Sridhar's Trading Dairy

[Satya.]

@sridhga best luck,looking frwd for ur juicy trades

 

[TraderGYO]

I have a question to all - please tell me the R:R in the following scenario:

10 people bet on a horse/car race. Each of them wager 100 & can bet only once. In case a person bets on a losing car/horse, he loses his wager. In case he is the only one who bets on the winning car/horse, he gets 200. In case there are more than 1 person betting on a winning car/horse each winner would get 130.

i think the question is incomplete without the number of horses/cars.

 

[TraderGYO]

Hey,

I will try to reply to you all.
I follow ORB method
This is what I intend to do.
I choose HDFCBank May Future and Maruti May future.
I find high and low of the day by 10 am.
Place BO on the buy/sell side just above/below recorded high/low.
TP is +/- 0.5%
SL is -/+1%
I have negative RR.
Possible issues:
1. Order may not be triggered. Okay that means no loss and so no worries
2. False breakout. If volume does not support in few minutes after trigger, exit the trade, even if, stop loss not hit. This is difficult to execute.
3. Negative RR is a handicap of this system. If it does not result in better win-loss ratio/ probability, this method would be given up in 5 working days.

Any comments/inputs?

May start off tomorrow or day after.

Like many others have already said do not use this absurd R:R to trade IMO. But I would like to say good luck to your trading journey.

 

[Pradeep Narayan]

i think the question is incomplete without the number of horses/cars.

I don't think so... but you can assume 10 cars/horses in total for an ideal scenario.

 

[sridhga]

Okay Lets see.

Placed following trade orders:
HDFC Bank Sell 2019 T/SL 10
Maruti Buy 8833 T/SL 30
Nifty Buy 10680 T/SL 50
TCS Sell 3489 T/SL 15

All are May futures.

List expanded after yesterdays suggestions. Also RR is now 1:1.

Let us see how it goes.

 

[Newbie Day-Trader]

hw do u trd 1m chrt-
http://www.traderji.com/community/threads/hw-2-trd-1-min-chrt.106479/

in 1tf der r mny whips,inside bars,taily candles,so i wonder hw few ppl trd 1tf chrt

I don't claim to know everything but broadly speaking, there are two major factors that I believe cause whipsaws on lower TFs
1. Lack of a clean & strong trend
2. Lower liquidity per candle
So, what do you do? You only trade instruments that are generally more liquid, & are exhibiting clean & strong trends.

I did see your thread before you posted here but I chose not to reply there since I wasn't sure if I want to be encouraging people to be trading 1m charts since it is so much harder to do it as not only do you have to be right but you have to be right AND fast, which makes it doubly difficult, & some days, even I wonder whether I should continue doing it because it's so frustrating when you miss trades because there's simply not enough time or aren't fast enough to make the right decisions. So, I'd definitely not recommend it.

Bear in mind, I don't just trade 1m charts. As soon as the market starts, I look for 1m trades, if I don't find any or miss them then after a few minutes, I start looking for 5m trades, & if somehow even that doesn't work out then I look on 15m charts after an hour or more. I, sort of, have a fixed daily SL & TP for each trading-day, & once I reach either, I stop trading, which means I rarely trade for more than an hour after the start of the trading-session.

Nonetheless, I've posted a couple of my trades along with charts on your thread since I didn't want to clutter this thread as this place is for Sridhar's trades.

 

[Svaanikvinay]

Okay Lets see.

Placed following trade orders:
HDFC Bank Sell 2019 T/SL 10
Maruti Buy 8833 T/SL 30
Nifty Buy 10680 T/SL 50
TCS Sell 3489 T/SL 15

All are May futures.

List expanded after yesterdays suggestions. Also RR is now 1:1.

Let us see how it goes.

Hi friend sridhga, it would not be a good idea to have a Risk-Reward ratio of 1:1, least it should be 1.3 to be profitable.
The concern is that for a R:R of 1:1 to make money, we have to have a success percentage of greater than 50%, also should take into account the commissions. If the commissions are considered, then the demanding success percentage from your system would shoot up to say 55%.
The best traders in the world get 55-60% accuracy and we are then trying to match their performance to make us some money.
Hence Risk reward of 1.3 as a minimum is very basic requirement.

 

[Newbie Day-Trader]

Hi friend sridhga, it would not be a good idea to have a Risk-Reward ratio of 1:1, least it should be 1.3 to be profitable.
The concern is that for a R:R of 1:1 to make money, we have to have a success percentage of greater than 50%, also should take into account the commissions. If the commissions are considered, then the demanding success percentage from your system would shoot up to say 55%.
The best traders in the world get 55-60% accuracy and we are then trying to match their performance to make us some money.
Hence Risk reward of 1.3 as a minimum is very basic requirement.

Minimum requirement? What would you say is the maximum? I'm sorry to say but if the logic is that raising the RR from 1:1 to 1.3:1 ensures better performance then by that same logic, one'd have to argue that we should all set RR at 10:1 or 20:1 or whatever, & we'd all be winners.

 

[sridhga]

Product Instrument P&L
BO BANKNIFTY18MAYFUT -1236
NRML M&M18MAYFUT 1000
BO MARUTI18MAYFUT -1725
BO MCDOWELL-N18MAYFUT 500
BO NIFTY18MAYFUT 1083.75
MIS NIFTY18MAYFUT -292.5
BO TCS18MAYFUT 1375
Total 705.25

 

[sridhga]

It was not profitable today. Though it shows a profit of 705.25, it would be a loss after transaction charges. One major mistake, I made is to reduce TCS target when it was hovering for long time around its 0 profit for the day( price at yesterday's closing price). After I blinked, it straight went to my target as if it was just waiting for me to commit the mistake.