Teach a Man to Fish – "Rise of Machines" version
- Thread starter ag_fx
- Start date
- Tags equity momentum systematic trading
EOD Update:
No Trade on CIPLA, TECHM, SHREECEM
HINDALCO: Long Entry around 145, Exit around 147 at EOD. 0.5:1 R:R trade
ULTRACEMCO - Long Entry saved by filter. Just barely.
JSWSTEEL,TATAMOTORS - SL Hit
INFY - No trade
M&M - short would not have triggered until 14.30. Not worthy of a short then. If you took it, it would have been a BE.
TATSTEEL - Short triggered. BE Exit at EOD.
It was a tough day for intraday trading with so much uncertainty. Sticking to system gives you peace of mind.
No Trade on CIPLA, TECHM, SHREECEM
HINDALCO: Long Entry around 145, Exit around 147 at EOD. 0.5:1 R:R trade
ULTRACEMCO - Long Entry saved by filter. Just barely.
JSWSTEEL,TATAMOTORS - SL Hit
INFY - No trade
M&M - short would not have triggered until 14.30. Not worthy of a short then. If you took it, it would have been a BE.
TATSTEEL - Short triggered. BE Exit at EOD.
It was a tough day for intraday trading with so much uncertainty. Sticking to system gives you peace of mind.
Both these were saved by filters. 0.5% of the stock price is used as a filter on breakouts.
https://www.traderji.com/community/...rise-of-machines-version.109301/#post-1420568
https://www.traderji.com/community/...rise-of-machines-version.109301/#post-1420568
EOD Summary
1. Indusind Long triggered. EOD Exit at around -0.5 R:R
2. No Trade on UPL, HEROMOTOCO,SHREECEM
3. GRASIM - Long triggered and hit SL. Lost -1 R:R
4. SUNPHARMA - Short triggered. EOD Exit around +0.5 R:R
5. JSW Steel - Short triggered. 50% Exit at +2 R:R. Rest 50% at EOD +3 R:R - Overall +2.5 R:R
6. TataMotors - Short triggered. 50% exit at +2 R:R. Rest 50% at EOD at +2.5R:R = Overall 2.25 R:R
7. Power Grid - No Trade
8. VEDL - Short Triggered - 50% exit at +2R:R, Rest 50% at EOD at +3 R:R = Overall +2.5 R:R
Overall Day - Pretty good. Markets were overall bearish and thus our losers made money for the system. Loss on GRASIM was unfortunate as it barely clipped our BreakOut Long+Filter and then turned around. But one of the cornerstone of system trading is that you stick to it. At EOD, I am not going to try and tweak it to avoid such breakouts. Because everytime I do so, I will end up skipping many good trades as well. Loses are part of the system and should be taken with ease.
One good day usually cleans up several days of flat performance. The power of this method is that it will not make you lose big on any day. And when it wins, it will win pretty handsomely.
1. Indusind Long triggered. EOD Exit at around -0.5 R:R
2. No Trade on UPL, HEROMOTOCO,SHREECEM
3. GRASIM - Long triggered and hit SL. Lost -1 R:R
4. SUNPHARMA - Short triggered. EOD Exit around +0.5 R:R
5. JSW Steel - Short triggered. 50% Exit at +2 R:R. Rest 50% at EOD +3 R:R - Overall +2.5 R:R
6. TataMotors - Short triggered. 50% exit at +2 R:R. Rest 50% at EOD at +2.5R:R = Overall 2.25 R:R
7. Power Grid - No Trade
8. VEDL - Short Triggered - 50% exit at +2R:R, Rest 50% at EOD at +3 R:R = Overall +2.5 R:R
Overall Day - Pretty good. Markets were overall bearish and thus our losers made money for the system. Loss on GRASIM was unfortunate as it barely clipped our BreakOut Long+Filter and then turned around. But one of the cornerstone of system trading is that you stick to it. At EOD, I am not going to try and tweak it to avoid such breakouts. Because everytime I do so, I will end up skipping many good trades as well. Loses are part of the system and should be taken with ease.
One good day usually cleans up several days of flat performance. The power of this method is that it will not make you lose big on any day. And when it wins, it will win pretty handsomely.
Pre-Market Levels - 12-Jun-2020
Winners:
No Winners today. It is a sea of red. Following are least beaten and could be a case of very cautious longs.
BRITANNIA
DR REDDY
NESTLEIND
INFRATEL
ASIAN PAINT
Losers:
TATA MOTORS
INDUSIND BANK
BAJAJ FINANCE
ONGC
EICHERMOT
On days like these, if you are not trading Longs, you can take more than 5 stocks in shorts. You will not be market neutral but perhaps such days of trends are where some money is made. Let's see what market does. Here is list of next 5 Losers:
6. AXIS BANK
7. TITAN
8. BAJAJ FIN SERV
9. ICICI BANK
10. KOTAK BANK
Winners:
No Winners today. It is a sea of red. Following are least beaten and could be a case of very cautious longs.
BRITANNIA
DR REDDY
NESTLEIND
INFRATEL
ASIAN PAINT
Losers:
TATA MOTORS
INDUSIND BANK
BAJAJ FINANCE
ONGC
EICHERMOT
On days like these, if you are not trading Longs, you can take more than 5 stocks in shorts. You will not be market neutral but perhaps such days of trends are where some money is made. Let's see what market does. Here is list of next 5 Losers:
6. AXIS BANK
7. TITAN
8. BAJAJ FIN SERV
9. ICICI BANK
10. KOTAK BANK
EOD Update:
What a day today. Every time you thin you know more than the market, it comes and bites you. At the Pre-open it was a sea of red and I was very bearish on the market. First 45-75 minutes in the market and I had to change my bias. But that is not the topic for this system review.
No Trades on any Losers that I expected to do well - TataMotors, Indusind Bank,Bajaj Finance,ONGC, EICHERMOT
If you took the cautious Longs:
Britannia, Nestle Ind Long triggered. EOD Exit at Breakeven or -0.25 R:R
No trade on DR Reddy
Infratel Long triggered. 50% profit at +2R:R, rest 50% at EOD at +3R:R - Overall +2.5 R:R
Asian Paint Long triggered. EOD Exit at +1.4 R:R
Overall - A Positive Day - That too from Longs!!!!!!
Lesson From today: DO NOT TRY TO OVERRIDE THE SYSTEM
Today is really an example of how hard system following can be and at the same time how rewarding can it be. There is a reason that some rules were placed in the system. The only way you can build confidence in a system is by first backtesting it, then paper trading it, then small lot trading and then main capital. This process itself will grow you a lot as a trader.
What a day today. Every time you thin you know more than the market, it comes and bites you. At the Pre-open it was a sea of red and I was very bearish on the market. First 45-75 minutes in the market and I had to change my bias. But that is not the topic for this system review.
No Trades on any Losers that I expected to do well - TataMotors, Indusind Bank,Bajaj Finance,ONGC, EICHERMOT
If you took the cautious Longs:
Britannia, Nestle Ind Long triggered. EOD Exit at Breakeven or -0.25 R:R
No trade on DR Reddy
Infratel Long triggered. 50% profit at +2R:R, rest 50% at EOD at +3R:R - Overall +2.5 R:R
Asian Paint Long triggered. EOD Exit at +1.4 R:R
Overall - A Positive Day - That too from Longs!!!!!!
Lesson From today: DO NOT TRY TO OVERRIDE THE SYSTEM
Today is really an example of how hard system following can be and at the same time how rewarding can it be. There is a reason that some rules were placed in the system. The only way you can build confidence in a system is by first backtesting it, then paper trading it, then small lot trading and then main capital. This process itself will grow you a lot as a trader.
I have tested and tried similar ORB system in stocks.
Major difference is stocks universe is all f&o stock not just NIFTY 50..
Also i selected gap of 2% and above only.
And instead of going long in gainer, i prefer to short gainer and vice versa..
Also maximum stock per side is restricted to maximum 3 ...( most of the time we wont get even 3 also) ..if more than 3 then selected stocks based on decending order in price..
Few things which i learnt from your method is filter of .5% of stock value..
In your system, unless one is automating entries, difficult to trade 10 stocks , as positions sizing based on high low will take times for 10 stocks
Major difference is stocks universe is all f&o stock not just NIFTY 50..
Also i selected gap of 2% and above only.
And instead of going long in gainer, i prefer to short gainer and vice versa..
Also maximum stock per side is restricted to maximum 3 ...( most of the time we wont get even 3 also) ..if more than 3 then selected stocks based on decending order in price..
Few things which i learnt from your method is filter of .5% of stock value..
In your system, unless one is automating entries, difficult to trade 10 stocks , as positions sizing based on high low will take times for 10 stocks
Thanks "Marimuthu" for sharing your thoughts. What you are describing is a mean reversion system and looks to be built on fundamental principles. It is also good to read that you have established non-subjective rules. The idea of this thread was to demonstrate 1 of many ways to create a systematic trading system. I wanted to highlight that challenges to making money from market is not the system - but ourselves. You are proving to other readers that how system trading could be profitable if we have the right mindset.
I am glad that filter thought was useful for you. I agree that the system highlighted here requires automation. But perhaps a lot of my research focuses on automated trading and thus I tend to research ideas that can be easily automated. Having said that, I think your idea is also easily automotable and testable. Have you ever run a backtest on it or do you trade it live?
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| G | charts in Teach A Man To Fish And | Technical Analysis | 1 | |
|
Teach a man to fish compilation(pdf) | Technical Analysis | 24 | |
| N | Teach A Man To Fish | Technical Analysis | 7 | |
| D | Help for teach a man to fish | Technical Analysis | 5 | |
| P | Attachment in the "Teach A Man To Fish And......... " | Technical Analysis | 7 |
Similar threads
-
-
-
-
-
Attachment in the "Teach A Man To Fish And......... "
- Started by psenthilhere
- Replies: 7