My Journey In Technical Analysis

XRAY27

Well-Known Member
People have lot of misconception on mechanical trading and compounding, let me first present my understanding on rule based trading ....core of it is........... backtesting, for intra it should be atleast 5 years and for swing/positional entire cycle (10 Years and more ), expectancy ratio is just half way mark, we need to do stree test ,after keeping in mind the luck factor..if you cross this point next comes compounding..if you don't know above terms , learn them ..i have discussed all of this already and go through books i suggested
 

XRAY27

Well-Known Member
if the system is backtested and it is showing positive expectancy ,calculate avg profit after considering luck factor, do stress test when all this steps are over below is calculation for capital deployment..which i do

Index fut

1.Calculation of base capital : 3 times DD+ exchange margin per lot

2.Compounding:add qty with each profit which crossed DD in point terms same way reduce qty in case of loss, this does not apply if you are trading with 1 lot just trade as per step one

3.Compounding can be done upto a level of comfort with respective to slippage ,if that is much more then we have to stop this to that level

stock and stock fut just go with % terms..for trading
 

KAL.YUG

Well-Known Member
People have lot of misconception on mechanical trading and compounding, let me first present my understanding on rule based trading ....core of it is........... backtesting, for intra it should be atleast 5 years and for swing/positional entire cycle (10 Years and more ), expectancy ratio is just half way mark, we need to do stree test ,after keeping in mind the luck factor..if you cross this point next comes compounding..if you don't know above terms , learn them ..i have discussed all of this already and go through books i suggested

"we need to do stree test ,after keeping in mind the luck factor..
if you cross this point next comes compounding"
 

XRAY27

Well-Known Member
"we need to do stree test ,after keeping in mind the luck factor..
if you cross this point next comes compounding"
Stress test ..typo


Sent from my iPhone using Tapatalk
 

lemondew

Well-Known Member
Not a bad thing to do when facing drawdowns. Iron once own clothes. Pushups pullups Do anything other than taking trades not in system in an effort to get over drawdown.

All the effort to be put in backtesting and analysis. Trading should be a dumb game.

Nice one,if not settled in trading ,have to do it in office


Sent from my iPhone using Tapatalk
 

XRAY27

Well-Known Member
2007 i was in sky and 2008 market shown me bottom, i booked my profits before melt down ,but re-entered in hurry seeing the prices, off course fundamentally sound ones, but timing was wrong:madi::wtf:.at that age (26) sustained that carnage and ,it took 3 years to understand the dynamics of intra/swing/positional:wtf: (lake of much resources as compared to today main reason ):(( ,

1. Need of TA along with fundamentals is must for timing of market,(retail investor should not go with words timing is impossible in market , TA helps 60 % for better entry)

2. Never compare your self with bigwigs,each interview will be on there kind of market

3. There is nothing called cheap rate and costly,we should go with setup

..same market environment but now much more stable with respective to system ,MM and particularly risk management ( once a low freeze to index,just keep low with volume ) brokers demand more cash, so adjust qty.:),so March 2020 turning out to be most memorable series. and F.Y -19-20 is most momentous :cool::cool:
 
Last edited:

XRAY27

Well-Known Member
Nifty 16 days ( unable to close above previous day high) not see this before

n.png


Bank Nifty 15 days (unable to close above previous day high)
b.png
 
Last edited:

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?