NIFTY Futures Mechanical Trading

[pakatil]

Dear Devangan123 & all newcomers,

1. I have never said in any of my post that, this system is best.

2. This is mechanical system and has its own advantages as well as disadvantages. i have clearly stated both in my 1st message as well as so many messages in some of my past posts.

3. I have also said, to trade my system, you need " 100% confident" & for that reason i keep saying that you paper trade first for around 3 months and if & only if you have 100% confident than start trading my system.

4. I have also clearly said that, the max drawdown is around 500 points.

5.I have also said, by using options, one can lock profit, whenever we have good profit. may be 200 points or more.

6. I also said to start with MINIFTY one lot only to limit max possible losses to "Rs. 10000.00" (500 points drawdown) only.

So if you are not willing to loss of Rs. 10000, than this system may not be suitable to your trading style. you need patience & confident. if you are earning more than the system by getting some help from my levels, I will be only happiest person. What i have said, is i am posting two levels daily & this is my style of trading. If you like it, than trade it. or if you find these two levels useful to you in any other manner, use it.



If any new comers are serously looking to trade my system, than he/she should go thorugh entire thread right from 1st message, If you are new and directly jump to last message & feel that, it is rosy & misleading, than, i am sorry my friend, i can not help much in that case. If you have gone through the last year trade file, the net profit for middle two quarters i.e. from April to Aug is just 300 points. while profit in 1st quarter as well as last quaerter is more than 1000 points per quarter.



Again, this is your thinking, cann't offer any help.


In short, if you are serious, than first paper trade for 3 months, understand entire system, go through all posts, judge your own whether this type of trading is suitable to you or not. if yes, and confident, than start MINIFTY one lot & keep trading blindly till we encounter 500 points drawdown before stop. your risk is Rs. 10,000.00. And trade only if you are willing to loose Rs. 10,000.00. if you have any doubt, may be a small one, than please do not trade until and unless you are not confident enough.

Vinod

Dear skr,

Please go through this post and if possible the complete thread thoroughly, before arriving at any conclusions.

BTW you still have the option of not adopting this method if you are not convinced & happy about it.

Cheers

 

[pakatil]

Hi Pravin,

I have started with one lot (50) & trading since Dec 2006. Currrently i am trading with 4 lots (50).

Dear skr,

Here is the proof of Pudding.

Cheers

 

[KomaL2099]

I started just few days back when the profit was about 2100 and now it is around 1700 , but I am still following the levels and very confident of of this system .. there are ups and down in every trade system .. I bet no system can capture 100% market move ..
I advise to all is lets be confident and just trade the levels ..there is no other way

 

[shanki99]

Today again SL hit?? Let us wait and watch !

 

[xtalk]

Real culprit is our currency. When oil cooling off why RBI allowing rupee to depreciate? Unless rupee stops falling holding long will be difficult.

 

[S S]

Hello friends

Nobody is replying to the question about maximum drawdown given by the system.

To understand this better, read the topic "Inverted Investor" under the thread "Food for Thought" under derivatives.

Do comment on it, thereafter.
Cheers!

 

[msmouli]

Hai

Let me know how you calculate Support and Resistance level...what formula you use for that?

 

[jitu123]

Hai

Let me know how you calculate Support and Resistance level...what formula you use for that?

Refer the thread from the beginning

 

[MaxBombay]

Dear MaxBombay

Trading is psychological game but heavy draw down screws trader's psychology, if trader is not aware about maximum draw down a system can give.

Can you tell me how much maximum draw down this system has given up to now, or how much maximum draw down one can expect? So as one can plan his money management rules accordingly.

In my experience, You can expect up to 400 points cut in nifty futures. So if you are trading 2 lots (100 qty) then you can expect going down up to Rs.40,000.

Let me share with you, what I have learned after many mistakes.

Mechanical system is about levels, you have to follow up and down levels, so stop losses are already defined. Money management!, definitely you need money management.

Lets talk about money management, I suggest, whenever anyone start trades he should trade only up to what kind of losses he can take without loosing his sleep. I know I can go up and down 50,000 without any tension. So I trade accordingly.

I recommend anyone starting trading to trade up to 10% of what he has and then slowly start his percentage to maximum 50% of total account at any time. In this way you can still bear hits like this and can still remain in trade.

IMO, If you have Rs.200,000, I will recommend trading only 1 nifty futures lot (about rs.34000 margin) for beginners and 2 lots for experienced traders and 3-4 lots for professional traders who know what they are doing.

Never, NEVER, become greedy and try over trading. Trade only up to the kind of losses you can bear. If your normal trading is 2 lots and buy guessing something you traded 4 lots, you will loose double the money, if it goes wrong. You may earn 1 or 2 times but you will loose allot if trade goes against you and will hit your account hard and push you back many many months. I have done many many such mistakes so now I know.

 

[nadodav]

Hello friends

Nobody is replying to the question about maximum drawdown given by the system.

On page no 94 i.e. on 29th July 2008. Profit of the system was 2248.
Today’s profit is 1684
2248 – 1684 = 564

Since 29th July system has lost 564 + brokerage & other expenses.

A trader who started trading as per the system, since 29th July has lost around 600 points i.e. a trader who started trading this system, since 29th July has lost his 100% trading capital.

One should be prepared for similar loss in future

Dear skr,

Max drawdown for the period specified by you is 453 points including MTM loss of 50.95 points of yesterday. I request you to please refer "Nifty Fut.xls". Till last friday, we had drawdown of 217 points & we have to add 185points loss + yesterday's MTM 50.95, & hence total of 453 points till yesterday. to calculate drawdown, we do not include MTM profit but profit for the closed trades, while in case of losses, we have to include daily MTM losses to arrive drawdown.

I believe, that any trend following system for positional trading should have incurred losses during these period. So either better to avoid trading those periods or in case of this method, we stop trading for some time when we reaches 500 points drawdown.

Vinod