My Journey In Technical Analysis

[XRAY27]

Excellent. Can you please write a follow up to the above post on the psydrill part. E.g The amount of time spent. If during the psydrill trading was still on.

Sanju bhai !! you are asking for another long post ..i will do by evening

 

[XRAY27]

Great xray bro....and I want to post one such post but unable to do it in proper way .so hesitated.....Its great ...actually traders missing this point .... :clap:

Vijay , you should have done it earlier..why hesitation bro !!! after all language is not important content matters.

 

[sanju005ind]

Sanju bhai !! you are asking for another long post ..i will do by evening

Take your time. Do it on the weekend so that you can pen your thoughts peacefully.

 

[TracerBullet]

• 1. Can scaling be done to stock fut ..no its not possible as mechanical system for stocks or stock fut.will not work in that way

• 2. Any mechanical system can be used for scaling : No we need to know the DD and its should give less no of trades as I pointed above

• 3. Why cannot we trade more per day : More trades per day squeezes energy ,almost its a broker rich program ,ultimately account will blown

Simple risk based position sizing can be used in stocks. No energy is 'squeezed' if you risk appropriately and give space for future DD to be more than past DD. Automation will help. There are nice edges in stocks too ( including cost) - just different from index.
Compounding only means that we scale risk up as our account size increases - there is no compulsion to have one kind of system. Maybe its your experience but that's not a universal rule obviously ...

 

[XRAY27]

Simple risk based position sizing can be used in stocks. No energy is 'squeezed' if you risk appropriately and give space for future DD to be more than past DD. Automation will help. There are nice edges in stocks too ( including cost) - just different from index.
Compounding only means that we scale risk up as our account size increases - there is no compulsion to have one kind of system. Maybe its your experience but that's not a universal rule obviously ...

Post heading its self is My little knowledge on compounding ,energy is squeezed with trades 4 to 5 per day ideal is 1 to 2 IMO ,anyways its my experience doesn't matter ... entire trading there is there no universal rule ,any body can trade there nice edges if found. whole point is on intraday

 

[TracerBullet]

Post heading its self is My little knowledge on compounding ,energy is squeezed with trades 4 to 5 per day ideal is 1 to 2 IMO ,anyways its my experience doesn't matter ... entire trading there is there no universal rule ,any body can trade there nice edges if found. whole point is on intraday

yes, but it depends. Automation removes exhaustion issue ( which is real ofc - thats why i stopped trading it with discretion) and then we can simply reduce risk per trade.
Taking larger number of trades (to a point) can actually sometimes be more DD efficient (returns/DD) and we can also keep a max trades per day as per backtesting to reduce bad days impact. Its intraday too.

I get your point, work for my NF-BNF system is much much less vs stocks. Costs are lower, margin is less of an issue too. Per trade edge too is better. Momentum in Nifty/BNF moves much cleaner than stocks.

But overall stock system's edge is better. So running both. Maybe if i can find more edges and more trades on NF it might be able to compete better. But point is that compounding is not limited by those factors as long as edge is real and good after costs.

 

[XRAY27]

yes, but it depends. Automation removes exhaustion issue ( which is real ofc - thats why i stopped trading it with discretion) and then we can simply reduce risk per trade.
Taking larger number of trades (to a point) can actually sometimes be more DD efficient (returns/DD) and we can also keep a max trades per day as per backtesting to reduce bad days impact. Its intraday too.

I get your point, work for my NF-BNF system is much much less vs stocks. Costs are lower, margin is less of an issue too. Per trade edge too is better. Momentum in Nifty/BNF moves much cleaner than stocks.

But overall stock system's edge is better. So running both. Maybe if i can find more edges and more trades on NF it might be able to compete better. But point is that compounding is not limited by those factors as long as edge is real and good after costs.

May be automation helps, i'm not a great coder, TSL part is complex case in my system, its rule based but i cannot explain it for any third party for obvious reasons...so have to move on with this

 

[TracerBullet]

May be automation helps, i'm not a great coder, TSL part is complex case in my system, its rule based but i cannot explain it for any third party for obvious reasons...so have to move on with this

System may not work on stocks anyway as behaviour is not exactly same. My NF system does not work on stocks for example and stocks system on NF is mediocre at best without adapting.

For now i dont use tsl at all as difference is not as much for me and not as predictable vs holding till EOD .
Coding is not the issue but problem is that actual performance is always worse as sometimes data does not show + last few years did not help. Maybe will look at it again later, lets see. For now keep it simple ...

 

[XRAY27]

System may not work on stocks anyway as behaviour is not exactly same. My NF system does not work on stocks for example and stocks system on NF is mediocre at best without adapting.

For now i dont use tsl at all as difference is not as much for me and not as predictable vs holding till EOD .
Coding is not the issue but problem is that actual performance is always worse as sometimes data does not show + last few years did not help. Maybe will look at it again later, lets see. For now keep it simple ...

Index system is not good on stock,more over i'm not adding any more now just moving with what i have ,not willing to watch any more..lets keep it simple, and move on

 

[XRAY27]

Psychological drill which i have adopted:

Psychological drill is nothing but routine which a successful trader should follow for flaw less execution of his plan ,to keep attached to system and for get riding system hopping thought process .it is not much useful for newbie and struggling traders as they need to learn lot on system, risk management and position sizing still in learning phase to develop a system.

i'm not a coder, nor interested in algo so followed below routine points,which have worked for me,it is not universal proof ,just pinning general points to keep it simple.

1. Study your system rules daily before market start,never ever violate this routine to bring focus and calmness in mind.

2. To keep phase always start small ,stop watching MTM screens ,this helps in get riding of result oriented mind set ,thought process should be to the follow the plan rather then dreaming results, practice this for at least one quarter ,later move to original qty, after you notice flawless execution, i have done this for 6 month, to 1 year..basing on intra /swing /positional

3. Never watch trade log of other traders ,which are available in social media,just to keep in mind that its a fallacy , every system is different and results will be different ,what matters is your system and position sizing,execution

4. Matrix of system is reality it is part and parcel, you cannot runaway from it ,don’t try for magical movement.

5. Get out of social media particularly of traders account /forum for a month , if needed for more months to adopt flaw less execution and follow through, later come back to test your thought process.if you notice you are still running after any new system or change of ideas after watching trade log/,posts. repeat above process once again 1 to 4. after all we need soldier mind set for success