Scaling Up Your Trading Business

[Nikhil Dogra]

BTW if you open a/c with Finvasia , do let them know i am doing free advertisement for them

 

[Nikhil Dogra]

Today was great in the sense i didn't over trade I need to do this often! My overtrading is what causes inconsistencies & unnecessary losses i hope i am able to conquer it in 1 year time ::touchwood::

 

[Nikhil Dogra]

EOD Homework -

Pivot is 9915
Above pivot we can trade at 9963/9982/10006
Below pivot we can trade at 9895/9875/9850

View attachment 22725

Here is how market traded relative to our levels -

Here is how i traded -

Total Trades (As per System) - 5 (4 long & 1 short)
Winning Trades - 4 (3 long & 1 short)
Losing Trades - 1(1 long)
Win Rate - 80%

Scalps In Between - 4 scalps [I need to eliminate them fully!]

 

[Nikhil Dogra]

The four quarters that make up the year :-

1. January, February and March (Q1)
2. April, May and June (Q2)
3. July, August and September (Q3)
4. October, November and December (Q4)

I would like to highlight our position sizing strategy for scaling up , contrary to traditional wisdom we will "delay" our ramping up of size each quarter i.e we will give our self 3 months time on one tier size despite being consistent in 1st month itself, the delay will ensure our focus remains on process and consistency. In our trading setups we have X size on normal trades irrespective of the underlying trend & 2X size [adding to winners] on winning trades which are aligned with our trend forecast. In our case price above pivot is "uptrend" & below pivot is "downtrend". In summary i would say

• X Size on trades irrespective of the trend
  
• 2X Size (adding to winner) on trades aligned with trend
  
• On counter trend trades we will not add to winner

In light of the above explanation i like to highlight position sizing objectives (2X/X) based on each quarter.

• Q4/2017 - 150/75 shares
• Q1/2018 - 225/75 shares
• Q2/2018 - 300/150 shares
• Q3/2018 - 375/150 shares
• Q4/2018 - 450/225 shares

 

[Nikhil Dogra]

EOD Homework:-

Pivot is 10018
Above pivot we can trade at 10042/10073/10100
Below pivot we can trade at 9928/9903/9873

 

[Nikhil Dogra]

I am done for the day, i have to work on a project for a investor/trader meetup in Chandigarh for this Saturday, moreover i also have to prepare a excel sheet trade journal

 

[Nikhil Dogra]

EOD Homework :-

Pivot is 10020
Above pivot we can trade at 10033/10046/10063
Below pivot we can trade at 9984/9970/9953

 

[Nikhil Dogra]

I have stopped trading as i broke my trading rule w.r.t position sizing , at one point i traded 5 lots or 375shares in puts and guess what... that trade lost money. As a punishment i am stopping trading while i am still ahead!

Another interesting thing i am observing is that we can set a "trade stop" at value turnover i.e. a person with INR 1 Lac can trade till INR 3Lac Turnover, perhaps its a inbuilt risk management procedure especially for scalpers/jobbers in order to avoid overtrading.

 

[Nikhil Dogra]

I have stopped trading as i broke my trading rule w.r.t position sizing , at one point i traded 5 lots or 375shares in puts and guess what... that trade lost money. As a punishment i am stopping trading while i am still ahead!


View attachment 22828


Another interesting thing i am observing is that we can set a "trade stop" at value turnover i.e. a person with INR 1 Lac can trade till INR 3Lac Turnover, perhaps its a inbuilt risk management procedure especially for scalpers/jobbers in order to avoid overtrading.

I know i know i broke the rule again by trading

 

[Nikhil Dogra]

Here is how i traded today :-

Total Trades - 8
Winning Trades - 6
Losing Trades - 2


EOD Homework :-

Pivot is 10036
Above pivot we can trade at 10048/10058/10070
Below pivot we can trade at 10012/10003/9991