Nifty Swing Trading System - Back tested - Highly Profitable Results

[Aarav11]

Hi Cubt,

Converting the ideal trades into real trades is the challenge. In fact, I'd go ahead and say that it is near impossible to earn from an AFL and there is a reason behind it.

Allow me to expound. It is a tough task to correctly take a large number of trades, say 500 of them. Yet, some are able to do it. Why? Because, I think, that they have only one perspective/focus. There is no distraction.

From their years of experience they are able to shut out all other conversations and know exactly what to focus on. They have learned through first hand experience of what is important and really matters.

On the other hand, one who takes a quicker route still has not developed this ability to shut out distractions, hence will surely be distracted. As a result he would do one or more of the following to render the AFL ineffective:

1. Not take a few trades after some losses. As a result he would miss the big move.
2. Anticipate an entry, and hence build up loss and add to frustration and also making it difficult to take future trades.
3. Doing ones own TA. And trying to further "optimize" the system.
4. Using real time news to do .3.
5. Being lenient on stop loss, as a result converting a small loss into a disaster.

I have experienced all of the 5, several times over (except for #5). And honestly speaking I am not sure if I'd want to go any other way.

Rgds.

Well said Jamit. I my view everyword said by you is true 100%.

 

[rkkarnani]

On a closer look, I find that Entry and Exits are on different dates ! Is it correct or I have misread the sheet? If correct then it is not an Intraday system??!!!

 

[rkkarnani]

Hi Cubt,

Converting the ideal trades into real trades is the challenge. In fact, I'd go ahead and say that it is near impossible to earn from an AFL and there is a reason behind it.

Allow me to expound. It is a tough task to correctly take a large number of trades, say 500 of them. Yet, some are able to do it. Why? Because, I think, that they have only one perspective/focus. There is no distraction.

From their years of experience they are able to shut out all other conversations and know exactly what to focus on. They have learned through first hand experience of what is important and really matters.

On the other hand, one who takes a quicker route still has not developed this ability to shut out distractions, hence will surely be distracted. As a result he would do one or more of the following to render the AFL ineffective:

1. Not take a few trades after some losses. As a result he would miss the big move.
2. Anticipate an entry, and hence build up loss and add to frustration and also making it difficult to take future trades.
3. Doing ones own TA. And trying to further "optimize" the system.
4. Using real time news to do .3.
5. Being lenient on stop loss, as a result converting a small loss into a disaster.

I have experienced all of the 5, several times over (except for #5). And honestly speaking I am not sure if I'd want to go any other way.

Rgds.

:clap: Very very true !!!! :clapping:

 

[rkkarnani]

On a closer look, I find that Entry and Exits are on different dates ! Is it correct or I have misread the sheet? If correct then it is not an Intraday system??!!!

Sorry, the Title says its Swing, but I saw the Name of the Sheet as Intraday and commented ! Please carry on !

 

[HEM]

Hi Cubt,

Converting the ideal trades into real trades is the challenge. In fact, I'd go ahead and say that it is near impossible to earn from an AFL and there is a reason behind it.

Allow me to expound. It is a tough task to correctly take a large number of trades, say 500 of them. Yet, some are able to do it. Why? Because, I think, that they have only one perspective/focus. There is no distraction.

From their years of experience they are able to shut out all other conversations and know exactly what to focus on. They have learned through first hand experience of what is important and really matters.

On the other hand, one who takes a quicker route still has not developed this ability to shut out distractions, hence will surely be distracted. As a result he would do one or more of the following to render the AFL ineffective:

1. Not take a few trades after some losses. As a result he would miss the big move.
2. Anticipate an entry, and hence build up loss and add to frustration and also making it difficult to take future trades.
3. Doing ones own TA. And trying to further "optimize" the system.
4. Using real time news to do .3.
5. Being lenient on stop loss, as a result converting a small loss into a disaster.

I have experienced all of the 5, several times over (except for #5). And honestly speaking I am not sure if I'd want to go any other way.

Rgds.

Dear amit,
well said.......:thumb:
Main problem is psychological........remove it........then you can make lot of money with average AFL or method ........

HEM

 

[jamit_05]

Dear amit,
well said.......:thumb:
Main problem is psychological........remove it........then you can make lot of money with average AFL or method ........

HEM

And such a feat can happen only over time, with persistent effort and unrelenting attitude of the trader.

To do that, In my opinion, the most important thing is money management. Keep the position size very small in the first few years. Make all the mistakes and learn at a small cost. Don't get thrown out of the market. If you survive and are continuously learning, then success is only a function of time; inevitable.

 

[Cubt]

1. Not take a few trades after some losses. As a result he would miss the big move.
2. Anticipate an entry, and hence build up loss and add to frustration and also making it difficult to take future trades.
3. Doing ones own TA. And trying to further "optimize" the system.
4. Using real time news to do .3.
5. Being lenient on stop loss, as a result converting a small loss into a disaster.


Rgds.

:clapping::clapping::clapping:

Very Well Said, I have experienced all 5 when I started with Crude Oil trading. Later after reducing my position size in Nifty N Crude Oil, i was able to eliminate all the above emotions and started relying on my system completely.

The key point here, how much prepared we are to face the maximum continues loss. When we experience a serious of loss, we tend to doubt system and may stop trading for a while there by missing a big move.

If one adopts any system and as u said if we follow that system with perfect money management, definitely we can be a Winner even with a average earning system.

 

[Cubt]

Hi Cubt,

Converting the ideal trades into real trades is the challenge.

It is a tough task to correctly take a large number of trades, say 500 of them. Yet, some are able to do it. Why?

Because, I think, that they have only one perspective/focus. There is no distraction.

From their years of experience they are able to shut out all other conversations and know exactly what to focus on. T
Rgds.

Does it mean that in order to take all those 500 trades we should be focused on the system and wait for the signal to trade without any distraction?

Also, if we can automate the system where the system can itself place the orders directly then we would be able to take the maximum no of trades @ right time also we can eliminate the emotional part as well?

Pls, Correct me if am wrong.

 

[jamit_05]

Does it mean that in order to take all those 500 trades we should be focused on the system and wait for the signal to trade without any distraction?

Also, if we can automate the system where the system can itself place the orders directly then we would be able to take the maximum no of trades @ right time also we can eliminate the emotional part as well?

Pls, Correct me if am wrong.

When one says "I Should be focussed". That "should" sounds like a deliberate effort. As if he has other options, but he is putting effort to ignore them.

Whereas, the correct way is to know your trading method as the best option and hence the only option. And if there is distraction it should be little and easily overcome. Mark Douglas calls it "Being in the Zone".

You will mostly find that successful traders have their own methods. They discover "One Thing" in the price chart that works better than anything else they have come across. After sufficient back-testing he is convinced from deep inside. Then he feels no need to look elsewhere. This is how we have a marriage of a System and a Trader. But, if this marriage happens too early in his career as a trader, then it falls apart.

First, the Trader must imbibe the essential Tenants of trading, then happens the Marriage, then employing position sizing algorithms.

The last line would well take a decade to accomplish. There is no short cut.

Can automation provide a short-cut?
I highly doubt it. The "Mind" works in mysterious ways. You must have the "Mind" completely on your side. In short, be prepared to see consistent positive results only on the other side of the decade, give or take a few.

 

[sheoran1]

Dear HEM,

Its based on a Afl I recently bought

Hi, would appreciate it if you can give some insight in your system. What is it using? RSI? MA Crossover? MACD?

Also since you bought it from someone, can you point out the source of your AFL? So that we know what are the internals of this system!