Trade diary-Futures only-Money at Risk less than 10L

[biswajit2040]

I have decided to open this public thread rather than private journal so as to enforce discipline on my trading habits and gather knowledge from experienced people here.
I have experience in trading market(mostly Currencies/Commodities CFD mostly) for around 5 years now but I have paused trading the same in India due to RBI restrictions. So,I plan to trade NIFTY/BANKNIFTY futures as I see trending market in near-medium term.

Strategy:
Expecting the bull market for next phase(1-2 yr horizon) unless some major trigger happens. So,Long positions will be held for days/weeks but short traders will be quick with tight stop loss. No mechanical system or HFT followed. Normal levels/zones with trend bias/fundamentals will be used for entry/exit.

Position sizing:
It will be assumed as 50L portfolio with acceptable draw down limit of 20%. So,10-15 Lakh can be risked. Rest of 35-40L will be invested in debt/bonds/FDs with expected return of 9-12%.
With 10-15 lakh,I plan to trade maximum 15 lots. As I do not have much experience in Indian markets,I will trade 4-7 lots to start with.

Risk:Major global event can cause 10% gap down.So,5 lakh is at risk at any time I ve 15 lots open in market.
Consecutive losses can cause 10-15% DD.(3-5L).

In short,I will trade 5-15 lots of NIFTY FUT with 15L as margin money with bullish bias for medium term trade. Short trades rare and will be done with narrow target profit /stoploss.

I ll post trade opens either EOD or live. But,I ll try to post closes live whenever possible.

 

[biswajit2040]

Added 4 lot LONG positions @7682 .(Previous 3 lots long from 7462) All Jun NIFTY FUTs

Total 7 lots exposure now.

 

[biswajit2040]

Added 3 lot more @7604. NIFTY JUN FUT

 

[trader_ks]

I agree with your view on bullishness but I think that without hedging exposing 15 nifty lots can put you in deep trouble. Even 1% move againt ur breakeven will cost you 15x50x70=45000.
We should always remember major crash happened in past and they happened when all fundamentals were intact and everybody was talking of bullishness.
You can keep that assumption also..

 

[biswajit2040]

I agree with your view on bullishness but I think that without hedging exposing 15 nifty lots can put you in deep trouble. Even 1% move againt ur breakeven will cost you 15x50x70=45000.
We should always remember major crash happened in past and they happened when all fundamentals were intact and everybody was talking of bullishness.
You can keep that assumption also..

I get daily swings of 30-40k on avg.
200-300 points drop I have kept in mind. But,any catastrophic event like global crash can cause more than 20% loss. I am thinking of dividing 50-50 among day and position trades. Also to cut positions thin in case of 10% drop.

 

[biswajit2040]

Plan to book profit for 5 lots at 7850 area before budget.

 

[biswajit2040]

Could not get pre-budget fill. Now,Given the strong international momentum,targeting 7850-7900 area unless international sentiments turn negative before this month's expiry.

 

[biswajit2040]

Closed 8 lot(out of 10) of positions at 7825. Net up by 1.25L.

Yesterday,US post market chart looks weak apart from recent results being weak too. Looks like we ll ve little consolidation/pullback now.

 

[biswajit2040]

Closed rest 2 lots as well @7815. Plan to take intra-day shorts with 2-3 lots.

 

[biswajit2040]

Short Banknifty July series @15518 4 lots . Target 15400-50 area depending on European market sentiments.