markets conditions?

those were my question regarding indicators ,their sets and relevance with our market.

i hope this forum will help me on above mention issues.

now lets move to my trading plan---

Entry signal-- not defined because of uncertainty regarding indicators.
(i) long entry signal (ii) short entry signal

Exit signal-- not defined because of uncertainty regarding indicators and unavailability of entry signals.
(i) profit target (ii) stop loss

other rules--- (i) i am going to emphasize my trading system more on exits and less on entries oriented process." nobody ever lost money taking profits"
(ii) i am going to put my money management stop loss first and technical stop loss behind. it means if my money management stop-loss is of 6000 then my technical stop loss should be less then 5999 including the expenses and taxes only then i will take that trade otherwise i am going to avoid that signal.
(iii) consistent profits are much better then sudden big ones because you can not make a living on sudden profits so only after the profit of 60000 i will start trading multi lots.
(iv) maximum loss of 5 % of the current capital in 1 day .
(v) maximum 2 orders at a time .

back testing expectations----- not done because of unfinished trading systom.

minimum back-testing size will be 200 trades.
testing will be done
on the platform of software provider.

will look for the systems which generates consistence money rather then more money.

money management------
currently doing with a help of a excel sheet but my problem is i am not able to connect this sheet with the exchange data.
so that sheet do not show you the current condition of your trade.

one suggestion on money management---------------

i read a book of van k tharp "van tharp - developing a winning trading system"
a very good one(though i have not read too many books on trading so that i can compare).
best part is he encourage you to develop your trading system on your own rather then trying to sell a software.
he gives you mathematical formulas only if any body is able to convert them in excel sheet for our market plz do let me know. (i become lame when it comes to programing or formulation of sheets ).

strengths which i will bring to my system are following.

(i) being less emotional regarding my own decisions.
(ii) capacity to trade 2 como. at the same time.
(iii) i will provide myself and my system best trading condition because of reserves i have made before trading.
(iv) i am going to emphasis more on money management rather then trading opportunities while trading.

weakness i will bring in my trading system are following.

(i) i am aggressive in my approach with respect of my capital because of heavy lot sizes in commodity market. (for this i will put more emphasis on mildly volatile commodity like Melantha oil and copper instead off gold and silver )
(ii) i am bad with technical part for example i know nothing about programing and formulation of excel sheets. ( can not do much about it 28 years old and still did not get it so not much scope is left.i am not even planing at all to learn those heavy computer programs to do trading .
maximum i will do is i will not start trading with real money unless and until i am very sure that i got all i needed as far as technical part is concern).
(iii) i am new to my software - this i have to learn because it very important for the success of my trading plan so from now onwards i will spend 3 hours every day practicing my trading software (i even choose it because it does not requiters to learn any computer program)

so friends this is the current position of my trading plan.

i have tried to explain my efficiency and my weakness as truthfully as i can.

if anybody want to make any suggestions that will be a great help and i am very open to it.

sorry for being blunt on some points..... but i have learned that whatever you have helps you more in trading rather then what do not have.

i am new to posing threads to this forum if i have violated any policy of this forum i am sorry in advance please do let me know, i will make sure that it would not happen again.



in hope of lots of suggestions !!!!!!!!!!!!!!!

peeyush

 

[NTrader42]

Hi Peeyush

First of all congratulations, you are starting off better than most of us with having a trading plan.

In your project report you have most of the things covered, except for the trading system, which is the biggest component for your project to succeed, thankfully you are very much aware of this aspect



OK here goes,

Can't give you feedback on falcon, as never used it, not sure about cost so no feedback on that either.

1:

Most of us here would be using Amibroker and few more Metastock, i would advice you to evaluate the cost of trading v/s capital deployed, if you are using 1.2 L as risk capital your annual costs (other than brokerage, taxes etc on trades taken) should not be more than 12 K i.e. 10%, with falcon seems your commitment would be way above that.

2:

The system you use should be very simple and something that you can understand easily, you should be able to make trading decisions on your own and not not based on some program / code that comes as black box, believe me thing that are not understood become very difficult to trade and then the trader's mind / physc gets screwed up

3:

Try to use a popular system without making any improvements. Start doing any systems development / improvements only after 1 full year of trading.


The most difficult part will be the point 3 above, we all come to trading for something more than just $$, we want to prove something, so the number 1 thing to do is humble down, anf follow the trend like a donkey, using some else's system, which you have tested your self for all the years of data available and not just few years, and then trade it for min 1 year without making any improvements (changes)

Thanks
NT

PS: Few links for you to check out

http://www.traderji.com/technical-a...g-trading-system-simple-way-play-markets.html

http://www.traderji.com/technical-analysis/66753-315-trades-based-sh-315-system.html

 

[peeyushsingh]

thanks very much for taking time out for me ?
if you are interested then we can go question by question on this.....,
will be a great help.
otherwise you are free to express anything you feel like,
love to hear more from you.

 

[NTrader42]

thanks very much for taking time out for me ?
if you are interested then we can go question by question on this.....,
will be a great help.
otherwise you are free to express anything you feel like,
love to hear more from you.

Glad to be of any small help, but you will ultimately listen to /learn from your own set of mistakes not to the ones i made

Your MM also seems to be upside down.

the technical stop is more important, without the proper SL you have a broken system, can't win with a broken system

here is what you should do

Arrive at a technical SL, use position size such that the loss on trade is less than 6000 or whatever your loss limit per trade is.

Be prepared to take double the loss limit, with gaps and all . . . with commodities we often get circuit breaks so even without a gap, you may lose 2/3 times your limit on a trade.

Wishing you good luck

Best

PS:

http://www.traderji.com/advanced-trading-strategies/35730-100-trading-strategies.html#post413360

 

[iyerboi]

not sure what stage ur in rt now. ur plan looks pretty detailed but thought this book uploaded by kingnemo could be of help to u

http://www.yourfilelink.com/get.php?fid=766828

all the best :thumb:

 

[ryan4ucar]

hi every one,

its peeyush i joined Traderji.com a week ago, prior to it i was reading Traderji.com via Google and other search engines.

this will be my first communication to everyone hear.

first of all congratulations to everyone for being a part of such result oriented and no nonsense approach group.

i trade commodities on day trading bases from last 2 years. (whenever i do trading).

now i am planing to take it as a living . i am considering this option from last 7 months and i am working on it.
after 7 months i believe i have specific problems which will have a specific and sizable approach and solutions.

i have not left my job till now but i have made a target of leaving the job after accomplishing of following tasks.

(1) proper resources-

(i) it includes a well working computer.- done (i have 1 desktop and 1 laptop in good working condition.)

(ii) uninterrupted internet and power supply contention.-done

(iii) a good broker. kind of done (current broker gives me acceptable services on charges of 1k brokerage+ exchange expenses + government taxes which means around 1750rs per crore in total.
i am in talks with another broker who is offering me brokerage of 300rs + exchange expenses + government taxes which will come around only 750rs in total) a very lucrative offer but need to check his services first.

(iv) a properly funded trading account from market generated money- done ( thanks to silver running from 47000 to 57000 in recent times.)

(v) a charting software - done and nonnegotiable now
but i believe i did not made the best choice, i became little emotional about it as they were offering me a human support for longer period of time.
Reliable software falcon 7 (i am taking name not at all for publicity purposes i am telling it because i need some help from forum members and somebody who will be helping me should know what i have with me and what are my perimeters.)

(vi) arrangement of 6 month running expenses- done (saved it from my salary)

(2) proper trading plan-

i have not finished it yet and i need help and suggestions from you people on each or some points.


i will go point by point to my approach, few points on which i have decided or i believe that i have decided i will write done with the reasons.
suggestions are welcome on that also.

My financial goal (i) to achieve my current cost to company salary in a year.
(ii) to achieve my 6 month salary in 6 months.
(iii) to start achieving my weekly withdrawals equivalent to current salary divided by 4 after 3 months .(which i wont spend and i will virtually add them in my trading capital to reduce or increase my risk appetite on per trade bases.)
(v) any thing above to yearly target will be my bonus 30% i will put in my non trading capital and 70% i will spend and enjoy.

my account size- 1.2L

My risk appetite - loss of 6000 rs per trade on maximum side (nonnegotiable on higher end )

selecting a market -- total 20 commodities from mcx and ncdx- done and nonnegotiable on higher end.

i will trade the following time frames---- 10, 15 and 30min. time frame.
15 min time frame to place the order and 10 and 30 min. to recheck the entry and exit points.

My trading approach will be ------ technical -done and nonnegotiable.
i will neither do trading on fundamental approach and nor on statistical approach.

so on technical approach i will look for 2 trading styles

(i) trend following style
(ii) trend fading style

2 trading styles means at least 2 trading systems of totally different nature so initially i am going to avoid trend fading approach.
i will try to develop it in those 6 months when i will do only trading.
now i am left with only trend following style but i would like to have at- least 3 trading systems to compare them and select 1 out of them.

kind of charts i will use ---- (i) candlestick (ii) nicolellis range bars

nicolellis range bars are very good concept they have removed time from the charts and they introduce volatility in place of it. a very good and helpful concept for a full-time day trader because if you will combine it with moving averages it remove the lagging part to a great extend(i do not know i am right or wrong plz tell) , but this charting felicity is available in a software package of 2.9 L per year so no to nicolellis range bars.

now my chart type will be----- 15, 10 and 30 min. candlestick patterns

my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one)
my final indicator setup will be something like this
indicator 1- primary indicator or signal generator .
indicator 2- secondary indicator- conformer indicator else why or why-not indicator.
indicator 3-tertiary indicator- supportive indicator to secondary indicator.
for example- if yes then why and to what degree if no then why not and till which level not.

i am going to use trend line and trend channels for sure- done even in the real money trades .
i will not consider it in the in the set of 4-5 indicators which i am going to try virtual money trading.

before going to post my problems i would like to clear my perimeters of the knowledge regarding indicators
indicators are of 2 types
(i) trend following indicators
(ii) trend fading indicators or oscillators

agreed but their are articles on internet which tells you that if you change reading of few oscillators they will work like trend following indicators is it true or not?
practically possible or not for Indian commodity markets?
if yes then what will be the settings for them in terms of Indian commodity
market?

if we change the biases of characteristics
they can be divided the indicators in 3 categories
(i) price based
(ii) volatility based
(iii) volume based
how they are helpful in day trading Indian commodity markets ?
what will the combination if i want to try them out in set 4-5 indicators ?

on which category i should emphasis more price, volatility or volume based indicators considering i am going to day trade in Indian commodity market?
what should be the settings for them.?


my software provider has divided it in following category

(i) Averages Based
(ii) Band
(iii)Directional Movement
(iv)Oscillator
(v)Market Breadth(not much of a use for me because my watch-list is done)
(vi)OBOS(not much of a use for me because my watch-list is done)

now how this bifurcation is going to help me ?

and 1 big question regarding indicators----
does specific set of indicators give better results for a particular commodity?
if yes then what set of indicators and with what readings specifically for that commodity in Indian comm. markets conditions?

those were my question regarding indicators ,their sets and relevance with our market.

i hope this forum will help me on above mention issues.

now lets move to my trading plan---

Entry signal-- not defined because of uncertainty regarding indicators.
(i) long entry signal (ii) short entry signal

Exit signal-- not defined because of uncertainty regarding indicators and unavailability of entry signals.
(i) profit target (ii) stop loss

other rules--- (i) i am going to emphasize my trading system more on exits and less on entries oriented process." nobody ever lost money taking profits"
(ii) i am going to put my money management stop loss first and technical stop loss behind. it means if my money management stop-loss is of 6000 then my technical stop loss should be less then 5999 including the expenses and taxes only then i will take that trade otherwise i am going to avoid that signal.
(iii) consistent profits are much better then sudden big ones because you can not make a living on sudden profits so only after the profit of 60000 i will start trading multi lots.
(iv) maximum loss of 5 % of the current capital in 1 day .
(v) maximum 2 orders at a time .

back testing expectations----- not done because of unfinished trading systom.

minimum back-testing size will be 200 trades.
testing will be done
on the platform of software provider.

will look for the systems which generates consistence money rather then more money.

money management------
currently doing with a help of a excel sheet but my problem is i am not able to connect this sheet with the exchange data.
so that sheet do not show you the current condition of your trade.

one suggestion on money management---------------

i read a book of van k tharp "van tharp - developing a winning trading system"
a very good one(though i have not read too many books on trading so that i can compare).
best part is he encourage you to develop your trading system on your own rather then trying to sell a software.
he gives you mathematical formulas only if any body is able to convert them in excel sheet for our market plz do let me know. (i become lame when it comes to programing or formulation of sheets ).

strengths which i will bring to my system are following.

(i) being less emotional regarding my own decisions.
(ii) capacity to trade 2 como. at the same time.
(iii) i will provide myself and my system best trading condition because of reserves i have made before trading.
(iv) i am going to emphasis more on money management rather then trading opportunities while trading.

weakness i will bring in my trading system are following.

(i) i am aggressive in my approach with respect of my capital because of heavy lot sizes in commodity market. (for this i will put more emphasis on mildly volatile commodity like Melantha oil and copper instead off gold and silver )
(ii) i am bad with technical part for example i know nothing about programing and formulation of excel sheets. ( can not do much about it 28 years old and still did not get it so not much scope is left.i am not even planing at all to learn those heavy computer programs to do trading .
maximum i will do is i will not start trading with real money unless and until i am very sure that i got all i needed as far as technical part is concern).
(iii) i am new to my software - this i have to learn because it very important for the success of my trading plan so from now onwards i will spend 3 hours every day practicing my trading software (i even choose it because it does not requiters to learn any computer program)

so friends this is the current position of my trading plan.

i have tried to explain my efficiency and my weakness as truthfully as i can.

if anybody want to make any suggestions that will be a great help and i am very open to it.

sorry for being blunt on some points..... but i have learned that whatever you have helps you more in trading rather then what do not have.

i am new to posing threads to this forum if i have violated any policy of this forum i am sorry in advance please do let me know, i will make sure that it would not happen again.



in hope of lots of suggestions !!!!!!!!!!!!!!!

peeyush

First of all i would like to congratulate you on your trading plan its indeed a very good effort done by you atleast to come up with a sketch of your plan although it is not comeplete even 10% by anymeans.

What i liked is the detailed manner in which you have written what you want to achieve which indeed shows that you have a clear thought process in you trading approach and an important tool in a traders arsenal.

Now for the criticism hope you take it in a good way
"My financial goal " awsome work here you mentioned here what you want to achieve ... stating this will help you look for the best plays and patterns for your trading and will prevent you from overtrading or trading randomly ... keep one thing in mind trading is not a daily wage kind of job , dont approch it as though you are working entire day for a wage and expecting money at the end of the day. If you want to trade like a professional youll have to behave like a professional there will be some days where you find patterns which are working you have to make sure you are trading with your biggest sizes that day , some days when you are loosing or the market is just not moving its better to rteduce size or just poaper trade.

Main thing here is you have to build a play book , define your best plays which yopu are confidant of then find those plays and trade them , anything else is overtrading or random trading , basically before you trade you have to ask your self can i make this trade a 100 time and expect to make mone say 60 % of the time?

Secondly
"my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one) "

there are a lot of indicators which serve only one purpose (create more confusion in a already confused trader), the are indcators which are based on yopur primary indicators (price and volume)
Indicators like stocastics and rsi are best avoided as they are nothing but mechanical tools (markets are not mechanical they are a sum of human emotions which cannot be quantified by maths)
moving averages-- dont ever use them for dynamic support resistance youll fall in big traouble if you do so.

This is my style ofcouse you could find indicators which work for you if you know how to iuse them correctly, like people use rsi the opposite way if the market is going up and the rsi is showing overbought and remains overbought for next say 30 mins that means the market is really strong and it would be foolish to short this is just one example.

Use indicators which donot use price and volume of the commodity , like for gold it has a correlation with the us dollar so you might hace to watch where the sp500 and dollar index is in corellation to gold then look at corellation between us gold and indian gold , this could be used as an indicator ... This is just one example there are so many other ways.

Last but no least , 1 lot trading is good if you are a beginner , but after you make some consistent profit move to 2 lots , as youll find when you trade there is no gaurantee to anything , trading is all about risk reward ... so if you take of one lot for some profit you have to leave the other lot to run.

Dont fall into the trap of think that trading is all about small profits , i can assure you that youll have more losses than winners , only a handful of trades will make you the big money you want to make so make sure you are riding them while take profits at the same time like Ekhardt said "While amatures go broke taking big losses professional go broke taking small profits"

All this might not makesense to you now later on i assure you it will , trading is unusual in a way that you loose more than you win , yet you should have sustained energy to get out quickly when you are loosing and be patient like hell when your winning"

All the best fot your trading
Ryan.

 

[ryan4ucar]

hi every one,

its peeyush i joined Traderji.com a week ago, prior to it i was reading Traderji.com via Google and other search engines.

this will be my first communication to everyone hear.

first of all congratulations to everyone for being a part of such result oriented and no nonsense approach group.

i trade commodities on day trading bases from last 2 years. (whenever i do trading).

now i am planing to take it as a living . i am considering this option from last 7 months and i am working on it.
after 7 months i believe i have specific problems which will have a specific and sizable approach and solutions.

i have not left my job till now but i have made a target of leaving the job after accomplishing of following tasks.

(1) proper resources-

(i) it includes a well working computer.- done (i have 1 desktop and 1 laptop in good working condition.)

(ii) uninterrupted internet and power supply contention.-done

(iii) a good broker. kind of done (current broker gives me acceptable services on charges of 1k brokerage+ exchange expenses + government taxes which means around 1750rs per crore in total.
i am in talks with another broker who is offering me brokerage of 300rs + exchange expenses + government taxes which will come around only 750rs in total) a very lucrative offer but need to check his services first.

(iv) a properly funded trading account from market generated money- done ( thanks to silver running from 47000 to 57000 in recent times.)

(v) a charting software - done and nonnegotiable now
but i believe i did not made the best choice, i became little emotional about it as they were offering me a human support for longer period of time.
Reliable software falcon 7 (i am taking name not at all for publicity purposes i am telling it because i need some help from forum members and somebody who will be helping me should know what i have with me and what are my perimeters.)

(vi) arrangement of 6 month running expenses- done (saved it from my salary)

(2) proper trading plan-

i have not finished it yet and i need help and suggestions from you people on each or some points.


i will go point by point to my approach, few points on which i have decided or i believe that i have decided i will write done with the reasons.
suggestions are welcome on that also.

My financial goal (i) to achieve my current cost to company salary in a year.
(ii) to achieve my 6 month salary in 6 months.
(iii) to start achieving my weekly withdrawals equivalent to current salary divided by 4 after 3 months .(which i wont spend and i will virtually add them in my trading capital to reduce or increase my risk appetite on per trade bases.)
(v) any thing above to yearly target will be my bonus 30% i will put in my non trading capital and 70% i will spend and enjoy.

my account size- 1.2L

My risk appetite - loss of 6000 rs per trade on maximum side (nonnegotiable on higher end )

selecting a market -- total 20 commodities from mcx and ncdx- done and nonnegotiable on higher end.

i will trade the following time frames---- 10, 15 and 30min. time frame.
15 min time frame to place the order and 10 and 30 min. to recheck the entry and exit points.

My trading approach will be ------ technical -done and nonnegotiable.
i will neither do trading on fundamental approach and nor on statistical approach.

so on technical approach i will look for 2 trading styles

(i) trend following style
(ii) trend fading style

2 trading styles means at least 2 trading systems of totally different nature so initially i am going to avoid trend fading approach.
i will try to develop it in those 6 months when i will do only trading.
now i am left with only trend following style but i would like to have at- least 3 trading systems to compare them and select 1 out of them.

kind of charts i will use ---- (i) candlestick (ii) nicolellis range bars

nicolellis range bars are very good concept they have removed time from the charts and they introduce volatility in place of it. a very good and helpful concept for a full-time day trader because if you will combine it with moving averages it remove the lagging part to a great extend(i do not know i am right or wrong plz tell) , but this charting felicity is available in a software package of 2.9 L per year so no to nicolellis range bars.

now my chart type will be----- 15, 10 and 30 min. candlestick patterns

my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one)
my final indicator setup will be something like this
indicator 1- primary indicator or signal generator .
indicator 2- secondary indicator- conformer indicator else why or why-not indicator.
indicator 3-tertiary indicator- supportive indicator to secondary indicator.
for example- if yes then why and to what degree if no then why not and till which level not.

i am going to use trend line and trend channels for sure- done even in the real money trades .
i will not consider it in the in the set of 4-5 indicators which i am going to try virtual money trading.

before going to post my problems i would like to clear my perimeters of the knowledge regarding indicators
indicators are of 2 types
(i) trend following indicators
(ii) trend fading indicators or oscillators

agreed but their are articles on internet which tells you that if you change reading of few oscillators they will work like trend following indicators is it true or not?
practically possible or not for Indian commodity markets?
if yes then what will be the settings for them in terms of Indian commodity
market?

if we change the biases of characteristics
they can be divided the indicators in 3 categories
(i) price based
(ii) volatility based
(iii) volume based
how they are helpful in day trading Indian commodity markets ?
what will the combination if i want to try them out in set 4-5 indicators ?

on which category i should emphasis more price, volatility or volume based indicators considering i am going to day trade in Indian commodity market?
what should be the settings for them.?


my software provider has divided it in following category

(i) Averages Based
(ii) Band
(iii)Directional Movement
(iv)Oscillator
(v)Market Breadth(not much of a use for me because my watch-list is done)
(vi)OBOS(not much of a use for me because my watch-list is done)

now how this bifurcation is going to help me ?

and 1 big question regarding indicators----
does specific set of indicators give better results for a particular commodity?
if yes then what set of indicators and with what readings specifically for that commodity in Indian comm. markets conditions?

those were my question regarding indicators ,their sets and relevance with our market.

i hope this forum will help me on above mention issues.

now lets move to my trading plan---

Entry signal-- not defined because of uncertainty regarding indicators.
(i) long entry signal (ii) short entry signal

Exit signal-- not defined because of uncertainty regarding indicators and unavailability of entry signals.
(i) profit target (ii) stop loss

other rules--- (i) i am going to emphasize my trading system more on exits and less on entries oriented process." nobody ever lost money taking profits"
(ii) i am going to put my money management stop loss first and technical stop loss behind. it means if my money management stop-loss is of 6000 then my technical stop loss should be less then 5999 including the expenses and taxes only then i will take that trade otherwise i am going to avoid that signal.
(iii) consistent profits are much better then sudden big ones because you can not make a living on sudden profits so only after the profit of 60000 i will start trading multi lots.
(iv) maximum loss of 5 % of the current capital in 1 day .
(v) maximum 2 orders at a time .

back testing expectations----- not done because of unfinished trading systom.

minimum back-testing size will be 200 trades.
testing will be done
on the platform of software provider.

will look for the systems which generates consistence money rather then more money.

money management------
currently doing with a help of a excel sheet but my problem is i am not able to connect this sheet with the exchange data.
so that sheet do not show you the current condition of your trade.

one suggestion on money management---------------

i read a book of van k tharp "van tharp - developing a winning trading system"
a very good one(though i have not read too many books on trading so that i can compare).
best part is he encourage you to develop your trading system on your own rather then trying to sell a software.
he gives you mathematical formulas only if any body is able to convert them in excel sheet for our market plz do let me know. (i become lame when it comes to programing or formulation of sheets ).

strengths which i will bring to my system are following.

(i) being less emotional regarding my own decisions.
(ii) capacity to trade 2 como. at the same time.
(iii) i will provide myself and my system best trading condition because of reserves i have made before trading.
(iv) i am going to emphasis more on money management rather then trading opportunities while trading.

weakness i will bring in my trading system are following.

(i) i am aggressive in my approach with respect of my capital because of heavy lot sizes in commodity market. (for this i will put more emphasis on mildly volatile commodity like Melantha oil and copper instead off gold and silver )
(ii) i am bad with technical part for example i know nothing about programing and formulation of excel sheets. ( can not do much about it 28 years old and still did not get it so not much scope is left.i am not even planing at all to learn those heavy computer programs to do trading .
maximum i will do is i will not start trading with real money unless and until i am very sure that i got all i needed as far as technical part is concern).
(iii) i am new to my software - this i have to learn because it very important for the success of my trading plan so from now onwards i will spend 3 hours every day practicing my trading software (i even choose it because it does not requiters to learn any computer program)

so friends this is the current position of my trading plan.

i have tried to explain my efficiency and my weakness as truthfully as i can.

if anybody want to make any suggestions that will be a great help and i am very open to it.

sorry for being blunt on some points..... but i have learned that whatever you have helps you more in trading rather then what do not have.

i am new to posing threads to this forum if i have violated any policy of this forum i am sorry in advance please do let me know, i will make sure that it would not happen again.



in hope of lots of suggestions !!!!!!!!!!!!!!!

peeyush

Forgot to mention one more thing looks like you are in a big hurry to go broke soon , your account size is 1.2 lakhs which is no way sufficent trading futures ,secondly with a 6000 rupee loss you are giving yourself about 20 chances to go broke , that is you could get wiped out within a month , think risk first then think about earning 6 month salary in 6 months ,hope that helps.

 

[TraderDude]

Your MM also seems to be upside down.

the technical stop is more important, without the proper SL you have a broken system, can't win with a broken system

here is what you should do

Arrive at a technical SL, use position size such that the loss on trade is less than 6000 or whatever your loss limit per trade is.

Hear Hear !!!